The main intention of this redemptive mission is twofold: the creation of a neighborhood coffeehouse, and through it, the establishment of a leadership development program. The program consists of three intermediate objectives and one final objective. The three intermediate objectives are Hard Skill Training, Soft-Skill Training, and Holistic Assessment. We will teach them teamwork, problem-solving, time management, and more. Lastly, we will address the mental, emotional, and spiritual health needs of our employees. This includes life coaching centered on addressing all aspects of their personal well-being. This will enable our trainees to arrive at the final objective of developing a solid skillset, becoming well rounded and self-sufficient, to the point that they are able to transition to long-term, sustainable employment.
Rail//Line Coffee is a work of Community Leadership and Development Inc. to reclaim, restore, and promote community renewal. It will serve as a neighborhood coffeehouse to which locals can come, enjoy coffee, and grow their relationships. We will employ at-risk youth and women from within the community. Due to the nature of our community, most of our trainees do not drive, which makes our location and mission unique. As we live and serve in South Billings, we understand the lack of economic opportunities that currently exist south of the tracks. It is our hope and goal that Rail//Line Coffee will function not only as an impetus for economic growth and stability, but also provide a practical job and leadership training program teens and women will find advantageous for furthering their own personal growth and employment opportunities.
‘South Billings’ is generally recognized as the area hemmed by rail lines running east-west through downtown; from there, south to Interstate 90, and bordered on the east and west by Interstate exits forming a distinct area of demarcation. It is home to the City/County Jail, the Montana State Women’s Prison, the Yellowstone County Youth Detention Center, and Probation/Parole Offices; CLDI recognizes that it is also home to over 9,000 persons, primarily families. The population is unique with a distinct community identity, and is arguably one of our state’s most ethnically diverse communities. While Montana is 89% Caucasian, South Billings is comprised of 27% Native American, 25% Hispanic, 8% African American and 40% Caucasian individuals. These families are served by three elementary schools plus a middle school, all of which have Title I designation.
According to US Census data (2010), the two primary census tracts where our clients are located (Billings’ tract #9.02 and tract #3.0), the median family income is $29,000 and $25,000 respectively. The median family income for the entire zip-code (59101) measures $42,986, which shows a great disparity in finances for those served by our programs. As many as 69% of these persons rent the spaces where they live compared to a city-wide ratio of just 37% rental occupancy.
CLDI is a faith-based 501(c)(3) non-profit organization that has been working since 1981 to invest in and foster transformation in Billings’ oldest and most marginalized community, the South Side. Our mission is to seek transformation through the gospel by rebuilding lives, restoring families, and re-neighboring communities. Our work has included: job-skill training for men coming out of prison; building and offering quality, affordable housing to persons in need; life-skill training and development for older teenagers and adults in order to help advance career opportunities; work with pregnant and parenting mothers to counsel them, as well as providing transitional housing to women exiting incarceration and drug abuse; and lastly, staff and volunteers to work with at-risk youth, family members, partner organizations, and schools serving the South Side. A core belief of CLDI is that all people have Imago Dei, meaning they have been created in the image of God, therefore, all people have intrinsic value and worth. Driven by this belief, CLDI intentionally engages those we serve in relationship to emphasize dignity, hope, and cast vision for living life to one’s fullest potential. We believe that through this relational investment, change is obtainable and that such change will greatly impact individuals and families, thus, communities and the city as a whole.
Mission Statement – We aim to stimulate economic growth on the South Side and provide a strategic work and leadership development program for at-risk teenagers and women.
Core Values:
Rail//Line Coffee will serve the South Side of Billings as a neighborhood coffeehouse. Within its walls, we will employ at-risk youth and women. Each employee will participate in an employment and leadership development program constructed by management. This program will serve several objectives such as providing meaningful employment, higher-wage paying jobs, skill development, and holistic coaching for the purpose of self-sustained employment elsewhere down the road.
Our youth truly desire to be involved in the mission of CLDI, and to employ them as part of Rail//Line Coffee would provide great opportunities to encourage their growth and development. This redemptive mission model can serve as a bridge between our various works, such as Youth Works (our program to serve at-risk youth) and the Hannah House (a sober home for women stepping out of addiction and to be reunited with their children) by providing an avenue of employment and job training opportunities that will not only enhance the individual, but the community as a whole. By providing intentional leadership development and job skill training for some of the women and youth we serve, it will provide real hands-on experience in business development and management, paving the way for higher-paying wages upon graduation from the leadership program.
Additionally, the building is located in a highly visible and accessible area, as 1st Avenue South serves as a central vein for those commuting throughout the various parts of the city. With the ability to include a drive-through into the building design, along with our goal to fully fund the renovation and first-year operating costs of the project, this is a redemptive mission model that has every opportunity to not only be sustainable, but lucrative.
CLDI has a reputation for undertaking projects that are not only challenging but also complicated. Due to location and local history of the gas station, one outcome will be a greater connection to the community through the provision of a local neighborhood space and aligns with the ministry and work we engage in, to restore and transform our community.
We will evaluate the success of our project’s objectives through a specific set of performance measures. Our first performance measure will be the financial viability of Rail//Line Coffee. We will measure our profit vs. loss and get an understanding to how well we are doing economically. This will provide insight into ways we can continue to save money, steward it wisely, or grow the program even more. If the coffeehouse begins to lose profit we will reevaluate and identify avenues so that we may continue the program. If Rail//Line Coffee is growing its profits, we will then look for ways to bring on more individuals or utilize our income supporting CLDI programs.
The second performance measure of Rail//Line Coffee will be a measure of how well the job and leadership development program is working for the individuals who are participating. This will be measured through employee assessments. Each assessment will cover the employee’s performance as well as provide a means to evaluate their supervisors. It will look for ways to improve the system, ways to help them individually, and ways the managers can lead better. Leadership within Rail//Line Coffee will also fill out personal and employee assessments. These assessments will help employees learn their strengths and shore up weaknesses. It will also help the managers learn where they can do better professionally. If necessary, the program will be adjusted to become more efficient.
Lastly, our final performance measure will investigate the number of graduates from the job development program who have found employment within a new business elsewhere. Through this, we will get quantitative data behind the actual number of graduates currently employed outside CLDI. Furthermore, we will follow up and collect qualitative data from employers and graduates of how their skills are being utilized and whether they see success from the program. This information will be gathered by tracking our trainees after they have graduated and have obtained long-term sustainable employment. These external assessments will be collected and combined into a quarterly report to be used as an evaluation tool by Rail//Line Coffee’s leadership.
We have established three intermediate goals and one overarching goal of our job development program. In no particular order, our first goal of success is the hard-skill training goal. We aim to teach our trainees how to be a successful barista when it comes to drink making, using espresso machines, cash management, using a point-of-sale computer, customer service, and more. This goal will be reached through the hands-on work our employees will do every day. The second goal we have established is our soft-skill training goal. This involves time management, interpersonal skills, communication training, problem-solving, teamwork, etc. Through successfully meeting this goal we will enable our employees the ability to work beyond coffee bars, as these skills translate to any job. Our third goal is to holistically assess and address our employee’s emotional, mental, and spiritual needs as they progress through the program. Through periodic evaluations, we will determine if external assistance is needed, such as counseling or other interventions. Through this, we are able to identify and address any destructive habits and enable our employees to make and embrace healthy decision making.
Our end goal for the job and leadership development program is that each graduate will have been coached and mentored with dignity and honor, training them to their own strengths and skill set, rounding them physically, emotionally, and mentality, to the point where they are self-sustainable and able to launch into the workforce.
Our Pro Forma encapsulates our project’s total costs including the land purchase and soft, hard, and other costs. In total, our project will cost $867,003. Again, we have already purchased the land and building. Hard Costs include site developments, building costs, building permits, and system development fees. This total will cost $429,789. Soft Costs include architectural/design/consulting, site analysis, civil engineering, and reimbursables. This total will cost $43,080. Other Costs include a cash contingency, real estate taxes, and insurance, title &/or builders risk. This will cost $45,134.
We have set our total Business Start-Up Costs at $219,000. This includes furniture and décor, equipment, signage and drive-through menus, and our start-up operational costs.
We are anticipating a monthly expense average of $11,329. Our estimated sales are $1,000 per day, which we anticipate being on par with the slower season of the business. This brings our monthly total income to $24,000. Subtracting our cost of goods sold, set at 30%, our monthly gross profit becomes $16,800. Finally, removing our total expenses from our gross profit, we project an average monthly net profit of $5,471, bringing the annual net profit to $65,652.
One challenge we have with Rail//Line is simply establishing the funding for this project. We are attempting to fundraise the entirety of our year-one costs in order to allow Rail//Line to become financially stable and profitable. We are confident, however, that these costs will be met through the generosity of donors, foundations, and grants. A second challenge will be the writing and development of the job protocol. We are working in collaboration with a local business who has done a similar program for years, here in Billings, so we have some help on that front. The challenge will simply be ensuring it’s effectiveness both for each individual going through it, as well as the employers who will be hiring graduates. We will continue to evaluate each person and employer as this project progresses to ensure our success.