Social shops are becoming increasingly popular
While affordable food chains are only now being planned in major cities around the world, in Budapest, the Angyalföldi Social Association has been operating social stores for three decades, where customers can access basic food at purchase prices. The nonprofit model not only offers a cheaper alternative, but also creates jobs – including for workers with disabilities, writes Pénzcentrum.
The “poor store” that also builds community
There are now three social stores operating in Angyalföld under the management of the Angyalföldi Social Association (ASZE). These do not offer basic food at purchase price through donations, but through a social economic model, in cooperation with local governments.
The system is membership-based: anyone who is a resident of the district and purchases a card that costs 1,200 forints per year can buy. This not only provides discounted shopping, but also community membership.
“Here they know who I am. I am not just a customer, but someone they know,” a retired regular customer told the Cashtag staff, who believes that personal contact and reliability are at least as attractive as low prices.
Employs 70 people – producing human value instead of profit
The Association currently employs seventy people, including forty-five workers with disabilities. In addition to the ASZE shops, there is also a sewing shop and a workshop, which provide stable jobs for those involved in social employment.
However, maintaining the model is a serious economic challenge: the minimum wage increase, inflationary pressure and the reduction in subsidies have a sensitive impact on operations.
According to Lászlóné Kautzky, the president of the Association, the system could not survive without local government cooperation:
“If we do not receive targeted support, we will be forced to reduce the number of employees.”
A social model that not only survives, but also inspires
While in other countries – such as the United States – the idea of an urban, affordable grocery store network is just becoming a campaign promise, in Budapest it has been a reality for 30 years.
Social stores do not operate on a charitable basis, but on a self-sustaining economic model: revenues cover maintenance and wages, not profit.
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