Starting a Small Convenience Store Central

FrankC21

Hi,

I know this question was asked a few years back but I just want the latest answers that I can get in today's current situations, we plan to start a small business that has the potential to grow as the main source of our household income. We thought about a takeaway business but there's too much hassle when it comes to food handling and finding the right commercial unit with a kitchen fitted in. So we went to our drawing board and thought about a convenience store, it doesn't have to be that big and we can start small learn from experience and move from there.

Steps we currently took: LEO course still ongoing, called a couple of franchises - one of them turned me down as I do not have enough experience to run a franchised store, which is honest enough.

By searching around, we found a retail unit to let which is close to a bar, hotel, and a big parking space, there are a couple of big stores centra and tesco express but they are quite a walk from the bar and hotel mentioned.

I searched and search but could not find relevant answers to these questions?

• How much capital do I need to start? (431 sq. ft. Retail Unit)
• List of Expenses (Signage, Floor Plan, Stocks, Tools, POS) when starting a convenience store
• Which Suppliers? (Musgrave, O'Reilly )

Our background, we both worked in the healthcare industry and I am just fed up with all the hard work that we've done but there's no appreciation or the feeling of satisfaction from it anymore, we might just put in those hard work into something else that is worthwhile. It has been running in my mind for a long time of running a business and I'd like to experience the feeling of owning and the satisfaction of making a profit even just a EUR1.00 - I have done a couple of affiliate marketing but none works. I am looking for answers that will point us in the direction that we needed to be.

silver2020

431 sq ft is miniscule.

You are also competing with all the fuel garages as well as the established stores.

Margins are low unless you have a decent hot / deli food business.

And in such a location you'd have little loyalty.

FrankC21

https://www.boards.ie/discussion/comment/118471662#Comment_118471662

Hi,

Thanks for your reply, at least how many sq ft do we need? Competing with garages and established stores is a challenge alright but we have to start somewhere, does it have to start with a hot/deli? We will be targeting people who are in hurry to make a purchase like a lotto ticket, milk, or a drink/coffee. The unit used to be a hairdresser.

EDIT:

It's also near garda station, district court and post office could be worthwhile offering a photocopying and printing services.

FrankC21

Went out today to scout the area around the retail unit, it is not the only premises out on that street for lease also the building besides it. The unit is located at a street going into the towns main street.

Things I noticed while staying there for 10minutes at 11am Saturday.

* Street parking in front of the unit is packed.

* Also a parking lot near it also packed.

* For 5 minutes there's about 10 people passed the unit, majority of them are coming back to their car or going out of the parking.

* at the top of the street is a bar and around the corner is the hotel and post office. Nearest newsagent, mace, dunnes, tesco express, euro store, dealz and town shopping centre is more than 3 minutes walk.

* also, there's a independent newsagent right outside the town shopping centre. I went inside and bought a lotto ticket and there's no hot deli, just a coffee machine. But people still goes in and out that shop. It's also competing along that main street with mace, tesco, dunnes and eurostore.

I might go back Monday morning and see what it's like. Any thoughts?

AndrewJRenko

Here's a mad idea - one of you arrange to take 6 or 12 months unpaid leave and go work in someone else's convenience store to get a first hand experience of how things work. Would you really want your future investment to depend on two absolute newbies to the business sector?

FrankC21

Hi thanks for your input, it starting to feel like a fantasy :(

But I know that this idea isn't going to happen suddenly, As for current situation either of us can't really afford to just go on unpaid leave. We're at a process of just getting information as much as possible from here, like how much capital do I need so I can save up for it?

*What if I work like once a week in a convenience store for 6 months or more? Will that be enough? Volunteer on my day off.

*What sort of work will I be doing to earn enough experience?

I have this mentality that If I just start small, got into any business, i'll be able to learn then.

But exactly how much will I need to start off a 431sqft retail unit? Just to answer my curiosity?

mondeoman72

Simply, do not do it. Feel free to pm me if you want to know why

Mrs OBumble

No one is suggesting that you work for free. Take LWOP and work as a paid employee is someone else's business.

If you cannot make enough to live on doing that - then give up now, you'll draw even less profit in your first 12 months as a business owner.

FrankC21

https://www.boards.ie/discussion/comment/118481088#Comment_118481088

Hi I want to know why? Please, I cant message yours is private

mondeoman72

https://www.boards.ie/discussion/comment/118481164#Comment_118481164

sent you a pm. See can you reply

FrankC21

https://www.boards.ie/discussion/comment/118481124#Comment_118481124

Hi, thank you for your input, greatly appreciate it, I understand that I won't be making any profit for the first few months or years of opening up a business but majority of startup businesses any way does not make profit when starting. However, during that 12 months does it mean the business won't be paying for its own expenses or do I have to put in money from my own pocket aswell to pay for expenses, rent, bills, etc.

silver2020

The key driver for convenience stores has always been the sale of newspapers and magazines.

Those sales are in terminal decline.

Margins on cigarettes is my is miniscule. Cigarette sales dropping fast.

Lottery and payment services are other areas of traffic. It's not easy for a newcomer to get a lottery retail agreement and many have moved online.

Packed parking is a very bad sign. It means little turnover of spaces. No access for a passing motorist to stop.

I'm near Naas. There used to be three newsagents in the centre. The gem, mattimoes and another. All within 100m of each other.

None are there now.

The market does not exist anymore.

There literally is nothing positive in the Idea

FrankC21

https://www.boards.ie/discussion/comment/118482365#Comment_118482365

Hi, you have valid points there, but what do you suggest for a location like I mentioned. There has to be a market there. People passing by in and out of the parking has to buy something they need.

Citrus_8

https://www.boards.ie/discussion/comment/118482578#Comment_118482578

Precovid I would have said Deli and coffee shop as you can have better margins on these rather then packed stuff which is very little profitable. But now lots of people working home, so deli and coffee isn't so much popular as before. I think that lots of businesses will go online within a few decades.

I wouldn't look at retail, especially convenience stores. A turn around of groceries isn't quick enough to create good profit. You constantly need to look for offers to get goods as cheap as possible to have space for margin but the problem is the quantities aren't large enough to get a good discount from suppliers. After covid it reduced traffic of people significantly (offices) to these type of shops. These stores mainly got profit from deli and coffee in the early morning before 8-9am and at lunch.

Takeaway, on the other hand, is a different story, especially with some signature and unique offers (such as, a special recipe sauce or something else what could bring uniqueness) would be the way to go. I would partnership with locals to bring in some homemade style pastries, cakes (cheesecakes are currently popular), premium coffee menu, some more interesting of tea options, evening menu with fresh made dough or whatever fresh ready for evening traffic, but advertised so smart that it could be a locally well known place for people to regularly return. For take ways, knowledge of local area and building relationships with local people is important too to build some customers' loyalty. Fresh and quickly prepared food can give you good margins (with an exception of going franchise as these contracts can be very pricey).

You need to spend not 10mins but the whole day all week every single day to understand what public is in the area, when is the biggest traffic, what's the most common customers' profile, then try all the competitors at least a few times in the area to see what they offer and their pricing, customer service level, opening hours, what are the queues, if you go with food, than pay attention to how clean competitors are. Lots of dirty places in Ireland (even some expensive restaurants have very nasty kitchens). Understanding of cleanliness must be in a very high standard and daily demonstrated in take aways (not really much practised in Ireland - lots of space for improvement).

Smoothies and fresh pressed juice (the proper ones, with an industrial cold press juicer) is also profitable if added on the take away menu (not just as a stand alone offering). Home made ice cream and gelato for summer...

May sound funny as there are lots of take aways in Ireland, but I see a lack of variety. Mainly take aways are either asian food, burgers or pizza. I would like to see more take away places for crepes (all kinds of: with cheese, ham etc etc), kebabs (but not these with a disgusting breaded chicken, but with a proper kebab meat which is much more expensive to get), falafels.

If place is big enough, early morning it could open a part with a coffee counter, pastries, smoothies, juice and warps/baguettes/salad deli, and from lunch in addition opening take away with crepes and kebabs. Coffee counter person could start around 6am or 7am and finish around 3-4pm. Then coffee isn't popular after that but still may get traffic after office people (5-6pm), and taxi drivers at night get in so this counter could stay opened all time but covered after 3-4pm by people from other counters.

Everything depends on the area. You need to explore more and learn who's creating traffic (I'm talking about traffic of people, not cars) - what's the customers' profile.

FrankC21

Hi, Fantastic input from you, really agree with what you've said. I am starting to realise now why a convenience store isn't an option now.

Precovid I would have said Deli and coffee shop as you can have better margins on these rather then packed stuff which is very little profitable. But now lots of people working home, so deli and coffee isn't so much popular as before. I think that lots of businesses will go online within a few decades.

That is the killer there, most people have gotten used to go shopping online.

May sound funny as there are lots of take aways in Ireland, but I see a lack of variety. Mainly take aways are either asian food, burgers or pizza. I would like to see more take away places for crepes (all kinds of: with cheese, ham etc etc), kebabs (but not these with a disgusting breaded chicken, but with a proper kebab meat which is much more expensive to get), falafels.

That's so true, our first Idea is a takeaway business but will serve different food something healthier, as we noticed there are hundreds of takeaway around our area but they're your typical pizza, asian, chippers (greasy, msg). Also we thought about producing a fresh veg and fruit juice, cause we bought a juicer at home and we got an idea of maybe we could sell it promote a healthier option. There's only one business that does that in our area but they already have a proper place in a business park.

I've done a bit of research about making food at home but it's a hassle plenty, of regulations must be meet, the kitchen has to be at certain standards. Everything labeled and has to be traceable, I was thinking it won't work cause I can't be mixing household cooking with business, unless I rent a unit with already a kitchen fitted in. What do you think?

I really appreciate you input it has given me hope. I'd love to hear more.

antoinolachtnai

If you think working in healthcare is hard work and thankless I don’t know if the food business is really going to give you a better lifestyle.

These consumer service businesses are a hard way to make money. Almost anything in healthcare is going to be easier.

if you are determined to go out on your own is there anything you can do related to the field you know well.

For sure, the profitability can fly in service businesses if you get it right but this is basically guaranteed not to happen for you. The premises isn’t central enough and isn’t big enough.

Your idea that you can start small and find your way is not a good way to think about a mature industry like food and convenience retail at all. It is often not possible to convert an underscale, poorly located business into a workable business. You can easily lose your shirt.

think about how many people you are expecting to be able to support off this small premises. Yourself and your family, a supervisor and his/her family and a couple of casual staff. Can this really work? Is the cash flow really available to do it?

if you would have to cook or prep from home then what you would have is a lifestyle (and not a great one) not a business.

your idea that there has to be a market there is also one to look at. What you have identified can be called a ‘niche’. The question is not whether the niche exists in the market (it likely does) but whether there is a sufficient market in the niche.

enricoh

You're both thinking of packing in healthcare jobs to open a corner shop? I take it you're HSE so c30 days holidays, 36 HR week, serious pension and lump sum.

To do a 72hr week, 5 days holidays and hopefully earn minimum wage! Take up a hobby, go to the pub more- do anything else!

Get a pizza or taco trailer n go down to a busy beach at the weekends for the summer if needs be.

silver2020

Op, you are making a classic error of thinking what YOU would buy/want rather than what the person in the area would buy/want

It's a great theory that people will buy healthier foods as "takeaway". Some will, many won't.

It's a great theory that many of those walking by will want to buy something from a convenience store. They won't. Even if they did, they will look for a franchise name like Spar or Centra.

There's a reason the location is vacant and they are talking to someone with little or no experience in retail - no-one else is interested.

That alone should tell you to run away from it

silver2020

I just looked at the other types of threads you have started.

I certainly won't be wasting time answering any more.

You are what is classically described as a Tyre Kicker.

https://www.boards.ie/discussion/comment/118482234#Comment_118482234

My advice is to do a start your own business course. Your local enterprise office will have details.

Reading this makes me think you haven't really done your homework

FrankC21

Apologies for wasting everyones time, if I did, I guess I have to stop these senseless thoughts and save myself from embarrassment, really appreciate all the advice and I am glad, I asked and tried, which will stop myself from committing any further harm with my family's future. Hopefully, this thread will also help others in the same situation as I am in. Yes, I will continue on with LEO course and study further probably in the near future i will be better prepared and know what to do. Mod close this thread.

go raibh míle maith agat

Gloomtastic!

https://www.boards.ie/discussion/comment/118486821#Comment_118486821

There are two rules in business that I continually tell people:

1. Do it, review it, change it.
2. If you don’t ask, you don’t get.

Don’t apologise and never stop dreaming 😋🤞

GerardKeating

https://www.boards.ie/discussion/comment/118482578#Comment_118482578

There are many car parks with no nearby retailers, so perhaps this is not correct. What "kind" of parking is this, paid or free ?

Deub

https://www.boards.ie/discussion/comment/118482817#Comment_118482817

+1 on the crêpes business (Sweet and savoury)

There was one place in Cork few years and it was always busy. The process is simple enough and you can “invent” new crêpes for every season.

Citrus_8

https://www.boards.ie/discussion/comment/118549253#Comment_118549253

And margins are good! However, it's hard to compete. Easy entrance but hard to stay popular (currently not so much as there are just a few competitors, but that may change).