How to Start an International Food Store

Part 1 - How to start an International Food Store business - Background

International food stores, also called international grocery stores, are stores which offer imported food. This imported food ranges across many countries, different nationalities, and dish types. International food stores usually stock food, drinks, alcohol, candy and condiments. Some international food stores also stock international commodities, like toys and kitchen instruments.

Our guide is in 3 parts:

• Part 1 - How to start an International Food 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 international food store?

Pre-opening expenses are often $70,000 or more. The costs include insurance, equipment sourcing, food sourcing, utility start-up costs and employee hiring fees. Before assuming control of your store’s operations, consider investing as much as $200,000.

Opening an international food store can be expensive, mostly because the food must be sourced overseas. Some international grocery stores can, however, find domestic bulk providers for international food.

What are the ongoing expenses for an international food store?

Ongoing expenses vary from store to store. Rent is normally $3,000 to $4,000 per month for a medium to large-sized shop. Meanwhile, monthly utilities can be about $700 for continuous use. Employees should be paid between $8 and $15 per hour.

Who is the target market?

As with any grocery store, the best clients are those who’re noninvasive. Ideal clients will have a love for international food, and they’ll return for new, exotic tastes. Because international food stores tend to be niche, they’re usually favored by food connoisseurs.

Sometimes, ethnic customers are useful advocates and knowledgeable resources. Since an international food store’s popularity is determined by its authenticity, these customers can be useful. An international food store owner needs to have a lot of knowledge about the best-tasting foods in order to provide customers with the most delicious, most authentic products.

How does an international food store make money?

International food stores make money by selling international foods, pre-cooked dishes, deserts, candy, drinks, alcohol, and other items. Some international food stores have cafes, and others may have fresh food restaurants inside. An international food store needs to be the “one-stop-shop” of its area to be successful. For this reason, a lot of international food stores offer all the services a grocery store would have while also offering food that cannot be found at other local grocery stores.

How much can you charge customers?

Food prices vary greatly. Customers can be charged as little as $0.99 for end-cap items. They can be charged as much as $50 for a nice bottle of wine. Research competitive food prices, and make your products attractive.

How much profit can an international food store make?

A successful international food store can make upwards of $500,000 per year. That said, profits are determined by a store’s ability to serve local markets.

How can you make your business more profitable?

Start by operating a small storefront. Become a mini-grocery, and stock novelty goods. By supplying coffee, books, candy, or alcohol, you can save costs while being a competitive store. Distribute food items other providers don’t have, and try to source as much local food as possible before relying on an overseas supplier.

Day-to-Day and Growth

What happens during a typical day at an international food store?

International food store owners research local shopping experiences. Then, they source and stock ethic foods. When running an international food store, owners need to make the food taste as authentic as possible. Some feature recipes for visitors to try.

Other responsibilities include grocery store upkeep. Utilities need to be managed, and food needs to be restocked. Because international food needs to be sourced overseas, a lot of international food store operators need to be well-adjusted to shipping, competitive pricing, and international buying plans.

On the administrative end, international food store owners need to conduct sales, manage employees, and create marketing campaigns. Typical grocery store responsibilities apply, like cleaning, conducting maintenance, and handling rent.

What are some skills and experiences that will help you build a successful international food store?

The most successful international food stores have great pricing strategies. They also prioritize the customer service experience. A good international food store will encourage communication between staff and shoppers.

As an international food store owner, you’ll need to source international foods effectively. It can take years to secure the best food sources, and it can take longer to price them competitively. Provide customers with high-quality products, and make them affordable. A good international food store avoids the “department store” feel, focusing on specialized customer experiences. The more personal an international food store feels, the better.

What is the growth potential for an international food store?

Most international food stores are locally owned. For this reason, most of them never reach cross-country popularity. While it’s possible to become a state-wide international food store provider, many are city favorites. This isn’t bad, however, as an area’s best international food store is normally a customer favorite. If your international food store can deliver top of the line products to a lot of people, it can achieve a lot of success.

What are some insider tips for jump starting an international food store?

While international grocery store startup costs are big, it’s a good idea to keep your investments as low as possible. Independent international grocery stores can be risky, and sourcing costs can get out of hand.

Thrill customers with high-quality products, and offer affordable prices. Focus on your pricing strategy, and make your international food options as authentic as possible. Give customers the ability to get all of their international food in one place. When starting, stock a bit of everything. Don’t worry about highly unique food items. Instead, focus on general food items first.

How and when to build a team

You should build a team immediately. While small international food stores can be operated by one person, many have at least three employees. You’ll need to spend your time marketing, sourcing food, and strategizing your pricing plan. Meanwhile, your employees should be working on in-store operations. They’ll need to talk to customers, handle clean-ups, and conduct maintenance.

Part 2 - Is an International Food Store business the right fit for you?

Part 3 - Action plan to launch your International Food Store business in 90 days