Truck Turns Food Desert Into Oasis

This is well meaning but I'm not so sure about the potential for financial success. Most Indian reservations have a supermarket. The problem is, they don't seem to be doing much in sales and therefore suffer the issues of a low volume store. Motivated shoppers will drive 60 miles to Walmart.

Urban areas really don't have food deserts. Except maybe New Orleans where politics keeps grocers out rather than invite them in. They just don't have a chain grocery store. Politicians don't like to acknowledge independent grocers as supermarkets. I'm working on a project in Detroit where I was told there are no supermarkets. I know better; there just are no chain supermarkets. However, the Nash Finch, Supervalu, and Spartan independents would disagree with the politicians as there are dozens of $100k plus per week small supermarkets in the area.

David Livingston, Principal, DJL Research

My first thought is that it probably isn't scalable.

It all comes down to finding the balance in population density. Too few (or scattered) people and the cost numbers start skewing the wrong way. Too many people and you start running out of product.

I think of the old produce trucks that used to cruise the city when I was a kid. They always erred on the side of going deep with selection rather than wide, but invariably if you lived at the end of the route they represented a badly diminished value to you on the best days.

Ryan Mathews, Founder, ceo, Black Monk Consulting

I think it's a great idea, and I hope they've got some kind of redundancy built into the refrigeration units.

Now, do I think it's a money-maker? Maybe not. But I think it's an awesome service to the communities.

Paula Rosenblum, Managing Partner, RSR Research

Ryan remembers the vegetable trucks in the city.

I remember the JFG Coffee man in his black station wagon visiting the farm once a month. He sold other things besides coffee occasionally--but the JFG logo was on the car.

We must salute the Schneider's for putting their efforts where their heart is. But $4 gasoline is not going to make this a viable business model on a for-profit basis. That doesn't mean it isn't a wonderful idea though.

Ben Ball, Senior Vice President, Dechert-Hampe

I probably stand alone in my position that this is a good idea and can make money.

I don't believe that every business in this country that provides a service has to be regional or national to be profitable.

I'm looking at business through a new lens these days. It seems that we as a country are in the midst of fundamental shifts in paradigms. Demand for, and supply of, local products are increasing. Economic vitality is depressed, wealth has been significantly diminished and consumer confidence in our economy has been shaken.

I don't believe that the formulas of the past are, by default, the models by which we can judge new ventures such as MoGro. Perhaps MoGro, as a typical large scale operation, isn't scalable. However as a local business serving a local need there may be room for hundreds of such operations around the country.

There are fixed costs to owning a brick and mortar store just as there are to a mobile store. Its value as a small business and the living it provides to a community and that business should not be judged by how scalable it is, or how relevant it is as a big business.

It is American entrepreneurship at its best.

Charles P. Walsh, President, OmniQuest Resources, Inc

There is a reason some neighborhoods lack fresh food grocers: people don't buy them! Putting fresh foods on a truck is not going to change that. Unfortunately, healthy eating is not just about access, it's also about education and lifestyle. "Junk food" companies have done a great job selling to low income Americans, health food companies and governments haven't. The tipping point starts in schools and awareness campaigns. If the demand exists, you won't need to drive the goods around a truck to sell them.

Fabien Tiburce, President, Compliantia, Field Audits & Task Management

I'm going to out cynic our usual resident cynics today: as soon as I see the word "sustainable" my interest drops about 65%; follow that up with "empower" and it barely registers a pulse. I wish them well, but this seems like an ultra high-cost model that isn't even viable as charity, let alone as a profitable business.

'notcom'

What an intriguing idea. While the example is on an Indian reservation, this had light bulbs going off in my head. I had been shocked to find that in the urban/suburban area in which I live that there is a food desert. I have so many grocery store choices that I could not believe the data. However, when I did some research I found that there is indeed an area, very close to where I live, in which there are no grocery stores. I have a car and drive so I have access to lots of choices. However, if I had to rely upon public transportation and lived in the food desert area I would, indeed, not have access to grocery stores without traveling a long distance. However, since the distance is not that far, a mobile unit would not have far to travel and could bring a store to the people without a lot of difficulty. This might be an opportunity for addressing the lack of grocery stores in urban areas.

Camille P. Schuster, Ph.D., President, Global Collaborations, Inc.

This concept is working in emerging markets around the globe. Multinational companies are entering these regions, including India, China and others to distribute products previously unavailable to the consumers there. It is long overdue that we do the same efforts here in the US.

Ralph Jacobson, Global Consumer Products Industry Marketing Executive, IBM