SLO County city has wanted to open a co-op for a decade. Why's it taken so long?
After ten years of recruitment efforts, the Paso Food Co-op has reached 80% of its membership goal — but it can’t open until the community buys in.
That’s what Paso Food Co-op board member Kermit Komm said, who’s seen the process through the past few years.
Right now, the co-op has 390 members that have pledged to support the proposed local grocer, but it needs 500 to actually come to fruition.
Komm said he’s the 180th member.
“It’s been more than 10 years, so it has been a long process, but that’s actually not unexpected or strange with cooperatives,” he said. “Part of the reason we’re trying to get to 500 is because those members will form the core of our customers and for our demographics and population in the greater Paso Robles area, we will basically almost be guaranteed success.”
A food cooperative is a grocery store that is democratically controlled by its members — its primary objective being to provide produce that’s sustainably sourced and keeping local money local.
Komm said an operation like this helps local farmers that can’t compete with production rates of mainstream grocers.
“If you look at the history of cooperatives, they go back hundreds and hundreds of years, different things in different times, and people in the community working together for the community,” Komm said. “That has been our big goal, is to work with local farmers and producers to provide an outlet for them. The best way to think about it is like it’s a farmers market every day, where we’ll have local produce and goods.”
What’s the hold up?
Unlike big corporations that can move in anywhere with private investment dollars, a co-op is just like it sounds — cooperative.
That means it needs its community to collectively buy in to the idea. But convincing people to invest money into a concept that’s not yet built can be difficult, Komm said.
So for the past decade, Paso Food Co-op members have been relying on social media and public meetings to spread the word about the vision — and they are willing to put in the time, Komm said.
“We want a core of our 500 members so when we actually put capital into a store and stock the shelves, we’re going to have customers, and enough customers to make sure we’re successful,” he said. “So it’s a little different. I mean, a lot of businesses will start on a hope and a prayer, or they’ll just find a market and try to grow into it.
“There are co-ops that have taken 20 years to open. It depends on the population and the way it works.”
This first stage of the recruitment process is the most difficult, Komm said. But once the co-op is an actual, tangible place, that’s when the memberships typically come streaming in, often doubling within the first two to three years of operation.
Co-ops success in SLO County
If approved, the Paso Food Co-op would be the second grocery cooperative in San Luis Obispo County, following the SLO Food Co-op located at 2494 Victoria Ave. That cooperative has been in operation for nearly 50 years and started in a garage, according to its website.
The local grocer, established in the mid-1970’s, has proven its popularity with a reported 1,700 members in April 2025.
The SLO Food Co-op did not respond to The Tribune’s request for comment.
Komm said the SLO location is excited about the potential North County grocer, though.
“We’ve had several meetings with them, and they’re very supportive of us,” Komm said. “A few years back, they did their ‘Two for Tuesday’ thing, where they donate 2% of their sales, and so we’ve used those a lot of the money that comes in primarily either advertising or promotion type things.”
And if there are two co-ops in the county, Komm said this benefits both locations’ ability to buy non-local produce in bulk from organizations like the National Grower’s Co-op.
“You can’t grow bananas up here, so if the members want bananas, we’ll have bananas. It’s not limited,” he said. “Working with the SLO Food Co-op, part of the reason they want us to open is to give both of us a little more volume purchasing power. Obviously, the more you buy, the better price you can get, so having a couple locations here in SLO County provides access to the population, and we’ll get hopefully better deals.
How much does a membership cost? What does it entail?
A membership to the cooperative costs a $300 one-time payment per household, or members can opt to pay in monthly increments of $25.
That total price not only includes a membership, which can include discounts and other benefits, but also buys one share in the company — and one share equals one vote when it comes to co-op matters.
Votes can be used in a variety of ways, Komm said. If the store makes a profit, members vote what to use that profit toward, like opting for a personal dividend or reinvesting it back to the grocery for new supplies or refrigerators.
What comes next?
The Paso Food Co-op is in its first phase of many, Komm said. But once 500 people buy in, the company could look toward establishing a home with the help of its members.
“We’ll start a capital campaign and that capital will determine how big our store will be, and then from that, obviously we’re going to have to outfit it with refrigerators, freezers, shelving, lighting and point-of-sale things,” he said. “So all the nuts and bolts of actually running the store — hiring grocery manager to bring with it.”
For more information about the Paso Food Co-op visit pasofoodcooperative.com.
