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What you need to know before starting a supermarket franchise in India

Supermarket franchises can generate good profits in India because of how versatile this business is. In urban areas and metros, a one-stop shop that offers people all the groceries they’ll need will prove to be very useful. This sector is picking up pace in India and will likely witness expansion in the upcoming years. Anyone can get a supermarket franchise, but knowing how to run and grow your business will be crucial. That’s why we’ll cover all the essential details you’ll need to know before you start franchising in this sector.

What parameters to consider before investing in a supermarket franchise?

The supermarket franchise business, although profitable, is very competitive. So, you’ll have to decide on brand selection, advertising, product range, and overall progression carefully and correctly. Your business will do well if you hit these parameters right on the spot. Here’s a list of what you’ll need to decide before starting a supermarket franchise. 

Business model

Supermarket businesses are very tweakable. So, you can design your business model however you want. Whether you want single ownership or a business partner is up to you. However, each type of ownership comes with its own merits and drawbacks. Hence, choose wisely. 

After figuring out the ownership, you can move on to its economics. The kind of look and aesthetic you want for your business will determine the initial investment. So, factor in the supply costs and other ones to have a good idea of the capital you’ll need. Business model selection is crucial because it’s challenging to remodel in the later stages and can cause heavy losses. So, having a good business model that is profitable and manageable in the long run is the best thing you can do for your supermarket business. The supermarket business is a relatively low-cost option in the franchising world. However, be well aware of your financial responsibilities from day one to get the picture clear. 

Location selection

Specifically for the supermarket franchise business, this factor holds significant weightage. After setting up your business, you’ll need to set up logistics channels, and selecting a suitable location helps with the task at hand. A supermarket should ideally be in a very easy-to-locate spot with a decent environment. This is to drive in customers easily and stay practical from a logistics standpoint. There are several tools you can use for selecting your desired location. The internet can be just the tool you need for details like this. Look for sites that list these kinds of information and go from there. 

Finalise product sourcing

Building a good brand value boils down to having a fantastic product range and quality. The whole idea of supermarkets stands for range and convenience. Customers should be able to find everything they need without much effort at your supermarket. So, having the best and most reliable vendors will work favorably. Remember that even though product quality is of prime importance, you should never forget the cost part of the equation. Look for suppliers with competitive pricing and product diversity, and try to get the best deal.

Hiring the right people for operations

Whether you operate in a FOFO model or not, you’ll need to employ people at some point if you offer home delivery of groceries. Your delivery system should be online ideally to ensure there’s no chaos and that operations run smoothly. If there’s a delivery system, you’ll need to set up a convenient payment method for both you and the customers. Decide everything beforehand, so everything falls into place without much trouble when you launch. 

Read More: What it takes to build successful cafe franchise?

Attractive perks of starting a supermarket franchise

Every sector comes with its pros and cons. However, the supermarket sector, in particular, has several things that give it an edge. Let’s look at some of them.

Most stores are self-service based

Interacting with customers when necessary and assisting them in their shopping experience is one of the tasks of supermarket employees. However, most of the time, the customers serve themselves, and no extra input is required. The staff hired is mostly for delivering groceries and handling cash registers. In that sense, having a supermarket franchise business operates on a self-service basis because all items are elegantly displayed for customers. 

The convenience brings back customers 

The whole point of going to a supermarket is its diverse product range and the availability of all things under one roof. This one-stop-shop experience is of great convenience for customers. Every month or week, people need more or less the same items, and a place offering everything they need is bound to keep them returning. Sometimes, some exotic or premium ingredients are unavailable in local markets but readily available in supermarkets. This works favorably for those who are in the supermarket business. 

High demand and recession-resistant

There will always be consumers for groceries because these are necessities and not luxuries. So, market demand is almost always high. Even when specific industries underperform, this sector gives reasonable returns because it’s impossible for people to survive without buying groceries. Supermarket businesses cover a large customer base, giving beginners the best chance to squeeze their break-even time and maximize their ROI. No significant economic losses happen in this sector, even during a recession. So, investing in a supermarket franchise can be great for entrepreneurs starting their own businesses. 


Now that you know all there is to learn about starting a supermarket franchise, you’re ready to kick-start your business. Besides what we’ve detailed here, studying market trends, updating the product range periodically, and keeping a watch on your finances will be helpful. Only a well-informed entrepreneur can be a successful one. Utilizing all resources available at all times should be your mindset to chase the growth and expansion of your franchise business.


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