Own production in the store

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Almost every store today produces "its own" goods. This practice allows them to sell at a higher markup and also increases customer loyalty.

Most often, the outlets offer fresh pastries, coffee to go, and ready-made meals. From this point of view, in-house production is also a way to control the quality of products, to offer something new, unlike competitors.

Investments in a production facility are usually luxembourg whatsapp phone number small and pay off fairly quickly. According to my calculations, the share of “their own” products in supermarket profits is up to 50%.



Franchise
Opening a grocery store is not an easy task. Significant investments, constant monitoring of expiration dates, compliance with legal regulations and tracking changing consumer demand all require a lot of effort and knowledge. In this case, many entrepreneurs look towards franchises, seeing them as an easy path to success.

The advantage is that you get a well-known brand and the opportunity to purchase goods at favorable prices. The franchisor helps to conduct marketing research to determine the potential audience and develop a plan for launching the store.

However, one should not forget about the disadvantages that may be hidden behind the attractive wrapper of franchising. It is important to carefully study all types of franchises, their advantages and disadvantages in order to make an informed decision and avoid pitfalls.

The world of franchising offers two paths to business: the hard way and the soft way.

Strict franchising is like a ready-made recipe with step-by-step instructions. The franchisor provides a well-established system: from a business plan to processes and training. The partner receives a proven model, so the risks are minimized. It is necessary to understand, however, that he does not have complete freedom of action.

The franchisor strictly regulates all aspects of the business: from the range of products to the accounting system. This can limit creativity and the ability to independently develop the business.

The franchisee loses full control over the business. In most cases, he becomes akin to a director, having invested large sums in the creation of the store.

Exiting a business can be difficult: selling a franchise binds the new owner to previously agreed upon obligations, which can make the deal unprofitable.

Soft franchising gives freedom of action. The partner receives the basis: brand, technologies, but then decides how to use them. He is provided with training on pricing, choosing suppliers and hiring personnel. But he himself decides who to work with and what range to offer.

This is a great opportunity for entrepreneurs who want to offer unique products, such as farm produce: large chains are not always willing to cooperate with small producers.

Flexible conditions allow franchisees to independently select some suppliers, while maintaining the ability to purchase goods from the franchisor at favorable prices. This helps to form a unique assortment and take into account the specifics of the region.

The average payback period for a grocery store is 13 months with investments starting from 500 thousand rubles.