As many of you already know, over the past few years David and Sue have been working to find the right person or people to take over ownership of Two Whales Coffee Shop. Throughout the process, they have been open to different proposals and models for transitioning the business to new hands. As long-time supporters of and participants in co-operatives, they are particularly interested in a co-op structure to help preserve the spirit and values of Two Whales as it moves into new ownership.
About Co-ops
Co-0ps are a way of organising and running a business—with the members in control of the enterprise. The very first co-op was set up in the UK in 1844 and the idea spread to Canada in the 1860’s and all around the world. Co-ops have a set of recognised values which serve as guidelines for all co-op organizations and their members. There are six main cooperative values:
- Self-help
- Self-responsibility
- Democracy
- Equality
- Equity
- Solidarity
There are seven standard principles for all co-operatives to follow. They help organizations flourish and operate successfully while encouraging all members to participate equally.
- Voluntary and open membership
- Democratic member control
- Member’s economic participation
- Autonomy and independence
- Education, training and information
- Co-operation among co-operatives
- Concern for community
There are many different types of co-operatives around the world and they come in all shapes and sizes. In NL there are consumer co-ops, financial co-ops (eg. credit unions), housing co-ops, worker co-ops, fishing co-ops, health co-ops and many more.
The Two Whales Convert Project
We are delighted to have a team of consultants from Flourish Community Development Co-op based in Nova Scotia working with us on this.
Two Whales is the first business to take part in the co-op convert project being undertaken by Newfoundland and Labrador Federation of Co-ops (NLFC) and the Community Sector Council—the project being financed by the Northpine Foundation and the Canadian Worker Co-op Foundation. The project we are engaged with came out of a Canadian research project called Co-op Convert which finished in 2022. The project sought solutions to the issue of the imminent retirement of many business owners across Canada (48% in the next 5 years) and potential loss of important businesses to the communities they serve.
In May, they began working with Flourish and Kristen Murray from the NLFC to develop the structure for a new co-operative to own and run the business. The initial concept saw the running of the coffee shop as a collaboration between Two Whales staff and community members. These ideas were exhaustively worked on and in the end a new structure emerged with a better and firmer footing for the Co-operative. Throughout this lengthy process the Flourish/NLFC team, Two Whales Directors and community members have met regularly to expedite a viable solution and we thank everyone for continuing to contribute their valuable time and effort.
Moving Forward
The new Co-operative structure, which will own and run Two Whales Coffee Shop, has five members – some or all of whom will be familiar to many Two Whales customers. The members are: two of the current Two Whales Directors and long-term employees, Olivia and Penny, together with three returning Two Whales employees—Jill, Carrie and Rebecca. Between them, these young women have over 40 years’ experience working at the coffee shop—Two Whales is in very capable, enthusiastic and experienced hands. The team have been working hard to adjust to their new roles and reflect on what they hope Two Whales can become. With tremendous support from other Two Whales staff, they have already begun introducing new ideas, community events, and menu items.
This is all very positive and exciting! The new Co-operative, which will own and run Two Whales Coffee Shop, is in the final stages of being put together and will be applying for incorporation in early November. The team is currently working to complete the business plan and supporting financial projections by the end of this month.
Another team of advisors from the community has emerged during this process and they are helping the new Co-operative members define the structure and write the business plan and by-laws. This group has frequent in-person meetings—a true collaborative effort! Meanwhile the current owners, David and Sue, are on hand to support this process. The role of the community at large has not been defined at present, but the new team is looking forward to working with their community to understand how Two Whales can support the long-term sustainability of the area and its people.
New Co-op is incorporated
The new worker co-operative that is to run Two Whales Coffee Shop has just been incorporated. The transition of the business is underway and should be completed by late December/early January. The new team is busy with setting themselves up for the 2025 season.
Updated: 12 December 2024