Between big grocery chains and farmer’s markets, it can feel like there isn’t room for a small, independent grocer in your city. This is false. Dense cities, in particular, are the perfect environment for those looking to start their own food-based business since you have an abundance of local customers who can simply walk to your store without parking. Those in more rural areas, or even suburban ones, admittedly do worse. This is because distance means shoppers want to get all their food shopping done at once, so a small grocer isn’t usually going to cut it.
If your dream is to connect people to fresh, organic, or even internationally-based foods, then there are many ways to succeed and stand out.
How to Start a Grocer Business
Starting a food-based business is very similar to starting any small business, with the added exception that it will need to pass health and safety codes, similar to a restaurant. You’ll need to create a legal entity, register your business for taxes, open a business account, and get all the necessary permits. The specific rules and methods are going to vary drastically, depending on where you’re located. For the best results, it’s often a good idea to get a business consultant to help ensure you’ve crossed your T’s and dotted your I’s in all the right places.
Find a Great Location
Your location matters. You’ll want to find a place that has a lot of foot traffic, and ideally, parking spaces. Try to match your store vision with the market currently there. If it’s full of independent coffee shops and boutiques, a high-end organic grocer is going to fit right in.
Create a List of Reputable Suppliers
When it comes to managing your store, you’re going to need a range of great suppliers and then backups. This way, if anything goes wrong along the supply chain, you have a pre-vetted alternative waiting.
Decorate
A well-decorated store is a great way to kickstart your business for a few reasons. One, it looks like you intend to stay, as opposed to just a pop-up. Two, it draws the eye, meaning more passersby will see and clock your store, even if they don’t immediately go in. A good-looking store can also end up on Instagram and other social media sites often, further boosting your notoriety.
Advertise
To advertise your business you’re going to want to start by creating a website and social media page. From there, identify key media outlets in your area and influencers that you can work with to advertise the launch of your store. Send out flyers, put on a great face, and don’t forget to put out a sign on the street, so people can easily see your store and what it is from all directions.
Ways Independent Grocers Can Stand Out
It can be hard to compete with big corporations, especially as an independent grocer. The good news is that there are many ways that you can stand out, increase sales, and improve customer satisfaction.
Offer Organic
Organic foods that come from smaller farms are a great way to stand out from big corporations. You can partner with farmers who attend farmer’s markets or connect with local companies near you to connect your customers with fresh, organically grown produce and things like free-range eggs or even milk. In a world with so many preservatives and pesticides, organic is a huge draw, which is why many companies use the logo. To sell these to your customers, put up information placards about the farm they came from and the conditions they were grown in. Try to price this product as low as possible, and even offer a discounted section for “ugly” produce that’s still good to eat.
Offer Bulk
Bulk foods are an easy way to help customers buy what they need, without extra packaging. It also tends to be less since you buy large quantities and then sell by weight instead of buying individual units that often come with a pre-specified sell price. You can do this with many types of products – particularly grains, flour, and spices. To offer this, you’ll need to find a wholesale supplier.
You’ll also need a dispensing station. This way, when you buy wholesale bulk garlic powder or granules, you can fill up the dispenser and then allow customers to fill up their own containers. To earn more, sell containers (from free repurposed containers to classy glass spice jars) that are pre-weighed. If your customers bring their own containers, they only pay for the garlic, in this case, that they buy. If they use one of your containers, you can add to the price and increase your sale.
Spices and other powder-based foodstuffs aren’t the only things you can offer in bulk. Cleaning supplies are another great option. From powder cleaning to liquids and even soaps, there are many options that you can offer so your customers pay less and help the environment.
Consider How You Can Increase Each Shop
You won’t be able to price produce and essentials too high without turning away a lot of customers, but there are more ways than just boosting prices to increase the final sale. You can add a small espresso machine and offer tea, coffee, and hot chocolate. While customers wait for their orders to be made, guess what? They’ll explore your store, even if it’s just the area around the till.
Other ways to boost the final price are to offer small delights. Interesting treats like chocolates, handmade cards, and even small gifts from local artisans in your area can all be a great way to boost sales.
Offer Top Services
When you’re just starting, your options may feel limited, and that’s okay. No matter how new your business is, there are still ways you can offer value-adding services. For example, you can encourage customers to put together a “care package” or “essentials package”, so that you put together their weekly order in advance, so they can pick it up, pay for it, and be on their way.
As you grow, you can make this an online system, and as you grow further still, you can hire a delivery guy to personally bring your customers’ orders to their door (initially just for those in your neighborhood, though this can expand).