Opening a Grocerant: 7 Simple Steps

Jan 11, 2024 • 5 min read

A grocery store and a taqueria living together: a crazy dream or an inspired vision?

We think the latter is correct. Why not blend tacos and tamales with pan dulce and other grocery staples? Perhaps you’ve built your grocery store from the ground up, and now you want to refresh your business and provide value to your community. Or maybe you’re starting from scratch.

Whatever the case, opening a grocerant is an achievable dream, if you do it right. And we’re here to help. This article provides a quick roadmap to opening your grocerant in 2024 — seven steps to success (with a bonus eighth)!

Why Should You Open a Grocerant?

What do you get when you combine a grocery store and a restaurant? A grocerant! That’s the simplest way to describe it; a grocerant is a hybrid concept that merges two retail businesses to create a one-stop shop for customers.

Customers can grab fresh groceries, get a quick bite to eat, or even a full meal — all in one place. You’ll increase foot traffic and sales. When customers come in to dine, they might pick up fresh groceries on the way out, or vice versa.

People like eating out. If they’re in your grocery store and the smell of freshly cooked pizza wafts over, you’ll entice them to eat after they shop. You can even tap into the growing demographic of health-conscious customers, or ensure your restaurant caters to your local community.

Last, you can have a prepared foods section that lets you showcase your chefs’ culinary creativity and uses excess ingredients — zero waste!

Opening a grocerant is an exciting opportunity for 2024. For forward-thinking grocery store owners, combining the convenience of grocery with restaurant-style service and quality could be the way to go. Here’s how to do it right.

Step 1: Analyze the Market

Opening a successful grocerant starts with understanding your local market's opportunities and limitations.

Is there consumer demand for a grocerant? Are residents looking for more convenient meal options that combine grocery shopping and dining? You might look on local social media groups and ask questions, or drive around the area and decide if it needs a modern grocery store and restaurant.

Next, assess the competition. How many full-service grocerants already exist in your area? Look at their offerings and prices to see where you could fit. If there aren’t any? Great!

Last, what are the demographics of the area? Look at income levels and household sizes. Areas with younger professionals and families may present more grocerant demand than retiree communities, for example.

Note: If you already own a grocery store, ask shoppers if they’d take advantage of a grocerant version.

Step 2: Create Your Business Plan

Once you’re confident that a grocerant could succeed, it’s time to create a formal business plan. It should outline your vision and provide an actionable roadmap. Ask yourself:

What’s your mission?
How will your grocerant bring value to and serve your community?
Who are your target customers, and how will you fulfill their needs?

Detail the products and services you plan to provide, from grocery essentials and prepared foods to seating areas and order options. Think about the layout and flow of your store.

Next, make financial projections. Estimate costs of leasing space, equipment, ingredients, staff, insurance, marketing, and other expenses. Forecast sales and when you plan to break even and make a profit.

Last, detail how you’ll secure funding and financing for your startup and initial operating costs. Think small business loans, equipment leasing, partnerships with investors, or alternative lenders. Perhaps you’re funding it yourself! Just make sure you have a plan.

Note: The Small Business Administration (SBA) can assist with planning, projections, and launching your business.

Step 3: Choose the Right Location

Location can make or break your business. Customers want convenience when they look for grocery stores, so your grocerant’s location needs to be convenient, visible, and easy to get to.

In an ideal world, you’ll be in a busy area with plenty of foot and vehicle traffic. Near an office or residential neighborhood could be great for tapping into mealtime demands. Foot traffic is important, but somewhere with easy road access and ample parking is great, too.

Note: Pay careful attention to zoning laws. Confirm that it’s OK to open both a grocery store and a restaurant in your location.

Step 4: Obtain Licenses and Permits

Before you think about opening, get on top of legal and regulatory requirements for your location. You’ll need to secure licenses, permits, and inspections for your grocerant.

Licenses and permits include:

A general business license in your city or county
Zoning and code compliances
Food service permits
State and local food handler licenses

Schedule all the necessary health and safety inspections for your store and prepare to make any corrections to meet code. Don’t cut corners on legal requirements!

Step 5: Design Your Space

Your business plan is accepted, you’ve got your funding, and your location is secured. It’s time to have some fun! Designing your store exactly how you want it should be a labor of love. The layout and aesthetics of your store are critical.

You’ll need clear sections for your grocery market and prepared foods dining area, and customers should be able to intuitively flow between the two zones.

Depending on your space, you want wide aisles and clear signage for your grocery section. In your restaurant area, consider table arrangements for families and single diners, as well as counter seating for quick meals.

It might be worth bringing in a commercial design firm to help bring your vision to life. Don’t underestimate how the right furnishings and ambiance draw customers in.

Step 6: Hire Your Team

Hiring a team for a hybrid store isn’t going to be easy. First, you’ll need a store manager with experience running a grocery store and a restaurant — or you’ll need to train someone who can do both. Of course, you could also hire separate people for each element.

You’ll need talented chefs and cooks to create quality prepared foods and friendly, attentive servers. Reliable cashiers are a must for speedy and smooth checkouts.

Consider ongoing training for your staff, on your systems, products, and service standards.

Step 7: Market Your Grocerant

Once you're nearly ready to open, it’s time to spread the word! Perhaps you can lead up to a grand opening with signage, flyers, and even direct mail announcing your arrival.

Setting up social media accounts could be a great move for a grocerant. Not only will you have content that showcases your grocery, but you can also share content of your chefs preparing meals, and of customers enjoying the hybrid experience. Teasers and behind-the-scenes footage help create excitement.

You could also partner with influencers and other complementary local businesses on cross-promotions, offering discounts to build community connections. Other ideas include contests, giveaways, and events.

Open Your Grocerant With the Right Tools

There you have it! You can open your grocerant by following these seven steps:

Analyzing the market
Creating your business plan
Choosing your location
Getting your licenses and permits
Designing your space
Hiring your team
Marketing your grocerant

There’s one final step we need to mention. Getting the right tools to manage your business! As well as grocery equipment, you need a tool that manages your transactions, inventory, and staff. A grocery-specific point of sale (POS) system is the way to go.

Markt POS provides POS software designed for grocerants. From quick-service restaurant features and accepting and processing tips to advanced inventory management and daily sales reporting, our grocery POS hardware and software gives you everything you need to open your store with confidence.

Want to see it in action? Schedule a free demo with one of our industry experts today.

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