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Independent vs. Franchised Supermarket

Is Your Supermarket Profitable Enough to Sell? A Seller Readiness Guide

If you are looking into owning your own supermarket, there are several processes that you need to go through before you can start. This involves searching for a supermarket that has great potential. You can choose between building your own supermarket from scratch and buying an existing one. If you have the time to spare, then building your own supermarket from scratch may be possible.

 

Franchise Supermarket

Owning a franchise supermarket has great advantages especially if you are new to the industry. It’s a less complicated process because all other franchises of the same brand have a single system to follow.

Below are several advantages in buying a franchise supermarket:

1. Established Brand

Supermarkets such as IGA, SPAR and Foodworks have been in the industry for some time. Their reputation helps them gain leverage in the industry, which gives franchisees a head start and attracts customers faster than an independent brand.

2. Support System

Compared to an independent brand, franchise supermarkets possess a support system that works for them. This is in terms of purchasing products, keeping track of product delivery, monitoring of inventory, staff management, etc. Each aspect has a method that all franchisees of the same brand follow. What’s great about this is that it works because it has been tried and tested.

3. Safe

Franchise supermarkets are always a safe choice. With a franchise, you can always have an estimate of the costs. You won’t have to scratch your head or be stressed when a problem occurs because the franchisor can always back you up.

Independent Supermarket

If you want to explore the industry more, we suggest an independent business for you. With this type of business, you can have all the freedom you want.

1. B.Y.O.B.- Be your own boss

Being your own boss has a lot of perks. You can manage your schedule according to how you want it planned. You also have the freedom to integrate your inputs into your company. Plus, you won’t have to answer to anyone because you are the head of the overall operation in your business.

2. Faster Growth

An independent supermarket owner does not need to consult anyone if someone wants to be part of his/her business and vice versa. Plus, without any product rules to comply, he/she can include other products which franchise supermarkets are prohibited to do unless the franchisor allows them.

3. Standards. Standards. Standards.

Compared to franchised supermarkets, independent retail businesses do not necessarily have standards to follow. This would be an advantage since you can pick the right place for your supermarket. There won’t also be any need to pick a certain brand for your facilities.

If you are new to the industry, we suggest buying a franchise because a support system can guide you through the industry, but if you already know the ins and outs of the business, then an independent store is ideal for you.

In the end, it’s up to you to consider the advantages and disadvantages and decide which of the two would be more beneficial for you.

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