After all, most grocery stores spend a lot of time and money on an HR team, unemployment hearings, and processes, as well as mediating conflicts between employees or between employees and managers. So in that sense, it’s a great deal for Grocery Outlet. Given my friend just took his first 3 days off in 8 months, I can understand the benefit of sharing the workload!Īs an independent operator, you control the employees and the possible HR headaches. While my friend who is an owner-operator is a solo operator, they almost exclusively hire couples feeling like their business model works best with 2 people in the lead. Rather than simply hiring store managers like most grocery stores, Grocery Outlet prefers to find what they call independent owner-operators, the vast majority of which are married couples. What is the Grocery Outlet Independent Operator Program? Our Orangevale, CA Grocery Outlet store opens today! The owner of this store is Austin Chuks-Orji. By comparison, the stores I ran for Whole Foods Market did anywhere from $400,000/week to over a million a week.īut given Grocery Outlet’s focus on low-priced bargain items, and often being positioned in low-income neighborhoods, the lower sales model isn’t surprising. The average Grocery Outlet Bargain Market does $130,000 per week in sales. And they might have anywhere from 15-30 employees, which is also smaller than most conventional grocery stores. If you’ve never been in a Grocery Outlet, they are a little smaller than a conventional grocery store (anywhere from 10,000-15,000 square feet). So only about 20% of the merchandise are items you’ll find every single visit.Īlso unlike conventional grocery stores, or even places like Whole Foods Market where I worked for 2+ decades, Grocery Outlet stores are independently owned and operated in what looks like a franchise arrangement. Unlike a Wal-Mart or other chain, Grocery Outlet’s offerings often change from month to month depending on what items are available. They’re also a publically traded company and currently have well over 300 stores in the US. However, they focus on close-out items, short-dated items, and other low-priced items with prices that are often up to 60% lower than other grocery stores. They are a full-stop shop, meaning they carry all main types of grocery store items including produce, meat, and seafood. If you don’t know Grocery Outlet Bargain Market, they are a nationwide chain of bargain grocery stores. Why Grocery Outlet Is Thriving as Other Grocers Are Struggling But we’ll also look at how much owner-operators get paid and how much it costs to buy into the company. So we’ll get into whether it’s a franchise in the traditional sense. But some operators make up to $300k per year.īut there’s a lot more to know about the Grocery Outlet chain and how they structure their store ownership and whether it’s a good deal. A lower initial training salary, an unwritten policy to franchise mostly to married couples, and possible relocation mean this isn’t for everyone. You need a minimum of $25,000, but be prepared to invest up to $200,000 total, the bulk of which the company will finance.
Here’s what I learned about getting started with Grocery Outlet as an owner-operator: As I heard him tell me about his experience, I began to wonder is the grocery outlet independent operator program a good deal?
RELATED | Here’s what’s happening to the old Porter’s building in Idaho FallsĮverett told in June that the company purchases all its products from wholesalers and warehouses, which allows them to “pass their savings on to their customers.I have a good friend that just became an owner of a store with Grocery Outlet. “It’s a good time to have a grocer who is going to help us with the cost of goods.” So we’re grateful that (Grocery Outlet) is here,” Radford said.
“This is a great opportunity for our community and for this corner to have an empty spot is not something we like to see. Idaho Falls City Councilman John Radford expressed similar thoughts. RELATED | US inflation reached a new 40-year high in June of 9.1% She said the store is a “welcome resource to the community” during this time of high inflation and rising prices. Stacy Butcher, the chamber’s programs and events coordinator was also in attendance. During the event, Everett presented a $500 check to the Idaho Falls Community Food Basket and an additional $500 to “sweeten the pot.” He also made a $1,000 donation to the Little Gym of Idaho Falls.įrom left: Grocery Outlet owner-operator Douglas Everett, Idaho Falls Community Food Basket Director Ariel Jackson and Idaho Falls Chamber CEO and President Chip Schwarze.
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