How to Start a Mexican Grocery Store

Part 1 - How to start a Mexican Grocery Store business - Background

A Mexican grocery store offers customers traditional and authentic Mexican and Hispanic groceries, including vegetables and produce, meats, spices, and canned goods.

Our guide is in 3 parts:

• Part 1 - How to start a Mexican Grocery Store 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 Mexican grocery store?

Initial costs will mainly be focused on your brick and mortar location, as you have to rent or buy a store location. Following this investment, you will need to earmark a substantial amount of money on renovating, updating, and creating a functioning grocery store floor plan. It may be possible to purchase a grocery store location as a turnkey space, ready for customers in a short amount of time, but be cautious as to why the previous owner is selling the business. From here, you will need;

• Business and employee insurance

• Utilities and internet service

• Commercial trash and recycling services

• Advertising and marketing

• Stocking your shelves

What are the ongoing expenses for a Mexican grocery store?

Other than rent or mortgage payments, phone, internet, and utilities, the majority of your ongoing costs will be restocking your shelves. It is advisable to continue to work heavily with a few select distributors or suppliers to help create opportunities for deals on quantity or repeat orders. Many of your product suppliers will be understanding of your specialty status, as they are often in the same position of offering specialty items to a limited customer base. Use your communication and persuasion skills wisely.

Who is the target market?

Primarily, you will be targeting Mexican families and restaurants, while customers who crave authentic culinary recipes may also be a subset of your customer base who will spread the word about your business to seemingly unrelated potential customers, only to see your business branch out in new and profitable directions.

How does a Mexican grocery store make money?

Money for your business will be generated through the sales of your products.

How much can you charge customers?

Pricing should be relative to the other specialty stores or “ethnic” sections in larger chain stores. Your pricing should be competitive, yet profitable.

How much profit can a Mexican grocery store make?

The earnings are varied, depending on the strength of the customer base you attract. Clearing $75,000 annually would be considered a good profit margin, but beware of large chain supermarkets who can cut into your profit via bulk buys and pre-determined supply chains. work to make your store unique.

How can you make your business more profitable?

Many successful Mexican grocery stores find that offering non-perishable, yet traditional Mexican or Hispanic items, such as clothing, music and media, and party/celebration supplies help offset some of the grocery costs. Additionally, many stores are coupled with restaurants, where the same items sold in the store are used in the menu items. This form of on the spot marketing is often very successful in attracting and retaining customers.

Day-to-Day and Growth

What happens during a typical day at a Mexican grocery store?

Your biggest concern, day to day will be servicing your customers and making sure your shelves stay stocked and prepared for new and existing customers. Interaction with your patrons is quite critical, as you are often an independent store, unable to lean on the strength of a chain store’s reputation and advertising. Therefore, you must promote your business through positive word of mouth and store interactions. Additionally, you will need to;

• Conduct inventories and re-order products

• Advertise and market through various outlets, both free and paid

• Create relationships with your distributors and cultivate new contacts for products and supplies

• Study trends in authentic and new traditional Mexican and Hispanic cuisine

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

Since this type of business relies heavily on capturing and retaining customer business and loyalty, it is critical that you can communicate clearly and effectively, including the ability to speak related languages. Interact with your customers to keep a pulse of what they want. And, as mentioned previously, experience in retail or grocery stores will be quite beneficial in understanding the supply side of the business. Creating positive relations with your suppliers and distributors will help streamline much of your business, as well as drive down overhead costs. Finally, experience as a restaurateur or chef may also give great insight into the needs or flavors which will be the best draws for customers.

What is the growth potential for a Mexican grocery store?

Depending on the area in which you are located, you can create a thriving and profitable store, capable of becoming a niche location for customers looking for authentic and traditional Mexican cuisine options. Before deciding to open this type of store, make sure you’ve researched the location and the prevalence of other similar stores in your area. Since this is a business which could be classified as specialty, you will want to make sure there isn’t over-saturation, which will fracture the business you may receive.

What are some insider tips for jump starting a Mexican grocery store?

Since your store will be considered a specialty or niche business, you’ll need to tap into the local communities which will most likely support your business. Look for opportunities to present your store through Mexican and Hispanic community or cultural events, culinary exhibitions, and other related groups. You should aim your marketing efforts at those in the community who would be most interested in the authentic foods and flavors your business will sell. At the same time, you also want to market to other members of your local community who may be unaware of the existence of your type of business. Look for opportunities locally to introduce a Mexican grocery store to a non-Mexican or Hispanic group who appreciates authentic flavors and products. Farmer’s markets and arts and crafts fairs may be worthwhile events to target for advertising or even a booth to present your wares.

How and when to build a team

From the beginning, you will need at least a few other employees on hand to help with retail sales and customer service, stocking shelves and store maintenance, as well as an accountant or bookkeeper, if you are not willing or able to tackle that job yourself. Keep in mind that the startup and initial 4-6 months of being open will be a critical time to create a foothold for your business. You will need a capable and multi-faceted staff on board to help you manage the multitude of tasks you’ll be handling during this period of time. Choose wisely.

Part 2 - Is a Mexican Grocery Store business the right fit for you?

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