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 significant component of the food cooperative model is the communalization of potential profits associated with running a grocery store. In contrast to conventional models where stores are privately owned and managed by boards or individuals, in a food cooperative, both employees and members share ownership, often paying a nominal fee for membership.