How to Start an Olive Oil Store

Part 1 - How to start an Olive Oil Store business - Background

Olive oil stores stock a wide selection of hard-to-find premium olive oils, olive oil based products, and related gourmet products like spices, bottles of vinegar, and cured meat. Retailers often hold classes and tasting to educate their customers about the different types of olive oil available and how they can use the products at home.

You may also be interested in additional unique business ideas.

Our guide is in 3 parts:

• Part 1 - How to start an Olive Oil 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 olive oil store?

Opening an olive oil store is a significant investment. While it is possible to attempt to open an olive oil store on the cheap, starting with a proper budget provides a better chance of success.

Most of the startup capital will go toward securing a location, fitting out the store, staffing, and training.

Location – Although it is unnecessary to rent a large space to have a successful store, most stores in this industry are under 1000 square feet, a good location is critical. The best locations have a large amount of targeted foot traffic. It does no good to have lots of people walking by a store if they are not the kind of people who have an interest in specialty foods.

Two of the best areas to set up a shop are close to other high-end food shops or in an area popular with tourists. Both locations attract the right sort of shoppers who have both the time to shop and the money to buy premium products. Rents in these popular areas are regularly higher than in other locations.

Fitting the Store – Furnishing and stocking a store costs money. While it is easy to go overboard on either decorations or products, there is no need. A small well-chosen and rotating stock ensures freshness and keeps costs down.

Labor and training – Well-trained employees are the cornerstone of a successful olive oil store. Skimping on training is a mistake. Don’t do it.

What are the ongoing expenses for an olive oil store?

Ongoing expenses include rent, stock, training, utilities, and labor.

Who is the target market?

Customers who shop in olive oil stores are normally older, well-off, and looking for something different from what is available at the local specialty grocery stores. The best customers are those who are willing to pay a higher price for a natural and unique product once they understand why that product is superior to all others. Customers at olive oil stores often consider themselves gourmands and appreciate the ability to learn about the products they use.

How does an olive oil store make money?

Olive oil stores make the majority of their income through in-person sales of products at their retail locations. A few stores offer online sales. Many stores do charge for tastings and classes and this income can account for a moderate percentage of a shop’s revenue.

How much can you charge customers?

Premium olive oil can cost much more than you think, but the price olive oil stores can get away with charging their customers depends on the market. Generally, olive oil shops charge more for olive oil than other specialty stores do — and customers will pay when a store provides a good experience.

How much profit can an olive oil store make?

Most olive oil stores make between 10 to 15 percent profit based on total product sales. The profit margin for workshops and classes are much greater.

How can you make your business more profitable?

Most olive oil stores increase their profitability by selling balsamic vinegar, olive oil soap, containers, and other food-related specialty products.

Day-to-Day and Growth

What happens during a typical day at an olive oil store?

Besides handling the normal daily operations associated with all shops, including ordering, receiving, stocking, selling, and bookkeeping, owners of olive oil shops have several unique day-to-day responsibilities. Education plays a huge role in creating a profitable olive oil retail business. This means owners need the ability to train their staff effectively and to teach new and existing customers about a store’s complete product line.

What are some skills and experiences that will help you build a successful olive oil store?

Besides retailing skills, an owner of an olive oil store needs to have extensive knowledge about their store’s products in addition to knowledge about olive oil in general. Owners who have experience teaching and cooking will have an advantage when holding classes and tastings or demonstrating how to cook using olive oil. Some local municipalities may require food safety certification, so earning a ServSafe certificate or other food handling certificate may be beneficial.

What is the growth potential for an olive oil store?

Although the popularity of olive oil shops in the US has wavered somewhat over the past few years, the sale numbers for premium olive oil are still strong. One of the largest barriers to the continued popularity of this type of business comes from the potential for local or national bans on “fill-your-own” olive oil stores similar to the ban enacted in Britain in 2014. Industry insiders predict that as more Americans become more aware of the superiority of artisan olive oil, sales will bounce back.

What are some insider tips for jump starting an olive oil store?

An owner needs to learn as much as he can before opening a store. Owners who are not confident in their knowledge of olive oil can get a head start by enrolling in a course. The Olive Oil School offers several classes which are worth investigating. Those entirely new to retail sales will tremendously benefit by partnering with a company which offer mentoring and franchising opportunities.

How and when to build a team

Owners should start building a solid team of trained employees from Day 1 through on-the-job training and off-site education.

Part 2 - Is an Olive Oil Store business the right fit for you?

Part 3 - Action plan to launch your Olive Oil Store business in 90 days