Grocery Store Business Plan Template

Grocery Store Business Plan Template

If you want to start a Grocery Store or Supermarket business or expand your current Grocery Store business, you need a business plan.

The following Grocery Store business plan template can be used to create a grocery store business plan, supermarket business plan, or a small grocery store business plan.

You can download our grocery store business plan template (including a full, customizable financial model) to your computer here.

 

Sample Grocery Store Business Plan Template

Below is a grocery store business plan example with each of the key sections to help you write a grocery store business plan for your own company.

I. Executive Summary

Business Overview

[Company name] is a grocery store business, in [City]. We will serve the nearby residential community with all their grocery needs. We will focus on providing our customers with fresh produce, deli products, baked goods and a butcher shop. Our store will also include a home section that will sell cleaning products, household essentials and beauty products. Despite the fact that we have several competitors, we are confident that our grocery store has several competitive advantages such as home delivery service, pre-ordering of goods, ambiance, and excellent customer service.

Products Served

Here are the products as well as services that [Company name] will offer:

• Meat – poultry, beef, lunch meat, pork
• Produce – fruits, vegetables
• Bread or Bakery products– sandwich loaves, tortillas, bagels, dinner rolls
• Baking Goods – cereals, pasta, mixes, flour, sugar
• Personal Care – shampoo, shaving cream, soap, hand soap
• Frozen Foods – waffles, vegetables, individual meals, ice cream
• Beverages – coffee, tea, juice, soda, drinks
• Canned or Jarred Goods – vegetables, spaghetti sauce, ketchup
• Dairy – cheese, eggs, milk, yogurt, butter
• Cleaners – All-purpose, laundry detergent, dishwashing liquid and detergents
• Home delivery service
• Pre-ordering/grocery pick-up

Customer Focus

[Company Name] will primarily serve the residents who live within a 10-mile radius of our store. The demographics of these customers are as follows:

• 76,827 residents
• 2,750 workers (who do not live the neighborhood)
• Average income of $64,900
• 42% married
• 47% in Management/Professional occupations
• Median age: 38 years

Management Team

[Company Name] is led by [Founder’s Name] who has been in the grocery store business for 20 years. He has extensive experience at major grocery stores for the past 20 years. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

• The area is in need of a full-service grocery store
• Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passersby each day.
• The management team has a track record of success in the grocery business.
• The grocery store business has a positive track and has succeeded in communities throughout the United States

Financial Highlights

[Company Name] is seeking total funding of $260,000 of debt capital to launch its grocery store. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: $140,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company name] is a grocery store business, in [City]. We will serve the nearby residential community with all their grocery needs. We will focus on providing our customers with fresh produce, deli products, baked goods and a butcher shop. Our store will also include a home section that will sell cleaning products, household essentials and beauty products. Despite the fact that we have several competitors, we are confident that our grocery store has several competitive advantages such as home delivery service, pre-ordering of goods, ambiance, and excellent customer service.

We have strategically chosen to position our grocery store at the center of the city where most commercial and business establishments are as well as residences. Despite the fact that we have several competitors, we are confident that our grocery store has several competitive advantages such as home delivery service, pre-ordering of goods, ambiance, and excellent customer service.

[Company Name]’s History

[Company name] grocery store is owned and operated by [Founder’s name]. [Founder’s name]’s family has been in the food and restaurant industry for [x] years. This long experience with the industry as well as his Business Administration degree from [University], makes [Founder’s name] an expert in handling the grocery store business. He has an extensive knowledge of grocery store operations, making him the ideal candidate to open a new store.

Since incorporation, the company has achieved the following milestones:

• Found store location and signed Letter of Intent to lease it
• Developed the company’s name, logo and website
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the grocery store industry

[Company Name]’s Products/Services

Here are the products as well as services that [Company name] will offer to our consumers:

• Meat – poultry, beef, lunch meat, pork
• Produce – fruits, vegetables
• Bread or Bakery products– sandwich loaves, tortillas, bagels, dinner rolls
• Baking Goods – cereals, pasta, mixes, flour, sugar
• Personal Care – shampoo, shaving cream, soap, hand soap
• Frozen Foods – waffles, vegetables, individual meals, ice cream
• Beverages – coffee, tea, juice, soda, drinks
• Canned or Jarred Goods – vegetables, spaghetti sauce, ketchup
• Dairy – cheese, eggs, milk, yogurt, butter
• Cleaners – All-purpose, laundry detergent, dishwashing liquid and detergents
• Home delivery service
• Pre-ordering/grocery pick-up

This diversity of products and services will be one of our greatest advantages. We will provide every basic necessity to our customers, so they don’t have to visit various stores in search of their needed goods.

 

III. Industry Analysis

The Grocery Stores industry has grown over the past five years, benefiting from a strengthening economy for most of the period. As per capita disposable income has increased, many consumers have shifted to premium, organic and all-natural brands, helping lift industry revenue.

Despite various economic factors that have supported industry revenue growth, rising competition and changing consumer preferences have posed a threat to many operators, forcing them to generate revenue in new ways. For example, many large national grocery chains have offered big discounts and promotions to drive foot traffic to their stores and strengthen consumer loyalty.

Over the next five years, industry revenue is anticipated to grow steadily, resulting from rising discretionary income and consumer preferences. As health concerns intensify, more consumers will likely seek all-natural and organic products. Operators are also anticipated to benefit from steadier commodity markets that will likely cause input costs to rise much more conservatively.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is affluent and has an affinity to healthy and organic foods and beverages like we will be offering. The precise demographics of the town in which our location resides is as follows:

We will primarily target the following four customer segments:

• Parents: the town has a large population of families who need a full-service grocery store to meet the needs of their families.
• Morning commuters: many local residents drive to neighboring towns or take the nearby train to work. [Company name] is conveniently located for these individuals to pick up coffee or snacks in the morning or pick up a sandwich in the evening.
• Local office workers: approximately 5,000 individuals work in offices within a quarter mile of our location, and we expect a fair portion of these individuals to frequent us during the morning and lunch hours.
• Students: there is a middle school and a high school located a half mile from our location. Students from these schools will be targeted to frequent the store for their grocery needs

 

V. Competitive Analysis

Direct & Indirect Competitors

The following businesses are located within a 5-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Farm Foods
Established in 1946, Farm Foods is a family- and employee-owned chain of 32 supermarkets in the Midwest. The company employs more than 7,500 associates, who provide personal attention and support to each customer. It offers a complete range of groceries, as well as free child care for customers (1 hour maximum, first come/first served). Farm Foods emphasize perishable and prepared products, which account for about two-thirds of sales. Most of the food and other items the stores sell are free of pesticides, preservatives, sweeteners, and cruelty.

The company gives back to the communities it serves via donations, event sponsorships, fundraisers and community events.

Shop and Save
Family owned and operated for 33 years, Shop and Save is a 22,000 square foot grocery store. The full service grocery store features fresh produce (some farm-to-store), meats, bakery, seafood, deli, dairy and other grocery items. They also offer specialty prepared foods such as salads, soups, panini, custom-made to order sandwiches, carving station meals to go, take and bake pizza. Entrées include shepherd’s pie, rotisserie chicken, lasagna and stuffed shells.

Working with local farms for fresh summer vegetables including sweet corn and zucchini and apples, cider and peaches, they estimate about one third of their produce is locally grown.

All Natural
In business for four decades, this all-natural supermarket carries a large variety of items including vitamins, supplements, herbs, homeopathics, aromatherapy, greens, groceries, bulk foods, coffee & tea, dairy, frozen and refrigerated foods. They also only carry certified organic items and their wheat and gluten-free section is currently the largest in the area.
Newly added, they now offer an expanding line of organic prepared foods such as, sandwiches, salads, juices, acai and smoothie bowls, with many gluten-free, dairy-free, and vegan options.
But what’s really different from the mainstream grocery store is that the Market is also like a boutique food shop, where part of the appeal is that you know that these products were carefully chosen by someone with a passion for natural foods.

Competitive Pricing

The price of groceries varies widely depending on the product, but below is a comparison of the competitor’s service fees.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is near the center of town, giving us access to commuters going and leaving the train station, local office workers, and passersby going to local shops. We also offer adequate parking making it easy for customers to patronize us.
• Great service at an affordable price: The store will offer home delivery and grocery pick-up services, further extending our market reach
• Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.

 

VI. Marketing Plan

You can download our grocery store business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Convenient location
• Significant personal attention
• Moderate price point
• Friendly, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:

Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.

Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.

Commuter Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.

Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again.

Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the salon.

Ongoing Customer Communications
[Company Name] will maintain a website and publish a weekly flyer promoting grocery specials and events

Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when patronizing our store.

 

VII. Operations Plan

Functional Roles

The Company will be open every day from 9:00-7:00pm. The Company intends to employ [x] merchandisers, [x] cashiers, [x] delivery personnel and [x] supervisors during peak hours and [x] merchandisers, [x] cashiers, [x] delivery personnel and [x] supervisors on off-peak hours. [Company name] anticipates having [x] customers on daily.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Stock and inventory managers
• Cashiers
• Delivery personnel
• Customer service representatives
• Maintenance personnel

 

Administrative Functions

• General & administrative functions including marketing, bookkeeping, etc.
• Sourcing and storing products
• Hiring and training staff

Milestones

[Company name]’s long term goal is to become the dominant provider of grocery store items in the [city] area. We seek to the standard by which other providers are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name] who has been in the grocery store business for 20 years.

[Founder] has extensive experience at major grocery stores for the past 20 years. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.

[Founder] graduated from the University of ABC where he majored in Business Administration.

Hiring Plan

[Founder] will serve as the store manager. In order to launch our grocery store, we need to hire the following personnel:

• Stock and inventory managers
• Cashiers
• Delivery personnel
• Customer service representatives
• Maintenance personnel
• General & administrative functions including marketing, bookkeeping, etc.
• Sourcing and storing products
• Hiring and training staff

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from the grocery items sold.

As with most businesses, cost of goods sold and labor expenses are the key cost drivers for grocery stores. Employees are paid through a combination of salaries and bonuses, rewarding them for performance and making them an active part in business retention and development.

The major cost drivers for the company’s operation will consist of:

• Cost of goods sold
• Salaries
• Lease

Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking total funding of $260,000 of debt capital to launch its grocery store. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: $140,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model.

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement