Convenience stores are more than just shops that stock everyday groceries - a convenience store is the heart of the community.
Convenience store franchises are small retail stores that stock a range of everyday items that people need at short notice. Situated on street corners, shopping malls, at gas stations and train stations, convenience stores sell everything from toiletries to pet food, with everything in between.
The average convenience store franchises stocks:
- Snack foods
- Soft drinks and alcohol
- Toiletries
- Newspapers and magazines
- Chocolate, candy, and cookies
- Dairy goods, such as milk, butter, and cheese
- Tobacco products
Some convenience stores offer hot food in heated cabinets, a selection of freezer items, and ready meals; offering consumers easy access to products they'd typically have to queue for at the supermarket.
It’s estimated that there are over 150,000 convenience stores in operation throughout the United States.
Convenience store franchises are typically located alongside busy roads, in urban areas, or inside transport hubs, capitalizing on the high volume of traffic these areas attract.
So, if you're looking to serve your community positively while providing shopping essentials that make your customer's lives easier, consider investing in a convenience store franchise today.
Franchising
A convenience store franchise represents an excellent business opportunity for anyone who thrives in jobs that put the general public first.
Many people consider franchising the common-sense way to go into business because you inherit an established parent company's logo and instantly recognizable branding.
Building a reputation is quite possibly the biggest challenge for any new business. However, if your future customers already recognize and trust your branding, you have a great headstart to building your new business.
Setting up an independent convenience store can be a complicated process. Franchises are ready-built businesses with access to a reliable (and cost-effective) supply chain to help you maximize your profits. When you set up alone, you have to build your supply chain from scratch.
When you invest in a convenience store franchise, you can expect some excellent training opportunities in preparation for your opening day. But the support you receive from your convenience store franchise partner doesn't stop at training - most parent companies provide excellent HR support, ensuring that your business runs in compliance with employment and financial regulations.
Your parent company understands the market and their target consumers - going it alone with an independent venture often leads to a string of bad business decisions made early in the timeline of operations that slow down the development of your company.
Gain instant curb appeal by introducing immediately recognizable branding to your street, offering a service that your future customers already know that they can rely on.
Facts About Convenience Store Franchises
There's a long history of convenience stores in the United States. The first US convenience store chain was opened in Dallas, Texas, back in 1927. This chain eventually became the 7-Eleven franchise - the largest convenience store franchise in North America.
Convenience stores generally operate more extended opening hours than traditional businesses, opening early in the morning to cater to commuters and staying open until late in the evening. Some convenience chains operate 24/7, offering their customers access to essential items at any hour of the day.
24/7 convenience stores are particularly beneficial for people who work shifts and for night owls, offering access to items usually only available during conventional business hours. Urban areas with large student communities and shift workers make the most use of convenience stores after hours.
Some convenience store chains specialize in discount items to attract customers. However, most add a convenience premium on the ticket value of the items on offer in their stores, representing a higher profit margin.
Supermarkets have enormous buying power and, resultantly, enjoy lower costs for bulk orders. Independent convenience stores don't generally buy in such large quantities, which usually means higher costs for individual products. However, convenience store franchises offer access to a supply chain and the reassurance of collective buying power, offering better prices for stock than an independent company could ever achieve.
If you’re looking for a way to serve your local community while making impressive profits, consider a convenience store franchise with Franchise Direct.
Top convenience store franchises in the United States include 7-Eleven, Circle K, Speedway, Casey’s, and CST Brands.
Franchising Vs. Independent
Like all franchise opportunities, convenience store franchises require an initial investment starting from around $50,000, moving upward to hundreds of thousands of dollars. Most of us don't have that type of cash in our back pocket - we have to apply for startup loans from banks and moneylenders.
Luckily, banks and moneylenders tend to look favorably on franchise businesses because the market viability of the brand has already been proven. The parent company has a history of sustainability and profit, and they have an existing customer base.
This makes the franchise model less of a financial risk for moneylenders, resulting in favorable interest rates.
On the other hand, independent companies starting up without the help of an established partner often find it much more challenging to achieve their startup collateral goals. The main issue is that the new company has no evidence of market viability - they lack proof of customer penetration for their business.
Independent companies are notoriously difficult to keep afloat once they are up and running. They take longer to establish than franchises that have instant curb appeal as a result of immediately recognizable branding.
Unfortunately, almost half of all independent companies go bankrupt within four years of starting up, while franchises tend to thrive as soon as they open their doors to their customers.
If you're looking to start up a convenience store, you really should consider a convenience store franchise, with whom you'll inherit a reputation that helps you hit the ground running.
Convenience Store Franchises
Check out Franchise Direct's fantastic selection of convenience store franchises, and make that positive change into self-employment today.
Find your brand new start with Franchise Direct.