How to Start an Asian Grocery Store

Part 1 - How to start an Asian Grocery Store business - Background

An Asian grocery store offers customers groceries that are typically used in creating traditional and authentic Asian dishes. This includes canned goods, sauces, produce, spices, and meats.

Our guide is in 3 parts:

• Part 1 - How to start an Asian Grocery business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening an Asian grocery store?

Initial costs vary, depending upon location, size of the building, and the products you plan to sell. When shopping for the right location, make sure it is in a well-traveled area and has ample parking. Once you have signed a lease or purchased your building, take the time to design a floor plan that flows and allows customers to move around with ease. Renovations and updates may be required. If possible, allow yourself ample time to shop for your brick and mortar location. Investing in a space that is already set up as you need it will save both time and money. If you do take this approach, however, inquire with the previous owner to determine why the business closed or moved.

Once you have your location ready, there are a few other investments you will need to make:

• Inventory and accounting software

• Coolers, refrigerators, and shelves

• Insurance – Consult with an educated professional to ensure you purchase the proper business insurance. Many new business owners fail to realize they are underinsured until they experience a loss. The results are often devastating.

• Commercial trash service

• Materials for advertising, including a well-branded sign that is visible from the road

Successful business owners report an investment of $135,000 to $205,000. While it can be done for less, this will ensure your shelves are stocked with the necessities and that your store is set up for success from the get-go.

What are the ongoing expenses for an Asian grocery store?

In addition to the standard costs that come with keeping a facility running, you will face several ongoing expenses. The bulk of your budget will go to re-stocking your shelves and payroll. Maintaining proper insurance can get expensive, but is important for ensuring your business stays afloat after a loss. When determining your budget, be sure to factor in marketing costs, including fees for booths at events and your local farmer’s market.

Who is the target market?

Primarily, you will be targeting Asian chefs and families. With the right location and marketing strategy, however, many business owners have found success catering to the needs of other local consumers. More and more consumers are beginning to realize the benefits that come with shopping in niche grocery stores. Targeting them in your advertising efforts will help increase your store’s annual sales and profits.

How does an Asian grocery store make money?

Your grocery will generate revenue through product sales. Prior to opening your business, it’s important to understand market needs. Over-saturation in a community will negatively impact your business, as well as the competition’s.

How much can you charge customers?

Prices will vary from item to item. Items should be priced for maximum profits, while remaining competitive with other speciality grocers in the area.

How much profit can an Asian grocery store make?

The strength of your marketing strategy, the customer service you offer, and the size of your grocery store are all factors that determine your annual profit. Store owners realizing the greatest success continuously work to ensure their shop is unique, offering items customers cannot find anywhere else. Store owners report an annual profit of $56,000 to $75,000.

How can you make your business more profitable?

While your business may be geared towards food, there are a number of non-perishable items you could stock your shelves with. Music, hats, t-shirts, and kitchen supplies are great additions to any niche market. If your space is set up for it, consider opening a small restaurant. This is an effective way to serve the locals and get the word out about your establishment. Diners will often walk off their meal in the store; this is a great time to catch them, as their recent meal is fresh on their minds and may inspire them for their next home-cooked meal.

Day-to-Day and Growth

What happens during a typical day at an Asian grocery store?

Your team’s primary duty is to provide quality customer service. As an independent food store, your interaction with customers and the service you provide will define the business’ long-term success. When a client has a question or concern, address these issues with speed and respect.

Additionally, you will need to;

• Manage inventory, reordering supplies whenever necessary

• Price products and stock shelves

• Keep the establishment clean and orderly at all times

• Advertise and network to ensure your business grows

• Develop and nurture relationships with regular customers, as well as distributors

• Remain abreast of new trends in Asian cuisine

Additionally, you or a member of your staff will need to closely track inventory, manage the business’ finances, and handle tasks associated with payroll.

What are some skills and experiences that will help you build a successful Asian grocery store?

Since the success of your business is heavily reliant on strong customer service, it is critical that you possess strong interpersonal skills. To lessen the language barrier gap, some specialty food stores have a staff member who is able to speak related languages. As part of your customer service strategy, maintain an open line of communication with your regular customers, asking for feedback and product requests.

Managing a grocery store is a very detail-oriented business. Previous experience in the retail and/or grocery industry would prove beneficial. This hands-on experience will provide insight into how inventory should be managed and priced and will help develop the skills necessary to build profitable relationships with distributors. While not required, experience in an Asian restaurant would prove advantageous. Knowledge regarding which flavors complement which foods will assist you in educating clients new to Asian fare.

What is the growth potential for an Asian grocery store?

As previously mentioned, market demand in your area will define your grocery’s success. With a well thought-out business plan, and investment in the right location, this niche business has the potential to thrive. Many Asian food store owners have realized such success that they were able to open multiple locations throughout the community.

What are some insider tips for jump starting an Asian grocery store?

It’s important to remember why consumers shop at specialty stores. They are looking for unique food items and enjoy the variety that comes with shopping at a niche market. For the right price, many are willing to sacrifice and purchase a little lower quality.

How and when to build a team

While many are tempted to manage their startup business alone, this is not advisable. The first four to six months are a critical time. If you are too busy stocking shelves and answering the phone, other aspects of the business will suffer. When hiring staff members, carefully consider each applicant. They will be an integral part of your business’ success. Choose individuals that are knowledgeable and take pride in their work, as well as your business’ long-term success.

Part 2 - Is an Asian Grocery Store business the right fit for you?

Part 3 - Action plan to launch your Asian Grocery Store business in 90 days