How to Start An Online Grocery Business Franchise?
Our generation is completely reliant on technology for practically everything. It has altered our way of life and how we interact with one another. Our changing lifestyle has a significant impact on our everyday requirements. So, why should food shopping be skipped?
To be honest, a few years ago, the only thing we did on weekends was going to the grocery store. It was made worse by the long charging lines. But, as time and technology passed, things changed for the better. The e-commerce business is to thank for the creation of online grocery stores.
The online grocery store industry is flourishing in India, thanks to an increasing number of consumers who prefer the ease of shopping for groceries online using their smartphones. It’s a movement fueled mostly by huge, pan-India corporate companies with deep pockets, such as Big Bazaar, Grofers, and, more lately, Amazon.
However, this internet business provides numerous potential for smaller, individual players that want to open their own online grocery shop to serve a more localized customer base.
How To Start Online Grocery Business Franchise in India?
India has a wide range of grocery businesses that offer franchises to people who are looking forward to establishing their business with an online grocery business franchise. Some of them are Grofers, Big Bazaar, and Hyper Supermarket.
With a network of 5000 partner stores enabling fast grocery delivery and a lean supply chain, catering to customers in 27+ cities and delivering over 25 million products to consumers every month, India’s largest low-cost online supermarket in the grocery space is looking to expand its operations through offline grocery stores. Grofers is an Indian online grocery delivery service that was founded in December 2013. It just raised $535.5 million in funding from notable investors such as Sequoia Capital, SoftBank, and Tiger Global.
The key benefit of having a Grofers retail store is the previously established brand name, as well as the reputation and loyalty that would accrue to your business as a result of its wide range of items and affiliation with over 5000 brands. It also offers a diverse product line at competitive costs, as well as bulk discounts that may now be enjoyed without having to wait for delivery.
● Area Requirements – 1000-2000 sq ft. carpet area
● Staff requirement – 4-5 members with adequate training in sales and customer assistance
Assistance provided by Grofers
● 100% back-end support.
● Total inventory management from sourcing to supply, as well as the return of unsold inventory.
● All store software (billing, inventory ordering, etc.)
● Overall training of the staff.
● Offline marketing assistance in the form of designs and implementation advice
● A dedicated Grofers Market – Area Business Manager handles day-to-day cooperation.
Funds needed: ₹30-₹40 lakhs (setup costs + brand fee + working capital)
How to apply for a Grofers franchise
Send an email to the Grofers franchise executives at the address listed on their website, together with your contact information and a request to purchase one of their franchises. You can also contact the Grofers franchise (zonal) offices with your question and details, and they will get back to you as soon as possible.
2. Big Bazaar
The Big Bazaar franchise is a huge success story. In addition, the organization promises product commissions as well as a personal part of revenues in addition to individual earnings. For a variety of reasons, the Big Bazaar franchise has been a huge success. One of the reasons you should want to purchase a Big Bazaar franchise is this.
With sub-networks like Heritage Fresh shops and Easy Day, Big Bazaar is expanding its network. The corporation is considering expanding its business potential to 10,000 locations. The plan is to increase sales by placing a Big Bazaar store within a two-kilometer radius of every two-kilometer radius in urban India.
You’ll need various permits and agreements in addition to the money. Before finalizing the final contract, the corporation needs its franchisors to have a cream location. You must review and sign all legal paperwork, as well as reach an agreement with the father firm.
They guide inexperienced employees, assist clients, and take command of the floor. Every aspect of the store will be managed by experienced employees.
The setup charges are 5 lakh rupees and additional 5 lakhs as a refundable security deposit.
How to apply for a Big Bazaar franchise
Visit Big bazaar’s official website. Fill out the franchise application. Make sure you fill in all of the blanks with accurate information. Fill out the online application form. Finally, wait for corporate personnel to contact you via phone or email.
3. Hyper Supermarket
Hypermarket is an online grocery store chain that operates in India’s supermarket industry. It operates approximately 34 locations in India under the FOCO and FOFO brands. It has the availability of 20000 products with 1500 brands. Having both an online and offline presence, Hyper Supermarket has customized products according to Indian consumer needs.
● FOFO Model – Minimum 300 Square Feet Area in a Good Location
● FOCO Model – 300 Squarefeet Area
● FOFO Model – Rs. 3 Lakh plus 18% GST
● FOCO Model – Rs. 3 Lakh Plus GST
Instore and Stock Investment
● FOFO Model – Rs 4,000 Per Square Feet
● FOCO Model – Rs 5,000 Per Square Feet as a Setup Charges
Revenue in Hyper Supermarket Franchise
● Foco Model – In the Foco Model, you will receive a 10% net profit on sales. All rent, energy, and employee pay will be paid by the Hyper Supermarket. If your store’s net sales are ten lakh rupees, your income will be one lakh rupees, and your net income will be one lakh rupees.
● FOCO Model – You bear all expenses in the FOFO Model, and you gain the actual profits on sales. The profit margin on sales will range from 6% to 30%. If your net sales are ten lakh rupees and your profit is twenty percent, you will earn two lakh rupees, but you will have to pay salary, rent, electricity bill, and a 25000 royalty to the brand.