Does Tesco Franchise?

10/02/2019 08:00 | Franchise business profiles

Tesco franchise


Does Tesco Franchise?

Our shopping habits in the UK have been undergoing some notable shifts in recent years. But supermarkets, even after a period of difficulty, are and have always been essential. We are, in fact, now seeing a growth in the industry as they adapt to changing consumer habits. The name Tesco is almost synonymous with the word supermarket, and has a ubiquitous presence across our towns and cities.

For many of us, Tesco is our go-to supermarket. This is a supermarket that has earned public trust and, impressively, is the third largest retailer in the world, measured by gross revenues. From food and flowers to its own fashion label, household goods and gardening gear, there is hardly anything Tesco doesnt do. It has certainly come a long way since its humble beginnings in 1919. So, lets take a look at the Tesco brand to find out a little more about its business model and opportunities to franchise.

Tesco UK

This year marks Tescos 100th anniversary, and it is celebrating by paying tribute to its humble beginnings. Tesco reminds us that this hugely successful brand supermarket with just one man and one shop. Jack Cohen, the brands founder, invested his £30 demob money when leaving the Royal Flying Corps at the end of World War One to buy a days worth of stock. By the end of that day he had made a profit of £1 on sales of £4.

However, Cohen persevered, and, to his credit, there are now more than 3,400 stores across the world. Cohens ethos was all about affordability for everyone, and this message still lives on today. Tescos business has always concentrated on the customer to create a one-stop shop for almost everything you could need at good value for money.

Is Tesco a Franchise?

Unfortunately, the short answer is no, Tesco itself does not franchise.

However, opportunities are available with Tescos offshoot company,

p. The One Stop shop is part of the Tesco family, and condenses all that the name embodies into one convenient store. After an initial trial period in South Korea in 2010 where 18 of these convenience stores were launched, the brand was officially brought to the UK in 2014. Now, 930 One Stop shops can be found across England, Wales and Scotland, 160 of which are managed by franchisees.

With an initial investment of £50,000, franchisees benefit from the reliability and security of a respected and well-known brand. And because One Stop operates separately from Tesco, franchise owners get a level of autonomy, operating with different suppliers and distribution networks. Franchisees also get the freedom to customise and tailor their store to the local community.

Tesco Business

Tescos core business is retail, which provides 60 percent of its sales and profits. Its two main labels are its Everyday Value and Finest ranges each creating £1 billion in sales per year. The Tesco business model is all about reinvesting in customers and products. This has been demonstrated recently, as Tesco decided to do away with its deli-style counters serving fish, meat and other fresh food in an effort to simplify its food offering and serve customers to the best of its abilities.


Supermarket Franchise

It is clear that the market is changing, that shoppers are now geared more than ever towards ease and convenience, with a rise in people ordering their shopping online through services such as Ocado, and ordering veg/dairy/meat boxes straight to their doors. Additionally, people are choosing not to travel further to go to larger supermarkets, and instead favour small, local shops that sell quality products.

Though change may not always be comfortable, it is also exciting, holding new business and franchising opportunities. Smaller franchises of supermarkets and retail stores are therefore an excellent sector to invest in to start your own business, especially if they are designed to cater for time-strapped, thrifty and health-conscious shoppers. Whereas these types of shops initially sold just the basics, they are now expanding to include a wider range of products to meet new demands and trends.

Alternatives

If you are looking to open a supermarket & grocery strore franchise, there are many different brands to get involved with. Lets have a look at some of the other options.

Spar

Spar is the largest food retail chain in the world. It operates in 42 countries and serves over 13 million customers every day. Originally a Dutch company, the head offices are still in Holland.

In terms of franchising, Spar operates a multi-format strategy. This includes Spar, Spar Express, EuroSpar and InterSpar. There are currently 12,176 of these Spar franchises in the world, with the majority in Europe, which has 10,631 stores. Spar retailers and franchisees can benefit from the online SPAR Guild Training Academy. This provides new additions to the brand with across-the-board training, enabling workers to attain operational excellence and accredited qualifications in the realm of retail. As a well-known and established brand, Spar has a lot to offer a franchisee.

In order to get the process started, new Spar franchisees should complete a comprehensive online application form, detailing their financial status, location and any specific requirements, which will determine the initial costs of the franchise.

Veganz

If you want to go for something slightly different, the relatively new brand Veganz could be a shrewd investment. Launched in German as the worlds first Vegan supermarket chain, this franchise opportunity takes advantage of consumer trends.

Greenbay is a more local affair, setting a precedent for the future as Londons first 100 percent vegan supermarket. As Greenbay stores are relatively new to the scene, franchising with the brand would take a bit of research, but veganism and the demand for plant-based foods is continuing to grow, so why not get ahead of the game with a vegan supermarket store?

Conclusion

Although Tesco supermarkets as we recognise them do not officially franchise, investors do have the opportunity to get involved with the brand by franchising with One Stop. If that does not tick all the boxes, there are many other franchising options, including those that listen and respond to consumer trends, such as the vegan supermarkets, Veganz and Greenbay.

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