Community Ownership and Nutritious Food Access in Philadelphia’s Historic Food Corridor
A Historic Food Landscape
South Philadelphia’s food culture is steeped in history and tradition. Since the late 19th century, the South 9th Street Italian Market has played a central role in shaping the area’s culinary identity. Founded by immigrant entrepreneurs like Antonio Palumbo, this vibrant corridor became home to generations of food vendors of fresh produce, meats, and baked goods in a uniquely communal setting. The market’s roots in local agriculture and neighborhood commerce laid the groundwork for a thriving, people-centered food ecosystem.
A Modern Chapter: The South Philly Food Co-op
Opened in December 2020, the South Philly Food Co-op carries this legacy into a new era of food access—grounded in sustainability, community well-being, and local ownership. As the only cooperatively owned grocery store in the neighborhood, it is governed by over 1,900 local member-owners who guide everything from store operations to community engagement.
The 3,000-square-foot store was made possible through critical financial support from the Pennsylvania Fresh Food Financing Initiative (PA FFFI), administered by The Food Trust. In February 2020, PA FFFI funding supported the final construction, buildout, and equipment purchases needed to bring the long-envisioned project to life. This investment enabled the hiring of 17 new employees, establishing the Co-op as both a neighborhood employer and a point of healthy food access.
Situated in a Census Tract with a Median Family Income (MFI) of just 33.01% of the Metro Area, the Co-op serves a low-income population in a formerly redlined area (HOLC Grade D). It is adjacent to several USDA-designated Low Income and Low Food Access tracts, where more than 500 residents—or over 33% of the population—live farther than 0.5 miles from a large grocery store. With a projected trade area population of 39,179 and a total surrounding population of 39,435, the Co-op plays a crucial role in expanding access to fresh, nutritious food for thousands of Philadelphians.
The Power of Healthy Food Financing
The South Philly Food Co-op exemplifies how targeted investment through Healthy Food Financing Initiatives (HFFIs) can catalyze sustainable, community-driven solutions to food insecurity. Programs like the PA FFFI—administered by The Food Trust in partnership with the Pennsylvania Department of Community and Economic Development and regional community development financial institutions—provide vital capital to food retailers seeking to open or expand in underserved areas.
This catalytic funding not only helps businesses overcome initial financial barriers but also strengthens their ability to attract additional grants, loans, and private investment, accelerating project timelines and increasing long-term sustainability. Through one-time grants and loans, PA FFFI empowers for-profit, nonprofit, and cooperative food businesses to establish grocery outlets that offer nourishing, affordable food while also stimulating local economies.
In addition to state-led programs like PA FFFI, national initiatives such as America’s Healthy Food Financing Initiative—administered by Reinvestment Fund’s FARE Fund—expand the impact of healthy food financing across the country. These programs support a diverse range of healthy food retailers, including independent grocery stores, cooperatives, farmers markets, mobile markets, and food hubs, ensuring that communities of all sizes—urban, suburban, and rural—have access to affordable, nutritious foods. Together, these efforts demonstrate the vital role that flexible, community-driven financing plays in strengthening local food systems nationwide.
Advancing Healthy Food Access
As part of its mission, the Co-op works to make nutritious food attainable for all. It accepts SNAP and, through its partnership with The Food Trust, participates in Food Bucks and Food Bucks Rx —nutrition incentive programs that help reduce financial barriers to healthy eating. Food Bucks are earned by SNAP users at the point of purchase and can be redeemed for free fruits and vegetables at participating farmers markets and stores across Philadelphia, Camden, Reading, and other regions of Pennsylvania. FBRx, or produce prescriptions, are distributed to patients by healthcare providers, further connecting food access to health outcomes and supporting low-income households in managing diet-related conditions.
The Co-op’s commitment to affordability also extends to its supply chain. Collaborating with National Co+op Grocers allows the store to offer competitively priced, high-quality goods without compromising on ethical sourcing. Additionally, community-driven efforts like the “Round-Up” program and food bag donations help address food insecurity on a neighbor-to-neighbor level.
South Philly Food Co-op’s Role in the Broader Cooperative Movement
Community ownership and resilient neighborhoods are central to the broader value of cooperatives, as highlighted by the Philadelphia Area Cooperative Alliance (PACA), whose team supported the Co-op during its crucial startup phase. PACA emphasized that food cooperatives like South Philly Food Co-op help keep wealth local, foster better working conditions, and create spaces where residents can advocate for their needs—including food access programs like SNAP, WIC, and sliding-scale membership options that prioritize inclusivity without imposing financial hurdles.
More broadly, South Philly Food Co-op is part of a growing ecosystem of cooperatives across Philadelphia—a city recognized for one of the largest and most vibrant cooperative networks in the country. In an industry often dominated by large corporate chains where profits leave the community, co-ops provide a sustainable alternative. They support local farmers, offer higher-quality produce that meets diverse dietary needs, and anchor economic development in the hands of local residents.
As PACA noted, co-ops offer communities an avenue to build local wealth, promote civic engagement, and foster economic systems rooted in equity rather than extraction. By connecting healthy food access to democratic ownership, South Philly Food Co-op embodies the broader cooperative movement’s vision: institutions that not only serve communities, but are owned and shaped by them.
Equity Through Ownership
Key to its inclusive growth has been the Community Equity Fund, which lowers barriers to ownership and ensures that residents across income levels can participate in the Co-op’s governance and benefits. This democratized approach to food retail promotes both economic empowerment and social cohesion.
The store itself is intentionally located for accessibility, situated near public transportation and key community institutions like South Philadelphia High School. This strategic placement, combined with welcoming policies for both members and non-members, underscores the Co-op’s belief that everyone deserves a seat at the table.
Realizing a Vision for the Community
The South Philly Food Co-op goes beyond the operations of a grocery store. It has and will continue to cultivate a vibrant, values-driven community hub. Staff members are compensated fairly and empowered to grow, while the organization actively partners with other local groups to promote social and economic justice. Through its food, programming, and everyday business, the Co-op aims to support a more holistic food system: one that honors cultural heritage, uplifts small producers, and prioritizes sustainability. As a participant in the PA Fresh Food Financing Initiative, the Co-op exemplifies what can be achieved when grassroots vision meets targeted investment.
General Manager: Lori Burge
County: Philadelphia County
Region: Southeast
Geographical context: Urban
Date Funded: February 2020