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How To Set Up A Grocery Store Philippines

It is a great idea to set up a grocery store in the Philippines. This is especially true If you live in an area with almost no competition, as a grocery store can bring you a good chunk of income .

But how do you set up a grocery store in the Philippines? What are the processes and steps needed? Additionally, are there any tips for opening a grocery store in the Philippines?  Fear not. This will all be covered today.

The Philippines has a population of over a hundred million. Therefore, the market for consumer goods is significant, especially for everyday needs such as food. They also provide ease to the public and have many other perks that convenience = profit.  

Let us go through each stage of opening up a grocery store in the Philippines.

Table of Contents

How To Set Up A Grocery Store In The Philippines?

Step 1: plan your business.

After researching the grocery store industry in the Philippines , you need to create a clear plan . This is highly important to be successful in any business.

It can guide you on the specific needs of your grocery. You can also explore new business aspects, such as starting a grocery store Philippines online. 

The following are some types of business ownerships common in starting a grocery store in the Philippines:

Sole Proprietorship:

Sole Proprietorship means that you own and operate your grocery store alone. When you set up a grocery store in the Philippines without any partner, you have more freedom in the structure and control of your business. There are also lesser restrictions from the government.

The disadvantage is usually less financial support and capital to set up a grocery store in the Philippines. In addition, you will also have less protection against personal liability. For example, you might have to sell your properties if you end up not being able to pay your debts.

General Partnership:

This means you have two or more people as co-owners of your grocery store in the Philippines business. Unlike a sole proprietorship, you and your partners are both responsible for personal liability. Therefore, you do not need to exhaust all your assets if the business is not a success . 

If you consider this when starting a grocery store in the Philippines, you and your partner should agree on the investment you will contribute.

You may also need to assign different responsibilities to the company. For example, how to divide the shares of income and losses must be decided to successfully set up a grocery store in the Philippines. 

Your business plan should have your method of securing funding sources. Regardless of the type of business ownership, you have to have secure sources of money.

Aside from the traditional method of a bank loan, you can make use of your savings. Your family, friends, business partners, and government offices can also help you set up a grocery store in the Philippines. 

As for the amount you need to spend in starting a grocery store, it depends on the area size of your store and the variety of goods you want to sell. (More on the specific amount below) …Buying by the case,  the prices are around 500 to 1000 pesos. If you have a budget of 500,000 pesos for goods, you can have around 300-400 kinds of items in your store. This variety is good enough for your customers to choose and come back again. 

In making a business plan, there is no single formula or format. However, one tool that may help you is our free downloadable PDF/WORD template for a business in the Philippines, which you can download below.

Step 2: Legal Side Of Opening A Grocery Store In The Philippines

At the time of writing, Below is the list of requirements needed to open up an official business in the Philippines.

To sell specific items in your store (for example, alcohol), you may need additional requirements that have not been stated below. This is why we would recommend speaking to your attorney concerning your individual products/services.

• Registration form from DTI or SEC
• Baranggay clearance
• Community tax certificate (cedula)
• Contract of lease or land title
• Zoning clearance
• Sanitary permit
• Environmental permit
• Fire permit
• Occupancy permit
• Public liability insurance
• Outline of the location

You need to get these licenses and permits from your municipal or city hall to operate your store. There are step-by-step procedures that will guide you in processing, as each area may operate slightly differently.

It would be best if you also went to your barangay, BFP, PNP, sanitary department, and PNP as a business owner.

Getting a good and reliable accountant will be beneficial when you are setting up a grocery store in the Philippines. Accountants can help keep track of the government’s regulations and laws, such as the payment of taxes. (If one is missed, there may be a penalty to pay) With the help of an accountant, you can also keep your records on the track and avoid related problems in the future.

Step 3: Find The Best Location

Where to set up a grocery store in the Philippines is a highly important factor. Finding the perfect location needs a much more thorough consideration. You may need to think about the population, visibility, competition, neighborhood, and the number of customers needed to break even. 

If you live in a large subdivision, you can choose a location near the subdivision’s gate because many people shop there when they see a grocery store in this location. But overall, the choice is yours. There may be a much better location in your area.

It’s a good idea to remember that customers will go to the nearest grocery store if they see more attractive shopping opportunities. Additionally, the distance from them to the store is also a  benefit of their shopping experience. 

Step 4: Find The Essential Equipment

You may need to determine the type of items you sell first before deciding what equipment to get. For starters, you will probably need the following:

• For Perishable Goods, Refrigerators, And Freezers
• For Displaying Products, Display Cases, And Shelves
• For Customers’ Use, Baskets, And Pushcarts
• A Cash Register That Has A Machine For Processing Credit Cards

The equipment is essential to the success of starting a grocery store in the Philippines. Your main goal is to make sure that different goods are available to your customers and preserved well (especially for drink and food commodities).

Therefore, picking the right refrigerator size, for example, is crucial. You may also need to make sure that the drinks and frozen goods have proper storage, and they should be easy to access by customers. 

Step 5: Searching For Suppliers

After deciding on the equipment for your grocery store, your next concern is where to get the products from. Owners tend to get stocks from distributors directly. 

A reliable and robust network of product distributors is needed to ensure enough stocks in setting up a grocery store in the Philippines.

Companies such as Unilever, Nestle, Fortune Cigarettes, and Procter & Gamble supply the wholesalers through their distributors. When you purchase from them in bulk, you can get significant discounts or be given credit terms. Another advantage is that the shipment is hassle-free because the goods will be delivered to your grocery store. 

You also have the option to make a contract with the wholesalers. You can visit Suy Sing Commercial for more information. Sometimes, they offer more affordable goods compared to distributors. They also deliver for a minimal amount. However, one downside is that you will need to pay in cash. 

Step 6: Hiring Employees (If applicable)

This is one of the critical parts of setting up a grocery store in the Philippines. Just like other successful businesses, you have to hire the best people.

Your staff should know how to interact with different kinds of people. For example, customer service plays a significant role in your store. They also have to be trustworthy enough to be handling money. 

Aside from hiring a security guard, installing a CCTV is also highly recommended. Again, this is one of the best store investments.

A unique hack is hiring or training people to help customers decide what to buy! Although online marts have appeared, many still prefer going to physical stores because they want someone to assist them in purchasing. 

Individual services an edge if you put up your grocery store in the Philippines. When your employees make an effort to help your customers and try to know them, your customers will be willing to pay more. (Halo Effect). 

Step 7: Marketing & Adverting

Beginning at the shelf level is where you can begin advertising your grocery store. Therefore, when you set up a grocery store in the Philippines, the placement of your items is vital. 

Placing the fast-moving items on the bottom shelf means the customer has to bend down to get them. Placing them on eye level will free up more space to avoid double or triple product handling.

Putting high-profit items on eye level is always a recommended tactic. It doesn’t matter if you want to place the fast-moving items on the bottom shelf or the shelves at eye level. You may need to remember to be consistent. Also, the positioning of the items must be logical.

You can use a variety of advertising methods. For example, there is a trend where businesses are promoting their grocery stores online by posting on social media and including exclusive discounts as they find this reaches more people with less effort.

If you have an extra budget, you could design a business website wherein customers can learn more about your grocery store and your products. You may be surprised by how much attention you get when you advertise online. 

Step 8: Stop….Start….Continue. …

At this stage, you are at the completion stage of setting up your grocery store in the Philippines. You are now hopefully in the process of earning a profit, but what comes next?

The Stop, Start, and Continue method is a great idea to apply to any new business.

In this section, you will need to look at all areas of your business and analyze what processes/operations you will need to stop. For example, perhaps there is a particular product or a system that is losing money? Stopping these things in a business is critical, no matter the business age.

In this section, it is recommended to start to look at what you as a business owner can introduce into the grocery store. For example, is there a new product range we need to start? Is there a new promotion that needs to be applied? Or perhaps a new shopping experience which would attract more customers? In other words, what things can you start today that will positively impact your business and your profits…

Lastly is the continuous stage. In this section, you will focus on business areas that need to be continued to bring success to the business. These three processes are very efficient when opening a grocery store in the Philippines as it allows you to see the business from a different perceptive.

How Much Does A Grocery Store In The Philippines Cost?

There is no set fee when it comes to the cost of setting up a grocery store in the Philippines, as frustrating as it sounds. This is because the area, providers, supplier, and size impact the price; however, as an estimate ….

To open up a small grocery store in the Philippines would cost up to 1 – 2 million pesos, including a survival budget. On the other hand, opening up a large grocery store in the Phillippines could cost anywhere from 5 -15 million pesos.

You could initially lower costs by employing your family, starting with a tiny store or opening an online grocery store. However, as a business owner, it is best to analyze the pros and cons of each of these options.

Extra Tips to Set Up A Grocery Store in the Philippines

1. know your target market.

It is beneficial to know the people who will be potential patrons of your grocery store. Therefore, observing the people you see in and near the area where you plan to put up your grocery store business is helpful. 

You can see the people who will likely buy in bulk, their type of income, and what they would buy. This will make your planning easier and more effective. Studying the target market makes any business one step closer to success. 

2. Grand Opening Promotion

Once everything is set, it is time to open up for business officially. Do not cut back on your advertising efforts. Grocery stores cater to different kinds of people, so the demand is steady.

That is why it is a good idea for the promotion to be widespread. But, of course, you do not always need to do this regularly (but it does help) because when your store has established its name, the marketing will occur naturally.

3. Keep Your Customers Coming Back

Putting a lot of effort into marketing, customers will be curious enough to drop by your grocery store.  However, leaving something to last is a different story.

This can mean discounting certain items in your store whenever there is a holiday. If you have competition such as 7/11 – SM, etc., try to know what they are doing and do something different. 

4. Be Innovative

If you want your grocery store in the Philippines to stand out, you have to know how to innovate. It would help if you offered something that other grocery stores do not have.

You can try to entice customers with the presentation, creativity, price, and a lot more. You need to try to come up with unique and profitable ideas.

To set up your grocery store in the Philippines apart from the rest, you can try starting with any of these:

• Coffee Vending Machine
• Hotdogs, Burgers, Or Any Snack Stands
• Siomai Kiosk
• Milk Tea Or Shake Stands
• Bread Such As Toasted Siopao, Donut, Chocolate Cake

There are just a few add-ons that are great when you are just starting. First, you do not have to pay a lot. Thus, these are profitable but straightforward ideas that can bring more people to your store. 

5. Think Of Your Grocery Store Design 

You will usually see meats and produce displayed along the perimeter with the dry goods at the center in a traditional store layout. However, you do not need to follow this kind of layout if you wish.

It would be best to make sure that the cases and end aisles in your store are pleasing and attractive. No one wants to shop in a wild place. Product placement is essential.

Although there is no single way to do it, make sure that your set of shelves is consistent. For example, don’t try to mix and match horizontal and vertical shelves. 

6. Know The Problems And Challenges You May Encounter

Difficulties when starting a business are inevitable, especially when setting up a grocery store in the Philippines. Therefore, you can anticipate any problems so that you can plan on how to take action.

Bad relationships with your supplier, key employees getting sick, underpricing of some items, and failure to do tax planning properly are some of the possible problems and challenges you might face.

7. Do Careful Inventory Management

If you tend to overlook inventory management, you could lose a lot of money. An excessive supply of products can be a waste when they become contaminated and unsellable.

Nevertheless, you do not want to have a few stocks of products. You could have a bad reputation of always running out of items. As a result, customers might assume that you do not have the products they need and not return them to your store.

You could use MS or Google spreadsheets to do your inventory and determine the items you often have to restock. 

8. Be Active In Your Community

You can connect with your community by sponsoring events or having food bazaars. You can also work together with your local government to give out food that you might discard but is still edible.

To simplify, know, and listen to what your community wants. Maybe, the people in your community want to buy homemade products. You can be successful with your grocery store business in the Philippines if you know what your community needs.

Setting up a grocery store in the Philippines Conclusion:

Finally, we hope that this guide and the additional tips on how to set up a grocery store in the Philippines will help you. Remember that customers love to see new things and innovation, so creativity is a strong weapon.

Do not be afraid to take risks. By following the steps and pieces of advice, you can attract more and more people in no time. Setting up a grocery store in the Philippines is not easy, but it can be very profitable and lucrative for many years to come with the right management and plan.

More Tip Opening A Grocery Store

• Start small. Unless you have a specific strategy, it’s often best to open a small grocery store in the Philippines and grow/scale in stages.
• Choose the most accessible location. One of the biggest benefits to customers is accessibility. Choose a location for your grocery store that is best for your customers
• Fully research the market and the risks. When opening a small grocery store in the Philippines, research can save you a great deal of time, effort, and money.  

Grocery Store Philippines Warnings

• Spend time on the maths. For example, how much profit can you make when opening a grocery store in the Philippines? What are the start-up costs when opening a grocery store? Hiring an accountant or a financial advisor is often recommended in the early days of business.
• Don’t copy the rest. Many grocery stores are established in the Philippines. Why will a customer choose your store? Is it the price, the location, or the service? Go your own way in business, and don’t be afraid to innovate.
• Hire the most appropriate staff. Staff hiring is important. Can you trust the staff in your new grocery store? You may wish to spend extra time finding the most qualified staff.

Resources & References

• Business registration https://www.dti.gov.ph/negosyo/business-registration-and-permits/#:~:text=Registering%20a%20business%20name%20and,DTI%20Regional%20or%20Provincial%20office .
• Sari Sari store https://businessdiary.com.ph/3635/how-to-register-tiangge-and-sari-sari-stores-with-the-philippine-business-registry-pbr/
• Grocery store business plan https://www.businessplantemplate.com/grocery-store-business-plan-template/
• Retailer trade act https://www.chanrobles.com/republicactno8762rules.htm#.YrKfKHZBzIU
• Consumer act https://www.chanrobles.com/republicactno7394.htm#.YrKfU3ZBzIU

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A Guide to Building Your Own Mini Grocery Store From The Ground Up

In the Philippines, a mini grocery store is a small, neighborhood convenience shop. These shops are renowned for carrying a variety of products, including household supplies, food, beverages, and other essentials.

For people who want to launch their own business ideas with no investm ent and risk, opening a mini grocery store can be a successful business option. So, if that's what you're looking for, you've come to the perfect place!

In this blog, we'll provide you a detailed how-to on opening your own mini grocery shop, outlining the important elements you should think about, the actions you need to take, and the typical difficulties you might encounter.

Whether you're an experienced business owner or just getting your feet wet, the advice and encouragement in this article will help you open and run a successful grocery shop. Let's get to work and make that grocery business a reality!

Why Start a Mini Grocery Store?

For a number of reasons, little grocery stores are a preferred business model in the Philippines.

• Compared to other businesses, opening a micro grocery shop requires a comparatively cheap initial investment. Starting small and expanding your business over time as you make more money is an option.
• A mini grocery store's cheap operational expenses make it a profitable business model.
• Customers find little grocery stores to be very convenient because they are readily available and provide a variety of products that meet the essential needs of the neighborhood.

Important Things to Think About Before Opening a Mini Grocery Store

• To ensure the success of your mini grocery business, you must take into account a number of important factors. These consist of:
• Location : Your mini grocery store's location is essential to its success. Select a location that is close to your target audience and is close to a lot of other businesses. Take into account elements including the neighborhood's demographics, the level of competition, and the likelihood of foot traffic.
• Inventory : You should carefully choose your mini grocery store's inventory to fulfill the needs of your target clientele. Choose your inventory based on the demand in your area for specific products. Additionally, it's critical to keep a healthy supply of your best-selling items on hand and to constantly rotate your stock to keep it new.
• Marketing : Your mini grocery store's success depends on marketing. To draw clients and market your company, think about utilizing a variety of marketing techniques like leaflets, posters, and word-of-mouth advertising. Social media channels can also be used to spread the word about your store and reach a larger audience.
• Legal needs: It's crucial to make sure you have taken care of all the legal procedures before opening a mini grocery shop. This entails registering your firm, receiving all required licenses and permissions, and abiding by all relevant rules and laws.
• Location: Your mini grocery store's location is essential to its success. Select a location that is close to your target audience and is close to a lot of other businesses. Take into account elements including the neighborhood's demographics, the level of competition, and the likelihood of foot traffic.
• Inventory: You should carefully choose your mini grocery store's inventory to fulfill the needs of your target clientele. Choose your inventory based on the demand in your area for specific products. Additionally, it's critical to keep a healthy supply of your best-selling items on hand and to constantly rotate your stock to keep it new.
• Marketing: Your mini grocery store's success depends on marketing. To draw clients and market your company, think about utilizing a variety of marketing techniques like leaflets, posters, and word-of-mouth advertising. Social media channels can also be used to spread the word about your store and reach a larger audience.

Steps for Opening a Mini Grocery Store

Here are the 9-step plan on starting your own mini grocery store from the ground up:

• Careful planning and preparation are necessary before opening a mini grocery shop. The steps you must follow in order to open your own mini grocery shop are as follows:
• Find out whether there is a market for a mini grocery store in your area by conducting market research. Take into account elements including the neighborhood's demographics, the level of competition, and the likelihood of foot traffic.
• The next step is to write a business plan after you've finished your market research. An outline of your company's objectives, strategies, and plans for accomplishing them can be found in a business plan. Your organization's mission statement, target market, product offers, marketing plans, and financial predictions should all be included in your business plan. Before opening your mini grocery store, it's crucial to have a sound business plan in place as it will direct you through the start-up process and offer a path to success.
• Choose a location for your mini grocery store. Decide on a place that is close to your target audience and is in a busy neighborhood. Take into account elements including the neighborhood's demographics, the level of competition, and the likelihood of foot traffic.
• Obtain the essential permits and licenses. Acquire the relevant permits and licenses needed to open a mini grocery shop. This includes opening a business account and obtaining a business license.
• Securing Funding: Since opening a mini grocery store will probably demand some capital, it's critical to do so before getting started. As prospective sources of funding, take into account your own funds, business loans, or crowdsourcing. Roughly, you may need between PHP 200,000 to PHP 500,000 or more, including the cost of rent, utilities, inventory, equipment, and other expenses. Additionally, it's a smart idea to have a backup plan in place in case your company's earnings fall short of what you need to pay your bills. 
• Select Your Product Offerings. Determine the goods and services you wish to provide in your mini grocery store based on your market research. Take into account the level of demand for each product as well as the price at which you can turn a profit. Remember to account for the cost of goods as well as additional costs like rent, utilities, and marketing. It's crucial to have a healthy balance of high-margin and low-margin products since doing so will help you maintain a consistent flow of income.
• Establish Your Store. Now that you have finance in place and decided which products to sell, it is time to establish your mini grocery shop. Pick a layout that is both functional and appealing, and spend money on fixtures and displays of the highest caliber. As it will enable you to handle your store more skillfully and give you more support, you might also want to think about hiring staff.
• Launch Your Business. After getting your mini grocery store ready to go, it's time to start your company. To draw people, promote your store in the neighborhood and provide specials and discounts. To reach a larger audience, think about utilizing social media and other digital marketing techniques.

As soon as your mini grocery store is operational, it is crucial to frequently assess how it is doing and make any necessary improvements. Keep track of your revenue and costs, and assess your product lineup to see which ones are doing well and which ones require revision. Keep in touch with your clients and pay attention to their input because doing so will aid in your decision-making regarding your company.

Start Your Own Mini Grocery Store Now

A mini grocery store may be a fantastic opportunity for prospective Filipino business owners. You can raise your chances of success by doing market research, developing a business strategy, selecting a location, obtaining money, selecting your product offers, setting up your store, launching your business, and routinely monitoring and adjusting your business.

Keep in mind that staying focused, being adaptable, and being open to criticism and new ideas can help you achieve in the long run. You may build a strong and prosperous business out of your mini grocery store with perseverance and hard work.

Make your Negosyo Idea Possible With SariSuki

Did you know that you can start all these with SariSuki? The good part is you do not have to have a lot of money to put out there when you sign up as one of our 8,000-strong community leaders in the Philippines. Here at SariSuki, we are committed to helping each and every Juan to establish their own business and earn for themselves. 

Have your own digital grocery store with SariSuki now. Download the app and start earni ng P50,000 at the comforts of your home. 

Maging madiskarte at kumita kasama ang SariSuki ngayon!

Frequently Asked Questions

How much capital do you need to start a mini grocery store in the philippines.

The amount of capital required to start your own home business with a mini grocery store in the Philippines will vary depending on the size of the store, the location, and the type of products to be sold. However, a rough estimate is that you may need between PHP 200,000 to PHP 500,000 or more, including the cost of rent, utilities, inventory, equipment, and other expenses. However, with SariSuki , you can lower this cost to zero by just downloading the SariSuki app and signing up as a Community Leader in your area.

What are some common challenges faced by mini grocery store owners in the Philippines?

• Some of the common challenges faced by mini grocery store owners in the Philippines include:
• Competition from larger grocery stores and supermarkets
• High operating costs, including rent, utilities, and employee salaries
• Managing inventory and stock control
• Maintaining a steady supply of fresh produce and other perishable items
• Finding and retaining reliable suppliers
• Attracting and retaining customers in a highly competitive market

What are the most popular items sold in mini grocery stores in the Philippines?

The most popular items sold in mini grocery stores in the Philippines include:

• Fresh produce, such as fruits and vegetables
• Rice, flour, and other staple foods
• Beverages, including soft drinks and juices
• Snacks and instant noodles
• Personal care and household items, such as soap and cleaning supplies
• Convenience foods, such as pre-packaged meals and frozen goods.

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How To Start and Manage a Sari-Sari Store Business: An Ultimate Guide

Sari-sari stores are an integral part of every Philippine neighborhood. For many Filipinos, sari-sari stores are not only a source of groceries and home supplies but also a great place to meet their neighbors.

According to Philippine tech start-up GrowSari 1 , there are more than 1.1 million sari-sari stores in the Philippines. Thus, they are important parts of the product distribution network in the country.

If you want to start a sari-sari store business yourself, you have to know how you can compete in this highly populated space. This guide will help you decide if a sari-sari store business is for you and teach you how you can earn a profit from running one.

Related: Best Business Ideas in the Philippines [Pandemic-Proof]

Table of Contents

1. overview, 2. capital requirement, 3. competitors, 4. earnings.

• Differences Between a Sari-Sari Store and a Convenience Store or Grocery 

1. Time To Run & Manage It Yourself

2. solid community ties, 3. strict & organized, 1. advantages, 2. disadvantages, a. join business training programs online or in your area, b. learn about your customers.

• C. Study Your Competitors 

D. Decision Time: Is a Sari-Sari Store a Good Fit for Your Situation?

A. set a goal for your sari-sari store, b. choose a location for your sari-sari store, c. create a product list.

• D. Find the Right Suppliers 

E. Do the Math

F. decision time: can you make a sari-sari store work in your location.

• A. Register Your Sari-Sari Store’s Business Name 

B. Register With the BIR

Business permit requirements for a sari-sari store, how to get a business permit for a sari-sari store, how much does a business permit for a sari-sari store cost.

• D. Set Up and Stock Your Sari-Sari Store 

E. Open and Run Your Store

F. maintain a strict record of your inventory and sales, g. promote your store locally & through your network, h. decision time: what should you change to make your sari-sari store profitable, a. break down your goal into smaller goals, b. expand your sari-sari store, c. what success looks like for a sari-sari store, d. decision time: should you continue running your sari-sari store, 1. separate your sari-sari store money from personal use, 2. remember: never sell on credit, 3. for sari-sari stores, success is making your customers feel that it is convenient to shop with you., 4. salesmen will sometimes visit you to push you into carrying their products in your store. try to negotiate a good deal for your store., 5. don’t stop trying to find more ways to reach more customers..

• 1. Is running a sari-sari store still profitable? 
• 2. How much does it cost to start a sari-sari store? 

Sari-Sari Store: The Basics

A sari-sari store is basically a small retail store, often family-owned and run, that carries a variety of basic goods, hence the name “sari-sari” which means “an assortment”. 

They carry anything that they think their community would buy, from candies to beer. And as Filipinos become more reliant on technology, sari-sari stores also begin to sell other necessities such as phone load or e-credits. 

Their primary customers are the people who live nearby, their neighbors. Thus, convenience is the main reason people buy from them.

Typically, sari-sari stores are set up in a family’s home through a small room with a window, usually with railings, that faces the road. 

So, the biggest cost is just stocking up on the products to sell. This can range anywhere from ₱2,000 to ₱30,000 depending on the variety and amount of products. If you are building a dedicated space for your sari-sari store, then the capital you need will increase by a lot.

Your other expenses include government registration , which ranges from  ₱1,890 to ₱6,590 depending on how much a business permit costs in your city or municipality .

The competitors of sari-sari stores include convenience stores, groceries, and other sari-sari stores. 

Sari-sari stores typically add a 10 to 20% markup on their products as their main source of revenue. Though owners usually don’t want to deal with centavos, so they round it up to the nearest peso. 

Differences Between a Sari-Sari Store and a Convenience Store or Grocery

• Convenience stores and groceries are bigger in size and carry a larger amount of products than sari-sari stores. It’s also rare for sari-sari stores to have a frozen or refrigerated food section, aside from a few cold drinks. 
• Sari-sari stores usually have cheaper prices than modern convenience stores. This is because convenience stores have air-conditioning and salary costs that are especially high when they are open 24/7. Meanwhile, groceries are usually cheaper than sari-sari stores since they buy in bulk and sell a larger volume. 
• Convenience stores and groceries are usually only located on maid roads where there is a lot of traffic. Sari-sari stores can be found in almost any location including side streets or even inside subdivisions. 

What Qualities Are Ideal for People Who Want To Run a Sari-Sari Store?

Certain qualities will help you start and manage a sari-sari store much more smoothly. If you have any of the following traits, then you might see success easier than others. 

Because of low margins, people or families who have the time to run the sari-sari stores themselves will be able to save on hiring an employee. Lowering your costs as much as you can also mean you can keep your prices competitive. 

People and families who have or can build a good relationship with their neighbors and community have an advantage since they can help drive traffic and sales to the store. 

Again, because of the low margins, people who are strict in managing their inventory and writing down records are more likely to succeed. It’s equally important to strictly never sell on credit as well. One bad stock or debt and a day’s worth of profits can be wiped out immediately. 

Advantages & Disadvantages of a Sari-Sari Store Business

Compared to other kinds of businesses, the sari-sari store has unique advantages, especially for a newbie entrepreneur. These include: 

• Easy to start. With a low capital requirement and a simple setup, the sari-sari store is a business that you can begin in just a few days. It’s also a good starting point for people who want to experience running a business, and if successful, grow into a bigger retail store. 
• Save on rent and salary. If you run a sari-sari store in your home by yourself or with help from your family, then you can save on costly rent and salary expenses. 
• Strengthen relationship with community. Being the friendly neighborhood sari-sari store means you are the go-to place of the nearby families for their daily necessities. This helps you build stronger relationships with your neighbors. 

However, due to its nature of being easy to set up, it also has its own share of disadvantages. These include: 

• High competition. Since almost anyone can start a sari-sari store, it means that there is stiff competition. Not to mention that you also have to compete with convenience stores and groceries. You have to learn how to keep your clients coming back to your store. 
• Low margin, low sales volume. Because convenience is the main selling point of sari-sari stores, they only add a small markup to their prices to remain competitive. They also don’t sell in bulk so they need to have as many repeat customers as they can. 
• Reputation of poor-quality products. There is a negative reputation that sari-sari stores carry poorer quality products. This is likely due to some owners not taking care of their inventory well by exposing them to the sun or air or letting products expire. This can be solved through proper storage and inventory management. 

How To Start and Manage a Sari-Sari Store Business: A Step-by-Step Guide

This guide is divided into 4 different phases. At the end of each phase, you will have to make a crucial decision. This is to emphasize that while sari-sari stores are easy to set up, it’s not easy to succeed. 

Phase 1: Training & Research

In this phase, your goal is to learn the basics of business so that you can determine if running a sari-sari store is a good fit for your situation. 

You have to learn a bit more about the basics of running your own business before you can properly evaluate if running a sari-sari store is for you. Many organizations, private and government, provide free business training programs and seminars. Here’re are some examples: 

• The Department of Trade and Industry (DTI) partnered with the Philippine Trade Training Center (PTTC) to provide seminars and training programs 2 , both locally and online. You should ask your local DTI branch or LGU if they currently have a program for you. They also have an online resource 3 for MSMEs regarding how to make a business plan. 
• Go Negosyo, by the non-profit organization Philippine Center for Entrepreneurship (PCE), provides free one-on-one mentorship around the country through their KAPATID Mentor ME program 4 . You can follow their Facebook page for updates. 
• TESDA has an e-learning program called “ Start and Improve Your Business ” that teaches the basics for people who want to start their own small business . 
• Hapinoy is a social enterprise that teaches sari-sari store owners the best practices of running their own store. They are not present in all Philippine provinces yet but you can follow their Facebook page for updates. 

Take note, however, that some programs are only available on a per-schedule basis. So, while waiting, you may want to read up in advance through the various videos and resources available online.

Regardless if you start a sari-sari store or not, what you learn can still be useful when starting other kinds of businesses. 

A sari-sari store’s main customers will be the people nearest to them, meaning your neighbors and community. There’re a few things you should find out about them to get an idea if they’ll shop at your sari-sari store or not. These include: 

• When and where do they buy their food and home goods? 
• What kinds and brands of products do they buy? 
• How much do they spend on a shopping trip? 
• What is their daily commute like? Will they pass by the location you want for your store? 

You can do this very informally while just chatting with your neighbors. This information will help you decide if a sari-sari store can fit your customers’ shopping habits or not.

For example, some people like to buy in bulk so that they can save money. If most of your neighbors are like this, then a sari-sari store may not be the best fit in your area.

However, there’s still an opportunity if there are products that your neighbors prefer to buy in “ tingi ” or small amounts. For example, they may purchase food in bulk but only buy non-essential goods, such as cigarettes or beer, per piece. 

C. Study Your Competitors

If there is a competitor in your area, then you’ll be fighting over the limited number of customers that you can reach. You should pay a visit to their store and find out: 

• What are the brands or products that your competitors are selling? 
• What are the prices of their most popular products? 
• What are their opening and closing times? 

If there’s a product that your neighbors want but is not available from your competitors, then that’s an opportunity for you. 

For sari-sari stores, convenience is the main reason people will buy from your store over others. So, when studying your competition, you need to find out what is inconvenient about the other options available. If you make it more convenient to shop with you, then you’ll get more customers. 

Using what you learned from your training, as well as what you researched about your customers and competitors, you should now have a better idea if a sari-sari store will work or not. 

• Will I have any potential customers? 
• Are there products that my potential customers will buy frequently? 
• Are my potential customers unsatisfied with the competitors? 

If your answers to the questions above are a ‘No’ then don’t get hung up on the idea of starting a sari-sari store. You can use what you’ve learned and researched so far to start another business instead. Click here to get business ideas.

If you think there is an opportunity for your sari-sari store to succeed, then it’s time to begin planning how your store will do just that. 

Phase 2: Planning

In this phase, your goal is to back up your decision to run a sari-sari store with actual numbers. By doing this, you can check if it will become profitable and if it is worth the effort. 

Tip : The steps you go through in this phase are all part of making a sari-sari store business plan . It’s not a requirement, but if you ever need a sari-sari store business plan for getting a loan or an investment, then all you need to do is create a formal document covering the details of each step in this phase.

The first thing you need to do is to set a goal that your business, the sari-sari store, must meet. Most of the time this is a monetary goal. An example would be “I want to earn ₱10,000 a month through the sari-sari store.” 

When setting a goal, just remember a few things: 

• Make it personal . This way, it’s important for you that the goal is achieved. 
• Make it realistic. If you have a big goal, break it down into smaller goals. So, you can keep yourself motivated as you make progress. 
• Set a deadline. This will force you to work hard and smart. 

Your goal will also be an important factor in deciding if you’ll run a sari-sari store or not. So, write it down and don’t forget it. 

Using your research earlier about your customers, you have to choose a location where it’s convenient for them to buy from you.  

Most sari-sari stores are run in the owner’s home to save on rent and to keep prices low. However, if your home is located in an out-of-the-way area, then your customers may not frequent you. 

To find out if your home is enough, then you need to: 

• Know what the foot traffic is like in the area . Is the number of people passing by a lot? What time do they pass by? 
• Learn what kinds of people are passing by. Are they students or office workers? Depending on the type of person, the products they buy will be different. 
• Find out if your store will be visible to the people passing by. If not, then you might need to add a large signage or another visible landmark. 
• Check the locations of your competitors. Are you near a mall, convenience store, or supermarket? You want some distance from them since it’s difficult to directly compete with these business establishments.

While renting a space in a more favorable location is an option, it’s not really recommended for beginners. With a sari-sari store’s low margins, it may be difficult to earn enough to cover rent expenses. 

Based on what you learned about your customers, you now have to create a list of products that you will sell in your sari-sari store.  

It may sound difficult to do, but if you just focus on what kind of customers you’ll have, you’ll be able to create a list much more easily. 

For example, if you are located inside a subdivision, your customers are mostly households. So, food and home essentials are perfect products for your market. 

Meanwhile, if you are near an office, then your customers could be people who are taking a break from work. So, you can stock up on merienda items, such as coffee or instant noodles. If there are a lot of smokers, then sell cigarettes. 

If you are near a school, then it’s a good idea to stock up on what students like or need. These include candies, snacks, and school supplies. 

When you are creating your product list, remember to: 

• Be conscious of your customers’ budget . Don’t sell expensive brands if you don’t think they can afford them. 
• When you carry popular brands, make sure to check the prices of the competition . You should aim to have the same or lower price unless the competition is inconvenient to visit. In those cases, you can add a little premium to your prices. 
• Avoid choosing problematic products , such as those with a short expiry date or those that spoil due to heat. One product going bad can wipe out your whole day’s earnings. 

If you really have no idea where to start, then you can check DTI’s list of basic necessities and prime commodities 5 . However, just choose the ones that you think your customers would need or like. 

Your product list does not have to be perfect. You can always adjust what you stock after you have opened and received feedback from your customers. 

D. Find the Right Suppliers

Now that you have a product list, it’s time to find a place where you can stock up on your products. Here are some ideas on where you can find products to sell: 

• Wholesalers. These are stores that normally sell their products in bulk so you can get your stock at a cheaper price. Puregold is an example of a nationally known wholesaler. However, there are many other wholesalers across the Philippines. You’ll probably know better the name of the one that is nearest to you. 
• Supermarkets. This is not the ideal place to get your products. They typically sell at higher prices than wholesalers, so you’ll have lower margins. However, if you just need to restock quickly to meet a customer demand then you can use it as an alternative. 
• Direct from Manufacturer. You can contact a manufacturer or the distributor in your area to see if they are willing to sell their products to you at prices cheaper than a wholesaler. Although, once your sari-sari store is more established, it’s not uncommon to get a visit from a salesperson offering you good deals as well. 
• Sari-Sari Store Apps. There are also dedicated apps, such as GrowSari , for the sari-sari store owner. Each app would have different features. GrowSari, in particular, promises to sell products to sari-sari store owners at distributorship prices. However, their app is not available in all Philippine provinces yet. 
• Online Marketplaces. If you want to add some uniqueness to the products in your sari-sari store, then you can add some from online marketplaces such as Shopee or Lazada. However, you have to know exactly what your customers would want so you don’t waste the delivery fee. 

Feel free to take your time and explore your supplier options. This is where most of your capital will go, and it will affect every crucial part of your sari-sari store. 

You don’t have to buy your products just yet. You can just take note of the prices so that you can properly compute if you can make a profit or not. 

Here are a few tips on selecting a supplier: 

• You should already have information about the prices of your competitors. The suppliers you choose should make it possible for you to compete with a reasonable 10% to 20% markup, otherwise, you should look for other options. 
• Don’t forget to treat transportation costs as part of the cost of your products . Ideally, your suppliers should be nearby, so you don’t have to spend too much on transportation. However, if you buy products in bulk then you can spread out the cost across the different products you carry. 
• Lastly, choose suppliers that have a solid reputation and a reasonable return policy . Bad suppliers may attempt to trick you into purchasing expired or poor-quality goods. Due to low margins, you don’t much room for errors. 

At this point, you should have enough information to see if you can make a profit from starting a sari-sari store or not. 

To do that, you need to do a computation like the one below. You can make it as detailed as you want, but here is a basic example: 

In this example, let’s assume that you don’t want to stock up on too many items, so you choose only a small amount of the essentials. 

• Step 1 : List down the cost per unit of each of the products you want to stock. You can make it more detailed than the one in the example above by listing each item or brand. 
• Step 2 : Write down the quantity of each of the products you want to stock. 
• Step 3 : Multiply the cost per unit and quantity to get the total cost of each brand or type of product you want to stock. 
• Step 4 : Add up all the costs of your products to get the total. 
• Step 5 : Multiply the total costs of your products by the markup or “patong” you want to add to your products. In this example, a 20% markup was used. 
• Step 6 : List down an estimate of your other expenses. These may include transportation, rent, salary, electricity, and water. In this example, the sari-sari store owner is not paying rent or salary. Note that you may encounter other expenses later, such as taxes. 
• Step 7 : Subtract the total of your other expenses from your markup. The number you end up with is your income if you sold all of the products. 

After doing your computations, you now have to make another crucial decision based on the information you have. Answer the questions below to see if a sari-sari store makes sense or not. 

• Can you beat your competitors? 
• Can you sell the whole quantity of goods that you plan to stock in a reasonable amount of time? 
• Did the potential income make sense based on the goal you want to reach? If the income will not help you reach your goal, you might want to explore other ways of earning income instead. 

It’s not easy to answer these questions, so you might want to do a trial run first. This should help you build confidence that you are making the right decision. 

Once you decide that this is really something you can do, then you have to be committed to it for the long run. The next steps will take a lot of effort and incur additional expenses. 

Phase 3: Business Registration and Launch

At this point, it’s about time to turn your plans into a reality. To do that, you have to start your business right and work hard every day to earn enough to at least cover your business’s expenses. 

A. Register Your Sari-Sari Store’s Business Name

To start your business right, you have to register with the required government authorities. By registering properly, you can legalize your business and take advantage of government programs for micro and small businesses. 

Usually, the first step in the process is to register your business name. However, for sari-sari stores, this step is optional 6 if you will just use your given name. 

However, if you want to use a business name, then you need to register with the government . You can just keep the business name simple such as combining “your name” with “sari-sari store”. For example, “Lydia Bautista’s Sari-Sari Store”. 

For a sari-sari store, it’s recommended to register as a sole proprietorship with the DTI. You can do this easily by visiting a local DTI office or one-stop shop. DTI registration is also available online . 

Please note that the fees you have to pay will depend on the business scope that you will choose. For sari-sari stores, you can just choose “Barangay” as the scope, so you only have to pay ₱200 plus a documentary stamp fee to register. 

Next, you have to register with the BIR by visiting the revenue district office (RDO) with jurisdiction over the city or municipality where your store will be located, or by using their online registration system. Note that you can do this at the same time as getting your business permit 7 from your city or municipal office. 

Since you are a sole proprietorship, you have to fill up BIR form 1901 . You can check your RDO code at our updated list . 

You can ask the BIR staff if there are tax exemptions for sari-sari store owners. If there are none, you can expect to pay the following: 

• Annual registration fee (ARF): ₱500  
• Documentary stamp tax: ₱15  
• Certification fee: ₱15 
• Registration of books of accounts: ₱800 
• Sales Invoice: ₱30 

In total, you have to pay ₱1,360 to complete your registration with the BIR.  

Under the TRAIN law, you are exempt from paying taxes as long as your sari-sari store is not earning more than ₱250,000 annually 8 . However, you still have to file your papers monthly, quarterly and annually to comply with the required procedures. 

C. Get a Business Permit for Your Sari-Sari Store

Does a sari-sari store need a business permit? Yes. Sari-sari stores are considered micro-business and you will need to get a business permit as part of the government registration requirements. 

You can ask the staff at your local city or municipal hall if there are any exemptions for a sari-sari store business. However, if there are none, then you need to go through the regular procedures. 

• Barangay Business Clearance – you can get this from the barangay hall with jurisdiction over the place where your sari-sari store will be located. 
• Community Tax Certificate (CTC) or cedula – you can get this from your city, municipal, or barangay hall. 
• Ph otos of the exterior of your sari-sari store – applicants need to submit printed copies of these photos.  
• Sketch or vicinity map of your store’s location – you can also use a screenshot from Google Maps.
• Original and a copy of your DTI Business Name Registration Certificate .
• Copy of your contract of lease (if you are renting the location). 
• Go to the municipal or city hall with jurisdiction over your place of business and obtain the official checklist of requirements for business permit application. You may use the above list as a reference but keep in mind that requirements may change without further notice, hence the need to verify it with the personnel at the city or municipal hall.
• Get a copy of the business permit application form from the city or municipal hall. You may also get a copy of it online, if available.
• Notarize your business permit application form. 
• Submit the business permit application form along with the other requirements. 
• Pay the assessment fee. 
• Once everything is in order, the staff will tell you when you can claim the business permit for your sari-sari store. Just go back on the scheduled date. 

It depends on the city or municipality. It varies wildly as it can cost anywhere from ₱300 to ₱5,000.  

Please note that the business permit is something that you have to pay for either quarterly or annually. So, make sure to consider that cost as part of what you need to cover with your sari-sari store’s income. 

D. Set Up and Stock Your Sari-Sari Store

Once your government registrations are done, the next step is to actually set up your sari-sari store. It’s also the time to buy the items on your product list so you can begin selling them to your customers. 

It’s up to you if you want to spend money on construction to make your store look more appealing. However, you can always do it slowly and spend as you earn. 

There are a number of things you should do to optimize your sari-sari store’s setup. These include: 

• Ensure that the most popular brands and products are easy to see from far away. One trick you can use is by lining up the same or similar products like how they do it in a supermarket. This will improve the visibility of these products and will attract customers to your store. 
• Ask your suppliers for posters, signs, and other things you can use to promote products . Place them where they can be easily seen. This will also help let your customers know that you are carrying those brands. 
• Make it clean and organized . It’s tempting to just place your posters and stock wherever there is space; however, people who are walking by won’t know where to look if it looks cluttered from the outside. 
• When organizing your sari-sari store’s products, you should make it easy for you to get the earliest stock . The way you organize your products should follow the “First In, First Out”(FIFO) system. This means that you should always sell the stock that you bought earlier or has the nearest expiry date. 
• Check with your local city or municipal office if you can get a license to sell regulated products , such as cigarettes and alcoholic drinks. 

You can also set up your store as a gathering place for people in your community by adding chairs or tables. This can be beneficial in attracting customers. However, you should be careful that it doesn’t attract a bad crowd, such as drunkards, that could scare off your other customers. 

After setting up your store, you can now open it and start selling your stock. Don’t expect to be successful overnight. There’s still a lot more work to do to make your sari-sari store profitable, including: 

• You should decide on what your opening and closing times are according to the foot traffic in your sari-sari store’s location. 
• Remember, a customer with a good experience has a higher likelihood of coming back to your store. So, try to build a good relationship with your customers as much as you can. 
• During times when there aren’t many customers, you can keep yourself productive by doing online marketing, organizing your stock, or updating your records . 

For now, just do things slowly so you don’t overwhelm yourself. After you get a feel for running the sari-sari store, the next thing you should aim for is to reach your sari-sari store’s breakeven point. 

The breakeven point is when “You are selling enough to cover your business’s expenses”. This should be your very first monetary goal. You should cover everything that you’ve spent so far, including the government registration fees. 

In order to do this, you have to work hard in the next steps. 

One of the most common reasons that sari-sari stores close is because of bad inventory management. Just one product that expires, becomes damaged, or gets lost can lead to a day’s worth of income disappearing.  

This is why you should be very very strict in managing your inventory.  

For a sari-sari store business, proper inventory management involves the following:

• Make sure to record everything , from the inventory to the cash, coming in and out of your sari-sari store. You can use a computer, phone apps, or a ledger for this. 
• With a proper record, you can see which products are selling faster than the others. This way, you can plan and stock your store accordingly . Your goal is to avoid any “out of stock” issues when your customers drop by to shop. 
• Always keep track of expiry dates . As mentioned before, when selling your stock, make sure to sell the ones you bought earlier or have the nearest expiry date first. 
• Store your products properly . You want to keep them away from excessive heat, pests, and theft. 
• Never get any product from the sari-sari store without paying for it . It’s true that you own the stock, but you should separate the sari-sari store’s finances from personal use. Make sure your family also abides by this rule. 
• Never sell on credit . “Palista” is the enemy of small businesses like the sari-sari store. Debts can not only wipe out your income but also lead to the closure of your business. 

Below is a sample inventory and sales record. We’ve also created a FREE inventory and sales record template that you can download to make your own. 

It might look complicated at first but once you get the hang of it, it becomes much easier. Let’s break it down into smaller parts. 

• Step 1 : Write down the period of time that the inventory and sales record will cover. It can be daily, weekly, or monthly depending on your needs. Since you are just starting out and don’t have much sales volume yet, “weekly” is a good starting point. You can do “daily” once your sales have increased significantly. 
• Step 2 : List down all of the products that you will have for sale. Make sure to include details such as their brand, variant/flavor, and size. If you are selling items in “tingi”, then what you will write is the size in “tingi”. 
• Step 3 : Write down the starting quantity of your products. Since you just opened, the starting quantity for all your products is zero. After the week is finished, create a new record where your starting quantity is how much of each product you have at the end of the week. 

• Step 4 : List down the cost of each product that you stocked. If you are selling it in “tingi”, you write how much it cost you per piece. 
• Step 5 : Write the quantity of each product you stocked. 
• Step 6 : The template will automatically compute how much was spent on each type of product. This is the quantity multiplied by the item cost. At the bottom, you’ll see the total purchase cost. This should be equal to the amount shown on the receipt from your shopping trip. 

• Step 7 : List down the selling price for each item you have. 
• Step 8 : As you run your store, you can write down how much you’ve sold of each item in this column. If you find it difficult to update while running your store, you can always just write it down on paper first and transfer it to the template at the end of each day. 
• Step 9 : As you update your sales, the template will also automatically update how much your sales are for each item. You’ll find the total sales for the period at the bottom.

• Step 10 : In ‘Bad Stock’, input how many of each type of product got damaged, went unpaid, or got lost. 
• Step 11 : This part is automatically updated as you input the quantity of your sales and bad stock. Here you’ll see how much of each product that you should still have on hand. Make sure to check every day if your records match the real-life scenario in your store. 

• Step 12 : Once the week has ended, you just need to copy what you’ve made so far and change the date for the next week. You can copy the product description, item cost, and selling price. However, you need to remove the quantity to have a clean record for the week. If you are purchasing a new product, simply add a new row to the product description. 
• Step 13 : Lastly, you need to copy the ‘Current Stock on Hand’ from the previous week and make it your new starting balance. 

As you’ve seen from the example above, it takes a lot of effort to strictly maintain your inventory and sales record. However, seeing the numbers makes you understand the value of each of the products you sell. That’s why everything in your inventory should be taken care of properly. 

Once you are open, you can freely promote your business. There are many ways to do this, and you can be as creative as you can. 

Here are some ideas: 

• Visit your neighbors and share the news . If you did your research properly, you should already know what products they would be interested in. Tell them that you have those products available if they ever need them. Don’t give out free stuff though, they might take it for granted. 
• Join social media groups or chats for your subdivision or area. You’ll usually find these on Facebook. You can announce that your store is now open, and you can also post updates like telling them about any new products that you carry. 
• Ask your barangay hall if there are any local events coming up . You might be able to find an opportunity to promote your sari-sari store there if they will also allow you to sell your stock during the event. 

It might be hard to find time to do promotions especially when you are running the store at the same time. However, during times when there aren’t many customers, you can use the time to promote yourself online. 

After a few months of running your sari-sari store, you should be able to determine if your plan is working or not. If the plan isn’t working, it’s time to take a moment and evaluate what you are doing. 

Check your numbers. Are there areas in your sari-sari store’s operation that you should adjust? 

• If you think that your margins are too low, you can raise your prices. But if that isn’t an option due to the competition, then you can try lowering your costs by finding new suppliers or buying in bulk. 
• Are your products selling slowly? You should check if the products you are carrying fit the needs of your customers. You can also promote yourself more or check if your opening time matches the time when there is high foot traffic. 
• Do you have any products that go bad or get lost? You should be stricter in your inventory management. 
• Are customers coming back to your store? If not, then you should find out why and solve that problem before it’s too late. 

Here’s an example of an adjustment you can learn by checking your numbers: 

In this example, the original flavor of the Vienna sausage is outselling the spicy flavor. It’s quite possible that your customers prefer the original flavor. If that’s the case, then the adjustment you should make is to stock less of the spicy variant. 

However, maybe the reason is that they don’t see the spicy variant on your shelves and that’s why they don’t purchase it. If that’s the reason, then you need to make sure that the spicy variant is visible in your sari-sari store. 

Here’s another example. 

Above, you can see that the records show one bad stock of a high-value item that costs ₱135. Since you can no longer sell that product, it’s a huge loss for your sari-sari store, especially with your low margins. Find out why it happened and make sure to learn from your mistakes. 

These are just some examples of what you can encounter. There are many other scenarios where the numbers will show problems in your store that you can make adjustments to. 

Remember, your first goal for this phase is to sell enough to cover your expenses, from the cost of products to the government fees. Once you reach that goal, then you can start expanding and thinking about increasing your profits. 

Phase 4: Growing Your Sari-Sari Store

After reaching the breakeven point in the previous phase, it’s now time to grow your sari-sari store and earn larger profits. 

Once you’re in this phase, you’ll probably have a better idea of what works or what doesn’t work in your community. In phase 4, you need to use everything you’ve learned to reach the goal you’ve set from the very start. 

If you have just reached the breakeven point, it’s hard to believe that the goal of “I want to earn ₱10,000 a month through the sari-sari store” will ever come true. 

That’s why it’s a good idea to break down your big goal into smaller goals. For example, a ₱10,000 a month goal can be broken down into: 

• ₱2,500 after 3 months 
• ₱5,000 after 6 months 
• ₱7,500 after 9 months 
• ₱10,000 after 12 months 

It’s up to you how you break down your goal. However, make it realistic by using the data from your records. Once you have your smaller goals listed down, you can continue to make the adjustments you’ve learned from the previous phase to make your store more profitable. 

To get closer to your goals, you may want to start exploring ways how to expand your sari-sari store. You can get as creative as you want, as long as you think of your customers first. 

• Expand your product range if you think there are products that your customers would buy that you do not carry yet. For example, if there is a substantial increase in the number of babies in your community, you might want to start carrying diapers. 
• Expand the size of your store if your customers are doing most of their grocery shopping with you rather than going to supermarkets. Just be careful not to overstock. 
• Expand the reach of your store by offering delivery to customers who live farther away. Only offer this if you can make time for it. Set a clear set of rules so your customers’ expectations match your capabilities. 
• Consider adding a “pabili” or personal shopper service. If you have customers in your area who are always busy and don’t have time to shop for groceries themselves, then they might be interested in a “pabili” service. You can just charge a premium for it and do it at the same time you buy stock for your sari-sari store. 

Just a word of warning. Sometimes you can get too excited about trying out new ideas that you push to do them without considering the cost. Whenever you have an idea, sit down first and write down its advantages and disadvantages . This way, you can make an informed decision. 

It is up to you to say what success looks like for you based on the goal you’ve set at the start. If you think the profit you are earning is worth the time and effort that you’ve put into the sari-sari store then continue to work hard to grow it. 

Based on the examples we’ve used so far in this guide, success looks something like what’s shown below: 

Their total profit for one month meets their ₱10,000 a month goal. 

Their sales amount to about ₱16,000 per week which is about ₱2,286 per day. With a 20% margin, this amounts to around ₱2,600 net revenue per week or ₱372 net revenue per day. 

After subtracting the other expenses, then they are left with a ₱10,078 profit for the month. They can then use this profit to grow their store further or withdraw it for personal use. 

For you, the number might be different, but as long as it’s a goal that you came up with carefully, then you should consider it a success once you’ve reached it. 

If you are successful, then definitely. If something has changed in your life, then you might want to make adjustments. For example, if you don’t have as much time as before, then you can either hire a part-time employee or change your opening times. 

If you can’t make your sari-sari store profitable, don’t give up too soon. Exhaust every option that you can to make it work. 

However, if you’ve rechecked and adjusted everything that you can about your sari-sari store’s operations and you still can’t find any way to make it work, then there’s no shame in cutting your losses and closing it down . 

Take a break and take care of yourself. The effort you’ve put into your sari-sari store wasn’t a waste. Everything you’ve learned and experienced so far will be something you can use for a future business. 

Tips and Warnings

This also means that if you need an item from the sari-sari store then you also need to pay the store for it, even if you own it. It might be tempting to get what you need for the store at any time, but this is a bad habit that can lead to your store losing money. 

Since you are selling to people you know, such as your neighbors, they might be tempted to pay through “palista” or credit. However, with a sari-sari store’s low margins, one bad debt may mean you lose a day or even a week’s worth of profits. 

In cases where you don’t have a product that a customer is looking for, never say “we don’t have it”, just say it’s “out of stock”. Then, assure your customers that you will have it on the next stocking day.  

Ask for discounts, posters, equipment, and other things that can help sell their products. If their products need to be kept in refrigerators, make sure to take electricity costs into account. You can always decline to carry a product if you don’t think you are getting a good deal. 

Since a sari-sari store is a low-margin business, you have to increase your sales volume as much as you can. 

Frequently Asked Questions

1. is running a sari-sari store still profitable.

Yes, a sari-sari store can still be profitable. However, because the margins are so tight it doesn’t leave much room for error.  

Success is different from person to person. So, it’s up to you what level of profit can be considered enough for your needs. If you have a goal that can’t be met by a sari-sari store’s income, then it might not be worth it for you to run a sari-sari store business at all. 

Related: 100+ Best Franchise Business Opportunities For Every Budget

2. How much does it cost to start a sari-sari store?

Sari-sari stores cost differently depending on how much inventory you want to carry, if you plan to rent and build a space, and if you hire employees. It can cost as little as ₱3,940 and can go up to six digits depending on how much you invest in it. 

Here’s a list of costs that you can expect: 

• Inventory Costs : ₱2,000 to ₱30,000+ 
• Transportation : ₱50 to ₱300+ 
• Rent : ₱0 to ₱10,000+
• Construction :  ₱0 to ₱30,000+
• Salary : ₱0 to ₱10,000+ 
• DTI Registration : ₱230 
• BIR Registration : ₱1,360 
• Business Permit : ₱300 to ₱5,000 

Note that this does not yet include any operational costs that you might have, such as electricity or water utilities.

• Shu, C. (2021). GrowSari, a B2B platform for small stores in the Philippines, adds investors like Temasek’s Pavilion Capital and Tencent. Retrieved 3 April 2022, from https://techcrunch.com/2021/06/21/growsari-a-b2b-platform-for-small-stores-in-the-philippines-adds-investors-like-temaseks-pavilion-capital-and-tencent/
• Training Calendar. (2022). Retrieved 3 April 2022, from https://pttc.gov.ph/webinar/
• Start and Grow Your Business. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/start-and-grow-your-business/
• KAPATID Mentor ME Project. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/kapatid-mentor-me-project/
• Latest Suggested Retail Prices (SRPs) of Basic Necessities and Prime Commodities. (2022). Retrieved 3 April 2022, from https://www.dti.gov.ph/konsyumer/latest-srps-basic-necessities-prime-commodities/
• Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT). (2016).  Joint Memorandum Circular No. 01, Series of 2016 (Revised Standards in Processing Business Permits and Licenses in All Cities and Municipalities)  (p. 5).
• Ramirez, J. (2020). BIR ditches mayor’s permit as a registration requirement. Retrieved 3 April 2022, from https://mb.com.ph/2020/06/15/bir-ditches-mayors-permit-as-a-registration-requirement/
• Package 1: TRAIN. Retrieved 3 April 2022, from https://taxreform.dof.gov.ph/tax-reform-packages/p1-train/

Written by Rod Michael Perez

in Business and Finance , Juander How

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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Mini Grocery Store Business Plan

With over a hundred million population, the Philippines is a massive market of consumer commodities, especially daily household need such as food. Grocery stores provide easy access to the products required by the public.

Back in 2012, we have opened a modest grocery store in Montalban, Rizal. Our small business began as a sari-sari store. Thinking of the potential of earning more, we have upgraded it to a small grocery shop where we offer both wholesale and retail.

Discussed below are the essential elements to be considered in opening a small grocery store.

Where to put up your store is a really crucial factor to consider. In our case, we opened our grocery in our house font. It’s located inside a large subdivision. Our advantage was since the public marketplace is far from our location, people can spare money for fares if they buy from us.

You have to hold licenses to operate your business. You only need to visit your municipal or city hall to get these permits. You will be guided accordingly with a step by step procedure. This involves getting clearances from the Barangay, DTI, sanitary department, PNP, and Bureau of Fire Protection.

Focus on the basic needs at the outset. Then listen to your customer’s suggestions on what they require and provide if it’s viable. Keep a complete collection of goods at all times. A one-stop store will draw in more customers. Maintain a good number of stocks to keep a constant flow of commodities.

The primary concern of a grocery store is where to get the stocks to sell. Getting the supplies from a wholesaler or from big grocery chains such as SM Supermarket, Robinsons, or Puregold is the common practice of sari-sari stores.

As a grocery store, you have to get your stocks directly from a distributor. Companies such as Procter & Gamble, Unilever, Fortune Cigarettes, Nestle, etc., have a distributor responsible for supplying the wholesalers. Here you can get huge discounts for purchasing in bulk. Through this, it will be hassle-free as goods are being handed over to your storefront.

Getting a Contract with Distributors

I’ll pass you a tip on how to get a contract from product distributors. Go to the nearest market (palengke) in your locality and observe the delivery vans while they are unloading their goods to the shops. Then approach and speak to the driver/trucking staff and ask for their office contact. Tell him that you have a store and you want to purchase their products. A sales representative will visit your store, and a contract will be checked upon.

On a regular basis, the distributor will unload products at your storefronts. You can receive a consignment contract with them where you can agree on convenient payment terms. We had 7 days to pay the product unloaded by Procter & Gamble, where we only issued post-dated checks.

Wholesale or Retail?

As you get your supplies directly from a distributor, you have a good discount with your products. This implies that you will earn more from selling retail, and makes it flexible to sell through wholesale.

This is a critical part of your business. Like any other well-established company, you have to select the best tindera. She should be a people person with excellent communication and interpersonal skills. And the most important of all she has to be honest and can be trusted in handling money.

If you can handle the day to day operations is better than employing someone. With a small customer base coverage, the success of a grocery is based on a good relationship with customers, mostly your neighbors.

To keep your business secure from theft (by customers or even employees,) it is advisable to install a CCTV in your store. It is the best deterrent to a thief and excellent protection for your investments.

Competition

Maybe the most common problem of business is competition. We can look at it as both an advantage and a disadvantage. If you have a competition, you will strive to keep at the top of the game.

The entrance of popular grocery chains such as Puregold Jr and Savemore literally killed the small grocery stores that can’t keep up with the fierce competition. Unfortunately, our business has become a casualty of this urbanization.

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for  Business Ideas  and  Investment Options  for more insightful essays.

Chat with me

I have ventured into an e-commerce business (online selling) that you might also be interested in setting up. You can visit our website at colibers.com , where you can have a chat with me (just select Contact Us), and I will be more than willing to entertain your questions regarding this post and e-commerce.

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Author: Jundril Colita

Jundril Colita is a Filipino expatriate based in Dubai. An entrepreneur/investor and a minimalist who loves traveling. View all posts by Jundril Colita

27 thoughts on “Mini Grocery Store Business Plan”

Thank you for this wonderful article 😊

Thank you for reading Edward. 🙂

Very interesting and practical article Jundrill. I am also an OFW here in UAE and will soon start a mini mart business. Just wondering, how much it cost sa electricity if your area is around 36 sq meters, with fridge for products display and open from 7am till 12 midnight lets say

The store was not airconditioned but we have a freezer, fridge and a cooler. It really depends on the number of refrigerators you have.

Magsasara palang po ako ng store ko. Balak ko po mag Tinda ng fork fish chicken at gulay at kunting groceries katulad ng sila toyo Yung mga usual po Na ginaganyan SA pagluluto. Any tips po Sana please.thank you

Maguupisapalang po ako ng store ko. Balak ko po mag Tinda ng fork fish chicken at gulay at kunting groceries katulad ng suka toyo Yung mga usual po Na ginagamit SA pagluluto. Any tips po Sana please.thank you

Hi Jonalyn, may pwesto ka ba nyan sa palengke?

Good morning I would like to ask what is the requirements for mini mart or small grocery documnets And approximate capital ? Thank you and best regards Eslam Ahmed

Sir, kuha ka lang muna ng permit sa baranggay. Then kung ok na ang business kuha ka na ng permit sa munisipyo or city hall..

Mga magkano po capital ng mini mart?

Let’s talk on facebook. Add me me first then message me if you have follow up questions. http://www.facebook.com/earnpeso1

hello! question lng po about sa cash register – ano po gamit nyo? meron po bang software pra ma encode ang barcode and inventory? thank you

how muvh its cost to start a mini grocery

in total po how much ang magagastos to start up a mini grocery? planning to put up mini grocery po sana

How much do you think is the initial capex in opening one?

Really depends on the size of the store u want to open. Message me on facebook if you have follow up questions. http://www.facebook.com/earnpeso1

Kasya po kaya ang 150k para makapag tayo ako ng maliit na grocery store ?

Pede na po yan for inventory. Bukod pa sa pwesto.

Hello, your article is very detailed and helpful. Thanks for this. Just wanted to ask if permits particularly from DTI, BIR and the others are needed to begin with your business if start-up/trial palang? Or pwedeng to follow nalang yun kapag medyo boom na yung business? Was just wondering what will happen kapag nabisita yung store for inspection and you don’t have any permits to show. Thank you po for answering.

It’s better to set up before opening ur store. But if u start as a sari-sari store just begin with a Brgy. Permit. As your store grow, get the other permits.

Meron po ba kayong alam na mura at mapapagkatiwalaang supplier ng isang korean store? Balak ko po magtayo ng korean mart e. Salamat

Wala po akong alam na supplier ng Korean products. Pero mukhang trending ang Korean products nowadays sa Greater Manila.

Any advise for the cost to start up?

200K for inventory will be a good start.

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Starting a Retail Business in the Philippines 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a retail business in the Philippines is an exciting venture with promising opportunities. The country boasts a thriving consumer market, a steadily growing economy, and a large population eager to embrace new products and services. As an entrepreneur or business owner, tapping into the Philippine retail industry allows you to seize a share of the market and potentially enjoy significant returns on your investments.

When is the Right Time to Start?

Where to set up your retail business, step 1: business plan and market research, step 2: legal requirements and registration, step 3: financing your retail business, step 4: supplier and inventory management, step 5: store design and visual merchandising, step 6: marketing and promotions, step 7: hiring and training your team, example 1: embrace e-commerce, example 2: offer personalized experiences, example 3: stay updated with technology, key takeaways.

The timing for starting a retail business is crucial, as it can greatly impact your success. In 2023, the Philippine economy is expected to continue its upward trajectory, offering a favorable environment for retail startups. With consumer confidence rising, it’s an opportune moment to launch your business and establish a presence in the market.

Selecting the right location for your retail business is vital. In the Philippines, various cities and regions offer unique advantages and challenges. Conduct thorough market research to identify the areas with high foot traffic, demand for your products or services, and suitable demographics for your target audience.

How to Start a Retail Business in the Philippines – Step-by-Step Guide

Start by creating a detailed business plan outlining your vision, mission, target market, and financial projections. Conduct thorough market research to understand the competition, consumer preferences, and potential challenges you might face.

Register your business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC). Obtain necessary permits, licenses, and clearances to operate legally.

Determine the startup costs and explore funding options such as personal savings, bank loans , investors, or government assistance programs. Having a solid financial foundation is essential to sustain and grow your retail venture.

Establish reliable relationships with suppliers and negotiate favorable terms for your inventory. Implement efficient inventory management systems to ensure a smooth supply chain and avoid stockouts or excess inventory.

Create an inviting and visually appealing store layout that aligns with your brand image. Utilize effective visual merchandising strategies to showcase your products and entice customers to make purchases.

Craft a comprehensive marketing plan that includes both online and offline strategies to reach your target audience. Utilize social media, email marketing , influencer partnerships, and traditional advertising channels to generate buzz around your retail business.

Recruit skilled and passionate employees who align with your brand values. Provide thorough training to ensure they deliver exceptional customer service , enhancing the overall shopping experience.

Examples and Tips for Success in Retail Business

In 2023, e-commerce in the Philippines is experiencing significant growth . Consider integrating an online store into your retail business to expand your reach and tap into the digital-savvy consumer base.

Consumers appreciate personalized shopping experiences. Utilize data-driven insights to understand your customers better and tailor your offerings to meet their preferences.

Keep abreast of the latest retail technology trends. Implement modern POS systems, mobile payment options, and data analytics tools to streamline operations and make data-driven decisions.

Starting a retail business in the Philippines in 2023 presents a wealth of opportunities, but success requires careful planning, market research, and a customer-centric approach. By understanding the local consumer landscape, embracing e-commerce, and providing personalized experiences, you can position your retail business for growth and prosperity in the dynamic Philippine market . Seize the moment, embark on this exciting journey, and let your entrepreneurial spirit thrive!

Launching Your Business in the Philippines

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Sample Grocery Store Business Plan

Writing a business plan is a crucial step in starting a grocery store. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring grocery store owners, having access to a sample grocery store business plan can be especially helpful in providing direction and gaining insight into how to draft their own grocery store business plan.

Download our Ultimate Grocery Store Business Plan Template

Having a thorough business plan in place is critical for any successful grocery store venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A grocery store business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The grocery store business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your grocery store as Growthink’s Ultimate Grocery Store Business Plan Template , but it can help you write a grocery store business plan of your own.

Grocery Store Business Plan Example – FreshFare Market

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to FreshFare Market, located in the vibrant community of Milwaukee, WI. As a newly opened local grocery store, we are dedicated to bridging the gap in the market by providing a diverse selection of high-quality grocery options. Our product lineup, including fresh produce, dairy, canned and packaged goods, meat, seafood, and bakery items, is curated to ensure that every visit is a delightful discovery. Positioned in the heart of Milwaukee, our store is more than just a shopping destination; it’s a place where community and quality converge, offering a unique shopping experience that goes beyond the ordinary.

Our confidence in the success of FreshFare Market is built on the solid foundation of our founder’s extensive experience in grocery store management. This expertise, coupled with our commitment to superior quality across our product ranges, sets us apart from our competition. We believe in the non-negotiable importance of quality, variety, and freshness, which is evident in everything we do. Since our inception on January 6, 2024, we have made significant strides, including the creation of our brand identity and securing an ideal location, positioning us to become a staple in our community and offer an unparalleled grocery shopping experience.

The U.S. Grocery Store industry is a robust market, with a valuation of over $700 billion and expected growth of 1-2% annually. This growth is fueled by population increases, higher disposable incomes, and shifting consumer preferences towards healthier and more convenient food options. FreshFare Market, serving Milwaukee, WI, is perfectly poised to capitalize on these trends. Our focus on fresh, locally-sourced, and organic products aligns with consumer demand, positioning us to carve out a significant niche in the competitive grocery industry and capture a substantial market share in Milwaukee.

FreshFare Market targets Milwaukee residents who prioritize convenience, quality, and a broad selection of fresh food options. Our offerings cater to families, health-conscious individuals, and those with busy lifestyles seeking quick, nutritious meal solutions. Additionally, we appeal to eco-conscious consumers by providing organic, locally sourced, and sustainable products. Our commitment to sustainability and local partnerships resonates with these customers, further solidifying our market position. Food enthusiasts and culinary adventurers also form a significant part of our customer base, drawn to our diverse international and specialty food selections.

FreshFare Market faces competition from Woodman’s Market, Metro Market, and Fresh Thyme Market. Woodman’s Market, with its vast product selection and competitive pricing, appeals to budget-conscious shoppers but lacks e-commerce options. Metro Market targets mid to high-end consumers with a focus on quality and customer experience but has higher price points and limited locations. Fresh Thyme Market specializes in natural and organic products at competitive prices, catering to health-conscious consumers but faces challenges due to a narrower product range and intensifying competition. Our competitive advantage lies in our commitment to quality, variety, freshness, superior customer service, and our partnerships with local farmers and producers, enabling us to offer unique, fresh, and nutritious options that support the local economy.

FreshFare Market distinguishes itself through a commitment to quality, freshness, and competitive pricing across a wide range of products, from fresh produce to bakery items. By focusing on the culinary needs and preferences of our customers, and offering products like competitively priced fresh produce, a variety of dairy items, and premium meat and seafood, we ensure a delightful shopping experience. Our promotional strategy combines online visibility through social media, email marketing, SEO, and PPC advertising with community engagement through events and partnerships. These efforts, along with in-store promotions and loyalty programs, aim to attract and retain customers, making FreshFare Market a preferred destination in Milwaukee.

To ensure FreshFare Market’s success, our operational strategy includes meticulous inventory management, daily quality control checks, strong supplier relationships, exceptional customer service, and maintaining a clean, organized store environment. We prioritize checkout efficiency and leverage technology to enhance the shopping experience. Our focus extends to effective financial management, employee training, and compliance with regulations. Upcoming milestones include securing a prime location, obtaining necessary permits, building out the store, establishing vendor relationships, hiring staff, and implementing a robust marketing strategy to reach our revenue goals and establish a strong community presence.

Logan Baker, our President, brings invaluable experience and a proven track record in grocery store management to FreshFare Market. His expertise in operations, growth strategies, and customer satisfaction, combined with a strategic vision for quality and community-oriented business, positions FreshFare Market for success. Logan’s leadership is instrumental in guiding our team towards achieving our mission of offering high-quality, fresh products while fostering a sustainable business model.

Welcome to FreshFare Market, a new Grocery Store that has recently opened its doors to the vibrant community of Milwaukee, WI. As a local grocery store, we strive to fill a crucial gap in our community by providing high-quality grocery options where there are none. Our commitment is to bring a unique shopping experience to our customers, offering them a wide range of products that cater to their diverse needs and preferences.

At FreshFare Market, our product lineup is carefully curated to ensure that every visit to our store is a delightful discovery of flavors and quality. Our shelves are stocked with the freshest produce, ensuring that fruits and vegetables are at their peak of flavor and nutrition. Dairy enthusiasts will find a wide variety of products to choose from, including artisan cheeses and organic milk. Our canned and packaged goods section offers convenience without compromising on quality, ensuring that you have access to wholesome ingredients for your meals. Meat and seafood lovers will be pleased with our selection, featuring cuts that range from everyday staples to gourmet options. And let’s not forget our bakery, where the aroma of freshly baked bread and pastries fills the air, tempting you with their warmth and flavor.

Located in the heart of Milwaukee, WI, FreshFare Market is perfectly positioned to serve the residents of this great city. Our location is not just a place to shop; it’s a space where community and quality meet, creating a shopping experience that goes beyond the ordinary.

Our confidence in the success of FreshFare Market is grounded in solid foundations. The expertise of our founder, who has a proven track record of running a successful grocery store, is our cornerstone. This experience, combined with our commitment to offering superior fresh produce, dairy products, canned goods, meat, seafood, and bakery items, sets us apart from the competition. We believe that quality, variety, and freshness are non-negotiable, and this belief is at the heart of everything we do.

Since our inception on January 6, 2024, FreshFare Market has achieved significant milestones as a Limited Liability Company. Our journey began with the creation of our company name and the design of our logo, symbols of our brand’s identity and promise. Finding the perfect location was a crucial step in bringing FreshFare Market to life, ensuring we are where our customers need us the most. These accomplishments are just the beginning of our journey to become a staple in our community, providing an unparalleled grocery shopping experience.

The Grocery Store industry in the United States is a significant and thriving market, with an estimated size of over $700 billion. This industry encompasses a wide range of businesses, from large chain supermarkets to small independent grocers, all working together to meet the diverse needs of consumers across the country.

Market research indicates that the Grocery Store industry is expected to continue growing in the coming years, with a projected annual growth rate of around 1-2%. This growth is driven by factors such as population growth, rising disposable incomes, and changing consumer preferences towards healthier and more convenient food options.

These trends bode well for FreshFare Market, a new Grocery Store serving customers in Milwaukee, WI. As consumers increasingly prioritize fresh, locally-sourced, and organic products, FreshFare Market is well-positioned to meet these demands and carve out a successful niche in the competitive grocery industry. By offering a diverse selection of high-quality products and a focus on customer service, FreshFare Market has the potential to capture a significant share of the growing market in Milwaukee.

Below is a description of our target customers and their core needs.

Target Customers

FreshFare Market will target local residents as its primary customer base, focusing on those who value convenience, quality, and a wide range of fresh food options. The store will tailor its product offerings to meet the needs and preferences of local families, health-conscious individuals, and those with busy lifestyles looking for quick and nutritious meal solutions. This approach will ensure that FreshFare Market becomes a go-to destination for groceries within the Milwaukee area.

Moreover, FreshFare Market will also cater to the growing segment of eco-conscious consumers. This group is increasingly looking for organic, locally sourced, and sustainable products, which FreshFare Market will offer in abundance. The store’s commitment to sustainability and supporting local farmers and producers will resonate well with these customers, further solidifying its position in the market.

In addition to these segments, FreshFare Market will attract food enthusiasts and culinary adventurers. By providing a diverse range of international and specialty foods, the store will become a haven for those looking to explore new cuisines and ingredients. FreshFare Market’s emphasis on quality, freshness, and variety will make it an attractive shopping destination for anyone looking to elevate their cooking and eating experiences.

Customer Needs

FreshFare Market caters to residents who prioritize access to high-quality fresh produce, ensuring a constant supply of fruits and vegetables that meet their expectations for freshness and flavor. Customers can also find a wide variety of dairy products that complement their health and dietary preferences, enhancing their daily nutrition intake. The convenience of having all these essential food items under one roof significantly simplifies shopping routines.

In addition to fresh produce and dairy, FreshFare Market addresses the need for premium canned goods, meat, seafood, and bakery items. Shoppers expect to find a range of meat and seafood options that are both fresh and sustainably sourced, catering to the tastes and ethical considerations of the community. The bakery section promises an assortment of bread and pastries baked daily, appealing to those who cherish the taste of freshly baked goods.

Furthermore, FreshFare Market understands the importance of convenience and strives to create a shopping experience that is both efficient and enjoyable. Customers appreciate the ease with which they can access a diverse selection of food products, meeting their needs for quality and variety in their diet. By focusing on these areas, FreshFare Market fulfills the fundamental requirements of its customers, ensuring they leave satisfied with their purchases.

FreshFare Market’s competitors include the following companies:

Woodman’s Market

Woodman’s Market offers a wide range of products, including groceries, specialty foods, and household essentials. Their price points are competitive, often appealing to budget-conscious shoppers looking for deals on bulk purchases. Woodman’s Market reports substantial revenues, benefiting from their large store formats and extensive selection.

They operate multiple locations, primarily in Wisconsin and Illinois, serving a broad customer base. The geographical spread of their stores ensures they cater to both urban and suburban shoppers. Key strengths of Woodman’s Market include their vast product selection and self-service model, which keeps costs low and prices competitive.

However, their weaknesses lie in the limited presence outside the Midwest and a lack of e-commerce options, which restricts their reach and convenience for some customers.

Metro Market

Metro Market provides a curated selection of groceries, fresh produce, and premium products, with a focus on quality over quantity. Their price points are slightly higher, targeting mid to high-end consumers looking for specialty items and a premium shopping experience. The revenues of Metro Market are strong, supported by their focus on high-quality products and services.

Located predominantly in urban and affluent suburban areas of Wisconsin, Metro Market caters to a discerning customer base. The geographic focus allows them to tailor their product offerings to the preferences of local communities. One of Metro Market’s key strengths is their emphasis on customer experience, including high-quality products and superior service.

However, their higher price points and limited number of locations can be seen as weaknesses, potentially alienating price-sensitive shoppers and limiting their market reach.

Fresh Thyme Market

Fresh Thyme Market specializes in natural and organic products, including groceries, health foods, and dietary supplements. Their pricing strategy is competitive, aimed at making healthy and organic products accessible to a wider audience. The company has seen growing revenues, reflecting an increasing consumer interest in healthy and sustainable living.

With locations across the Midwest, Fresh Thyme Market serves a niche but growing segment of health-conscious consumers. Their stores are typically found in both urban and suburban areas, accessible to a diverse range of customers. A key strength of Fresh Thyme Market is their commitment to health and sustainability, which resonates well with their target customer base.

However, a potential weakness is their narrower product range compared to traditional supermarkets, which may limit their appeal to some shoppers. Additionally, the competitive landscape of natural and organic foods is intensifying, challenging Fresh Thyme Market to continuously innovate and differentiate.

Competitive Advantages

At FreshFare Market, we pride ourselves on offering an unparalleled shopping experience that sets us apart from the competition. Our commitment to providing customers with superior fresh produce, dairy products, canned goods, meat, seafood, and bakery items is at the core of our business. We understand that quality is paramount when it comes to food, and that’s why we meticulously select our products to ensure they meet the highest standards. Our partnerships with local farmers and producers allow us to offer fresh, flavorful, and nutritious options that our customers can trust. This dedication to quality not only enhances the taste and nutritional value of our products but also supports the local economy.

Beyond our exceptional product range, another competitive advantage we have is our focus on customer service. We believe that shopping for groceries should be an enjoyable and convenient experience. Our stores are designed with the customer in mind, ensuring easy navigation and a pleasant shopping atmosphere. Our staff is knowledgeable, friendly, and always ready to help, whether it’s by offering recommendations or assisting with special requests. Additionally, we leverage technology to streamline the shopping process, offering online ordering and efficient home delivery options. These efforts collectively contribute to a superior shopping experience, fostering customer loyalty and setting FreshFare Market apart in the competitive grocery store landscape in Milwaukee.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

FreshFare Market stands out in the community by offering a wide variety of high-quality groceries and food products to meet the daily needs of its customers. The store prides itself on providing a welcoming shopping environment, complemented by a diverse selection of products ranging from fresh produce to bakery items. By focusing on quality, freshness, and competitive pricing, FreshFare Market caters to the culinary needs and preferences of its customers.

Among the key offerings, fresh produce takes center stage. Customers can expect to find a vibrant selection of fruits and vegetables, sourced from local farmers whenever possible, ensuring peak freshness and support for the local economy. Prices for fresh produce are competitive, with average prices ranging from $0.99 to $3.99 per pound, depending on the type of produce and seasonality.

Dairy products are another essential category at FreshFare Market. The store offers a wide array of dairy items, including milk, cheese, yogurt, and butter, catering to various dietary preferences such as organic, lactose-free, and plant-based alternatives. Prices for dairy products are reasonable, with milk starting at $2.99 per gallon, cheese ranging from $3.99 to $7.99 per pound, and yogurt priced at around $0.99 to $3.99 per package.

Canned and packaged goods are indispensable for pantry stocking, and FreshFare Market ensures its shelves are well-stocked with a diverse selection. From soups and sauces to grains and pastas, customers can find everything they need for quick meals or culinary experiments. Average prices in this category range from $0.99 for basic canned goods to $4.99 for specialty or organic items.

For those looking for premium meat and seafood, FreshFare Market offers a carefully selected range of fresh and frozen options. Whether it’s locally sourced beef, free-range chicken, or sustainably caught fish, customers can expect high quality at fair prices. Average prices for meat and seafood vary, with chicken starting at $1.99 per pound, beef at $3.99 per pound, and seafood starting at $5.99 per pound.

Last but not least, the bakery section at FreshFare Market is a haven for those with a sweet tooth or in search of freshly baked breads. From artisanal breads to pastries and cakes, all bakery items are made with the finest ingredients. Prices are attractive, with breads starting at $2.99 each and pastries and cakes ranging from $0.99 to $14.99, depending on the size and complexity.

FreshFare Market is committed to offering its customers not just groceries, but a delightful shopping experience that combines quality, variety, and value. With its focus on fresh, quality products at competitive prices, the store is poised to become a favorite destination for food enthusiasts and daily shoppers alike.

Promotions Plan

FreshFare Market employs a dynamic blend of promotional methods to attract customers, ensuring a robust presence both online and in the local Milwaukee community. Understanding the importance of digital visibility, the store invests heavily in online marketing strategies. Through targeted social media campaigns on platforms like Facebook, Instagram, and Twitter, FreshFare Market engages with potential customers by showcasing daily deals, fresh produce arrivals, and exclusive online offers. Email marketing also plays a crucial role, as the store sends out weekly newsletters containing recipes, health tips, and coupons to encourage frequent visits.

Moreover, FreshFare Market will leverage Search Engine Optimization (SEO) to ensure that when local customers search for grocery stores in Milwaukee, FreshFare Market appears at the top of search results. The store’s website will be optimized with relevant keywords, engaging content, and a user-friendly layout to enhance the online shopping experience. Additionally, pay-per-click (PPC) advertising will be utilized to drive more traffic to the website, particularly during promotions and new product launches.

Beyond the digital realm, FreshFare Market will implement several community engagement strategies. Partnering with local businesses and community organizations for cross-promotion events will help to increase brand awareness and foster a sense of community. The store will also host weekly events, such as cooking demonstrations and health seminars, to attract customers to the store and provide them with added value. In-store promotions, such as loyalty programs and seasonal discounts, will incentivize repeat visits and help build a loyal customer base.

To further differentiate itself, FreshFare Market will leverage local media outlets for coverage of its grand opening and special events. Engaging with local influencers and bloggers to review the store and share their experiences on social media will also amplify its reach and attract a wider audience.

In conclusion, FreshFare Market will utilize a comprehensive mix of online marketing, community engagement, and local media outreach to attract customers in Milwaukee. By focusing on creating a strong digital presence, engaging with the community, and providing exceptional value through in-store experiences and promotions, FreshFare Market expects to become a beloved grocery destination in the Milwaukee area.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of FreshFare Market, there are several key day-to-day operational processes that we will perform.

• Inventory Management: Keep a continuous and accurate check on inventory to ensure shelves are well-stocked without overstocking. Use inventory management software to monitor stock levels, forecast demand, and place timely orders with suppliers.
• Quality Control Checks: Conduct daily quality control checks on all produce and perishable goods to ensure they meet health and quality standards. Remove any items that do not meet these standards from the shelves.
• Supplier Coordination: Maintain strong relationships with suppliers to ensure timely deliveries and resolve any supply issues promptly. Negotiate terms to ensure the best quality products at the most favorable prices.
• Customer Service: Train staff to provide exceptional customer service, including assistance in locating products, answering questions, and handling complaints effectively. Offer services such as home delivery or online shopping to enhance customer convenience.
• Cleanliness and Organization: Ensure the store, including aisles, shelves, and checkout areas, are clean and well-organized at all times. Follow a daily cleaning schedule and ensure employees are aware of their responsibilities.
• Checkout Efficiency: Keep checkout lines moving smoothly by having an adequate number of cashiers available during peak hours. Utilize technology such as self-checkout stations to reduce wait times.
• Marketing and Promotions: Implement daily marketing efforts to attract new customers and retain existing ones. This can include social media posts, email newsletters, in-store promotions, and loyalty programs.
• Financial Management: Monitor daily sales, expenses, and cash flow to ensure the store operates within its budget. Regularly review financial reports to identify trends and areas for improvement.
• Employee Management: Schedule staff efficiently to cover all necessary operations without overstaffing. Provide ongoing training and performance feedback to ensure high levels of staff competence and morale.
• Compliance: Ensure compliance with all local, state, and federal regulations related to food safety, labor laws, and health standards. Conduct regular audits to identify and rectify any potential compliance issues.

FreshFare Market expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location: Identify and secure a lease for a storefront in a high-traffic area in Milwaukee, WI, that is accessible to our target demographic. This location should also have ample parking and be in a neighborhood with a need for a grocery store.
• Obtaining Permits and Licenses: Successfully navigate Milwaukee’s regulatory environment to obtain all necessary permits and licenses required to operate a grocery store. This includes health department approvals, business licenses, and any other local permits needed for construction and operation.
• Building Out the Store: Complete the interior and exterior build-out of the store to meet the needs of a modern grocery shopping experience. This includes shelving, checkout counters, refrigeration units, and any specialty areas like a deli or bakery. The build-out should also consider customer flow and ensure a layout conducive to a pleasant shopping experience.
• Sourcing Products and Establishing Vendor Relationships: Establish relationships with suppliers and vendors to secure a consistent and diverse supply of products. This includes both national brands and local products to differentiate FreshFare Market from competitors. Negotiate pricing to ensure competitiveness and profitability.
• Hiring and Training Staff: Recruit and hire a team of employees who are passionate about providing excellent customer service. Implement a training program that emphasizes product knowledge, customer service skills, and operational efficiency to ensure a high level of service from day one.
• Launching Our Grocery Store: Officially open FreshFare Market to the public with a well-coordinated launch event that garners media attention and attracts customers. This includes marketing efforts such as social media campaigns, local advertising, and community engagement initiatives to build excitement and awareness.
• Implementing an Effective Marketing Strategy: After opening, continuously engage customers through targeted marketing efforts. This includes loyalty programs, weekly specials, and community events to keep FreshFare Market top-of-mind and drive repeat business.
• Monitoring and Adjusting Operations: Regularly review operational data, customer feedback, and financial reports to identify areas for improvement. Adjust product offerings, pricing, and operational procedures as necessary to better serve customers and improve profitability.
• Reaching $15,000/Month in Revenue: Achieve the milestone of generating $15,000 in monthly revenue. This will require effective inventory management, marketing, and customer service to build a steady base of loyal customers and attract new ones.
• Establishing a Local Presence and Community Engagement: Become an integral part of the Milwaukee community by participating in local events, sponsoring community initiatives, and engaging with local issues. Building a strong community presence will create loyal customers and differentiate FreshFare Market from national chains.

Our management team has the experience and expertise to successfully execute on our business plan.

Logan Baker, President

Logan Baker, President, brings a wealth of experience and a track record of success to FreshFare Market. With a background in grocery store management, Logan has demonstrated a profound ability to oversee operations, implement effective strategies for growth, and ensure customer satisfaction. His previous role as a grocery store manager equipped him with the necessary skills to navigate the complexities of the retail food industry. Under Logan’s leadership, his prior ventures have seen significant improvements in efficiency, profitability, and customer engagement. His strategic vision for FreshFare Market is centered on offering high-quality, fresh produce and products to customers while fostering a sustainable and community-oriented business model. Logan’s extensive experience and successful past in the grocery sector make him uniquely qualified to lead FreshFare Market towards lasting success.

To achieve our growth objectives, FreshFare Market requires $282,000 in funding. These funds will be allocated towards capital investments such as location buildout, equipment, and furniture, as well as non-capital investments including working capital, initial rent, staff salaries for the first three months, marketing, supplies, and insurance. This strategic investment will enable us to establish FreshFare Market as a key player in the Milwaukee grocery market, fulfilling our commitment to quality, freshness, and community engagement.

Financial Statements

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Income Statement

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Cash Flow Statement

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Grocery Store Business Plan Example PDF

Download our Grocery Store Business Plan PDF here. This is a free grocery store business plan example to help you get started on your own grocery store plan.  

How to Finish Your Grocery Store Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your grocery store business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Grocery Store Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Grocery Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Grocery Store Plan Here

You’ve come to the right place to create your grocery store business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their grocery stores.

Business Plan Sample for a Grocery Store

Below are links to each section of your grocery store business plan template:

Next Section: Executive Summary >

Grocery Store Business Plan FAQs

What is a grocery business plan.

A grocery business plan is a plan to start and/or grow your grocery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your grocery business plan using our Grocery Business Plan Template here .

What Are the Main Types of Grocery Businesses?

A grocery store can either be small scale or large scale. Small format groceries are usually small, family-run stores like a neighborhood store, convenience store, or health food store. Large scale groceries, on the other hand, are supermarkets that offer a wider variety of products and goods sold.

What Are the Main Sources of Revenues and Expenses for a Grocery Business?

The primary source of revenue for grocery stores is its food, beverage and alcohol sales.

The key expenses for grocery businesses are wages, rent or mortgage, cost of products sold, and utilities. Among the other expenses are insurance, equipment maintenance, and marketing. 

How Do You Get Funding for Your Grocery Business Plan?

Grocery stores are typically funded through small business loans, personal savings, credit card financing and angel investors. Inventory financing is also common for part of their funding needs.

What are the Steps To Start a Grocery Store?

Starting a grocery store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Grocery Store Business Plan - The first step in starting a business is to create a detailed grocery store business plan that outlines all aspects of the venture. This should include market research on the grocery store industry, potential target market size, as well as information about the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your grocery store . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your grocery store business is in compliance with local laws.

3. Register Your Grocery Store Business - Once you have chosen a legal structure, the next step is to register your business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to cover your startup costs and launch  your grocery store , so take some time to identify what financing options are available such as a business loan from a bank, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Grocery Store Equipment & Supplies - In order to start your business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your store . Marketing strategies includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful grocery store business:

• How to Open a Grocery Store Business

Where Can I Get a Grocery Store Business Plan PDF?

You can download our free grocery store business plan template PDF here . This is a sample grocery store business plan template you can use in PDF format.

• Business Idea

How to Start a Successful Philippine Grocery Business

The Philippine grocery industry has been experiencing steady growth in recent years, fueled by the country's expanding economy, rising consumer spending, and an increasing population. 

Dahil dito, dumami ang grocery stores sa bansa. Philippine grocery businesses have been serving as essential businesses that cater to the daily needs of millions of Filipinos.

Habang tumataas ang demand for Philippine grocery stores, there is great potential for aspiring entrepreneurs to make their mark in this industry. This article will delve into the critical aspects of starting and running a successful grocery store in the Philippines.

Market Research

Pag nagsisimula ng isang Philippines grocery store, pinakamahalaga na mag-conduct ng market research. Identifying your target market, understanding their needs and preferences, and analyzing the competition are essential steps in determining your grocery store's niche. It is crucial to develop a strong understanding of the local market and consumer trends to ensure your store's offerings are tailored to your target audience.

Once you have a clear understanding of your target market, it is time to tackle the legal aspects of starting a grocery store. Registering your business with the appropriate government agencies, obtaining necessary permits and licenses, and complying with local and national regulations are all crucial steps in establishing a legitimate business. This not only protects your business from potential legal issues but also instills confidence in your customers and suppliers.

Choosing the Right Location

Ang location ng iyong Philippine grocery story ay isang importateng bagay na makakaapekto sa tagumpay ng iyong negosyo. When selecting a location, consider factors such as foot traffic, visibility, accessibility, and the proximity to competitors. High-traffic areas and locations with high visibility can considerably increase your store's potential customer base and contribute to higher sales.

It is also important to  make sure your store is easily accessible so that customers can reach it with ease. Furthermore, proximate stores should also be taken into account; being located close to competitors can help you gain an edge over them in terms of convenience and attract more customers.

Sourcing Products and Suppliers

Sourcing products and suppliers para sa isang Philippines grocery store ay isang critical aspect ng pagpapatakbo ng grocery store. To ensure a steady supply of quality products, it is essential to find reputable suppliers and build strong relationships with them. 

Providing a variety of products, including fresh produce, meats, dairy, and household essentials, will keep your customers coming back and help differentiate your store from competitors. Additionally, having reliable suppliers will ensure your inventory is well-stocked and reduce the likelihood of stock shortages.

Store Layout and Design

Ang layout and design of your store ay may  essential role sa pag-attract ng customers at pagbigay ng mas masayang shopping experience. 

Optimizing the store layout for smooth customer flow, incorporating attractive and functional design elements, and utilizing effective merchandising techniques can significantly enhance your customers' experience and encourage repeat business. 

Practical touches such as wide, uncluttered aisles, clear signage, and strategic product placement can make shopping more convenient and enjoyable for your customers.

Utilize effective merchandising techniques , such as displaying products in attractive displays and creating eye-catching product placements. Additionally, providing helpful staff to assist customers and answer any questions can also help create a positive shopping experience for your customers.

Building Relationships with Suppliers

Developing a comprehensive marketing strategy is essential to promote your grocery store and attract customers. 

Ang paggamit ng social media, online advertising, at traditional marketing channels can significantly increase your store's visibility and reach. Implementing in-store promotions and loyalty programs can incentivize customers to visit your store regularly and enhance your store's reputation for providing value.

Financial Management

Ang maayos na financial management systen ay crucial sa long-term success ng iyong Philippine grocery store. Creating a budget, monitoring expenses and revenue, and implementing efficient inventory management systems will help you maintain healthy cash flow and profitability. Regularly reviewing financial projections and adjusting your strategies as needed will ensure your business stays on track.

Providing Excellent Customer Service

Providing excellent customer service is a cornerstone of success in the grocery industry. Investing in employee training and development will ensure your staff can deliver exceptional service and meet customers' needs effectively. Retaining and motivating your employees is equally important, as a well-trained and satisfied team will contribute to your store's reputation for providing excellent customer service.

Train your employees to  ensure they can provide excellent customer service. Create an environment that will motivate your employees and strive to retain them by providing competitive benefits.

Promoting Your Store

Finally, promoting your store is essential to create a strong presence in the market. Taking advantage of online marketing channels and leveraging local networks can help you reach more customers and build brand awareness. Ang pag-offer ng unique promotions, gaya ng discounts or special events, can also bring attention to your store and encourage customers to visit regularly.

Here are some tips to promote your grocery:

1. Gumamit ng social media - Create accounts on multiple platforms, such as Facebook and Instagram, to promote your store. Use platforms like Twitter to engage with customers and share content related to deals or events.

2. Gumamit ng local networks - Reach out to school groups, churches, businesses and associations in the area to let them know about your store. You can also partner with other local businesses to cross-promote each other’s products and services.

3. Mag-offer ng discounts - Consider offering discounts or coupons to entice customers to visit your store. Promotions like “buy one get one free” or limited time offers can be great incentives for potential customers. 

4. Sumali sa local events - Attend community events and festivals to not only promote your store but also build relationships with potential customers. Community-oriented activities, such as sponsoring a charity event or donating to a cause, can also help you create goodwill in the local area.

5. Magkaroon ng loyalty at rewards programs - Create loyalty and rewards programs to encourage customer retention. Offer incentives like exclusive discounts or free products for customers who visit your store frequently.

Starting and running a successful grocery store requires careful planning and sustained effort. Utilizing these tips will help ensure your grocery business is a success.

The Philippine grocery industry offers promising opportunities for entrepreneurs willing to invest time, effort, and resources into building a successful business. By conducting thorough market research, selecting the right location, sourcing quality products, optimizing store layout and design, developing an effective marketing strategy, managing finances, and providing outstanding customer service, you can establish a thriving grocery store that serves the needs of your local community and contributes to the country's growing economy.

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Starting a small grocery store

Editorial Staff | Business

The Philippines is well-known for being fond of eating, grocery shopping, basically everything that revolves around food, and buying for households.  This is one good reason why putting up a sari-sari store or a small grocery store business is one of the best businesses you can have if you are looking for a small-capital business.  In this article, we are going to deliver few of the best pointers we can give you in starting up a mini-grocery store.

First and foremost, this article will just talk about the content of the grocery itself (not including the renovation, the rent/lease, personnel salary, and utility expenses).  Please ensure that you take those things into consideration – this article will talk about just the things that you can sell if you decide to put up a mini-grocery.

Read: Small Business you can start next week at your home

The Capital

Obviously, the capital will depend on how big your store is and the variety of the items you are planning to sell.  Say you have a plan of using P200, 000 .  That would already be a pretty good amount considering selling things you usually see in convenience stores like 7-11 or Mini Stop.  Take note that that amount of money is only for the items excluding renovation and business permits.  If you would compute those as well, you will have a safe P300, 000.00 for it.

Read: Business you can start under Php 10,000

It is a must for you to buy in big bulks so that you can save as much as possible when you are going to restock items for your store.  Buying in bulks can save you time, money, and effort in getting the things you will sell.

The Content

As mentioned above, having that amount of money can already enable you to sell things or maybe more on what a normal convenience store can offer.  If you live in a village or a subdivision and you have your own place to sell items, then P200k is already a lot.  You can buy freezers for you to sell ice cream, you can buy kiosks so you can sell hotdogs, and other things like that – innovation is the key for your business to succeed and to grow.

Your Market

Of course, you need also to consider the people that would be patronizing your business.  Study the types of people who you regularly see in and around the area where you will locate your business; observe and ask questions on the products that they will buy.  You won’t sell a piece of gold in an area where silver is already a heavy thing for them, correct?  You need to see the types of customers you will have if they buy in bulk or in big packs; you need to see what type of income your neighborhood is in for you to properly plan on what you can serve them.  So studying your market or the people around it is actually a step closer to achieving success in your business.

Innovate and Create

Do not limit your servings to just offering products that you can see in groceries or in convenience stores.  Of course, you would need to innovate; you would need to show people that you have something that other places don’t.  Entice them with creativity, price, and presentation.  Try to come up with something.  Here are a few of the inexpensive things you can add if you are planning to open a grocery store/convenience store:

• Siomai and Siopao Kiosk
• A Coffee Vendo
• Hotdogs, burgers, and other snacks
• Ice cream in a cone
• Shakes or fruit juices
• Toasted Siopao

These are just few of the cheapest and best things you can add that would not require you to incur much of your money in.  Simple yet strong profit-yielding drivers that can generate more and more people.

So these are the few pointers we can give to aspiring entrepreneurs out there who are looking to open a mini-grocery or a convenience store.  Remember that people love new things and having innovations or creations inside you establishment can make them go curious and interested.  Do not be afraid to risk because a grocery store put in a tight location never fails – you just need to know what type of customers you have, the things you need to sell (their prices, of course), and what innovations you can put so that it can attract more and more people.

Read Also: 21 Home-based business that Filipino can do

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Here is a free business plan sample for a grocery store.

Have you been toying with the idea of opening your own grocery store but feel overwhelmed by the thought of where to start?

In the content that follows, we will present to you a comprehensive sample business plan tailored for a grocery store.

As an aspiring entrepreneur, you're likely aware that a robust business plan is crucial for achieving success. It serves as a roadmap, guiding you through setting your objectives, carving out your niche, and developing a coherent strategy for your venture.

To streamline the planning process and get a head start, you can utilize our grocery store business plan template. Additionally, our team is on standby to offer a complimentary review and refinement of your plan.

How to draft a great business plan for your grocery store?

A good business plan for a grocery store must cater to the unique aspects of retail food sales and distribution.

To start, it's important to provide a comprehensive overview of the grocery market. This should include current statistics and an examination of emerging trends in the industry, similar to what we've outlined in our grocery store business plan template .

Your business plan should articulate your vision clearly. Define your target market (such as families, health-conscious consumers, or budget shoppers) and your store's distinctive positioning (like focusing on organic products, local produce, ethnic foods, or discount pricing).

Market analysis is a critical component. You'll need to delve into the specifics of local competitors, market demands, and consumer buying habits.

For a grocery store, it's imperative to detail the range of products you'll carry. This includes perishables like produce and dairy, non-perishables, specialty items, and any additional services or departments (like a deli or bakery counter).

The operational plan should outline the location of your store, layout for efficient customer flow, inventory management, supplier relationships, and logistics for receiving and stocking products.

Quality control, inventory turnover, and compliance with health and safety regulations are particularly important for grocery stores.

Discuss your marketing and sales strategies. How will you draw in shoppers and encourage repeat business? Consider advertising tactics, loyalty programs, and potential ancillary services (such as home delivery or online shopping options).

Embracing digital strategies, including a robust website and active social media engagement, is crucial in the modern marketplace.

The financial section is vital. It should encompass your startup costs, projected revenue, operating expenses, and the point at which you expect to break even.

In a grocery store, with its thin margins and high competition, precise financial planning and a thorough understanding of your cash flow are essential. For assistance, refer to our financial forecast for a grocery store .

Compared to other business plans, a grocery store plan must pay closer attention to supply chain management, inventory turnover rates, and strategies for minimizing waste due to product spoilage.

A well-crafted business plan is a tool for the owner to crystallize their strategy and tactics, as well as to attract investors or secure loans.

Investors and lenders are looking for detailed market research, realistic financial projections, and a solid plan for the day-to-day operations of a grocery store.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your grocery store.

To achieve these goals while saving time, you can fill out our grocery store business plan template .

A free example of business plan for a grocery store

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a grocery store .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market overview and statistics.

The grocery store industry is a fundamental and ever-present sector within the global economy.

As of recent estimates, the global grocery retail market value is projected to reach trillions of dollars, with a steady growth trajectory anticipated in the foreseeable future. This is driven by the increasing global population and the essential nature of grocery shopping.

In the United States alone, there are over 38,000 supermarkets, with a combined annual revenue of more than 600 billion dollars. This underscores the critical role grocery stores play in the daily lives of Americans and their substantial contribution to the economy.

These statistics highlight the grocery store industry's resilience and its importance as a staple of consumer spending.

Industry Trends

The grocery sector is witnessing several key trends that are shaping the future of food retail.

Organic and natural products are seeing a surge in demand as consumers become more health-conscious and concerned about the nutritional value of their food.

Eco-friendly practices and zero-waste initiatives are gaining traction, with shoppers showing a preference for stores that prioritize sustainability and reduce plastic usage.

Technology is revolutionizing the shopping experience, with the rise of online grocery shopping, delivery services, and in-store innovations like self-checkout systems and smart carts.

Local sourcing is becoming increasingly popular, as customers seek out products that support local farmers and producers, reducing the carbon footprint associated with transportation.

Transparency in food sourcing and ethical business practices are also becoming more important to consumers, who are willing to pay a premium for products that align with their values.

These trends are indicative of a consumer base that is more informed, engaged, and selective about where they purchase their groceries and what they contain.

Key Success Factors

Several factors contribute to the success of a grocery store in a competitive landscape.

Product variety and availability are crucial; a store that offers a wide range of products, including specialty and international items, can cater to diverse customer needs.

Competitive pricing and value for money are also important, as consumers are always looking for the best deals without compromising on quality.

A convenient and accessible location can significantly influence a store's foot traffic and sales volume.

Exceptional customer service is vital for ensuring a pleasant shopping experience and fostering customer loyalty.

Efficient inventory and supply chain management are key to keeping shelves stocked and reducing waste, thereby maximizing profitability.

Lastly, the ability to adapt to industry trends, such as offering online shopping options or expanding organic product lines, can position a grocery store as a forward-thinking leader in the market.

The Project

Project presentation.

Our grocery store project is designed to cater to the increasing consumer demand for healthy, organic, and specialty dietary products, including gluten-free, vegan, and non-GMO options. Strategically located in a community with health-conscious residents, our store will offer a diverse selection of fresh produce, organic foods, and specialty items that are often hard to find in conventional supermarkets.

We will prioritize sourcing from local farmers and producers to ensure the highest quality and freshness. Our store will not only be a place to shop but also a hub for the community to learn about and engage with healthy eating habits.

With a commitment to sustainability and wellness, our grocery store aims to be a leader in the local food movement, providing a one-stop-shop for nutritious and environmentally friendly food choices.

Value Proposition

The value proposition of our grocery store is centered around offering a curated selection of healthy, organic, and specialty food products that cater to various dietary needs and preferences. We understand the importance of having access to food that supports well-being and aligns with personal values.

Our commitment to quality, sustainability, and community engagement offers a unique shopping experience that goes beyond the transactional nature of typical grocery shopping. We aim to foster a sense of community and provide educational opportunities about the benefits of healthy eating and sustainable living.

By focusing on the needs of health-conscious consumers and those with specific dietary restrictions, our grocery store will become a trusted source for wholesome food and a beacon for a healthier lifestyle within the community.

Project Owner

The project owner is an entrepreneur with a passion for health, nutrition, and community well-being. With a background in the food and retail industry, they bring a wealth of knowledge and experience to the table.

They have a strong commitment to environmental sustainability and have been actively involved in local food initiatives. Their dedication to providing access to high-quality, nutritious food is the cornerstone of this grocery store project.

With a vision to create a space where the community can come together to support local producers and learn about the benefits of a healthy diet, the project owner is the driving force behind this initiative, aiming to make a positive impact on the health and sustainability of the local area.

The Market Study

Market segments.

The market segments for this specialized gluten-free grocery store are diverse and multifaceted.

Primary customers include individuals with gluten intolerance or celiac disease who require gluten-free products for their daily nutrition.

Additionally, there is a growing segment of health-conscious consumers who opt for gluten-free items as part of a lifestyle choice or dietary preference.

Parents seeking healthier food options for their families, particularly those with children who have gluten sensitivities, also represent a significant market segment.

Healthcare professionals, such as dietitians and gastroenterologists, may recommend our store to patients needing gluten-free diets, thus becoming indirect promoters of our business.

SWOT Analysis

Conducting a SWOT analysis for the gluten-free grocery store highlights several key factors.

Strengths include a wide selection of gluten-free products, knowledgeable staff, and a strong focus on customer health and satisfaction.

Weaknesses might encompass the premium pricing of gluten-free products and the challenge of maintaining a fully gluten-free inventory.

Opportunities can be found in the increasing public interest in gluten-free diets and the potential to partner with local gluten-free producers.

Threats include the entry of larger supermarkets into the gluten-free niche and price competition from online retailers.

Competitor Analysis

Competitor analysis for the gluten-free grocery sector indicates a competitive landscape.

Direct competitors include other specialty health food stores, organic markets, and larger grocery chains with dedicated gluten-free sections.

These competitors vie for the attention of a discerning customer base that values product variety and quality.

Competitive advantages may be gained through superior product selection, exceptional customer service, community engagement, and loyalty programs.

Understanding the competitive landscape is crucial for carving out a unique market position and fostering customer loyalty.

Competitive Advantages

Our gluten-free grocery store's competitive edge lies in our unwavering dedication to product quality and customer health.

We offer an extensive array of gluten-free groceries, from staples like bread and pasta to specialty items, all sourced from trusted manufacturers and local suppliers.

Our knowledgeable staff is trained to provide personalized shopping assistance, helping customers make informed choices about their dietary needs.

We are committed to transparency, providing clear labeling and information about the gluten-free status and nutritional content of our products, thereby building trust and loyalty among our health-conscious clientele.

You can also read our articles about: - how to open a grocery store: a complete guide - the customer segments of a grocery store - the competition study for a grocery store

The Strategy

Development plan.

Our three-year development plan for the specialized gluten-free grocery store is designed to meet the increasing demand for gluten-free products.

In the first year, we aim to establish a strong foothold in the local market by offering a wide range of gluten-free groceries and emphasizing customer service excellence.

The second year will focus on expanding our product offerings to include organic and locally-sourced gluten-free items, as well as implementing a loyalty program to retain customers.

In the third year, we plan to explore opportunities for online sales and home delivery services to increase convenience for our customers and extend our market reach.

Throughout this period, we will prioritize sustainability, community engagement, and continuous improvement to ensure we meet and exceed customer expectations while growing our market share.

Business Model Canvas

The Business Model Canvas for our gluten-free grocery store targets individuals with celiac disease, gluten intolerance, and those who prefer gluten-free products for lifestyle reasons.

Our value proposition is centered on providing a diverse and high-quality selection of gluten-free groceries, exceptional customer service, and a knowledgeable staff to assist with dietary needs.

We will operate through a physical storefront complemented by an online platform, utilizing key resources such as our supply chain relationships and our expertise in gluten-free products.

Key activities include inventory management, customer education, and community engagement.

Our revenue streams will be generated from the sales of gluten-free groceries, while our costs will be associated with inventory procurement, staffing, and operational expenses.

Access a detailed and customizable Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on community engagement and education.

We plan to connect with our target audience by hosting gluten-free cooking classes, nutritional seminars, and partnering with local health experts.

We will also leverage social media platforms to share gluten-free recipes, health tips, and new product arrivals to build a strong online community.

Additionally, we will collaborate with local fitness centers and wellness clinics to cross-promote our offerings and gain referrals.

Our commitment to providing a wide range of gluten-free products and fostering a supportive community will be at the forefront of our marketing efforts.

Risk Policy

Our risk policy for the gluten-free grocery store focuses on mitigating risks associated with product sourcing, inventory management, and customer satisfaction.

We will ensure strict compliance with gluten-free certification standards and conduct thorough vetting of suppliers to guarantee product integrity.

Inventory levels will be closely monitored to prevent overstocking and ensure product freshness. We will also implement a responsive customer feedback system to address any concerns promptly.

To safeguard against financial uncertainties, we will maintain a conservative financial approach and secure comprehensive insurance coverage.

Our priority is to provide safe, high-quality gluten-free groceries while maintaining the trust and loyalty of our customers.

Why Our Project is Viable

We are committed to establishing a gluten-free grocery store that serves the needs of a growing segment of health-conscious consumers.

With our focus on quality, customer education, and community involvement, we believe we can carve out a significant niche in the grocery market.

We are excited about the opportunity to enhance the shopping experience for those seeking gluten-free options and are confident in the viability of our business concept.

We remain adaptable to market trends and customer feedback, ensuring that our store remains a preferred destination for gluten-free shopping.

You can also read our articles about: - the Business Model Canvas of a grocery store - the marketing strategy for a grocery store

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a grocery store and our financial plan for a grocery store .

Initial expenses for our specialty grocery store include leasing a retail space in a strategic location, outfitting the store with shelving and refrigeration units suitable for a diverse range of products, purchasing initial inventory with a focus on gluten-free and organic items, obtaining necessary licenses and permits, investing in a point-of-sale system, and costs related to brand creation and launching targeted marketing campaigns to reach health-conscious consumers.

Our revenue assumptions are based on a comprehensive analysis of local demand for specialty grocery items, taking into account the increasing trend towards healthy eating and the need for dietary-specific products.

We anticipate a steady growth in sales, starting with a strong opening and expanding as the reputation of our specialty grocery store grows within the community.

The projected income statement outlines expected revenues from our product sales, cost of goods sold (inventory procurement, vendor payments, etc.), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our grocery store.

The projected balance sheet reflects assets such as inventory, store fixtures, and equipment, and liabilities including loans and accounts payable.

It provides a snapshot of the financial standing of our grocery store at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to plan for cash requirements throughout the year. This is crucial for maintaining smooth operations and handling supplier payments and other financial commitments.

The projected financing plan identifies the mix of equity and debt financing we intend to use to fund our initial setup and operational costs.

The working capital requirement for our grocery store will be diligently managed to ensure we have sufficient funds to support day-to-day activities, such as restocking inventory, managing payroll, and other short-term expenses.

The break-even analysis will determine the sales volume we need to achieve to cover all our costs and begin generating a profit.

It will serve as a critical benchmark for the financial success of our store.

Key performance indicators we will monitor include the inventory turnover rate to measure the efficiency of our stock management, the gross margin to evaluate the profitability of our product lines, and the current ratio to assess our ability to meet short-term liabilities with current assets.

These metrics will be instrumental in gauging the financial health and operational success of our specialty grocery store.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a grocery store .

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How to Set Up Your Own Convenience Store Business in the Philippines

You might have probably noticed it already, but there are people still awake even way past midnight. They might be looking for a place where they can buy small things – snacks, cigarettes, probably batteries, cooking oil and a can of tuna perhaps, or some eggs, up to even small electronic devices. Some of them might even be working on night shifts, them being the product of the Business Process Outsourcing (BPO) office boom.

These are some of the reasons why convenience stores are heaven sent. There is a growing number of Filipinos out on the streets looking for a store where they can conveniently pick up small things they need and their changing lifestyles are helping convenience stores mushroom in just about any nook and cranny in the metro.

Having a convenience store means anticipating a round the clock activity. Here are some guides you must keep in mind to help you achieve and set up your own convenience store:

Image Credit: Joseph Mischyshyn

Location Matters

While location seems to be the starting point people think about when they start their businesses, it might not necessarily follow suit when you start planning where you will place your shop.

Technically you should be at a center of a diameter where people would come from. A radius could be a short walk from a condominium unit perhaps, and across that radius would be a subdivision where more people would be coming from. Another radius would be from a BPO site. You can check a map to show where your potential public may be coming from.

Your store might just as well be a few blocks away from people, but they will still be reaching you once the sari-sari store or any other store closes and they have no other option but to walk or even ride to where you are.

Be Service Oriented

What sets convenience stores apart from the sari-sari store, or even those big grocery stores, is customer service. This is one add-on value that you will be offering.

Your staff and the customer will mostly interact at the counter where products for “impulse purchases” are displayed. Some merchandise like cigarettes, lighters, batteries, up to even toys will be placed near or on the counter table.

Your staff should then be aware of your customers’ needs. Small technical knowledge can be of help — how well will you be able to answer their queries when they ask for cellphone load, for example. Most of the time, or virtually EVERY time, you will be needing to deal with people coming in and out of your shop for a variety of differing needs.

Get ready too to have occasional promotions and offers. These too will be a nice add-on value, while at the same time attracting even more potential customers. You are even encouraged to do this on your opening day.

Remember that this is not just a business that sells products, you are also providing services. Having a quality service entails you to be quick and efficient, as well as having a savvy line up of personnel that will cater to your customers’ needs. Your revenue will start trickling in once you master this approach.

Stock Up Conveniently

You do not have to need to stock up with everything a grocery has. Just about the barest of peoples’ essentials is what you will need to keep your store stocked. Your primary mission is to provide your customers mainly basic commodities, to select food products, and other needed goods.

Also, keep eyes on customers buying patterns. This will help you evaluate what wares you should be focusing upon.

Having said these, the core of the matter is providing access to basic needs, and making your customers comfortable. Your costumers will be more willing to spend money when they feel they can grab what they need conveniently from your store.

Shifting Schedules of Employees and Managers

As the business needs to be open virtually non-stop, you must keep track of your personnel schedule as well as the turnout of your inventory.

Our labor rules state a basic eight-hour working schedule. Dividing the day by it, and you will need three shifts. You will need a flat hierarchy to keep your overhead for workers’ wages down. Your personnel will have to be flexible enough to handle most of the work and chores needed in your store operation.

Concurrently you need to take into consideration when you stock up. The best way to handle your inventory would be the time where you notice the least number of customers going in. This way, your staff will have little worries and more time to focus on tallying merchandize going in and out, as well as balancing the cash in their cashier machines.

By the time you consider these things, other matters as setting up the store, designing its interior, procuring stocks and pricing your merchandise will be a breeze. But keep in mind that the most important thing to consider is how much convenience you will offer to your market.

And that’s all that matters in this business.

Too much of a hassle? You might want to look into a 7-Eleven or Mini-Stop franchise.

20 responses to “How to Set Up Your Own Convenience Store Business in the Philippines”

Where and how can you kind the essentials for a convenience store such as hot food steam cabinet and slurpee machine, the likes?

any contact info’s of business consultants pls.

[email protected]

Hi I would like to open a small Convenience store in panabo, Davao city. What are the things need to do?How much capital we need to open a new store? Can u guide me? Thanks

I want to.put up convenience store in Misamis Occidental please help and assit

Good day! I am looking for the best advice in putting up a business. What business are good and in demand? Thank you!

i want to start up a convenience store business here in davao can you help me?

hi i want to build a small convenience store in pasay but my nationality is chinese. can you assistme about the things that needs to do.thak you

Planning to put up also mini convenient store,where can i get reliable, good quality of things i will need..for example ice.cream machine, juice dispenser, food container to keep it warm

I would like to put up convenient store…. How much does it cost?

Hi i want to put up a convenience store in cagayan de oro…but how?

I’m planning to put up a mini convenient/grocery store in our area, please I need your kind opinion and advise.

Edison Caraos

My in laws and i are planning to put up a small grocery store within their place. How much money should we invest and what are the things that we should consider in order for our business to succeed? Tnx Godbless

Hi i am planning to open a small sari sari store like convenient store can you please give me some ideas on how can i set up my store for a small amountvof capital for a start up like 30k initial capital thanks

Hi I want to open a convenience store here in Nueva Ecija do you offer any seminar on how to start the business?

I want to open mini mart here in San Carlos City Pangasinan. Help me please

hi good day i want to start my grocery store business can you help me, please hoping for your positive response

Hello, I’m planning to have a convenience store in my area. How much is the capital?

Hi i amplanning to open a small convineince how much does it cost do you think? In metro manila area.

Good day po…i just bought vacant lot for planning to have a business…its a corner lot along national hiway in our province…hope you can help me to design my mini general merchandise I’ve planning. Thank you hope not really costs a lot..😊

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• Sample Business Plans
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Grocery Business Plan

There will be a market for groceries and other household goods because of the demand, and this can be a very profitable business venture. But opening and running a grocery store need thorough preparation, investigation, and attention to detail.

Are you looking to start writing a business plan for your grocery store? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a grocery store business plan template for you to help in start writing yours.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write a Grocery Store Business Plan?

Writing a grocery store business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your products and services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the grocery store and the concept behind it: like are you opening a supermarket, small grocery store, mini grocery store, convenience store, or something else?
• Company structure of your supermarket whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your supermarket and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your grocery store business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your small grocery store business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a grocery store business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the product:

• Create a list of the services that your grocery store will offer: fresh produce, meat, poultry products, dairy products, turkey, cookies, chocolates, bread, grain, beverages, frozen food, and others.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technology and equipment:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your grocery store business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the grocery store. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the grocery industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your grocery store business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This grocery store business plan sample will provide an idea for writing a successful plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our grocery store business plan pdf .

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Frequently asked questions, why do you need a grocery store business plan.

A business plan is an essential tool for anyone looking to start or run a successful supermarket. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your grocery store.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your store.

How to get funding for your grocery store business?

There are several ways to get funding for your grocery store, but one of the most efficient and speedy funding options is self-funding. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your store, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your grocery store business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your grocery store business plan and outline your vision as you have in your mind.

What is the easiest way to write your grocery store business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any grocery store business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Mini Grocery Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Wholesale and Retail Industry » Grocery Store

Are you about starting a grocery store ? If YES, here is a complete sample grocery store business plan template & feasibility study you can use for FREE.

A grocery store is a retail outlet where different food and household products are sold on shelves and cabinets. People love to do their shopping in a grocery store because of the convenience it gives them to shop for everything they need in a grocery store without moving from one store to another.

Starting a grocery store is a very easy business and it is not so capital intensive. Getting the right products that people want to buy and good stock keeping records are the secrets of running a grocery store. A grocery store can be run offline in the conventional retail store or online on an online e-commerce retail site.

You can also venture into mini-grocery sales. When people are looking for specialty foods or ingredients that can’t be found at the corner store or neighborhood Supermarket, they typically head to small grocers, also called mini-grocery stores.

Such retail establishments sell food and items that are uncommon and not carried by bigger stores. Opening a mini-grocery can be a lucrative business venture, especially if you live in a city with little competition. There are several things you can do to help your mini-grocery store succeed.

The information contained in this article can be beneficial to those individuals currently in the grocery business, those who are considering starting or investing in a grocery, or a community wishing to attract or retain a grocery store.

A Sample Mini Grocery Store Business Plan Template

1. industry overview.

Grocery stores, including supermarkets, account for the largest share of food store sales in the US. In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total grocery store sales.

The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores and supermarkets, as well as convenience stores. The staples offered at these stores make the industry non-cyclical.

In addition, grocery stores and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative. Buying prepared foods, which are new higher-margin offerings at grocery stores, is an additional alternative to restaurants.

However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores at their “supercenters” by offering lower prices through lower cost structures.

Wal-Mart is now the world’s No. 1 seller of groceries. Warehouse clubs, such as Costco and SAM’S CLUB ( owned by Wal-Mart ), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores.”

Conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned. Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue.

They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.

The supermarket and grocery stores industry is a major sector of the economy of the united states which generates a whooping sum of well over 2 billion annually from more than 42,539 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 2,624,650people. Experts project the supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly.  This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / grocery stores industry negatively which may result in the closure of some supermarket / grocery stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.

It is interesting to note that more supermarket / grocery shops especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.

Over and above, the supermarket and grocery store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

Peak Lane Grocery Store, Inc. is a standard and registered grocery store business that will be located in one of the busiest streets in Orlando, Florida.

We have been able to lease a facility that is big enough ( a 15 thousand square foot facility ) to fit into the design of the kind of grocery store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Orlando, Florida.

Peak Lane Grocery Store, Inc. will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We will engage in retailing general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products et al.

We are aware that there are several large and small chains of supermarket / grocery store outlets all around Orlando, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet is well secured with the various payment options.

Much more than selling the goods and products of top brands in the manufacturing and food industry, our customer care is second to none in the whole of Orlando, Florida. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our grocery store and also to become our loyal customers and ambassadors.

Peak Lane Grocery Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our grocery store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

We are aware of the trend in the retail / supermarket and grocery store industry and we are not only going to operate a system where our customers would have to come to our store to make purchase or whatever they want but we will also operate an online store and our customers can order grocery online and they will get it delivered to their houses or any location they want us to deliver the goods to within Orlando.

Peak Lane Grocery Store, Inc. is a family business that is owned by Bernie Vandross and Family. Bernie Vandross has a B.Sc. in Business Administration, with well over 15 years of experience in the retailing / supermarket and grocery store industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Orlando – Florida, but there is a plan to open other outlets all around Florida.

3. Our Products and Services

Peak Lane Grocery Store, Inc. is in the supermarket and grocery store industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our product offerings are listed below;

• Fruit and vegetables
• Fresh and frozen meat
• Dairy products
• Beverages (including alcohol)
• Frozen foods
• Other food items
• Other non-food items
• Drugs and health products

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the supermarket and grocery store industry in Florida and to establish a one stop grocery store in Orlando and in other cities in Florida.
• Our mission is to establish a grocery store business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residents of Orlando, Florida and other cities in Florida where we intend opening of chains of grocery stores.

Our Business Structure

Peak Lane Grocery Store, Inc. do not intend to start a grocery store business like the usual mom and pop business around the street corner; our intention of starting a grocery store business is to build a standard and one stop grocery store outlet in Orlando, Florida.

Although our grocery store business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls  goods distribution and supply inventory
• Supervises the workforce in the grocery sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the store facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our grocery store in Orlando, Florida is to test run the business for a period of 2  to 5 years to know if we will invest more money, expand the business and then open other outlets all over Florida.

We are quite aware that there are several supermarket and grocery stores all over Orlando and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Peak Lane Grocery Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Peak Lane Grocery Store, Inc.;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Peak Lane Grocery Store, Inc.

A major weakness that may count against us is the fact that we are a new grocery store outlet and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our grocery store in one of the busiest streets in Orlando, Florida provides us with unlimited opportunities to sell our groceries to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our grocery outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently online grocery cum retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiency. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.

Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.

In view of that, we have positioned our grocery store to service the residence of Orlando, Florida and every other location our grocery stores will be located all over Florida. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of groceries to the following groups of people;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

A close study of the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Orlando, Florida.

Peak Lane Grocery Store, Inc. is launching a standard grocery store that will indeed become the preferred choice of residence of Orlando, Florida. Our grocery store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Orlando, Florida. We have enough parking space that can accommodate well over 100 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Peak Lane Grocery Store, Inc. a one stop shop.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category ( startups supermarkets and grocery stores ) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Peak Lane Grocery Store, Inc. is in business to retail a wide range of groceries to the residence of Orlando, Florida. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail groceries such as;

10. Sales Forecast

One thing is certain when it comes to supermarkets and grocery stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Orlando, Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Orlando, Florida.

Below is the sales projection for Peak Lane Grocery Store, Inc., it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;

• First Fiscal Year-: $50,000
• Second Fiscal Year-: $150,000
• Third Fiscal Year-: $450,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Peak Lane Grocery Store, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Orlando, Florida.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time. We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Orlando.

In other to continue to be in business and grow, we must continue to sell the groceries that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Peak Lane Grocery Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our grocery store in a grand style with a party for all.
• Introduce our grocery store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Orlando, Florida
• Ensure that we have a wide range of groceries from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our grocery store
• Position our signage / flexi banners at strategic places around Orlando
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our bar.

11. Publicity and Advertising Strategy

Despite the fact that our grocery store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our grocery store. Peak Lane Grocery Store, Inc. has a long term plan of opening outlets in various locations all around Florida which is why we will deliberately build our brand to be well accepted in Orlando before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Peak Lane Grocery Store, Inc.;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Orlando, Florida
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Peak Lane Grocery Store, Inc. and the products we sell
• Advertise our grocery store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can groceries at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.

• Payment Options

At Peak Lane Grocery Store, Inc., Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a grocery store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Orlando, Florida – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services ( software, P.O.S machines and other software )
• Marketing promotion expenses for the grand opening of Peak Lane Grocery Store, Inc. in the amount of $3,500 and as well as flyer printing ( 2,000 flyers at $0.04 per copy ) for the total amount of Grocery Store Business Plan
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months ( salaries of employees, payments of bills et al ) – $60,000
• The cost for Start-up inventory (stocking with a wide range of groceries) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our grocery store in Orlando, Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Peak Lane Grocery Store, Inc.

Peak Lane Grocery Store, Inc. is a private business that is solely owned and financed by Bernie Vandross and family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Peak Lane Grocery Store, Inc. will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of groceries: In Progress

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Small grocery stores looking at boosting their online presence

By Jenina P. Ibañez, Reporter and Arjay L. Balinbin, Senior Reporter

SMALLER GROCERY STORES may sell products online to compete against supermarket giants that have invested in digital tools amid a coronavirus lockdown.

Steven T. Cua, president of the Philippine Amalgamated Supermarkets Association, said smaller stores were hit harder by the pandemic after being allotted fewer stocks from producers experiencing supply chain constraints.

Running stores with three to 15 checkout counters, some group members were starting to work with a mobile app firm to sell their goods, he said.

“The smaller supermarkets who cannot afford in-house programmers grouped together,” he said by telephone on Saturday. They compete with the giants by developing a more personal approach of chatting with their customers online, he added.

The move to e-commerce, though, still has risks, Mr. Cua said.

He said the stores are investing in bar code devices and staff for e-commerce operations on the My Suki app, but there is no guarantee that the platform would attract demand.

“Some of the members are hesitant to join because they don’t know how long this pandemic will last,” he said. “There’s risk, but you have to know when to step in and when not to. It’s already been more than year since the pandemic started.”

The stores are not just competing with larger supermarkets but also delivery apps rolling out grocery services. Unlike delivery app firms stocking goods in warehouses, grocery stores sell both in physical stores and online.

“The physical stores might compete with online requirements,” he said. “That’s the fine line that should be fixed internally.”

Mr. Cua said many smaller groceries have been considering shutting down due to the decline in foot traffic.

An industry group of retailers projected retail sales to remain flat this year after Metro Manila and nearby provinces were again placed under a strict lockdown amid a fresh surge in infections.

Mr. Cua said the stores were looking for ways to minimize expenses amid the sales drought, although the move online would involve investment and hiring.

“Will it help me grow or will it kill me? There’s that risk for the medium-sized to small-sized supermarkets,” he said.

COMPLEMENT Meanwhile,  e-commerce enabler Etaily said online stores were unlikely to replace malls in the Philippines despite increased online shopping by Filipinos during the pandemic.

“They play a tremendous role in the retail industry,” Alexander Friedhoff, Etaily co-founder and managing director said in an online interview. “It would be very bad on my part if I just say that online is everything now and offline is not relevant anymore. That’s not the case.”

He said online and physical stores will complement rather than compete with each other.

Mr. Friedhoff said they have been telling brand managers that “they should not be afraid of going online, which they think might destroy the offline channel.” “That’s not the case.”

Etaily enables brands to sell their products online by providing them with a one-stop, omni-channel solution. Its services include content production, channel creation, warehousing and fulfillment. Landmark, Terranova, Vans, Mango and Guess are among its partners.

“One of our core pillars in the entire execution is always to take into account what the offline store needs in terms of research online, purchase offline, in terms of pick up from store, setup on the web and in terms of offline promotion for online,” Mr. Friedhoff said.

The company, which focuses on fashion, home and living, and consumer electronics, seeks to partner with 25 more brands this year

Fashion, one of Etaily’s biggest categories, almost tripled their transactions with customers in the first quarter.

“With Etaily’s current verticals, the quarter-on-quarter growth comparisons per category are: 120% fashion, 200% home and living and 130% consumer electronics,” the company said.

E-commerce growth in the past year quickened by a decade, Jesse Stefan H. Maxwell, an Etaily investor, a partner at Foxmont Capital and chief executive officer of Magsaysay Shipping and Logistics Group, said in a statement. “Etaily is at the right time, in the right spot, with the right product market fit.”

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Opening a mini-grocery can be a lucrative business venture, especially if you live in a city with little competition. When people are looking for specialty foods or ingredients that can't be found at the corner store or neighborhood supermarket, they typically head to small grocers, also called mini-grocery stores. Such retail establishments sell food and items that are uncommon or not carried by bigger stores.

To set up your mini-grocery store you'll need to address the legalities, find a location, acquire equipment, choose suppliers and advertise your business.

Grocery Store Market Research

The grocery store industry is competitive and dominated by several big name companies. Therefore, you need to identify an underserved niche market in your local area that your mini-market can serve. For example, Cal-Mart, a family owned store in San Francisco, provides locally sourced fresh produce and quality sandwiches made to order. Other ideas include stocking:

• Ethnic food
• Organic food
• Gluten-free food
• Frozen foods
• Premade food

Setting Up Your Business

Choosing a legal entity your business is a big determining factor in deciding how much you want to grow in the future. A few entities to consider include:

• Sole proprietorship. This type of business is owned and operated by an individual. It is the easiest to set up but gives you the least access to financial support and liability protection.
• General partnership. This type of business has two or more owners. It is similar to a sole proprietorship in terms of the rules to set it up, but the partners must agree on the ownership percentage of each member. Like a sole proprietorship, the partners do not have liability protection.
• Limited liability partnership. This type of business usually has one partner who works the day-to-day business and one or more limited partners who invest money. Some or all of the partners have limited liability, depending on the location of the company.

You also need a business plan to secure sources of funding. Beyond traditional loans from a bank, consider funding from your own resources, family and friends, partners and government programs. If you don't know how to write a business plan, the U.S. Small Business Administration provides templates and resources to help you.

Legal Requirements to Start Your Mini-Grocery Store

Laws vary by state as to the exact requirements to open a grocery store. Contact your area's local departments of commerce and licensing for more information. At a minimum, you need the following legal documents:

• Business license
• Federal Employment Identification Number (EIN)
• Insurance policies

In most areas, your grocery store is inspected by the state department of health and the local fire department before opening.

Finding the Best Location

Buy or lease a small storefront for your mini-grocery. Find a location that is in or near a shopping center, restaurant, bakery, candy store, bookstore or coffee shop – especially those related to your niche. To find the best location for your mini-grocery store, use the Small Business Development Center’s Geographic Information Systems to get reports on local competition and demographics.

Equipment for Your Store

The type of equipment you need for your grocery store depends on what you plan to sell. At a minimum, you need the following items:

• Cash register with credit card processing machine
• Freezers and refrigerators for perishable goods
• Shelves and display cases for displaying items
• Carts or baskets for customer use

You can purchase equipment from online grocery store suppliers such as WebstaurantStore and Raimac.

Finding Suppliers

You need a strong and reliable network of distributors to get the goods for your store. You can work with wholesale suppliers such as Value Wholesale Distributors and Spartan Nash. Also, consider buying some of your inventory from price clubs such as Costco or Sam’s Club. You have to pick up and transport the items yourself, but you can save some money.

Advertising for Your Grocery

Advertising for your grocery store startup begins at the shelf level. This means item placement is important. Whether you follow the traditional method of placing your fast moving, popular items on the bottom shelf or the alternate method to place these items at eye level, the most important thing is to be consistent. Items should also be logically placed in the store. For example, light bulbs shouldn’t be in the produce section.

Use traditional marketing avenues such as direct mail, but don't overlook the value of online targeted ads for shoppers in your locale. Wherever you advertise, include coupons and information on the latest items and sales.

Feature innovative and creative product offerings that differentiate your store from the competition. A few examples include:

• Scooped or soft ice cream in cones
• Freshly made hamburgers and ice cream
• Fresh coffee
• Freshly pressed juices
• Fresh doughnuts and bagels
• Fresh sushi
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Michael is a writer in various subjects. He is a mechanical engineer and freelance writer, having earned a Bachelor of Science in Mechanical Engineering from Washington University in St. Louis. His articles have appeared mostly online.

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Grocery Store Business Plan Template [Updated 2024]

Grocery Store Business Plan Template

If you want to start a Grocery Store or Supermarket business or expand your current Grocery Store business, you need a business plan.

The following Grocery Store business plan template can be used to create a grocery store business plan, supermarket business plan, or a small grocery store business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Grocery Store business plan:

Grocery Store Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Click below to see each section of our free grocery store business plan template. You can also click here to get our small grocery store business plan pdf .

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