A key aspect of the food cooperative model is the socialization of potential profit associated with running a grocery store. In a typical food production model, a store is owned by a company, which is in turn managed by either a board of directors and shareholders if the company is publicly owned, or a collection of private individuals if it is not. A food cooperative, in contrast, is directly owned by both its employees and its members, people who shop at the cooperative and who typically pay a nominal fee for joining.
A crucial element of the food cooperative model is the communalization of potential profits related to operating a grocery store. In a standard food production setup, a store is owned by an entity that may be managed by either a board of directors and shareholders if publicly traded, or by private individuals otherwise. Conversely, in a food cooperative, ownership is shared between employees and members who shop there and typically pay a small membership fee.