Opening a convenience store today theoretically means having the opportunity to implement innovative services. For example, a minimarket specializing in loose products ( https://www.guidaconsumatore.com/imprenditoria/negozio-di-prodotti-sfusi-come-aprire.html )
with a view to environmental sustainability, or, alternatively, opening an e-commerce site at the same time ( https://www.guidaconsumatore.com/imprenditoria/e-commerce-come-aprire.html ) so as to be able to broaden your customer base thanks to the internet.
In this article, we’ll cover: how to open a convenience store, the requirements and necessary permits, how much it costs to open a convenience store , and the advantages of opening a grocery store franchise.
In conclusion, we’ll see that opening a minimarket means, in a certain sense, betting against the changes that have taken place over the last 25-30 years, which have seen the emergence of numerous large supermarkets, leading to the closure of numerous small food businesses, crushed by large groups.
A revolution, which perhaps the younger ones will not remember, called: Supermarket Revolution.
Table of Contents
HOW MUCH DOES IT COST TO OPEN A MINIMARKET? 3
#1 Rent, buy, or own premises. 3
GENERAL OVERVIEW OF SMALL FOOD BUSINESSES IN ITALY. 4
OPEN A FOOD MINIMARKET
A small food market is a business that fits into a context dominated by large-scale distribution, that is, by big brands, which can count on aspects such as:
- Purchasing power;
- High marketing and advertising expenses;
- Loyal customers;
The above aspects suggest that a convenience store must stand out in order to survive in a highly competitive market. Some ideas could be:
- Selling products that cannot be found in large supermarkets;
- Focus on human relationships;
- Highlighting typicality and quality.
So, where do you start to open a successful convenience store?
#1 Develop a business plan
The first step to opening a successful convenience store is developing a business plan, a document that allows the entrepreneur to clearly understand his or her vision, objectives, costs, and challenges.
A business plan, drawn up by specific experts, serves to guide the entrepreneur towards the definition and future implementation of their idea.
In other words, developing a business plan is a necessary prerequisite before starting any type of business. The document allows you to:
- Understand all aspects of the convenience store;
- Know the trends and preferences of future customers;
- Be clear about your start-up and future costs;
- Define logistical aspects (suppliers, warehouse, raw material procurement).
- Define future advertising and marketing strategies.
#2 Bureaucratic procedures
Once the business idea is proven to be viable, you can begin the process of completing all the necessary bureaucratic procedures to open a business.
To open a convenience store you need:
- Opening a VAT number
- Submit the SCIA (Certified Notification of Commencement of Business) to your municipality, which is one of the mandatory requirements for starting any business: commercial, artisanal, or industrial. The SCIA must then be forwarded to the SUAP (One-Stop Shop for Productive Activities).
- Register your business with the Chamber of Commerce and the Companies Register, and ensure your INPS and INAIL status is up to date. The ATECO code for a convenience store is 471140.
- Obtain the necessary licenses to sell food products (SAB and HACCP)
These steps are generally carried out by an accountant who will also take care of managing the tax part.
Furthermore, the following are included in the bureaucratic procedures:
- Permits to display the sign;
- Installation of the POS (electronic payment terminal);
- Bringing the premises up to standard according to hygiene and safety requirements.
- Payment to SIAE.
Regarding the license required to open a convenience store, it is worth noting that thanks to Legislative Decree no. 114 of March 31, 1998 ( https://www.gazzetta ufficio.it/atto/serie_generale/caricaDettaglioAtto/originario?atto.dataPubblicazioneGazzetta=1998-04-24&atto.codiceRedazionale=098G0143&editore30giorni=false ), this no longer needs to be requested for any business with a space smaller than 250 square meters.
If you want to open a convenience store in a municipality with a population of fewer than 10,000, the square meters drop to 150.
HOW MUCH DOES IT COST TO OPEN A MINIMARKET?
In order to correctly estimate the costs of opening a convenience store, it is necessary to consider various scenarios, which influence the total expenditure to be incurred.
Let’s see what the main expenses to consider are:
#1 Rent, purchase or own premises
When you own a space where you can open a convenience store, you benefit from the advantage of not having fixed costs arising from purchasing the space or renting it.
A small grocery store is, in fact, generally a family-run business, and whether or not it will have to cover fixed costs for the premises is an aspect that should not be underestimated.
#2 The area
Opening a convenience store in a large city, located on a central street, involves higher costs than opening the same business in a small town on the outskirts.
The area, therefore, is another determinant that heavily influences costs.
#3 Raw materials
It’s not uncommon to find convenience stores that can stock some of the groceries they produce themselves. For example, if you own a farm, it might be a good idea to open a convenience store to facilitate the sale of your products.
In this case, the costs for raw materials are lower than those who find themselves in the position of having to purchase every food product from a single supplier.
#4 Personnel costs
A convenience store is typically a business that can be run by one or two people, so there’s no need to hire outside staff.
Having to pay an employee a salary is another aspect to consider that significantly impacts costs.
MINIMARKET START-UP COSTS
Beyond general considerations , the costs of opening a convenience store also include a whole series of expenses that fall under start-up costs. The costs to be borne are given by:
- Administrative procedures;
- The rental of the premises;
- The works to adapt the premises to the business;
- The creation of the advertising sign;
- From the furnishings;
- Advertising and marketing.
By quantifying each of the aforementioned aspects it is possible to have a cost estimate which, in general, is between €50,000 and €100,000.
MINIMARKET FRANCHISING
Alternatively to what has been reported so far, it is also possible to think about opening a minimarket franchise ( https://www.guidaconsumatore.com/imprenditoria/che-cose-un-franchising.html ).
Turning to a franchise is a choice made by many entrepreneurs who recognize the difficulties that can arise in opening a traditional convenience store.
Franchising allows you to overcome some problems, in fact:
- The opening costs are lower;
- The brand is well-known and already has its own clientele;
- You benefit from the support of the group’s training and know-how.
Obviously, opening a convenience store franchise means complying with the franchisor’s established policies, which require the use of furnishings, products, and commercial policies decided beforehand.
Among the most famous chains that offer the possibility of joining an affiliate program are:
- Tiger: (https://www.gabriellispa.it/it/gruppo/franchising.html).
- TODIS: (https://www.todis.it/il-mondo-todis/diventa-affiliato/)
- MD: (https://www.mdspa.it/affiliazioni)
- Carrefour: (https://www.carrefour.it/franchising.html)
GENERAL OVERVIEW OF SMALL FOOD BUSINESSES IN ITALY
Before opening a convenience store, we’ve seen how important it is to develop a business plan and make a choice between opening your own convenience store or through an affiliate program (franchising).
As highlighted in numerous studies, including: “ Introduction. For a critical analysis of agri-food supply chains and systems in Italy ” (https://www.jstor.org/stable/26778668?seq=1), the food market today uses large-scale distribution channels for almost 75%.
Only 13% of the food market in Italy is managed by small, self-employed businesses such as minimarkets.
In other words, the food market is firmly in the hands of large groups such as Coop, Selex and Conad.
Furthermore, as confirmed by the Observatory on Italian Large-Scale Retail (https://www.mbres.it/sites/default/files/resources/rs_Focus-GDO-2019.pdf) conducted by the Mediobanca Research Area, the number of small grocery stores in Italy is constantly declining.
Between 2009 and 2018, the number of food stores with a surface area between 100 and 400 square meters decreased by 26.1%, while discount stores expanded by 24.2%.
This situation isn’t unique to Italy. While the top five operators in Italy hold 51.8% of the market, in Europe (France and Germany) the share rises to as much as 80%.
In conclusion, is it worth opening a convenience store? As usual, regardless of the data, there are cases of successful minimarkets and cases of small grocery stores forced to close after a while.
Once again, it’s skills, innovation, and entrepreneurial ability that determine success. The numbers are reported for the record and for clarity, but they shouldn’t discourage.
We’re now accustomed to facing numerous and sudden changes, but in truth, no one is really able to establish a priori and generally how profitable it might be to invest in one sector rather than another.
