What Supermarket Franchise Opportunities Are There in the UK?

17/04/2019 12:30 | Focus on business sectors

supermarket franchise opportunity

Supermarket franchises can be very profitable business ventures, primarily because people will always need shops to buy food and other daily essentials. While it is becoming more and more popular to eat out in the UKs increasingly diverse range of restaurants, the younger generation are also becoming more concerned about the origin of their food and choosing to regularly cook their meals from scratch. Food stores, therefore, will always be widely and frequently used by consumers.

However, this is not to say that the supermarket sector has not seen significant disruption in recent years. The emergence of discount stores characterised by Aldi and Lidl have drawn customers away from the four big supermarkets: Asda, Sainsburys, Tesco and Morrisons. By mimicking popular brands and saving money by displaying products in their shipping boxes, discount stores have enabled consumers to conduct their weekly shop for a lower price.

Food stores can be opened as a large supermarket model or local convenience store model. While a larger store might seem to be a more lucrative business opportunity, smaller shops cater to the growing army of top-up shoppers who prefer to shop little and often. Changing shopping habits mean that almost half of consumers no longer do a big weekly shop (Co-op), as people prefer to purchase an average of seven items during frequent visits to local convenience stores (The Drum via Opinium Retail Tracker). In fact, more than one in five Brits claim to visit a convenience store every single day (Statista).

Another factor that is altering the supermarket landscape is the rise of online shopping. The big four supermarkets now offer collection and delivery services while specialised online retailers such as Ocado and AmazonFresh have emerged, further expanding the market. According to Statista, the UK is expected to have the worlds second largest online grocery market by 2020, after China. Technology has allowed consumers to order their preferred food choices to their door with the press of a button. Moreover, a quarter of online shoppers make their order on their smartphone (The Drum via Opinium Retail Tracker).

So, there is plenty to consider if you would like to become the owner of a successful supermarket franchise. Lets take a look at some of the best franchising options currently available.

Read more:

 

Supermarket Franchise UK

SPAR

If youre hoping to join a hugely successful, world-renowned supermarket franchise, look no further than SPAR. The brand began in 1932 with one Dutch store. By championing fresh food, fresh-looking stores and fresh ideas, SPAR has become the worlds largest food retail chain, operating over 12,000 stores across 34 countries. In the UK alone, 50,000 friendly staff form the face of the brand, helping to generate a turnover of over £3 billion.

SPAR is proud to have created a business that is run by locals, for locals. Franchisees can benefit from the worldwide recognition and trust of the brand and extensive financial support. SPAR stands out from the competition as a result of its own range of essentials that boasts over 1,000 lines. If you are interested in joining SPAR, simply head to their website to get started.

One Stop

One Stop is a subsidiary of Tesco that operates more than 770 company-owned stores and 160 franchisee-owned stores across England, Wales and Scotland. It is looking for established retailers who would like to convert their store into a One Stop franchise and are willing to pay up to £50,000 to make that happen. In other words, One Stop will provide a store re-fit, refreshing the interior and exterior of the shop to reflect the One Stop brand in accordance with the existing stores size, dimensions and features.

Franchisees are not constrained to a specified list of supplies; as long as you purchase 95 percent of your stock from One Stop, you have the freedom to select your own local suppliers to make up the remaining five percent. Franchisees can also pay their weekly £92 membership fee upfront as one payment. Fill out One Stops online form to find out whether you fit the criteria and qualify for a free consultation.

Supermarket Franchise Cost

Supermarket franchises can vary hugely in cost, depending on the size of the venture. While cheaper franchises could offer investors the chance to make a quick return on investment, more expensive opportunities could include extra perks, like One Stops store re-fit. This means that there is bound to be a supermarket franchise to fit every budget.

Alternatives at Point Franchise

Point Franchise has a variety of retail franchises in its portfolio, but if a supermarket franchise isnt for you, remember that there are other ways to sell food products. Vending machine franchises, for example, can be hugely profitable. Tubz is one such franchise that offers investors an unusual opportunity.

Tubz

Tubz is the UKs leading vending machine franchise, selling towers that can hold nine tubs of nine different products (a total of 81 products per tower). The towers are operated mechanically and do not need electricity.

Not only does Tubz sell confectionary, tapas options and even childrens toys, it also offers consumers recognisable brands that they already know and trust. These include Skittles, Smarties, Jelly Babies, Pringles, Maryland cookies, Jammie Dodgers and Cadbury Mini Eggs and Chocolate Fingers. With each tub selling for £1, franchisees can expect to make 45p of profit per tub sold.

In return for a total investment of £2,995, Tubz offers investors the chance to become part of a unique franchise with no management or other ongoing fees. The brand provides a two-year warranty on all new equipment as well as 24/7 engineering support. If you join Tubz, you can choose to work full or part-time, and will be able to access a training scheme and continuous guidance to ensure the smooth running of your business.

Other recent articles
Did you enjoy this article? Please rate this article
Average rating (4.5/5) based on 1 vote(s)

0 Comments

post a comment

Characters remaining: 250