Grocery Outlet is a national chain of discount grocery stores. They sell all kinds of items, including fresh produce, seafood, and meat. They mainly focus on short-dated and low-priced goods that they offer at close to 60% less than other stores. Their offerings change every month based on the availability of items. Most grocery outlet stores are owned and operated independently in a franchise arrangement. Most of these franchises have between 15 and 30 employees. Grocery Outlet does about $130,000 per week on average. Also, there is an increased demand for discounted products among consumers today. A grocery outlet franchise gives you the potential to earn considerably more than a typical store manager at any grocery chain. All this while not having to invest millions of dollars to build a retail location.
The Grocery Outlet Independent Operator Program
Grocery Outlet does not hire store managers. Instead, they find independent owner-operators to run their stores in various locations. The owner-operators manage their employees and handle all other HR-related issues. This works out well for Grocery Outlet, as they don’t have to worry about any HR-related tensions or problems. The independent operators also hire train, and lead their teams while sharing the store sales profits with the company.
How Does The Grocery Outlet Model Work?
Grocery Outlet purchases overruns, repackaged products, surplus inventories, and perishable foods from notable brands. They buy these items in bulk and sell them to customers at large discounts, sometimes up to 60% off the regular grocery store retail costs.
The retail chain has more than 280 locations run by independent owner-operators that share the profit of these locations.
Grocery Outlet will make a considerable investment in each independent owner-operator. This gives them the potential to earn considerably more than a typical store manager at a regular grocery chain without having to invest millions of dollars in building or refurbishing a retail location. They won’t even have to invest in purchasing inventory for the store.
All the items purchased by Grocery Outlet are consigned to the independent operator’s bargain market store. The operators manage their team of employees, select the consigned merchandise from the inventory guide, and sell the merchandise to customers. The company builds out the stores and continuously stocks them with fresh inventory.
Cost Of Becoming An Independent Operator At Grocery Outlet Bargain Market?
To become an independent owner-operator with Grocery Outlet, you will have to invest between $150,000 and $250,000. However, you can finance most of this initial investment through the parent company, which you can eventually return. The company also offers financing and discounts for veterans. However, you will need to have at least $25,000 in liquid capital.
What Does It Take To Be A Grocery Outlet Owner Operator?
It would be best if you qualified to become a grocery outlet owner-operator. You must have five years of experience in retail management with proven community and marketing skills. You should be able to hire, coach, teach, and handle finances and business efficiently. You should also run additional background and financial checks.
Once you pass these checks and qualify, you will become a part of the company’s training program for six months. The company calls it the “aspiring operators in training” or “AOT” program. You will get training at Grocery Outlet stores while working with an experienced owner-operator. You may have to temporarily relocate when you are a trainee owner-operator as the program could be in a different locality than yours.
How Much Will I Earn As A Grocery Outlet Owner?
Grocery Outlets pay their owner-operators a fluctuating pay. This payment is based on the gross profit that the store generates. The average annual pay of a grocery outlet owner-operator ranges between $97K and $107K a year.
Is It Worth Investing In A Grocery Outlet Owner Operator Program?
The Grocery Outlet Owner Operator program will benefit some and may not be worth it for others. If you are semi-retired, have retail management experience, have a little flexibility, and want to make extra income, it could be worth investing in a grocery outlet program.
On the other hand, this program would not benefit you if you don’t want to put in the hard work, do not have any flexibility, and have a steady job.
If you are thinking of investing in a retail grocery chain, you can contact Save a Lot. We provide licensing opportunities and help retail partners build a thriving and robust business using a time-tested model.