Opening a Big Deal Supermarket Franchise in India
Supermarket Franchise plays a huge role in India’s retail ecosystem and is a very important part of it, catering to the rising demand of organised retail and good quality products.
One of the biggest names in the franchise market is Big Deal supermarket franchise, known for its affordability, quality, comprehensive product range, and customer centre approach.
If you get an opportunity to open a big deal supermarket franchise in India, then it is a great offer, which cannot be refused and it can also be an excellent opportunity to tap into the booming retail business in India.
There are high chances to establish a profitable business in big deal supermarket franchise.
This guide provides you with in-depth detail of how to open a big deal supermarket franchise in India and it also covers its potential, requirements, cost, and strategies for success.
1. Why Choose Big Deal?
A. Brand Recognition
Big deal, supermarket franchise are very well-known for their quality, affordability, Variety and great customer service, which can easily attract a lot of customers. It also acquires a higher percentage share in India’s retail sector.
B. Support From Big Deal
Big deal provides you with end to end support such as inventory, sourcing, marketing assistance, and high operational training which reduces all the major risks of starting a business.
C. Growing Retail Sector In India
The demand for organised detail and high-quality Products is increasing day by day in both semiurban, urban and rural areas. Supermarket Franchise are becoming a preferred choice for grocery, daily necessities and household shopping.
Demand for an organised detail and quality products is also increasing in tier 2 and tier 3 cities.
2. Understanding The Franchise Model
A. Franchise Agreement
1. The agreement includes everything you need to know about the franchise and it outlines the terms, including franchise fees, royalties, guidelines, and the duration of the agreement between both the parties.
B. Revenue Share
1. Big deal supermarkets work on a revenue sharing model in which a percentage of the profits is given to the franchisor.
C. Exclusive Rights
1. If you build a strong relationship, the franchiser may also provide you with the exclusive rights of a particular territory to avoid competition between the franchises between the same area.
Also Read: Tips for Marketing Your Supermarket Franchise on a Budget
3. Basic Requirements of Opening Big Deal Supermarket
A. Capital Investment (also known as financial investment)
1. The initial franchise fees ranges between ₹5,00,000 to ₹15,00,000 depending upon the size and location of the store.
2. The set up cost includes equipments, store, interiors, design, and inventory which is worth ₹20,00,000 to ₹30,00,000.
3. If we talk about working capital, you require a bare minimum of ₹5,00,000 to ₹10,00,000 for day-to-day operations.
B. Space Requirements
1. For a big deal supermarket franchise, you require a minimum area of 1000 to 2000 square feet.
2. Location should have good foot fall, high traffic, it can also be near any school or in the centre of the market. Also ensure that the location is easily accessible by car, walking and by public transport.
C. Legal Enforcements
1. If we talk about the trade license, it is issued by the local municipal Corporation and can cost around ₹5000 to ₹7000.
2. GST registration is also mandatory for any business if the turnover exceeds ₹20,00,000.
3. FSSAI license is also required for selling food and all the eatable items.
D. Staffing
1. Typically, you require around 8 to 10 employees for stocking, shelving, billing and customer service.
4. Selection and Setup
A. Choosing An Accurate Location
1. The location should be easily accessible by foot and vehicles, and also by public transport, ensuring easy accessibility will always lead to high foot fall.
2. Your store must always be near residential area or markets, proximity to these areas ensures high foot traffic and high sales.
3. Always remember to avoid areas which are competitive or filled with other grocery stores.
B. Storage
1. Always remember to allocate a back room for inventory storage and deliveries.
C. Design and Layout
1. The franchiser may always provide some guidelines regarding the interior for the stores design, including shelving, lighting, and branding.
2. All the impulse by products, such as snacks, chocolates, chewing gum and items which are also known as penny products should always be near the counter.
3. Also ensure that all the high demanding items such as rice, oil, and all the grains must be displayed prominently cause they are the most used items in every household and always stay in major demand.
5. Inventory Management
A. Inventory Source
1. The franchiser will always provide you with a list of approved suppliers, or will supply you all the items.
2. Big deal, supermarket. Franchisees are generally benefited from centralised procurement, so there are not many differences in the pricing of the products. The quality also remains top notch and you can never see a complaint.
B. Inventory Categorisation
1. Divide all the inventory into different categories such as staple such as grains, oil, and spices can come under groceries.
2. All the snacks, beverages, and ready to eat items can come under the packaged foods.
3. Fruits, vegetables, and all the dairy products can come under the fresh produce.
4. All the kitchen ware, toiletries, and the cleaning products can come under household items.
C. Technology Integration
1. You will always use POS systems by which you can track real time stock levels and also track the sales trend of previous years.
2. Also, you can implement automated systems for restocking alerts and it will also alert you if someone is breaching the security.
3. In this technology overpowered world, it becomes essential to grow with time and implement technology in day to day activities for some relief and saving time.
6. Marketing and Promotion
A. Pre – Launch Event
1. You can always host a grand opening event with discounts and various offers that can attract more customers and generate high sales on the first day.
2. Always remember to advertise through local newspapers, flyers, and banners that can enhance the visibility among people.
B. Digital Marketing
1. Take the help of social media and create pages on platforms, such as Facebook and Instagram, and promote your campaigns on the app. Also use the app to engage with the audience and get to know their preferences.
2. Register your store on Google, my business for better visibility in local searches.
C. Community Engagement
1. You can always sponsor Local events or collaborate with local universities or organisations to gain trust among people.
2. In this way, you can engage with the local community and gain their trust as well as become their friend so that nobody mind’s shopping from your store
3. Introduce membership programmes with among us discounts and offers for exclusive as well as repeat customers.
D. Loyalty Programs
A. Staff Training
The franchiser will always provide training for the staff in customer service, billing, inventory management, and handling day-to-day operations.
B. Customer Service
Always remember to clear create a welcoming environment in the shop by maintaining cleanliness and an organised retail shopping experience.
Train all the employees to attend the customers, politely, and promptly with full respect.
Great customer service is the key to success for any new business as the customers promote by word to mouth which is one of the best marking till date and you also get recognised by genuine people who wish to buy from your store.
C. Seasonal Planning
Stock up on all the seasonal items so that you can get huge discount on bulk purchases such as festive Sweets, decorations, and products with higher demand during specific time of the year.
D. Billing and Payments
1. You can always use POS systems for real time inventory tracking and efficient billing.
2. Always remember to accept all the digital payments so that you can cater all the tech savvy customers.
8. Financial Management
A. Break Even Analysis
1. Calculate the time required to cover the initial investment.
2. For example, we can assume that if the initial investment was ₹ 70 lakhs and the profit per month is ₹7 lakhs, then it will take you 10 months to recover the initial investment. So this indicates that your break one period is 10 months.
B. Expense Control
1. Always remember to monitor all the recurring activities and all the recurring expenses such as rent, utilities, and salaries.
2. Also, remember to optimise inventory purchases to avoid overstocking and wastage.
C. Revenue
1. Major Ravi new generation is going to be through household items, groceries and packaged goods.
2. Additional services can be such as home delivery or some special orders.
9. Challenges and Solutions
A. Logistics and Transportation
1. Challenge – ensuring timely inventory deliveries.
2. Solution – you need to work very closely with the franchisor’s supply chain team.
B. Competition
1. Challenge – competing with all the local Kirana stores of the larger supermarket franchise.
2. Solution – always remember to focus on wider product range, better quality, better service, and competitive pricing.
C. Price Sensitivity
1. Challenge – customer in the smaller towns, may prioritise affordability over good quality.
2. Solution – always remember to offer discounts, deals on bulk purchases and other exciting offers such as buy one get one free.
10. Scaling
A. Expansion
1. Always remember to take decisions based on the customer demand, you can always introduce new stationary, electronics, and even apparels.
B. Home Delivery Services
1. You can always launch a delivery service to cater all the local audience living nearby and enhance their shopping experience
C. Opening Additional Franchises
1. Once your first store is profitable You can always seek for new opportunities to open more big deal, supermarket franchise in urban as well as rural areas.
12. Benefits of Big Deal Supermarket Franchise
A. Brand Support – You get all the marketing, training, and inventory support from the franchisor, they also provide you with a list of suppliers who are verified and approved by the company. They also offer and two and support any time during the working hours.
B. Customer Trust – customer always tend to recognise big brands and showed loyalty towards them and most of the customers. Trust big deal supermarket franchise.
C. Operational Efficiency – all the systems provided by the franchiser are of superior quality and are already being used in proven models which reduces the risk of failure. This also ensures smooth operations and consistent quality.
Check out this: How to Choose the Right Supermarket Franchise in India
Conclusion
Opening a big deal, supermarket franchise in India can be a very appealing opportunity, and it can also be a very profitable if you work with full efficiency and consistency.
Big deal provides with high-quality staff and training, and also take care of the quality of the product, which reduces the risk of any product damage.
With trusted brand name, comprehensive brand support and increasing need of organised detail in India, you can easily make a profitable business out of this.
By choosing the right location, managing the finances wisely, and having strategic planning can help you establish a thriving business.
This was a full guide regarding how you can open a big deal supermarket franchise and make a profitable business out of it.
By implementing all the techniques, you can ensure a thriving business that serves the local community and ensures long-term success.
However, it may seem that opening a franchise is not that easy, but if you read this article with all your focus, you will be able to find huge opportunities and the facts that are true.
You must have got a clearance about how easy it is to open a big deal, supermarket franchise, and work efficiently as well as have a organised retail for all the customers to enhance their shopping experience.
