Recently, the retail landscape has undergone tremendous changes over the past 20 years. It grew out of an ordinary store where one family member works with a cash register, another with shelves, and another with a truck towards a more arranged and far-reaching enterprise. The introduction of a franchise and an online store makes it easier for a retailer to access a larger market far beyond the areas where its physical store is located.
Small chains and independent grocery stores still dominate the industry, but national chains such as Kroger are increasingly dominant. Bulk retailers such as WalMart and Target compete with grocery stores in their “supercenters” by offering lower prices due to cheaper structures.
WalMart is currently the world’s largest grocery retailer. Warehouse clubs such as Costco and SAM’S CLUB (owned by Walmart) can also compete on price by selling in bulk. Supermarkets have responded to these threats by creating larger “supermarkets”.
Mandatory fees to open a grocery store in New Orleans, USA
These are the main expenses that you are expected to incur when starting a medium-sized but standard grocery store business in the United States of America. Some of the points below if you lack money may be covered with payday loans Louisiana especially if you have already issued a bank loan to open a store in the New Orleans. You may address a fast online service that will deposit funds to your banking account within 24 business hours. Besides, this service is available 24/7 that is very convenient.
Let’s underline main fees you have to pay where deciding to start your own grocery business:
- The total fee for registering a business in the United States of America – $750.
- Legal costs for obtaining licenses and permits, and accounting services (software, POS machines and other devices) – $3,300.
- Marketing advertising costs for the grand opening of a grocery store in the amount of $ 3,500, as well as printing flyers (2,000 leaflets at $ 0.04 per copy) for a total of $3,580.
- The cost of hiring a business consultant (including writing a business plan) is $2,500.
- Insurance coverage costs (general liability, workers’ compensation and property losses) totaling $2,400.
- The cost of paying the rent for 12 months is $1.76 per square foot for a total of $105,600.
- The cost of the store reconstruction (construction of racks and shelves) is $20,000.
- Other start-up expenses, including office supplies ($500) and telephone and utility bills ($2,500).
- Operating expenses for the first 3 months (salaries of employees, payment of bills, etc.) – $60,000.
- Initial inventory value (warehousing) with a wide range of different brands of products) – $100,000.
- The cost of purchasing storage equipment (containers, racks, shelves, suitcases with groceries) is $3,720.
- Work area equipment cost (countertop, sink, ice machine, etc.) is $9,500.
- Store equipment cost (cash register, security, ventilation, signage) $13,750.
- Cost of purchase and installation of video surveillance systems: $10,000.
- Purchase price of furniture and gadgets (computers, printers, phones, televisions, sound system, tables and chairs, etc.): $4,000.
- Website creation and hosting cost: $600.
- Our introductory party cost: $2,000.
- Other stuff: $5,000.
Opening a small but standard grocery store in the United States will cost from $75,000 to $250,000 ($25,000 to $50,000). Note that while this is a small grocery store, that doesn’t mean it’s on par with the average grocery store in New Orleans, USA.
You will need an estimate of $ 300,000 to successfully open a mid-range but standard grocery store in the United States. Please note that this amount includes the salaries of all staff for the first 3 months of work, and it only applies to one grocery store.
When it comes to launching a standard and large-scale grocery store with multiple stores in the United States, a company that intends to sell a franchise, should target a budget of over $1 million.