How to Start a Kitchen Supplies Store

Part 1 - How to start a Kitchen Supplies Store business - Background

Kitchen supplies stores sell cooking-related items like silverware, dishes, and cookware to everyday people, restaurant owners, culinary institutes, and others.

Our guide is in 3 parts:

• Part 1 - How to start a Kitchen Supplies 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 a kitchen supplies store?

The business requires a store, inventory, insurance, employees, a computer, high-speed internet, a point of sale system, cash registers, and marketing. In terms of inventory, it is advisable to stock everything commonly used in a kitchen from silverware to pots, pans, slow cookers, spatulas, soup ladles, microwaves, convection ovens, plates, bowls, cups, mugs, and beyond.

What are the ongoing expenses for a kitchen supplies store?

Ongoing expenses include the cost of the facility’s rent or mortgage payment, wages/salaries, inventory expenses, facility maintenance, insurance, utilities, high-speed internet, and advertising. A kitchen supplies store manager will earn about $30,000 to $50,000 per year. Low-level clerks, cashiers, shelf-stockers and customer service representatives will earn between $8 and $12 per hour. Plan on spending at least $500 to $1,000 per year on facility maintenance. Inventory is an ongoing cost that fluctuates according to the amount of product you sell. Plan on spending about $500 to a couple thousand dollars per month on new inventory. If you decide to rent the building in which you sell kitchen supplies, budget in at least $700 to $1,500 for rent. Utilities including high-speed internet will cost between $150 and $300 per month. Marketing costs hinge on the level of exposure you desire for your kitchen supplies store. Budget at least $200 per month at a bare minimum for marketing. If you are intent on getting the business’s name out there, plan to spend upwards of $500 per month or more on marketing.

Who is the target market?

The ideal customer is a manager or owner of a restaurant who is willing to spend a significant amount of money on kitchen supplies. Another ideal customer type is an individual who makes the purchasing decisions for a local culinary institute. Such a person is inclined to regularly spend large sums of money on kitchen supplies for the institute’s cooking classes. It will also help to recruit cafeteria managers from local schools and medical facilities. These individuals are also in position to spend a significant amount of money.

How does a kitchen supplies store make money?

This business makes money by selling kitchen supplies to everyday people, restaurants, culinary institutes, and other institutions like hospitals and schools that have cafeterias.

How much can you charge customers?

You can charge a wide array of prices for various kitchen supplies. As an example, a spatula will cost as little as a couple dollars while a slow cooker will retail for around $50 and a fondue maker will cost upwards of $100.

How much profit can a kitchen supplies store make?

This type of store can make anywhere from $20,000 to $50,000 or more in the first year. Develop the business, reduce costs, and establish a niche, and profits can reach six figures in a couple years. Expand the business across your town, region, and the nation and the business has the potential to make millions of dollars in profit.

How can you make your business more profitable?

Consider selling items related to cooking such as dining room furniture, cabinets, kitchen islands and so on. You can also sell cookbooks and cooking show DVDs to those who are interested in learning how to cook new dishes and with new methods. You can maximize profit by selling tickets to cooking lessons held on-site. However, this will require hiring a cooking instructor. It is also possible to build a website to sell kitchen supplies to locals as well as those across the nation. If you are willing to invest in a delivery system to transport the items sold on your website, this addition to your business makes plenty of sense.

Day-to-Day and Growth

What happens during a typical day at a kitchen supplies store?

A kitchen supplies store owner handles a wide range of activities. He manages inventory, decides on marketing strategies, delegates work to employees, stays abreast of cutting-edge cooking trends, researches new kitchen supplies, and establishes relationships with product suppliers.

What are some skills and experiences that will help you build a successful kitchen supplies store?

A kitchen supplies store owner who stays up to date on the latest cooking trends will have a leg up on the competition. Never stop learning about cooking methods and cooking equipment. Be personable. Establish relationships with those who make purchasing decisions at local institutions where food is served. It will also help to have marketing prowess so you can advertise your kitchen supplies store in a highly effective manner.

What is the growth potential for a kitchen supplies store?

This type of business has serious growth potential. The bottom line is that people and institutions will always require cookware, utensils, dishes, and other items that relate to the cooking process. Locate your kitchen supplies store in the right area and establish relationships with those who regularly buy large amounts of kitchen supplies, and your business can rapidly expand. It is possible to open up a second location within a year or two. You can eventually expand to multiple locations across your region and the country.

What are some insider tips for jump starting a kitchen supplies store?

You can jump-start your kitchen supplies store business by establishing relationships with those who are in need of your products. These individuals include managers and owners of restaurants, culinary institutes, hospitals, schools, colleges etc. It will also help to establish a strength in one particular cooking category such as gourmet cooking, confectionery supplies, or baking. If you establish a reputation as the go-to source for such specific cooking supplies, you will enjoy consistent business from those who need such cookware.

How and when to build a team

Begin building your team right away. You can’t operate an entire kitchen supplies store on your own. Add employees to man the cash registers, stock the shelves, order new inventory, and assist customers. You will eventually have to add a store manager, a marketing expert, and an accountant as the business grows.

Part 2 - Is a Kitchen Supplies Store business the right fit for you?

Part 3 - Action plan to launch your Kitchen Supplies Store business in 90 days