A Natural Convenience Store

Business Plan
January, 2016

Introduction
Awareness by American consumers of the importance of going green has become a
conscious way of life, presenting a unique opportunity to create a model of natural food
convenience stores to provide earth-friendly edible food and other goods. Todays busy
lifestyle in which there is not enough time in the day means that convenience truly matters,
leading to the unique concept of an all-natural convenience store.

The organic and natural food industry is a large and popular one that continues to grow with
every passing day. In the organic industry, the range of competitors includes chain and
independent supermarkets; mass merchandisers and super centers; wholesale clubs;
restaurants and fast food chains; natural food stores; local farmers markets, and internet
grocers. Global growth of organic agriculture has gained much popularity, which continues to
accumulate attention. The reason for that is simple: this industry can be a profitable,
sustainable business for those producers interested in going through the certification process
necessary to enter this market. Organics have grown at a rate of nearly 20 percent per year
for the last seven years, and industry experts are forecasting continued growth. One study,
undertaken by the Organic Trade Association, surveyed industry leaders about the trends in
organics and where they saw the next 20 years taking them. They forecasted that the
everyday use of organic products of all kinds will be both accepted and routine by the year
2025. (1)
Market growth is expected to continue to be strong; currently in the U.S. it is a $32 billion
industry subset of the $450 billion conventional food industry. Without question, the organic
food industry is experiencing hasty consolidation but it still faces immense competition in
these upcoming years from supermarkets that are falling into the organic trend.
(2)

Lenard Kritchman, the founder of Kanpassion Corporation, has the knowledge and
experience in marketing and product selection within the natural foods industry, finding and
developing the right locations and generating profits.
Lenard owned and operated a natural food store and caf in Hawaii from 1998 to 2008,
increasing revenues from $600,000 to $6 million. He built from the ground up a second store
and caf, reaching annual sales of $3 million by 2005. The two stores in Kapaa and Hanalei,
Kauai, Hawaii are indications of the potential of Quick n Green a Natural Convenience Store.
See (http://papayasnaturalfoods.com/.)
Over many years in the industry, Lenny has seen a dramatic increase in sales of the many
and varied product lines that make up the natural products industry and thus the change in
the product offerings in traditional grocery stores. He has also seen the grocery and natural
food store conglomerates, through mergers and acquisitions, move from being local to being
global.
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With the intention to shrink a natural foods supermarket to 2000 square feet or less and
only offer the top selling items by department (grocery, refrigerated, frozen, organic wine
and beer, non-foods, snack foods, prepared foods, health and beauty aids), while educating
the consumer about the green lifestyle and its benefits to the overall well-being of the
individual, \across the country Quick n Green will become the neighborhood/community
convenience store with a conscience.
Lenard lives the natural life and deeply cares about our world and its people. As the
business grows, a percentage of net profits shall be invested in each stores community.

Executive Summary
Kanpassion Corporation is developing Quick n Green convenience stores to be the 7-11 of
natural foods. Quick n Green stores will create and fill the niche for highly convenient inand-out natural food stores. Quick n Green will carry only the top selling items in grocery,
refrigerated, frozen, organic wine and beer, non-foods, snack foods, prepared foods, and
HABA (health and beauty aids) chosen as to specific area demographics. No highly
perishable items, a minimum of employees. Stores will be kept to 2000 square feet or less.
Not to mention Lotto, News Papers and anything else you would expect to find in a
convenience store.
What will make the Quick n Green shopping experience so gratifying will be the convenience
of the location, paired with the ability of the consumer to purchase natural or organic core
items such as bread, milk, butter and eggs. In todays world, convenience truly matters.
The natural food industry has enjoyed explosive growth for over a decade. Whole Foods and
Wild Oats, the giants in the industry, merged in August 2007 to become what some have
called a monopoly. Many medium-sized independent natural food stores have been unable to
compete and have closed. What has not happened is the emergence of smaller, more
convenient stores. This is the natural progression of the industry and Quick n Green
convenience stores will be the first, the leader of this new movement. People do not want the
stress and frustration associated with the superstore. An alternative to this is a more
personalized and condensed shopping experience. Quick n Green can offer this.
With the popularity of organic food rising, it is only a matter of time before neighborhood
markets and other food retailers start stocking up on organic products. However it will still be
awhile before supermarkets start fully to engage in stocking entire sections of organic food.
Currently most supermarket has at most an aisle or two of organic and natural foods. The
selection in supermarkets is very limited providing fully organic retailers advantage in this
area.
As private label and/or intense price competition arrive in the natural food industry market
place, costs will decrease-a positive for Quick n Green, as more and more people accept and
embrace the natural lifestyle-another positive for Quick n Green, however, the desire for
convenience will continue unabated. Competition is good for Quick n Green, a simple but
very unique concept. Quick n Green is not trying to beat all of its competitors on price but
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when it comes to convenience they will be unstoppable. In a world where there is not
enough time in the day, convenience matters!
Quick n Green will be the convenience store with a conscience. This specialized industry
requires a strong commitment to a green lifestyle that incorporates a desire to educate the
consumer about the personal benefits realized through a green consciousness. Once
educated, consumers understand that they can truly make a difference in their lives by what
they eat and they can positively affect the environment by the products they use.
Quick n Green will start in Manhattan, New York on a city block that has a very large amount
of foot traffic. Quick n Green will be small, clean, friendly and efficient. Through promotional
events in the local community including live music, giving samples of our products away and
educational booths by our natural/organic vendors; personal, educated assistance will be a
hallmark of Quick n Green. Every segment of the population is a targeted customer; green
consciousness does not differentiate according to age, race, or religion.
No doubt the Quick n Green customer will have to go to the supermarket for its large
shopping requirements but for the other numerous times a month that just the basic core
items are needed Quick n Green will have everything at hand.
A directive from the White House is making funds available to small businesses that provide
healthy alternatives to consumers. On Tuesday, October 26, 2010, President Obama
announced an initiative to spur growth, bolster hiring and free up credit for small businesses:
a new $30 billion small business lending fund created from bank bailout money. The farreaching nationwide campaign titled Lets Move calls for a myriad of initiatives that target
what the First Lady calls the four pillars: Getting parents more informed about nutrition and
exercise, improving the quality of food in schools, making healthy foods more affordable and
accessible for families, and focusing more on physical education.

Investment Capital

Quick n Green is seeking to raise a minimum of $500,000.00. These funds will be used to
establish 2 Quick n Green locations within one years time. There are multiple ways to enter
the natural convenience store marketplace and these are the top three strategies used for
rapid growth. The first is to purchase a business that is up and running. The benefit to this
approach is that we are producing a profit from the get-go and because of this; it will be used
for our initial entrance point. The second way is to rent a closed down convenient/grocery
store location, and the third way is to rent a vacant location. Although there are three
different and unique paths for Quick n Greens rapid growth, location, location, location will
be the deciding factor. Proceeds from the Quick n Green stores will be used to find more
locations to expand.
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Strategies and Objectives

Quick n Greens main objective is to establish a reputation of convenience. We will always
provide the most popular, natural and healthy core items. These high quality items such as
milk, eggs, cheese, coffee and toilet paper, as well as fresh breakfast, lunch and dinner
meals to go will be available at all times. We will promote a healthy, green lifestyle. We will
use e-commerce as well as traditional marketing tools to attract the local community. Quick
n Greens core management team consists of three individuals whose experience and past
successes in the natural food industry and retail business can establish trusted relationships
with top-notch quality vendors to provide these core items. Their ability to get a business up
and running quickly, and educate and fulfill customers needs, will lead to a strong, trusted
and continuing relationship within the community. Quick n Greens plans for products like
quality organic bulk and fresh brewed coffee will help us stand out. Our plans for signature,
top quality and tasty tofu hot dogs, veggie burgers and tempeh sausages will be found at no
other stores in the business. Managements anticipation of trends and creative marketing
ideas coupled with their ideas for Quick n Green signature products will help lead to quick
potential growth and market recognition.
Quick n Green will create, update and maintain employee training manuals ensuring the
people we hire will be trained properly so they can provide, fast, friendly and a consistently
educated shopping experience to our customers. They will be able to provide information,
when necessary, on the benefits of living a green lifestyle.
In a nutshell, the green lifestyle is one that is educated about eating healthy, organic foods
and is active in caring for the environment and community at large. Quick n Green will be
the convenience store with a heart and will eventually be more active in the local
communities we do business in by giving back through fun promotional events, young
entrepreneur mentoring programs at Quick n Green stores as well as our support and
involvement in local youth sport and exercise activities.
Through successful growth and growing market share Quick n Green plans to continue to
open new stores in appropriate locations in each community on city blocks, free standing
buildings, strip malls and eventually gas stations. Quick n Greens efficient and fast start up
ability will make it ideal for numerous locations and opportunities.

Plan of Operation
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Quick n Green stores will be open 7 days a week from 6:00 am to 10:00pm.
Quick n Green will serve organic coffee and breakfast foods, lunch and dinner offerings with
snacks, all of our foods organic and/ or natural all the time.
For ease of operation there will be one main distributor United Natural Foods, Inc. or
UNFI. UNFIs story parallels the story of the natural and organic product industry in the
United States. It begins back in the 1970s when consumer interest in natural foods began
to blossom. Across the United States, small regional distributors sprang up to meet the
needs of the growing market. These pioneers operated on a vision, entrepreneurial spirit
and a shoestring budget. Over the years these smaller distributors grew into larger
distributors. Business expanded as the need to meet demand for natural products
increased. In 1996, two regional distributors combined forces to form United Natural Foods,
Inc. Mountain Peoples Warehouse based in Northern California and Cornucopia Natural Foods
based in New England were the first two members of the UNFI family.
Eventually, Quick n Green will have one centralized kitchen that will make all organic
products and prepared foods for its stores. The company will change the way people view
fast food, serving organic and natural breakfast, lunch and dinner foods. All prepared to go,
saving the customer time and providing convenience for their busy lifestyle.
Quick n Green will initially contract with a supplier of organic products and prepared foods.
To provide our daily fast and natural food selection we will use the services of The Whole
Earth Bakery and Kitchen located at 130 St. Marks Place in New York City, New York. We are
in talks with them regarding our signature products. (www.wholeearthbakery.com)
Food offerings shall include apricot fruit bars, berry blast bars (no gluten), poppy seed
strudel, sticky cinnamon raisin buns. Vegan soups, broccoli cashew cream, carrot coconut,
corn chowder, green split pea. More substantial entrees to include eggplant parmesan,
seitan stroganoff, lentil stew, vegetarian chili. Sandwiches (tofu, tempeh, avocado), fakin
bacon (vegetarian), lettuce and tomato, burritos made with beans, rice, tofu, tempeh and
seitan. There will also be organic brown rice and steamed vegetables as a staple,
condiments consisting of nutritional yeast, Braggs and Spike.
Twice a week there will be deliveries from the primary distributor and everyday deliveries
from the prepared foods supplier.
There shall be one cashier on duty at all times and one store manager.
Quick n Green stores will have bulk coffee bins, gondola shelving for groceries, eight doors
of refrigerated and frozen merchandise and a peanut butter machine and an almond butter
machine. Each store will sell organic flowers when available.
Quick n Green stores will have all products at all times on the POS system enabling the
tracking of sales and inventory and to monitor theft. This system will generate many
different reports that yield statistics on every product from top selling items to products that
need not be ordered again.
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Each store will also have Internet cameras with recorded twenty-four hour cycles and an
alarm system.
Each store shall have stained dirt colored concrete floors to exemplify the mother earth,
wooden gondola shelving, and a wooden checkout counter.
Quick n Green stores will open with a street fair of vendors giving free samples and
educating the consumer. These vendors shall include Imagine Foods, Newmans Organics,
Knudsen soda and juices, White Wave tofu, Rainbow Light Vitamins, Toms of Maine, Food for
Life and Sunridge Farms. Quick n Green stores will always be educating and helping the
community. A community bulletin board will also help communicate the green consciousness
by publicizing green events happening within the community. Quick n Green will be the 711 of natural foods with a heart.
Daily operations include one bank drop, accepting, stocking and rotating inventory, making
coffee, and setting out snack and prepared foods. Each store will have kiosk with a touch
screen computer screen connected through the Internet to a company named Aisle7
(www.2.aisle7.com) that will provide the most up to date health and lifestyle information.
The most important aspect of Quick n Green stores are the company core values and
culture.

Our Customers:
Consumers are at the heart of the companys business. The company is committed to
listening to them and acting responsibly in their interests. A Marketing Code of Practice shall
ensure that the company continues to meet its responsibilities to consumers through four
guiding principles:
1. Accurate and truthful
2. Attentive to local sensitivities
3. Supporting sensible consumption and a healthy, balanced lifestyle
4. Protecting children
Our employees:

Each store shall employ one manager and 4 cashiers/stockers. Two cashiers will split Monday
through Friday and two will split the Saturday and Sunday shifts. Managers shall earn
between $60k to $80k per year and other employees an hourly rate of between $9.00>

$12.00 depending on skills and amount of time employed by Quick n Green. Revenues and
Expenses are detailed in the financial projections. Initially, all employees are to be trained by
Mr. Kritchman. He will create an employee handbook that outlines what is expected and also
create an operational manual for all jobs.

Competitive Edge
The convenience of being able to stop, pick up those natural food/non-food core items, get
the early edition of the newspaper, bet the lotto and be back in ones car in five minutes is a
very strong selling point. Quick n Green will be saving valuable time for todays busy
consumer.
Quick n Green will be involved in the day-to-day happenings of the local community. The
companys philosophy is to think and act locally, not globally. Every Quick n Green store will
be staffed by personnel educated on the benefits of a natural lifestyle.
Weekly inventory will consist of the most popular core items in each natural foods
department, Quick n Green will also provide the other reasons to stop at a convenience
store like picking up a newspaper, magazine, lottery ticket, coffee and/or prepared to go
breakfast, lunch and dinner foods and drink. Offerings will include organic wine and beer,
toilet paper, diapers, acidophilus, Echinacea, toothpaste and deodorant.

Mission Statement
The mission is to go where no Health Food Store/ Convenience Store/Coffee Roasting
Businesses have gone before. This Retail Hybrid breaches 3 separate industries, each
generating hundreds of billions of dollars. Quick N Greens intention is to bring these 3
Industries into one store. Quick N Green will carry ONLY the top-selling natural foods
products coupled with our own proprietary food and coffee. QnG also falls under The First
Ladies Initiative Lets Move and with the government - By transferring, through legislation,
$30 billion to a new program that would be distinct from TARP, the Administrations proposal
would encourage broader participation by banks, as they would not face TARP restrictions.
Anyone who wants to own a Green Business will have the opportunity. {Franchise}

Management
Lenard Kritchman
Lenard Kritchman, the company founder, will manage Quick n Green on a day-to-day basis.
He brings years of experience in the retail natural foods industry to this business venture.
The retail grocery industry is in Lenards blood. He grew up in the business working in his
fathers grocery locations in the Bronx, Harlem, Queens and Port Chester, New York. Lenard
worked with his father in these stores from the age of eight to 15 when the stores were sold.
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Graduating from Rollins College with a major in psychology and a minor in business, Lenard
moved to Marthas Vineyard and took a job as Social Recreation Director of The Marthas
Vineyard Boys and Girls Club. A year into the job, Lenardss wife Jessica got island fever and
the couple moved to Vermont.
It was in Vermont just north of Burlington that Lenard truly began living the natural lifestyle.
He rented a small organic farm that was off the grid and tried his hand at farming. The
vegetables were given away to local food banks. Just before their first child was born, the
Kritchmans moved back to the New York metropolitan area. Mr. Kritchman took a job
managing the largest salt and fresh water aquarium in White Plains, New York. He worked
there for three years until the company changed hands.
Lenard reentered the retail grocery industry as manager of Rositas Meat Market in Lake
Park, Florida in February 1994. He helped to turn this venture into a very busy and profitable
operation. Lenard worked there with his brother and father until he saved enough money to
again follow his heart. Being a vegetarian yearning for a more earth-friendly occupation, it
seemed the right progression to go into the natural food business.
Lenard moved to Kauai, Hawaii and purchased Papaya's Natural Foods and Cafe in Kapaa,
Hawaii. The store was grossing $600,000 a year. After two years under leadership the store
was grossing over $6 million a year. This was achieved by changing the pricing structure,
advertising, creating departmental managers, implementing a POS system, writing an
employee handbook and operational manual and hiring the correct employees needed for
rapid growth.
Lenard built and opened a second store in Hanalei, Hawaii in June of 2003. After three years
this store was grossing over $3 million a year. The Kapaa store is 6,700 square feet and has
over 50 employees. The Hanalei store is 3,400 square feet and has over 30 employees.
Lenard was the sole owner and operator of these two stores.
These impressive numbers resulted from focus and diligence, developing product mix and
new product lines, and restructuring the pricing index. Hands-on management played a very
important part in properly serving the public and aided with the expansion of the business.
Lenny truly believes in the natural lifestyle, a belief, which has helped him to be centered,
directed and adept at developing the simple but unique concept behind Quick n Green.
Lenards key skill is to get a store up and running quickly with minimal investment and to
make a profit from the beginning.
He also has the ability to manage people in a way that makes them feel good about
themselves and in return they are more productive and want to educate and be educated.

Jayme Kritchman
A seasoned team-spirited, and results driven individual, Lennys brother, Jayme Kritchman
has an uninterrupted career record of more than 15 years in the retail grocery business. He
has expertise in increasing revenues, market share and bottom line performance. He studied
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at West Virginia Wesleyan with a major in business with an emphasis on business

administration. It was in college that Jayme gained proficiency with many different computer
applications, including Microsoft Word, Excel and QuickBooks. He is also well versed in POS
systems and has full knowledge of what it takes to bring a stores different products on line.
When a stores entire inventory is entered into the POS system, the store is considered to be
on-line. Jayme directed and orchestrated the successful startup and growth of Oxtails &
More (www.oxtails.com), a retail meat and fish market in West Palm Beach, Florida. The
store now generates over $5 million in annual revenue. Jayme manages this store and is
well versed in purchasing, hiring, training and scheduling. His skills also include impulse
sales, OSHA training, safety, sanitation, liability and workers compensation law. Jayme also
designed and implemented a comprehensive security system, including video cameras to
reduce and help to eliminate theft and pilferage. He is a team player who has the
experience and ability to manage multiple store locations. Jayme will be Quick N Greens CFO
and be responsible for all accounting applications including payroll, check writing, daily
totals, taxes, price changes and maintaining Quick N Greens POS system. He will also be
reporting directly to investors.

Matthew Delaney
Matt
brings a lifetime of forward thinking, successful business acumen, environmentalism and a
commitment to healthy living to Quick N Green. From his days as Vice-President of sales at
Knutsen coffees, a pioneering green coffee importer/exporter, to owning his own specialty
coffee roasting business, Matt has dedicated his business practices towards bringing
innovative organic, fresh and convenient products to customers.
Lenard R. Kritchman

While growing up in New England Matt was influenced at an early age towards
environmentalism by an uncle who had dedicated his life to preserving the environment.
After majoring in environmental sciences at Rollins College, Matt moved to Berkeley,
California to pursue a music career. He lived with his brother, a pioneer in life extension
through calorie restriction. Like many working musicians, trying to make ends meet, he
found himself holding down a number of jobs including a position at seminal Berkeley pizza
joint, Blondies. It was here that he learned all aspects of the restaurant business soon rising
to store manager, and then general manager of a new Blondies in Concord, CA.
Two years later Matt moved to the Big Island of Hawaii where he worked as a hand-line
Yellow Fin tuna fisherman, papaya packer and held two positions as field laborer on an
organic ginger farm and organic banana plantation, later becoming a sale representative for
the later.
In 1996 he moved back to San Francisco and through a family friend found work at Knutsen
Coffees, Ltd. It was at this job that Matt found a true passion and natural talent towards
discovering, identifying and roasting great coffees.
He was fortunate to train under Erna Knutsen herself, the first female coffee broker in the
United States and the woman who coined the term specialty coffee. Matt started from
filling samples for customers to Vice-President of Sales within 3 years. It was at Knutsens
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that Matt learned what truly specialty coffee is all about. He spent countless hours after
closing roasting and cupping (tasting), learning to distinguish each countries and regions
profiles developing and refining his palate. This labor of love resulted in Matt being
designated as a Master Cupper by the Specialty Coffee Association of America.
During Matts 7 years at Knutsens he increased the companys organic offerings from three
origins to twelve. He had yearly sales in the millions and continued a course in educating his
customers on the intrinsic value and benefits of organic, fair trade coffees.
He eventually successfully managed over two hundred accounts, controlled warehouse
inventory and travelled throughout Central and South America searching out fine coffees.
Later Matt went on to own Coast to Coast roasters, an on line specialty coffee company and
also put out several records of roots rock music. Through a lifetime of dedication towards
professionalism and customer service Matt has been able to be successful at all his personal
and business endeavors. He believes Quick N Green will be the culmination of a life
committed to healthy living, public education and community service.

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Market Analysis
The practices associated with organic agriculture and organic gardening has been around in
one form or another since the point in history when people stopped hunting and gathering
and took up farming as a means of subsistence.
The production of organic food and the utilization of organic agricultural and organic
gardening practices ultimately became overtaken by the industrial approach to crop
cultivation and farming. The industrial style advocated the utilization of synthetic or chemical
herbicides, insecticides and fertilizers for the production of crops. By the 1950s, the
industrial agricultural scheme gained predominance in many countries the world over,
including the countries of North America and Europe. The belief was that the use of chemical
treatments in the process of cultivating crops and growing animals for consumption was
efficient and a proper course to enhance agricultural production. However, in the early
1970s, some agricultural experts came to realize that the chemicals that were being used in
the treatment and production of food products were having a seriously negative effect on
both the environment and on peoples health. At that point in time, according to the
documented history of organic food/agriculture, a sound movement began whereby an evergrowing number of people the world over began to recognize the benefits of eating organic
food.
Initially, a small number of people took up organic gardening for their own purposes. In time,
small-scale organic farms began operation. Today, there are some large-scale organic food
enterprises producing all types of organic food and related products in many countries
around the world.
In contemplating the future of organic food/agriculture, most industry analysts believe that
organic agriculture is destined for significant expansion over the course of the coming 20
years. Observers believe that more and more people in different points the world over will
come to understand the benefits of organic food, including higher nutritional value than
many traditionally grown, raised or produced food items, better taste and improved
appearance. Organically grown foods contain significantly lower levels (ideally, none
whatsoever) of chemical toxins commonly found in traditionally grown, raised or produced
food items.
The retail market for organically produced food is growing at a rate of 20%
annually. Increased concern about the link between chemical food treatments and a number
of health problems has been largely responsible for this rapid growth. While organic food
producers are certainly ecstatic about the growth of the industry, increased consumer
demand for organic food creates somewhat of a dissonance between the small-scale farming
ideals of the original organic farmers and the large-scale production needs of modern organic
farmers. As consumers continue to demand the more healthful food products of organic
agriculture, only time will tell how the organic farming movement will respond. In the end,
organic farming will likely succeed only if it stays true to its founders original ideals of
healthy soil, healthy animals, and healthy food. (3)
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U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $24.8 billion
in 2009. Sales in 2009 represented 5.1 percent growth over 2008 sales. Experiencing the
highest growth in sales during 2009 were organic fruits and vegetables, up 11.4 percent over
2008 sales. (4)
Organic food and beverage sales represented approximately 3.7 percent of overall food and
beverage sales in 2009. Leading were organic fruits and vegetables, now representing 11.4
percent of all U.S. fruit and vegetable sales. (5)
Organic non-food sales grew 9.1 percent in 2009, to reach $1.8 billion. (6)
Total U.S. organic sales, including food and non-food products, were $26.6 billion in 2009, up
5.3 percent from 2008. (7)
Mass-market retailers (mainstream supermarkets, club/warehouse stores, and mass
merchandisers) in 2009 sold 54 percent of organic food. Natural retailers were next, selling
38 percent of total organic food sales. In 2008, mass-market retailers represented 45 percent
of sales, while natural food channels represented 43 percent of sales. Other sales occur via
export, the Internet, farmers markets/ Community Supported Agriculture, mail order, and
boutique and specialty stores. (8)
Certified organic acreage in the United States reached more than 4.8 million acres in 2008,
according to updated data posted by USDA. U.S. total organic cropland reached 2,655,382
acres in 2008, while land devoted to organic pasture totaled 2,160,577 acres. California
leads with the most certified organic cropland, with over 430,000 acres, largely used for fruit
and vegetable production. Other states with the most certified organic cropland include
Wisconsin, North Dakota, Minnesota and Montana. Forty-five states also had some certified
organic rangeland and pasture in 2008; of those, 13 states had more than 100,000 acres
each, reflecting the growth in the U.S. organic dairy sector between 2005 and 2008. Certified
organic cropland acreage between 2002 and 2008 averaged 15 percent annual growth.
However, it still only represented about 0.7 percent of all U.S. cropland, while certified
organic pasture only represented 0.5 percent of all U.S. pasture in 2008. Overall, certified
organic cropland and pasture accounted for about 0.6 percent of U.S. total farmland in 2008.
Although a small percentage of major U.S. field crops are grown organically, organic carrots
represented 25 percent of total U.S. carrot acreage, while organic lettuce represented 8
percent of all lettuce acreage. Fresh produce is still the top-selling organic category in retail
sales. Meanwhile, the organic livestock sector has seen growth, with 2.7 percent of U.S. dairy
cows and 1.5 percent of layer hens managed under certified organic systems. (9)
Acreage managed organically in 2008 in the world totaled 35 million hectares farmed by
almost 1.4 million producers in 154 countries, according to data from The World of Organic
Agriculture 2010. Organic agricultural land area increased in all regions, and was up nearly
three million hectares, or nine percent, compared to 2007 data. Of the total area managed
organically, 22 million hectares were grassland. In addition, 8.2 million hectares were used
for cropland. The regions with the largest area of organically managed land are Oceania
(12.1 million hectares in Australia, New Zealand, and surrounding island states), Europe (8.2
million hectares), and Latin America (8.1 million hectares), according to statistics in a
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chapter by Dr. Helga Willer. The report also recorded 31 million hectares that are organic wild
collection areas and land for bee keeping. The majority of this land is in developing
countries. (10)
Meanwhile, according to Organic Monitor estimates, global organic sales reached $50.9
billion in 2008, double the $25 billion recorded in 2003. (11)
For a food to qualify as organic it must meet the standards of the USDAs National Organic
Program standards, first implemented on October 21, 2002. Organic food is defined by the
production practices that cannot be used. According to the USDA, organic foods are produced
without using most conventional pesticides, synthetic fertilizers, or sewage sludge, and they
are processed without using ionizing radiation. Production of organic foods must also be free
from genetically modified organisms. Organic poultry, eggs, meat, and dairy products must
come from animals that were given no antibiotics or growth hormones.
In addition, a public or private organization must verify whether a certified organic grower or
processor meets or exceeds the defined organic standards. These standards include:
1. Prior to certification, the land must be free of prohibited substances for three years.
2. A certifying agency annually inspects farm/processor operations.
3. Farmers and processors must keep detailed records of organic practices.
4. All farmers and handlers are required to maintain a written organic management plan.
When farmers have complied with these standards, they can label their products as
having met organic standards by using the Quality Certification Services Label.
THE QUICK N GREEN LIFESTYLE IN A CONVENIENCE STORE CONCEPT
The U.S. convenience store industry has 144,000-plus stores that account for more than
$624 billion in sales.
Convenience Stores Offer More Convenience: Convenience stores offer speed of
service to time-starved consumers who want to get in and out of the store quickly. These
shoppers recognize this channel of trade for its convenient locations, extended hours of
operation, one-stop shopping, and grab-and-go foodservice, variety of merchandise and fast
transactions.
US Convenience Store Count: The number of convenience stores is 144,541 as of
December 31, 2009, a decrease 0.2 percent. This is the second straight year the count has
declined and only the fourth time in the last 15 years that the industrys store count has
declined. The count also declined in 1994, 2003 and 2008.
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Foodservice at Convenience Stores: While convenience stores have offered fresh,

prepared foods for years, it is only over the last decade that the trend has accelerated. The
result is that stores have continued to evolve from gas stations that happen to sell food to
restaurants that happen to sell gas.
Beer Sales: Nearly 80 percent of convenience stores sell beer, accounting for nearly onethird of all beer purchased in the United States, about 93 percent of which is sold cold. In
fact, the U.S. convenience store industry sells more than 2 billion gallons of beer a year
roughly one-third of all the beer purchased in the Unites States.
Candy Sales: Candy is a high-impulse item in convenience stores. In fact, many shoppers
(49 percent) report that their candy purchases were unplanned, according to global research
firm Envirosell.
Coffee Sales: More than three out of four adult Americans say that they drink coffee either
daily or regularly, according to the National Coffee Association, and convenience stores are
one of the preferred destinations for coffee drinkers. Consumers stop to buy coffee more
than they fill up their cars, providing convenience stores with a great opportunity to build
loyalty and repeat sales.
Technology: The integration of technology into convenience stores continues at a fast pace.
Over the past decade, the convenience store industry has gone from being a technology
laggard to a technology leader in using new technologies to deliver convenience.
The natural/organic industry is growing year after year at a double digit pace.
The consumer is realizing the life benefits of eating and using natural products for all parts of
their daily lives.
The not enough time in the day-convenience truly matters and has become a way of life.
Combining the above into a unique concept for merchandising not only natural products but
educating the consumer and giving back and helping people within the local community
means a win-win to the bottom line, a win-win to sustaining the environment and a win-win
by helping people and a win-win to expanding an overall healthy lifestyle. (12)

Summary
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Phase 1

Find two proper locations to begin

Finalize contracts for the properties

Renovate the location to specifications to house the different core natural products

Anticipated Completion Date: June, 2011

Phase 2

Hire, educate and train employees

Develop marketing plan for the local community

Start advertising

Develop e-commerce opportunities

Anticipated Completion Date: September, 2011

Phase 3

Begin marketing campaign through media outlets, magazines and targeted

publications to each specific client group

Market through web commerce (Google, Facebook, etc.)

Develop relationships and key contacts with the many companies in the surrounding
community

Opening day discounts and other get to know me offers

Open for operations

Anticipated Completion Date: November, 2011

Phase 4

Develop and implement new marketing strategy to capture new business and exceed
goals outlined in the initial business plan

Consider expansion and franchising opportunities

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Anticipated Completion Date: On-going

Competitive Landscape
Price is the dominant factor of this industry. The cost of organic food is the basis of its
competition because there is no substitution for organic food. It either is or it isnt. With that
being said, the following are estimates of percentages of sales at retail:
Natural foods retailers 37%: Super naturals 10%: Supermarkets 28%: Multi-level
marketers 16%: Other (practitioners, mail order, etc.) 8%.
Clearly organic food retailers are on top right now but supermarkets are slowly closing in, as
the organic trends grow stronger in U.S. society. Better than 75% of current natural food
consumers purchase their natural products at conventional supermarkets. Supermarkets
offer relatively lower prices than those organic food retailers and so consumers base their
purchase on price. With supermarkets offering organic foods they develop their own store
brand natural foods thus once again giving consumers low prices for basically the same
product. An example of what is being stated is as follows:
The larger and more mature supermarket players have natural product private label for
commoditized packaged product. Krogers private label organic aseptic soymilk has retailed
for as low as 99 in the Cincinnati marketplace. In the Northeast, Trader Joes has sold
private label and branded aseptic soymilk for $1.49 to $1.69, and Whole Foods sells its
private label at $1.45 and branded starting at $1.79.
Because there is no difference in organic food, price is all consumers really look for when
buying their products. In a way, the organic food industry is a game of price and who can
attract the most consumers with the best competitive price. This will become more and more
of problem for the organic industry as these supermarkets begin putting more organic
products on their shelves.
With food and other items that are free of pesticides, preservatives, sweeteners, and cruelty,
Whole Foods Market knows more about guiltless eating and shopping than most retailers.
The world's #1 natural foods chain by far now that it has digested its main rival Wild Oats
Markets -- the company operates about 295 stores in 38 US states, as well as in Canada and
the UK. The stores emphasize perishable products, which account for about two-thirds of
sales. Whole Foods Market offers more than 2,400 items in four lines of private-label
products (such as the premium Whole Foods line). Founded in Austin, Texas, in 1980, Whole
Foods Market pioneered the supermarket concept in natural and organic foods retailing.
The natural and organic food industry is one that is seeing growth and will obviously
continue to see more growth as the years go by. This growth is, like mentioned earlier,
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bringing about a lot of new competition, but none (besides Whole Foods) has that large of a
market power base. Thus far Whole Foods is the largest organic food retailer and has done a
remarkable job of staying on top. Whole Foods relies on buying out its competition: so far,
Bread & Circus, Fresh Fields, Merchant of Vino, Mrs. Goochs, Bread of Life, and Wellspring
Markets have been absorbed. The only competitors that remain are dozens of small natural
food co-ops which have been able to parry Whole Foods advances by emphasizing their
community ownership and because they can survive on smaller margins.
Threats of new entrants are a major concern for the natural and organic food industry. If
regular stores and supermarkets start picking up on organic food, the organic food industry
will see a struggle. After all, if a popular store like Walmart completely picks up on offering
organic food, then Whole Foods will definitely see a decline. Walmart is able to offer lower
prices and is already a large retailer so it would have no problem stealing organic food
consumers from Whole Foods.
The threat of substitute products is not something that the organic food industry needs to be
entirely too worried about until the point where supermarkets will carry full lines of organic
products. Essentially there is no other food substitute for organic and natural food so the
only thing this industry has to worry about is organic brand substitution.
The main cause of substitute threat would be the lower costs being offered by other brands.
If stores like Walmart and Shoprite start to offer organic products under store brand names
then that will definitely take some consumers away from solely organic food retailers, like
Whole Foods. What does this mean for Quick N Green, a Natural Convenience Store?
Additional market entrants mean more opportunities for Quick N Green.

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Footnote

(1) Source: Organic Food Trends 2010

(2) Source: National/Organic Industry Outlook 2010 by George Southworth

(3-6) Source: Organic Trade Associations 2010 Organic Industry Survey

(7) Source: U.S. Department of Agricultures Economic Research Service

(8-11) Source: The World of Organic Agriculture: Statistics & Emerging Trends 2010

(12) Source: National Association of Convenience Stores: Industry Resources 2010

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