Rubicon Bakery is deservedly famous for its 12-layer chocolate cakes and other rich confections that generate some $2 million annually in sales. Each sale helps underwrite job training and other programs for poor and disenfranchised people. This social enterprise works wonders for the 4,000 people in the San Francisco area that Rubicon Programs reaches annually with its bakery and landscaping businesses, along with its housing, mental health, legal aid, and other social services. But for those who are down and out in most other communities, chances are slim of finding the same kind of help.
After 23 years at the helm of Rubicon Programs, Rick Aubry has decided it’s time to take “the next big leap forward,” and design social enterprises that can succeed on a national scale. “Most social enterprises have remained local or at best regional,” he says. Goodwill Industries and the Salvation Army are rare exceptions, both using a thrift shop model that’s more than a century old.
Figuring out what those national solutions might look like is the task facing Rubicon National Social Innovations. The best fit for scaling, Aubry predicts, will be a sustainable idea that fills a widely occurring need. Similar to for-profit franchises, these new enterprises will enjoy the benefits of a national brand, but will still rely on local champions.
One of the first projects launched by Rubicon National is mattress recycling. Getting rid of 40 million used mattresses annually poses a huge environmental problem in the United States, but labor-intensive recycling doesn’t pencil out for bigname mattress manufacturers, who are also not interested in piecemeal solutions.
For the nonprofit sector, however, mattress recycling makes great sense as a new source of job training for the hardest-to-employ populations. Pilot programs are under way in Philadelphia and San Jose, Calif., with a nonprofit partner in each community providing training.
Another idea aims to compete with payday lending. To better serve the “unbanked” market that’s paying exorbitant interest rates, the Emerge Loan Program will work with employers to offer affordable short-term loans, plus financial education, as an employee benefit.
Read more stories by Suzie Boss.