Supermarket Franchise vs Opening Your Own Supermarket Franchise: Which One Is Better?
Supermarkets are quite different than regular grocery stores or the local shops. A supermarket is almost a all in one self service shop that offers variety of food products, beverages and most of the household items. Supermarket franchise are larger in size as compared to other types of markets and offer wide range of products that are required in our daily life.
Supermarkets are doing great business since the past couple of decades. It has become easier for customers to shop everything under one roof that also provides an amazing shopping experience. A supermarket falls under the category of retail trade sector but can also be called as a part of the food and beverages industry. Now, if you are looking to open up a supermarket business, will you look to open up a franchise or open up your own store?
Advantages Of Getting A Supermarket Franchise
Supermarkets have made a huge breakthrough in the business world as it has become one of the most profitable businesses all around the globe. Indian supermarket brands like Big Bazaar, DMart, Reliance Fresh, Spencer’s Retail and many more are earning huge profits today. Each of these supermarket franchises have increased revenues every financial year. However, let us see some of the advantages of getting a supermarket franchise instead of owning a supermarket.
Read More: How to get More Supermarket Franchise
Little Experience Can Get You Going
Getting a supermarket franchise will guide you to conduct the daily activities that a franchise owner has to do. Even if you have little experience you will be able to manage those activities with the help of the expertise of the franchise that you wish to partner with.
A Strong Customer Base Is Already Provided
Taking on an existing supermarket franchise will give your franchise store to attract a huge number of customers. The already-existing franchises in a country like India have grasped the market and is earning decent amount of revenue every year. It will be a great opportunity for you to generate revenue without working effectively on marketing and advertising.
Much Lower Risk Than Opening A New One
Existing supermarket brands has already done the majority of the work and has got well-established. This is why people will automatically enter your store just by looking at the brand name. However, this will not be the case if you are starting new. People will not be reluctant to enter your store right away and this could push your expenses to a higher level.
Enough Time and Opportunities To Expand The Business
Entrepreneurs those who open up their own supermarket has to bear the huge risk of financial loss which becomes a major setback for them to expand their business. This will not be the case if you decide to partner with a supermarket franchise. You will have enough opportunities to expand your business thus doubling your income and revenues.
Advantages Of Owning Your Own Supermarket Franchise
Every business opportunity has got its pros and cons because there is always various risks that are attached with a business. Similar is the case with owning a supermarket because there is no greater risk than financial crisis as your employees should be paid on time or else they will leave your business. However, on the other hand, there are some advantages of owning your own supermarket franchise as well.
You Are Your Own Boss
One of the greatest reasons why entrepreneurs go solo with their own business idea is that they want to be their own boss. They do not like the fact that someone else will ask them to do their job because they are already motivated, disciplined and courageous enough to face the challenges in the business world.
Power & Control
One of the most important advantages is that you will be having your power and control over your business. Employees will have to listen to you and you must know strategies to handle them with respect during challenging situations.
Financial Gain Only To Yourself
Partnering with a franchise may earn your store decent revenue and profits each year but you will not be able to have total financial gain on it. This is because the company may ask you to pay certain amount of commission each month or at the end of every year. Apart from that there may be other charges and commissions that you would have to pay to them which do not happen if you open up your own supermarket.
Creative Work Environment
You could those type of businessman/businesswomen who do not like to lead a normal life. You would always look to try something new in your business and set some creative rules and regulations for your employees or do something different that no other businesses has ever done. By doing such things it will automatically boost up the morale of your employees and your business will earn a reputation in the market as well.
Franchise vs Own Supermarket : Differences
| Basis Of Distinction | Franchise (Big Bazaar) | Own Mart/Business |
| Investment | Under 50 lacs | 10 lacs to 2 crore (depending on size) |
| Profit Margin | 3-15% commission (depending on sale) | 1-3% (depending on sales) |
| Return On Investment | 1.5 - 2.5 years (ROI timeframe) | 1-3 years (depending on sales) |
| Royalty | N/A | No |
| Marketing | 5 lacs as setup charge | INR 10 lacs to 2 crore (depending on marketing techniques) |
| Interior & Designing | INR 20 lacs (more or less) | INR 50000 - 1 lac or more |
| Inventory Management & Billing Software | Provided by the franchise brand | Investment has to be made to develop or training has to be provided to work on new software |
| Equipments | INR 5 lacs | INR 1 lacs to 5 lacs (depending on size) |
Conclusion
Businesses are difficult to manage at the initial stages because support is minimum. Whereas when entrepreneurs choose partnering with franchises then it becomes much easier for them as they receive proper support from the company. Each has got its pros and cons and it totally depends on the people as to which one is better and should go for. Before considering any option it is always a wise option to seek guidance from experts and professionals or getting professional counseling.