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How to Write a Mini Supermarket Business Plan [Sample Template]

Are you about starting a supermarket? If YES, here is a complete sample mini supermarket business plan template & feasibility report you can use for FREE . If you have a knack for retailing various products, then you should consider starting your own supermarket business.

It has been proven over and over again that supermarkets; groceries store or convenience store as it is popularly called in some countries is one of the businesses that can easily survive in any part of the world as long as it is situated in place where people live and work. The good thing about establishing a standard supermarket is that, if you are successful in building your brand, you can easily sell your franchise to investors and that will translate to more money for you.

If you truly want to start a supermarket that would enjoy continuous high patronage, then you should carry out your feasibility studies to enable you know the ideal place to situate your supermarket, the goods that are in high demand in the community, and loads of other factors that will help you plan and achieve your business goals.

A Sample Mini Supermarket Business Plan Template

1. industry overview.

Supermarket and grocery stores account for the largest share of food store sales in the united states. In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total Grocery Store sales.

The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores and supermarkets, as well as convenience stores. The staples offered at these stores make the industry non-cyclical.

In addition, grocery stores and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative. Buying prepared foods, which are new higher-margin offerings at grocery stores, is an additional alternative to restaurants.

However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores at their “supercenters” by offering lower prices through lower cost structures.

Wal-Mart is now the world’s No. 1 seller of groceries. Warehouse clubs, such as Costco and SAM’S CLUB (owned by Wal-Mart), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores.”

Conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned.

Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue. They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.

The supermarket and grocery stores industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the United States which generates a whooping sum of well over $602 billion annually from more than 42,539 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 2,624,650 people. Experts project the supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.

Over and above, the supermarket and grocery store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with chains of stores in key cities all around the United States of America.

2. Executive Summary

Barry Whyte Supermarket, Inc. is a standard and licensed supermarket business that will be located in between one of the largest residential estates and business district in Baton Rouge – Louisiana. We have successfully secured a standard warehouse facility that is big enough to fit into the design of the kind of supermarket that we intend launching.

Barry Whyte Supermarket, Inc. will retail a wide range of durable goods and non – durable goods at affordable prices from different brands and manufacturers both from the United States of America and other countries of the world.

We are aware that there are several large and small chains of supermarket / grocery store outlets all around Baton Rouge – Louisiana, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so we can be well – prepared to offer much more than our competitors will be offering. We will make available self – service options for our customers, and also various payments of options.

Apart from retailing the goods and products of top brands in the manufacturing and food industry, our customer care is second to none in the whole of Baton Rouge – Louisiana. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our grocery store and also to become our loyal customers and ambassadors.

Barry Whyte Supermarket, Inc. will ensure that all our customers are given first class treatment whenever they visit our grocery store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

We are aware of the trend in the retail / supermarket and grocery store industry and we are not only going to operate a system where our customers would have to come to our store to make purchase or whatever they want but we will also operate an online store and our customers can order goods cum groceries online and they will get it delivered to their houses or any location they want us to deliver the goods to within Baton Rouge.

Barry Whyte Supermarket, Inc. is a family business that is owned by Barry Whyte and his immediate family members. Barry Whyte has a B.Sc. in Business Administration, with well over 7 years of experience in the supermarket and grocery store industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Baton Rouge – Louisiana, but there is a plan to open chains of supermarket stores all across the United States of America in the nearest future.

3. Our Products and Services

Barry Whyte Supermarket, Inc. is in the supermarket and grocery store industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our product offerings are listed below;

• Fruit and vegetables
• Beauty products and jewelry
• Children’s toys and baby stuffs
• Home furnishings and home appliances
• Fresh and frozen meat
• Dairy products
• Beverages (including alcohol)
• Drugs and health products

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the supermarket and grocery store industry in Baton Rouge – Louisiana and to open chains of supermarket stores all across key cities in the United States of America.
• Our mission is to establish a supermarket business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residence of Baton Rouge – Louisiana and other cities in the United States where we intend opening of chains of our supermarket stores.

Our Business Structure

Barry Whyte Supermarket, Inc. do not intend to start a supermarket business like the usual mom and pop business around the street corner; our intention of starting a supermarket business is to build a standard and one stop supermarket outlet in Baton Rouge – Louisiana.

Although our supermarket business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Supermarket Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• The chief executive officer will increase management’s effectiveness by recruiting and disciplining managers.
• He will create the organization’s vision, mission, and overall direction.
•  He is responsible for fixing prices and signing business deals
• He is responsible for providing direction for the business
•  He will lead the company to development and implementation of the overall organization’s strategy.
• He is responsible for signing checks and documents on behalf of the company
• He evaluates the success of the organization

Admin and HR Manager

• He/she is responsible for overseeing the smooth running of HR and administrative tasks for the organization
• He will maintain office supplies by checking stocks and by placing new orders.
• He/she ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• He updates job knowledge by participating in educational opportunities.
• He/she enhances department and organization reputation by accepting ownership for accomplishing new and different requests.
• He/she defines job positions and manages interview processes.
• He/she carries  out staff induction for new team members
• Responsible for training, evaluation and assessment of employees

Supermarket Manager:

• He/she is responsible for managing the daily activities in the supermarket
• He/she ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• He /she ensure that the store facilities is in a great shape and goods are properly arranged and easy to locate
• He/she Interfaces with third – party suppliers (vendors)
• He/she  control goods distribution and supply inventory
• He / she supervise the workforce in the supermarket sales floor.
• He/ she manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• He / she helps to ensure consistent quality of goods and products on our rack
• He / she is responsible for the purchase of goods and products for the organizations
• He / she is responsible for planning sales and monitoring inventory.
• He/she ensures that the organization operates within stipulated budget.
• He/ she manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• He/she models demographic information and analyze the volumes of transactional data generated by customer purchases
• He/ she will Identify, prioritize, and reach out to new partners, and business opportunities et al
• He/ she Identifies development opportunities.
• He/ she will be responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• He/ she will develop, execute and evaluate new plans for expanding increase sales
• He/ she will Document all customer contact and information
• Represent the company in strategic meetings
• He / she will help increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the supermarket facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the supermarket facility
• Handle any other duty as assigned by the supermarket manager.

6. SWOT Analysis

We are well informed that there are several supermarkets and grocery stores all around Baton Rouge – Louisiana and even in the same location where we intend opening our supermarket, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Barry Whyte Supermarket, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Barry Whyte Supermarket, Inc.;

Besides our competent team/ workforce, our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Barry Whyte Supermarket, Inc.

One major weakness that may count against us is the fact that we are a supermarket outlet in Baton Rouge – Louisiana and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we shall operate our supermarket in between one of the biggest residential estates and business districts in Baton Rouge – Louisiana provides us with unlimited opportunities to sell our goods to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our supermarket; we are well positioned to take on the opportunities that will come our way.

One of the major threats that we are likely going to face when we launch our supermarket business is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

It is a known fact that supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently online grocery cum retail store has indeed helped in reshaping the industry.

As a matter of fact, it is now a common trend for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.

Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

It will be safe to categorically state that the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.

In view of that, we have positioned our supermarket store to service the residence of Baton Rouge – Louisiana and every other key cities through the United States of America where we intend opening our chains of supermarket stores.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of goods and groceries to the following groups of people;

• Corporate organizations
• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

Research and studies carried out in the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Baton Rouge – Louisiana.

Barry Whyte Supermarket, Inc. is launching a standard and highly secured supermarket business that will indeed become the preferred choice of residence of Baton Rouge. Our supermarket store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Baton Rouge – Louisiana.

We have enough parking lots that can accommodate well over 50 cars per time. We will ensure that we have a wide range of products from different manufacturers available in our store at all times. It will be difficult for customers to visit our store and not find the product that they are looking for.

One of our business goals is to make Barry Whyte Supermarket, Inc. a one stop shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups supermarkets and grocery stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Barry Whyte Supermarket, Inc. is in business to retail a wide range of goods to the residence of Baton Rouge – Louisiana. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail the following goods;

10. Sales Forecast

If your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Baton Rouge – Louisiana and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Baton Rouge – Louisiana.

Below are the sales projections for Barry Whyte Supermarket, Inc., it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Prior to choosing a location for Barry Whyte Supermarket, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Baton Rouge – Louisiana. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Baton Rouge – Louisiana.

In other to continue to be in business and grow, we must continue to sell the goods that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Barry Whyte Supermarket, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our supermarket business in a grand style with a party for all.
• Introduce our supermarket by sending introductory letters alongside our brochure to organizations, households and key stake holders in Baton Rouge – Louisiana
• Ensure that we have a wide range of goods from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our supermarket store
• List our business on yellow pages ads (local directories)
• Position our signage / flexi banners at strategic places around Baton Rouge – Louisiana
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our bar
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Irrespective of the fact that our supermarket store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our supermarket store.

Barry Whyte Supermarket, Inc. has a long term plan of opening chains of supermarket stores in various locations all around key cities in the United States which is why we will deliberately build our brand to be well accepted in Baton Rouge – Louisiana before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Barry Whyte Supermarket, Inc.;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Baton Rouge – Louisiana
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Barry Whyte Supermarket, Inc. and the products we sell
• Advertise our supermarket store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can purchase goods at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the products that are available in our supermarket store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.

Payment Options

The payment policy adopted by Barry Whyte Supermarket, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Barry Whyte Supermarket, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via POS
• Payment via mobile money platform
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for goods purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for goods purchased.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.  As for the detailed cost analysis for starting a supermarket store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Barry Whyte Supermarket, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of goods from different manufactures) – $150,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $400,000 to successfully set up our supermarket store in Baton Rouge – Louisiana. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Barry Whyte Supermarket, Inc.

Barry Whyte Supermarket, Inc. is a private business that is solely owned and financed by Barry Whyte and his family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Barry Whyte Supermarket, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of goods from different brands a little bit cheaper than what is obtainable in the market and also to ensures that our finished diamond can favorably compete with finished diamonds from any part of the world and we are well prepared to survive on lower profit margin for a while.

Barry Whyte Supermarket, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our supermarket store: Completed
• Establishing business relationship with vendors – suppliers of groceries: In Progress

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A Step-By-Step Guide To Starting A Retail Business

• January 17, 2023
• by Natalie Ha

Are you dreaming of opening your own retail store in Malaysia? But not sure where to start? You’ve come to the right place! The size of the retail industry offers many rewarding opportunities for entrepreneurs like yourself! However, it is extremely competitive which makes it super risky. This is why careful planning is crucial! 

Feeling overwhelmed? Don’t worry! 

Here’s a step-by-step guide to starting your own retail business with everything you need to know!

Step 1: Market research – Getting a retail business idea 

The first thing to do is decide WHAT to sell:

• Clothes, shoes, bags or accessories?
• Cosmetics and skincare products?
• Baked goods?
• Furniture and home decorations?
• Technology?

The world is your oyster!

Whether you’re selling your own handmade products or you already have an idea in mind, you’ll still want to carry out more market research into the product and consider:

• Does this product sell in the market?
• Are there any current trends I can take advantage of?
• Are other retailers already selling this? What makes mine unique?

Another important thing to consider is whether your products are sustainable – will you have enough of them to sell and keep up with sales? 

Step 2: Who is your target market?

Once you’ve decided on WHAT you’re selling, you’ll now need a clear understanding of WHO you’re selling to. 

A good way of doing this is coming up with detailed profiles of your ideal customers (also known as – customer avatars). 

For your customer avatars, think about:

• Marital status
• Number of children (if any)
• Current living location 
• Ethnic background
• Annual salary 
• Personality
• Favourite brands to shop from
• Spending patterns

The more detailed your customer avatars are, the better!

It’s important to understand who your target customers are and what appeals to them since it will help guide your branding, your business plan, pricing strategy, marketing strategy and more! 

Step 3: Type of retail business

Before, there was only one option for customers to shop from. They had to physically go to the stores itself in order to buy something.

However, now there are opportunities for customers to shop from almost everywhere – from the streets to our phones! 

So the next step is deciding HOW you want to set up your business. There are a few options to explore:

Brick-and-mortar shops – these are the traditional physical stores you see on the streets or in shopping malls. This guide focuses on this type of store. 

Pop-up shops – these are temporary stores that only exist in rentable locations for a limited amount of time. This is a great way for start-ups to test product demand before committing to a permanent location. You can find pop-up spaces in shopping malls or event venues.  

Ecommerce – this refers to selling your products online through your own website or through an existing platform such as Amazon or Taobao. 

There is no limit on choosing only one option!

For example, you could start off with a pop-up store to test demand, and then if successful, open a brick-and-mortar store. Once your brick-and-mortar store starts kicking off, you might want to think about expanding into selling online. 

TIP: Use a business operating system like StoreHub that lets you sell both online and offline with its product sync feature so you don’t have to keep track of your online store’s and physical store’s inventory separately.

Step 4: Naming your store

Next, the fun part! It’s time to name your store! 

Your store’s name will be the first thing your customers hear when they learn about you. It makes up your business’s identity so be sure to pick something that is meaningful to you.  

Here are a few things to think about when picking your store name:

• Be original
• Make sure it’s easy to read, spell and pronounce 
• Make it memorable to your target customers
• Reflect the tone of the business e.g. is it accessible for everyone or is it exclusive luxury? 
• Does the name say anything special about your store?

Once you’ve chosen your money-making name, you’ll want to make sure that it isn’t already trademarked or currently in use. If it’s good to go, remember to register it to prevent anyone else from stealing it! 

Step 5: Funding your retail business

Without saying, setting up a shop requires money. How much funding will depend on the product you’re selling and the size of the business you’re after. 

A few start-up costs to be aware of are:

• Utilities (electricity, water, internet) 
• Inventory 
• Equipment (machinery & furniture) 
• Employee costs (wages & training) 
• Technology 
• Marketing 

After calculating the startup costs for your store, you can start creating a plan to finance your business.

Whether you are starting the business with your own savings or getting a business loan, you need to ensure that you have enough to cover the initial start-up and running costs. 

You should also consider how you’ll track your finances. A best practice is to make a business bank account to separate your personal and business expenses and income. 

Step 6: Finding the right location 

It’s all about location, location, location.

Where your store is located can affect the overall success of your business.

If there aren’t enough customers coming to your store, it doesn’t matter what you sell, you aren’t going to succeed. 

Here are a few tips to find the best location:

• Think about which part of town/city you want to target. Ideally, the location you choose should be attractive to your target customer. 
• Find your competitors to see which areas businesses similar to yours have settled. Is there a reason why they are located there? How’s the customer foot traffic?
• Don’t forget to consider the cost! Certain areas will be more expensive to rent than others, especially the busier and more popular locations. Is paying extra worth the access to more customers? Are there any up-and-coming places that are cheaper? 
• How much space do you need? Think about your store layout and how much room you actually need. Consider product display areas, dressing rooms, stock storage, back-office space etc. 
• Consider the health and safety of the area. Ensure the building has good ventilation, working central heating/air conditioning, suitable lighting and enough space for storage. 

Step 7: Retail suppliers 

It is important to find and choose the right supplier as it affects product quality and how quickly the products actually reaches your store. With so many supplier options, how do you pick the right one?

You should consider the quality of their products provided, the cost and their reputation.

Ask for samples to compare product quality and price. Research their reputation – you should look for a supply partner who is reliable in their purchasing and delivery process. 

Once you’ve picked a supplier, make sure to:

• Set clear expectations at the beginning, making sure the supplier understands your business and their role in it
• Communicate your stock needs in a timely manner 
• Maintain good and constant communication with them. This way, you can contact your supplier immediately in case something does go wrong. 

Step 8: Designing your store layout 

Now’s your chance to unleash your interior design skills!

Did you know that your store layout can influence customer satisfaction and even increase sales?

Try visualising what you want your store to look like and sketch it out.

When designing the layout, remember to consider what customers will see when they first walk in. 

Then, make a list of all the furniture and equipment your store needs. For example, sofas, shelves, tables, POS system etc.  This will make it easier to look for them and compare prices.

Step 9: Branding & marketing 

When it comes to starting up your store, branding is very important.

Branding should tie together your shop name, your business logo, the store’s interior design and the marketing tone.

Remember that your brand should communicate the personality of your business and resonate with your target audience. 

After figuring out your branding, it’s time to think about bringing customers in. When coming up with a marketing strategy, it’s important to consider your budget and your target market:

• Which communication channels do your target customers use?
• What messaging styles represent your brand and attract your target customers?

Pricing is also a key aspect of your marketing strategy. To come up with the best price for your products, research how much customers are willing to pay for products, the current market price and competitors pricing. 

Here are a few ideas to promote your business:

• Traditional advertising – adverts/posters in local newspaper, magazines, radio, TV etc
• Run deals, special offers and discounts
• Use social media 
• Influencer marketing 
• Hold an exclusive launch event 

Step 10: Draw up a business plan

Now that you’ve got all the important elements, it’s time to put them all down on a business plan.

A good retail business plan helps compile all your store ideas and details in an organised and presentable way. You can use your business plan to provide potential investors with a clear picture of your vision.

It’s also a template for growing your business in the future.

Your business plan should include:

• Introduction/executive summary 
• Your product 
• Business model and structure 
• The target market 
• The competitive market 
• Marketing strategy 
• Management plan 
• Design 
• Financials 

A cloud-based POS system like StoreHub can help you simplify customer transactions, manage inventory more efficiently, keep track of revenue, and integrate seamlessly with other business tools such as your accounting software and online ordering platforms.

Best of all, you can manage your business from anywhere using any device, including your phone, tablet, and PC.

In just under a minute, you’ll see how StoreHub can improve your business operations. Check out this short video!

Care to learn more about StoreHub’s POS system? Schedule a free demo today!

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Licenses and Permits You Need to Open A Grocery Shop in Malaysia

Q: I am planning to open a grocery shop. What are the licenses and permits I need to apply?

Having valid business licenses and permits is mandatory to open a grocery shop in Malaysia. These licenses must be applied from Pihak Berkuasa Melesen (PBM) relevant to the location and business activity.

Business owners are responsible to apply for relevant licenses and permits before they can legally start operating. Failing to have valid licenses and permits is an offence and may jeopardize your business!

Hence, there are a few licenses and permits you need to apply before you can open a grocery shop .

In general, there are 3 categories of licenses which are:

General licenses

• Sector/Industry-specific licenses
• Activity specific licenses

General licenses are those required when registering as a business in Malaysia. Those include company registration and business premise license, and signboard license.

Just like any other business, you must register your company with Suruhanjaya Syarikat Malaysia (SSM). It is mandatory for all businesses to be registered under SSM to be considered as legal entities in Malaysia.

Apart from that, if you are going to operate your shop from a business premise, you must apply for the business premise license . The license can be applied from your local town council.

On top of that, if you intend to display a signboard on your premises, you must also apply for the signboard license . Depending on your town council, you may need to apply for both licences at the same time.

Sector/industry-specific licenses

Sector/industry-specific license refers to a license for a specific sector or industry. This type of license is usually issued by the government ministries such as the Ministry Of Entrepreneur Development (MED) through BLESS .

BLESS is an online system to apply for licenses and permits related to business in Malaysia.

Thus, to open a grocery shop, you need to apply for some specific licenses and permits especially if you intend to sell scheduled controlled goods .

Here is the list of scheduled controlled goods:

The permits to sell the goods can be applied through BLESS. You will need to provide related documents to proceed with your applications.

In the case of rice, you may apply for a retail license on the e-license portal (ELPPB) by the Ministry of Agriculture and Food Industries.

Marketing Plan for Your Grocery Shop with Foodipedia

Opening a grocery shop legally in Malaysia is a part of your business strategy. Another part is to ensure that your grocery shop has continuous success with an effective marketing plan.

Hence, to attract more customers and stand out from your competitors, here are some marketing tips you can do:

Social media outreach

Because your customers are likely to spend a significant amount of time online each week, you should consider utilising social media marketing.

Social media posts may appear insignificant, but small, daily reminders of your products and offerings are an excellent way to stay in the minds of your customers.

In other words, social media is a low-cost and simple way to advertise special deals and upcoming events.

Website Design

Having a website is essential to stay competitive. The majority of customers will expect to be able to find your company on the internet.

Whether you want to sell your products online or simply provide information about your company and contact information, having a website with outstanding design will definitely help your business thrive.

Print marketing materials

Marketing materials include any items for communicating your marketing to customers. In print marketing, this includes business cards, brochures, catalogues, signs and banners.

So, just reach out to us to see how we can help you and your business!

Suggested read:  Tips Berkesan Untuk Jual Produk Sejuk Beku Online

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This article is for informational and educational purposes only and does not constitute legal or professional advice. Although we strive to provide accurate general information, the information presented here is not a substitute for any kind of professional advice, and you should not rely solely on this information. Please opt for a one-to-one consultation with us or a relevant professional for your specific concerns regarding food business solutions in Malaysia before making any decisions.

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Starting a Retail Business in Malaysia

• Starting a Retail Business in…

Beginner’s Guide on Starting a Retail Business in Malaysia

A business strategy is a blueprint that will guide your business throughout the duration of its operation. Think of it as a map that you chart toward your business goals and successes. You need to be precise and add as much information as you go when you’re mapping out the details of your business. Your plan will give you clarity on what you want and what you do not want in your business.

Once you’ve detailed your business strategy, it’s time to move on to the other key steps below.

What the Retail Business Involves

A retail business is any business that sells a product or service to a consumer. The sale of the goods or services can take place through a number of channels. Some of these channels include face-to-face sales in person at the store, online sales, and even sales made through social media channels. In recent years, online sales and social media channels have become the preferred way for the majority of customers to shop.

Some examples of a retail business include department stores, grocery stores, warehouses, and online retailers. A sale in a retail business is considered successful when a customer exchanges cash for the goods or services they purchase. A lot of the success for a retail business comes from the ability to correctly identify your target audience. This should be completed during the business strategy portion of your preparation.

A business must correctly identify its target customer base. This step is essential not only to sell your products but also to ensure a firm two-way relationship between you and your prospective clients. When you reach this stage, be sure to study the demographics of the people in Malaysia, their background and economic status, age range and so on. This will help you to set reasonable pricing accordingly and be within your audience’s reach.

A retail business must also dabble in a little bit of branding. When you promote yourself to your audience, make sure to have a strong marketing plan to back it up. Branding is probably one, if not the most crucial aspect that will help you to increase customer recognition and enhance reachability. Not only that but branding also makes your product and company stand out from the rest and gives it a competitive edge. Your brand will showcase what you have to offer, and why should the audience give you a chance. Make no mistake in overlooking branding. Create, define and exponentiate your brand.

The Business Registration Process in Malaysia

Starting a retail business in Malaysia can only be accomplished if you register your business with the Companies Commission Malaysia (SSM). It is mandatory for all businesses to be registered with the SSM to be considered a legal entity in Malaysia. Thus, if you don’t register, you will be at risk of operating illegally in the country.

Company registration in Malaysia also requires a minimum of two resident directors who must be at least 18 years or older. These individuals must not have been declared bankrupt in the past.

Foreign investors benefit greatly from the help of experienced corporate service provider specialists like 3E Accounting. That is because trying to set up a business in a foreign country can bring with it a lot of unexpected things that you might not have been fully prepared for if you don’t know the local market well.

The Licenses and Permits You Need

Once you have successfully completed your Malaysia company incorporation , it is time to look at the necessary licenses and permits. Since the retail business can involve a broad scope of business types, you might require several business licenses and permits. This would depend on the nature of your business. 3E Accounting will be able to go over this in greater detail once we know the nature of your business.

There are two areas of licenses you will be looking at for your retail business. One is the general business licenses and the other is industry-specific licenses types. You can obtain General Licenses from local town councils. Industry-specific licenses would be issued by government ministries. Some examples of general license types include Business Premise Licenses and Signboard Licenses.

Starting a Shipping Business in MalaysiaSetting up a retail outlet business in Malaysia, if done right will bear you great results. Even better results are waiting for you if you choose to start a retail business with 3E Accounting. For more information about our company incorporation services and more, contact us today.

How to Start Up a Mini-Grocery Store

• Small Business
• Types of Businesses to Start
• Starting a Store
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Opening a mini-grocery can be a lucrative business venture, especially if you live in a city with little competition. When people are looking for specialty foods or ingredients that can't be found at the corner store or neighborhood supermarket, they typically head to small grocers, also called mini-grocery stores. Such retail establishments sell food and items that are uncommon or not carried by bigger stores.

To set up your mini-grocery store you'll need to address the legalities, find a location, acquire equipment, choose suppliers and advertise your business.

Grocery Store Market Research

The grocery store industry is competitive and dominated by several big name companies. Therefore, you need to identify an underserved niche market in your local area that your mini-market can serve. For example, Cal-Mart, a family owned store in San Francisco, provides locally sourced fresh produce and quality sandwiches made to order. Other ideas include stocking:

• Ethnic food
• Organic food
• Gluten-free food
• Frozen foods
• Premade food

Setting Up Your Business

Choosing a legal entity your business is a big determining factor in deciding how much you want to grow in the future. A few entities to consider include:

• Sole proprietorship. This type of business is owned and operated by an individual. It is the easiest to set up but gives you the least access to financial support and liability protection.
• General partnership. This type of business has two or more owners. It is similar to a sole proprietorship in terms of the rules to set it up, but the partners must agree on the ownership percentage of each member. Like a sole proprietorship, the partners do not have liability protection.
• Limited liability partnership. This type of business usually has one partner who works the day-to-day business and one or more limited partners who invest money. Some or all of the partners have limited liability, depending on the location of the company.

You also need a business plan to secure sources of funding. Beyond traditional loans from a bank, consider funding from your own resources, family and friends, partners and government programs. If you don't know how to write a business plan, the U.S. Small Business Administration provides templates and resources to help you.

Legal Requirements to Start Your Mini-Grocery Store

Laws vary by state as to the exact requirements to open a grocery store. Contact your area's local departments of commerce and licensing for more information. At a minimum, you need the following legal documents:

• Business license
• Federal Employment Identification Number (EIN)
• Insurance policies

In most areas, your grocery store is inspected by the state department of health and the local fire department before opening.

Finding the Best Location

Buy or lease a small storefront for your mini-grocery. Find a location that is in or near a shopping center, restaurant, bakery, candy store, bookstore or coffee shop – especially those related to your niche. To find the best location for your mini-grocery store, use the Small Business Development Center’s Geographic Information Systems to get reports on local competition and demographics.

Equipment for Your Store

The type of equipment you need for your grocery store depends on what you plan to sell. At a minimum, you need the following items:

• Cash register with credit card processing machine
• Freezers and refrigerators for perishable goods
• Shelves and display cases for displaying items
• Carts or baskets for customer use

You can purchase equipment from online grocery store suppliers such as WebstaurantStore and Raimac.

Finding Suppliers

You need a strong and reliable network of distributors to get the goods for your store. You can work with wholesale suppliers such as Value Wholesale Distributors and Spartan Nash. Also, consider buying some of your inventory from price clubs such as Costco or Sam’s Club. You have to pick up and transport the items yourself, but you can save some money.

Advertising for Your Grocery

Advertising for your grocery store startup begins at the shelf level. This means item placement is important. Whether you follow the traditional method of placing your fast moving, popular items on the bottom shelf or the alternate method to place these items at eye level, the most important thing is to be consistent. Items should also be logically placed in the store. For example, light bulbs shouldn’t be in the produce section.

Use traditional marketing avenues such as direct mail, but don't overlook the value of online targeted ads for shoppers in your locale. Wherever you advertise, include coupons and information on the latest items and sales.

Feature innovative and creative product offerings that differentiate your store from the competition. A few examples include:

• Scooped or soft ice cream in cones
• Freshly made hamburgers and ice cream
• Fresh coffee
• Freshly pressed juices
• Fresh doughnuts and bagels
• Fresh sushi
• Profitable Venture: Starting a Grocery Store in a Small Town – A Complete Guide
• Thrillist: Grocery Stores That Make Us Shamelessly Nostalgic
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Michael is a writer in various subjects. He is a mechanical engineer and freelance writer, having earned a Bachelor of Science in Mechanical Engineering from Washington University in St. Louis. His articles have appeared mostly online.

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10 Things to Know When Starting a Small Business in Malaysia

Most entrepreneurial-minded prospective small business owners, either newly arrived foreigners or expats already in Malaysia, will find it quite difficult to resist wanting to establish a business in the very bustling commercial environment of this country. Malaysia, being a centre of trade, manufacturing, cultivation, and culture for decades in its strategic location in Southeast Asia, has seen its economy flourish tremendously over time. This has been the case even more so in the last couple of decades, especially since the 1990s where thousands of businesses have started successfully and flourished in just a matter of a few years.

But of course, for every success story, there are certainly failures, too. And it is important to know that although it is relatively easy to start a business in Malaysia , especially a small one, it’s nevertheless vital for a foreigner to know first the preliminaries, advantages, limitations, and legalities involved in starting a business in this country. This article contains basic information to guide you as you delve deeper into this subject or to actually go ahead and start a company .

So do take note of the following things that you should be aware of before taking the plunge and starting your own small business in Malaysia.

1. Get to know and understand Malaysia first

Spend some time getting to know Malaysia and Malaysians before even starting research on what businesses might be viable here. Don’t jump straight into anything if you are still unsure or unfamiliar with the country you want to do business in. Travel around and get a feel for Malaysia, its cities, its rural areas, etc. Make contacts and friends, and familiarise yourself with the country, its foods, cultures , policies, and laws. At the same time, get and stay in touch with the trends, fashions, and tastes.

2. What businesses seem viable in Malaysia, and what are you passionate about?

When a foreigner does enough investigation and speaks to enough people, both locals and foreigners, the ‘big picture’ about Malaysia begins to form in his or her mind. This also means that you will begin to know or at least be in a position to explore what types of businesses are suitable if not viable for a foreigner to do or to invest in this country.

Also knowing what skills, products and services you can offer, taking into account what you are good at, that you have knowledge and experience in, truly counts.  But at the same time. know what your passions are or at least get to know them, so that maybe you can find a correlation between what you really like to do, what you’re good at, and what areas of business opportunities you can find a niche to step into locally. These could take days, weeks or months, even years, but the more familiar you are with Malaysia the better, while keeping in mind that starting small is both wiser and safer. The more you know will not only help you make better choices but will help you overcome the inadvertent painful pitfalls of doing business and even avoid them altogether most times.

3. Find out if the business that you (as a foreigner) want to start in Malaysia is allowed by the government

After you have made a list of possible businesses to start, the next step is to find out is whether a foreigner is permitted to start any of these types of businesses in their respective industries, as the government does impose restrictions to the types of industries a foreigner can enter. But the good news is that there are many industries or areas of business that a foreigner can venture into and start a business whether big or small. Researching and checking with the Company Commission of Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM) on their website or getting a local representative like a company secretary or law firm or accounting firm or business consultancy to advise you, or to make enquiries, or to help you start a business is a good idea.

4. Know what business entities are applicable to the foreigner and their business, where and how to register the business, and types of trade permits and certificates needed

It is important to note that foreigners are not allowed to start unlimited companies, sole proprietor companies, partnerships, enterprises, or LLPs in Malaysia. Foreigners are allowed to start businesses in the form of a private limited company or Sendirian Berhad (Sdn. Bhd.) only – which is a standard Malaysian Private Limited Company (MPLC).

Foreigners are also encouraged to start another type of entity i.e. an international off-shore Labuan International Company , (LIC) which has special features, extra benefits and lesser or fewer prerequisites then other forms of entities. This company can be owned 100% by foreigners and has the lowest paid up capital to run your international business in this country with minimum hassle. There is no need for most trade licenses needed for most types of businesses and without it being compulsory to set up an office (provided there is no need to apply for work permits) in the international free trade zone, of Labuan Island, to operate. There are also more and bigger tax exemptions as well as lower tax rates for the LIC.

Foreigners can own 100% of the MPLC besides the LIC depending on the nature of the businesses or what industries they are in, where the starting paid-up capital is minimum RM500,000 to RM1,000,000 and minimum USD1.00 to RM250,000 (if work permit needs to be applied for) respectively. If the MPLC has Malaysian partners involved as directors and shareholders, the minimum paid-up capital is RM350,000 (this figure is subject to change and being reviewed currently).

For the MPLC, the family of the applicant and himself can also get a two-year Dependant Visa and Business Visa respectively, in which can be obtained together with the incorporation of the company, within 60 to 90 days or even less. From this, work permits,  (also called the Expatriate Work Permit DP10) can also be applied for 3 to 4 foreign white-collared workers to work in the company. Usually for both the LIC and MPLC, from the time of application to the time that business operations start, where premises have been set-up, trade licenses acquired (if required), work permits obtained, and final visa endorsements done, ranges from 3 months to 6 months and 6 months to 9 months respectively.

5.  Familiarise yourself with the laws, customs and policies that apply to foreigners for business startups.

After going through and exercising the above four steps, you will have ideally narrowed down your choices  to one or two businesses to consider. The next step is to get to know more about the business, such as  taxation (e.g., Goods and Services Tax (GST) and labour laws of Malaysia as well as the local council regulations and permits given by certain government bodies, agencies, and authorities that apply to the chosen business.

Generally, it is good to find out with depth the privileges and penalties, advantages and disadvantages, as well as the benefits and limitations of doing business in Malaysia as a foreigner for the entity and business chosen.

6. Research and understand the market of the business that you want to go into.

If the business is say, import and export , it is only logical to know both the local as well as overseas markets you are thinking of doing business in. If the business’s target market is basically in Malaysia only, then of course, it is important to research and understand everything related to your business locally.

If you’re thinking of opening a restaurant, you should decide whether to cater to the lower income, or middle-to-upper income market, or whether you wants to cater to the lunch hour office crowd market or even to the vegetarian food market, etc. Then really observe, learn and understand all that is involved in this category of food and beverage, for example the 6 Ps, i.e., pricing, place (location), product, people (type of customers and workers needed), promotion (type required) and even package (if it applies e.g. combo set or set lunch).

It is also crucial to know who and how strong are your competitors, of which really applies to all types of businesses and industries and even other areas of life. Getting to know the strengths and weaknesses of products and services of not only your own company, but also that of your competitors, by doing a  SWOT Analysis which is a useful and important exercise.

7. Determine the amount of investment and time needed, as well as projected Return on Investment (ROI)

Costs, like company registration fees, trade licensing fees, e.g.,  Wholesale and Retail Trade (WRT) permit fees, and local council licenses and permits for advertising and premise signboards are all forthcoming. Meanwhile other costs like office/shop renovation, furniture and fittings, rental and deposits for the premise as well as initial deposit needed to open a bank account (usually varies between RM1,000 to RM5,000 for different banks) do apply, also.

The amount of funds needed to operate the business – including staff salaries, employees’ provident fund (EPF), company vehicles, supplies, raw material and machinery needs, utility bills, etc. – until the business becomes profitable should be made ready and available.

Last but not least are the cost needed for the deposit and monthly payments for landlines and broadband services. It is good to know or at least estimate what the ROI of your business may be as this will give added direction, drive,  and time schedules to work around on. But in actual fact, there will be more unseen costs that will crop up when starting and running a business.

8. Research and understand with more depth, the jargon, slang, likes and dislikes, habits, superstitions, like ‘Feng Shui’, and the ‘Dos & Don’ts’ of various races, classes and walks of life of the locals.

As a multi-racial and multicultural nation, Malaysia presents expats with a range of complex social facets. Though these can sometimes be a challenge for foreigners to fully understand, the diversity in the country – to say nothing of the fusion of varying cultures and influences – should not be ignored by the expat business owner, but rather embraced and even used to a business advantage when possible. An example would be knowing what one race likes, while what another race deems as taboo, and a third race considers as neutral may be advantageous to the foreign business owner when determining a marketing strategy, shop location, etc.

Additional examples: honorific titles used in Malaysia like Datuk, Encik, Puan , or dress codes for different occasions for different races, e.g., wearing red-coloured clothes for Chinese New Year or batik shirts for a an important dinner function. It would also certainly benefit the expat to know, if not fully comprehend, the true but often confusing essence of the country.

9. Know where and how to source for all the resources needed by your potential business

Whether a foreign business owner wants the best in quality or a merely standard item, brand-new furniture or secondhand, or a brand new office space or an old shoplot, knowing where, when, and how to find what is needed – and to do so at a fair price – is of great importance.

It could also make or break a company when it comes to sourcing for supplies, suppliers, contractors, and vendors as well as even more saliently, business contacts, and leads, as these parties are extremely important factors of business. Having various comprehensive lists for different sourcing purposes with backups will help save time, money, worry, and frustration in the long run.

10. Survey and know the best locations for setting up your business

Just as research, research, and more research is important, so is, location, location, and best location, crucial to any business, except maybe for an internet-based business. Not only is the country that one has their business that is important, but also the actual town, area, street, and address number, right down to the suite or office lot number.

Convenience, ease of finding, traffic flow, logistics, transportation, parking, and proximity to various other facilities and amenities are some of the important points to consider. An import and export company that’s located in a commercial hub, while being close to a port with industrial and warehousing facilities, as well as being well serviced by good roads and infra is a great example. Another example would be a grocery store selling imported foodstuff from a certain foreign country that’s close by or within the area where the residents there are of the same ethnic group of that foreign country.

Therefore, it is important to do the due diligence in order to know more of what is vital to starting a business in Malaysia and this of course, applies universally too. There is no such thing as knowing too much or doing too much research either, as all knowledge and information will at some point prove to be useful if not crucial, if not in the short term, then in the long run. As mentioned from the start, this article is just a simple aid to help orientate the potential foreign business person or expat in the basic steps of doing business in Malaysia and even in other countries, while the rest is really up to you!

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Mini Mart Malaysia | Design & Build | Contractor Malaysia

Mini store or convenience mart is definitely a wise choice to invest in and well accepted by the population of the neighbourhood. As statistics show that, even after the COVID-19 pandemic happens in 2019, we see more and more mini markets have surged into this high demand sector. The rationale is quite simple, it brings a very high level of convenience to the people who look for a nearer option, a smaller quantity of necessity purchases at odd timing. A lot of such stores do open long hours and up to the extent, which is 24 hours for 7 days in a week. Compared to hypermarket or well-known brands of a supermarket, the prior has its own market segment to cater to. Undoubtedly, those small retailers, SME or business owners in especially the food and beverage (F&B) sector will still opt for larger chains to get their big volume procurement and their frequency of visiting is offset by their one-off bulk demand. The distance, time, effort, flexibility, transport mode are other ease of constraints are advantages of tiny chains in these markets as well as growing rapidly in both rural and urban areas.

Some mini mart target younger generations would make more specialized concepts, such as the specific country-oriented style in its offering, design as well as other factors. Korean, Japanese or Taiwanese trendy stores are getting their appetites and franchisees in Malaysia will put their new outlets to be opened near colleges, schools or institutes. While the general audience kind of market will definitely be composed of multiple ranges of common products, categories, pricing as well as simplicities in the designs for interior. However, there are perspectives of what will be standardized too, elements such as fast payment features that built on high-speed recognition of e-wallet from a mobile phone, pay wave through credit or debit card, reloadable based member or third-party card can save a lot of time, effort, a queue of the crowds as well as a safety issue. There are also cash-prioritized stores, but if the traditional consumers are where the store is allocated, it can gain market share better than those who offer purely on cashless transactions.

In term of design, the racking, lighting, item arrangement, queuing line space, dining seat (if any), height and width of each categorized shelves, counter location, ceiling height, floor colour, wallpaper (if any advertisement posting is there), door materials or transparency intensity as well as other more aspects to look at are essential for owners to put their energy and time to consider, in addition to the monetary resources. Renovation after built-up is merely a waste of time if initial design, as well as material specified, are not on track with what supposed to be, hence, better to engage with professional upfront with full team discussion which consists of materials supplier, interior designer, specialized installers such as electrical contractor, wet works, tilers, carpenters, fridge provider, ceiling, painting, door, HVAC (Heating, ventilation, and air conditioning), goods racking, display accessories and more. Location is also important, besides traffic count for business growth, it is also a key driver of the ideal spirit of designs to boost more attractiveness for the sake of economic benefits including brand recognition that is so intangible to value which might always be neglected by a lot of entrepreneurs.

Where to Get Mini Store and Convenience Mart Design Build Contractor in Malaysia

Aathaworld provides a full range of mini market as well as convenience store services, including location site inspection, interior assessment, space measurement, carpentry works, lighting, infrastructure, roof-to-floor refurbishment, building materials supply and install, as well as renovation of existing units of grocery mart. We are keen to explore projects in various locations, including KL Kuala Lumpur, Selangor, Klang Valley, JB Johor Bahru, Penang, Malacca (Melaka), Seremban Negeri Sembilan, Perak, Pahang, Kuantan, Kelantan, Terengganu, Perlis, Alor Setar Kedah, as well as Sabah and Sarawak for East Malaysia. Possibly, we are also able to be your mini shop for other countries in Southeast Asia (SEA) such as Singapore, Myanmar (Burma), Cambodia, Vietnam, Laos, Thailand, Indonesia, Philippines, Brunei, Bangladesh as well as China, Taiwan, Hong Kong, Australia and New Zealand.

Submit your convenience shop sourcing requirements, either you are getting just for a simple kiosk to that building up a full comprehensive store contractor or any other carpentry design for new or existing building, renovation or upgrading for either standalone type, with the petrol station, any floor in the high rise tower or within shopping mall in KL Kuala Lumpur, Selangor or other states in Malaysia. Enquire now to [email protected] or call (WhatsApp) to +(60)11-7001 1003 (Monday to Friday) or +(60)11-1188 1003 (Saturday, Sunday & Public Holidays).

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Mini Mart Company Profile Design & Copywriting

RM Mart is a chain of convenience stores which offers products of household groceries and is strategically located at residential neighbourhoods in Klang Valley.

We were commissioned to create a detailed company profile to apply for a tender to obtain a lease. Different from typical company profiles, we designed a comprehensive profile complete with business concept, management, and project financial analysis for two years. We also composed RM Mart’s brochures and its letterhead for office purposes.

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The use of navy-blue colour scheme for both the company profile and brochure is based on the reliable notion of blue branding. The hue signifies honesty and dependability, two features that we believe is ascribable to RM Mart.

With the use of simplistic design, we planned the content of the company profile to include specific details such as official documentation, statistics, and cash flow spreadsheets adhering to lease application requirements.

We were tasked to produce a detailed company profile for tender purposes with minimum guidelines. Within the tight timeline, we needed to holistically explain RM Mart’s business concept, zeroing in on their competitive edge to better the chance of getting tender approval. We were required to meticulously craft the operation plan covering store design, management, inventory, logistics, workforce, pricing, and risk mitigation.

After a significant amount of research and study, we managed to build an impressive company profile. Our client is now able to fully utilize the profile for marketing purposes.

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How to Start a Mini Mart Business

There’s a lot of money to be made in small grocery stores business. First of all, it’s a business that’s almost always in demand and nearly every neighborhood could use a mini mart to provide services to its residents.

Secondly, there are a lot of interesting opportunities for growth and development with such a company. For instance, it can simply be franchised and multiplied as it is or it can be turned into a niche business. These days, customers are greatly concerned about where their groceries come from due to both dietary and moral reasons, and companies need to accommodate that.

As is the case with any retail store, the location of the minimart is one of its most important features. Before opening one, it’s essential to learn about the market you’re getting into. You’ll need to make sure that there’s a need for another grocery store in the area you’re moving in to.

It’s not enough if your store is near the customers, but it also needs to be near the goods that you’re trying to sell. The area should be well-connected to the warehouses you are planning to use, and have in mind that you might need to upgrade to a larger warehouse as time goes by.

Legal issues

Founding a business is often a complicated legal process, since the way you set it up may affect how your company is being taxed and what rules apply in case of it being sued. Many companies forget to factor this in and it definitely should be; mostly because of the time you’ll spend on setting up the legal framework.

For the most part, you’ll need a business license, a federal employment identification number, and a set of insurance policies. There are also local and state regulations that you’ll need to follow as well and they might vary greatly depending on where you company is.

There’s a lot of initial investment needed to start a grocery store. Most of the attention is dedicated to purchasing the premises, and stocks of the items that you are planning to sell, however, there are other purchases to plan for as well.

For instance, a grocery store will need to buy kraft bags in bulk.  You’ll also need to buy employers’ uniforms, cash registers, and a lot of ordinary office supplies. Carts, baskets, shelves and freezers are also a large expense when you consider the amount you’ll need and the team that should be put in place to maintain and keep them in stock.

One of the most important business relationships a small grocery store has is the one with its suppliers.  It mustn’t appear to be out of stock and there’s nothing worse for your customers than seeing empty shelves. A rapport with the suppliers will also affect your bottom line more than any other because they can decide what items you could or should sell.

It’s impossible to pick out the best supplier right away; it’s a trial and error process, but while the business is young, you should set up a relationship from which you can leave when you see fit.

In the end, one of the most important assets a business has is the employees, who actually keep the company running. The location and the way a business is set up will also determine what kind of workforce you can count on.

A new and small company is often not able to provide its employees with the largest of salaries and bonuses, but there are other ways to keep workers happy . For instance, if your business provides a path to promotion and has a close and engaging work atmosphere, it can keep the employees loyal even without the large salaries.

Starting a mini mart business can be a rather lucrative proposition. Its success depends on the location of the store and on the ability to find the best employees out there. At the same time, there are some early investments you’ll need to get through before you start making income. In conclusion, with a bit of effort you’ll be making profit soon enough.

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This article first appeared in The Edge Malaysia Weekly on May 22, 2023 - May 28, 2023

MINI-market operator KK Supermart & Superstore Sdn Bhd, which generates about RM1 billion in annual revenue, is weighing the option of floating its shares on Bursa Malaysia, possibly within the next one to three years.

Ahead of the potential listing, the retailer is on an expansion drive to increase its store network nationwide to more than 800 outlets by year end. It will also consolidate and synergise its food and beverage business with its mini-market segment, and open convenience stores.

KK Super Mart is the second-largest mini-market chain in the country after 99 Speed Mart Sdn Bhd, which operates the 99Speedmart chain. Its rival, which has 2,348 stores, is expected to maintain pole position as it aims to cross the 2,500-store mark by end-2023.

KK Supermart founder and executive chairman Datuk Seri Dr Chai Kee Kan, popularly known as K K Chai, tells The Edge that a potential listing is on the horizon “within the next one to three years, when the time is right”.

KK Supermart operates the group’s flagship business KK Super Mart, and Chai is quick to dismiss talk of a potential sale of the business.

”We are not selling. In fact, we are looking to strengthen our business. We are expanding nationwide. We plan to grow further and cater to consumers at large. We plan to grow (the business) and add another 120 to 150 stores this year,” he says, adding that the store count currently stands at 700, which includes the 50-plus new openings in the first five months of the year.

In March, Ion Analytics (a financial technology platform that provides market intelligence, data and analysis on global merger and acquisition deals), quoting sources, reported that KK Supermart was exploring strategic options including the potential sale of its grocery store business. But the sources said that talks on a sale mandate were preliminary and that there was no formal process yet.

Industry observers say that the retailer has been expanding rapidly in recent times.

Based on previous reports, KK Supermart operated 526 stores in May 2021. By last October, the number had grown to 636 stores and it has since increased to 700 outlets.

Apart from Malaysia, the home-grown player has 21 stores in Nepal and three in Kolkata, India.

“We are also upgrading (the older stores) to provide a more comfortable consumer experience. We will continue to operate 24 hours,” adds Chai, who owns 95% of KK Supermart. The remaining 5% is held by Datin Seri Loh Siew Mui.

A search on the Companies Commission of Malaysia website shows that in the financial year ended June 30, 2022, the company posted RM919.65 million in revenue, down 10.6% from RM1.03 billion in FY2021. However, net profit swelled to RM67.86 million, 84.2% more than RM36.84 million in the previous year.

Its total liabilities as at the date amounted to RM341.53 million, of which RM192.13 were current. Total assets stood at RM552.29 million, and accumulated profit at RM194.57 million.

Asked about the declining margins experienced by most grocers after the pandemic, Chai does not seem too concerned as he attributes the drop to higher operating costs, including labour costs, rather than weaker demand.

KK Supermart continues to experience same-store sales growth in 2023 versus 2022, he says.

“The outlook for the business is good due to the strategically located outlets, which are convenient for consumers, and the group being a responsive retailer, catering to market sentiment and the requirements of consumers,” Chai notes.

According to Retail Group Malaysia’s latest Retail Industry Report dated March 2023, the mini-market, convenience store and cooperative segment grew by 17% last year. Operators within the retail segment have forecast business to strengthen in the January-March 2023 period, growing by 15.8%, which is double the expansion in the previous corresponding period.

KK Supermart is part of the KK Group of companies, whose diversified business includes cafés and kopitiams, hospitality, personal care, automobiles, manufacturing and real estate.

Chai says the group is looking at consolidating some businesses such as cafés and kopitiams to support the growth of the KK Supermart chain.

According to its website, the group operates B Café International (which offers coffee, tea, bread, cakes and hot food) and KK Kopitiam (a 24-hour business offering a variety of stalls that serve local beverages and food). Individual kopitiams occupy not less than 3,000 sq ft and offer items such as Hainan coffee.

KK Group recently opened the KK Concept Store, which focuses on ready-to-eat meals and fresh food. As a group, it is also looking at expanding its manufacturing business in the personal care segment including hair care and body care products.

The retailer is next expected to venture into the convenience-store segment following its franchise partnership with South Korea’s GS Retail, which operates the GS25 chain. Last year, it was reported that KK Group had entered a master franchise deal to open GS25 stores in Malaysia. A total of 500 stores have been planned over the next five years. Chai says,however, that the opening date of the first GS25 store has yet to be decided.

Competition in the space will be intense. South Korea’s largest convenience store operator BGF Retail (which operates the CU stores) and its fourth-largest convenience-store operator emart24 already have a presence in Malaysia.

Mini markets are distinguished from convenience stores by the number of SKUs (stock keeping units) they offer. The former typically has a wider range of products.  

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FamilyMart enters into a competitive Malaysian convenience store market

QL Resources, Malaysia’s biggest surimi manufacturer and the largest fishball range manufacturer in the country, announced on 11 April 2016 that it had signed an area franchise agreement with the Japanese convenience store chain FamilyMart Co., Ltd. to open FamilyMart stores in Malaysia. The agreement will last for 20 years.

The plan is to open the first FamilyMart in Malaysia by December 2016. Previously, the author spotted several copycat FamilyMart stores in the Klang Valley area in 2013. The stores have now being rebranded under a different name and logo.

The reason for QL to venture into the retail business is for the company to expand its ‘existing food manufacturing and distribution businesses.’ Plainly speaking, QL is looking for new ways to sell its fish balls and other surimi-based products and the best way to sell it is through convenience stores.

Fresh food sustaining SSSG of 7-Eleven Indonesia

Fresh food products including sandwiches, hot food and chilled food  command a high profit margin and is a generator of growth for convenience stores. This is the reason why convenience stores are pushing for higher sales of fresh food. Take the example of PT Modern Internasional, the franchise holder of 7-Eleven in Indonesia. The company had 244 SKUs of fresh food as of the end of the third quarter of 2015. Fresh food same store sales growth (SSSG) led the way with a 10.52% growth in the first nine months of 2015 compared with an overall SSSG of only 0.57%. The overall SSSG was impacted by the ban of beer sales, which started in early 2015.

Indonesian convenience store goers are increasingly shifting to healthier food. Sales of fresh food mainly chilled food (such as Rice Bowl, Sandwich, Salad and Nasi Tenggo), up 31-41%, and bakery, up 11-15%, continued to grow offsetting the slowdown in hot food fried items.

QL leverages strength in food manufacturing  

For QL, convenience store is a good platform to sell its surimi-based products as well as poultry products. According to QL group corporate development director Chia Lik Khai in an interview with Focus Malaysia (Issue 176, 16-22 April 2016), the company plans to offer ready-to-eat foods such as bento or fried chicken. However, it needs to ensure Malaysians accept the idea of eating fresh food in convenience stores. 7-Eleven Malaysia has tried very hard but is still unable to compete with the ubiquitous 24-hour Mamak eateries in terms of freshness and price. As a result, 7-Eleven is focusing on fried food including fish ball and microwaveable food supplied by CP.

Good time to grab some real estates With depressed rental due to the oversupply of commercial units, it now is a good time for QL to enter into leases for prime real estates for its new FamilyMart stores. There are a lot of condominiums coming up in the Klang Valley and most of them have commercial lots, mostly unoccupied. The footfall can be low in these places due to poor occupancy. There are also new shopping malls with six more coming up in the Klang Valley in 2016 including MyTown Shopping Centre.

Competitive landscape

The per capita penetration of minimarket and convenience store is still low in Malaysia compared with neighbouring Thailand. The low per capita is often used as a justification to gauge future growth potential. This is indeed the case as consumers increasingly shift to proximity shopping for top-up shopping. The big-box retailers are struggling, not only in China but also increasingly in Southeast Asia, thanks to the growth of e-commerce and shifting consumer habits for smaller stores due to the busy lifestyle, the rise of singletons and the lack of transport (migrant workers in the case of Malaysia).

In Malaysia, 7-Eleven has the biggest share in terms of the number of stores at 62%, followed by 99 Speedmart, which is essentially a small supermarket selling mainly household products including diapers. 99 Speedmart is popular with housewives, migrant workers and lower-income consumers.  Circle K lauded itself as a halal convenience store but is few in numbers. Bison (myNews.com) has recently listed on the stock exchange and is now flush with cash for expansion.

The key thing is what type of demographics would FamilyMart target and this will determine the sort of products and services it will offer. To win, FamilyMart would need to stand above the rest with interesting store concept that is young and trendy. The key message is it is time to bring back the fun in convenience store shopping.

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• April 12, 2023

Convenience stores have become a staple of modern living, offering a quick and easy way for people to get the items they need. These stores are located in convenient places in the neighbourhood, petrol stations, and shopping centers.

With smaller store spaces as compared to the standard grocers or supermarkets, convenience stores usually offer limited SKUs focusing on categories such as snacks, drinks, ready-to-eat meals, and toiletries, as well as top-up and bill payment services.

Convenience stores are a great alternative for FMCG brands to distribute their products, especially if the brand is targeting consumers who want quick and easy access. Some convenience stores also offer a wider range of products such as groceries, fresh produce, frozen food, etc.

In Malaysia, convenience stores have become a ubiquitous presence, with thousands of such stores located in densely populated cities and towns. Besides big chain stores like 7-Eleven and myNEWS and specialty (e.g. imported goods) stores like FamilyMart and CU, there are also others operated by grocery chains and petrol stations.

Without further ado, here’s a comprehensive list of popular convenience stores in Malaysia, categorized by big chain stores, specialty stores, supermarket mini stores, and stores by petrol stations. All brands listed below are with at least tens, if not hundreds, or even thousands of outlets nationwide.

Big Chain Stores

99 Speedmart

Kk super mart.

Specialty Stores

BilaBila Mart

Supermarket Mini Stores

Convenience @ Petrol Stations

• Petronas Mesra

Shell Select

Bhpetromart.

7-Eleven is originally from the United States. It started its operations in Malaysia in 1984 through a licensing agreement between 7-Eleven Inc. and the Berjaya Group. As of 2023, there are over 2,400 7-Eleven outlets throughout Malaysia .

Started as a traditional “mom and pop” sundry mart in 1987 by the wheelchair-bound entrepreneur – Lee Thiam Wah, it has been rebranded to 99 Speedmart in 2000. In 2021, 99 Speedmart has launched its 2,000th outlet in Malaysia .

KK SUPER MART was founded by Datuk Seri Dr. KK Chai in 2001, with an initial capital of only RM60,000. Fast forward 22 years later, KK SUPER MART has expanded to more than 680 outlets in Malaysia .

Founded by Dang Tai Luk in 1996 as a single newsstand of 200 sqft, myNEWS was born the next year as a contemporary press and convenience retail outlet. As of 2020, myNEWS has more than 530 outlets in Malaysia .

FamilyMart is a famous convenience store chain from Japan, the brand has partnered with QL Resources Berhad to operate and expand its stores in Malaysia. After launching its first store in 2016, there are 355 FamilyMart outlets in Malaysia as of 2023.

The Korean convenience store brand CU has entered Malaysia in 2021 by partnering with myNews Holdings Bhd. After opening its first store in Centerpoint Bandar Utama, there are 130 CU stores in Malaysia as of 2023.

Similar to CU, emart24 offers Korean street food and goods imported from Korea. emart24 was launched here in 2021 by a private equity firm controlled by the Pang family who owns the Mamee brand. As of 2023, there are 34 emart24 outlets in Malaysia .

Known for trendy and creative snacks, drinks and food imported from Japan, Korea, Thailand, China and Taiwan, MiX Store is founded by 杨啸 (translated to Xiao Yang). To date, there are 74 MiX Stores in Malaysia .

Potboy is an online grocer founded by Eddie Chew, who worked in private equities in China for 10 years. Extended from its online grocery business, PotboyMart is the O2O convenience store with 77 outlets in Malaysia at the time of writing.

Invested by the property developer Exsim Group, BilaBila Mart positions itself as the FamilyMart or CU of Malaysia, offering a retail channel for homegrown brands and products. At the time of writing, there are 31 BilaBila Mart stores in Malaysia .

Giant Mini is a convenience store brand owned by Giant, a smaller store format with a focus on fresh produce, snacks, and beverages. As of 2023, there are 38 Giant Mini outlets across Malaysia.

Similar to Giant Mini, MYMYDIN is a smaller store format that used to be owned by MYDIN. The chain of 48 convenience stores was sold to Jubilee Games Sdn Bhd in 2018.

Petronas Kedai Mesra

With more than 1,100 petrol stations nationwide, Petonas has the largest network of convenience stores at petrol stations with over 760 Kedai Mesra outlets . In selected outlets, Café Mesra, Makan@Mesra, Segar@Mesra, or F&B brands are available too.

Shell has the second-largest petrol station network with over 950 stations in Malaysia. Shell Select convenience stores offer groceries, snacks, confectionaries, drinks, ready-to-eat meals, as well as telco top-up and bill payment services.

There are about 300 BHPetromart convenience stores at more than 400 BHPetrol stations in Malaysia  – offering snacks, drinks, ready-to-eat meals, Touch ‘N Go reload, ATM cash withdrawal, and other quick services.

Besides those listed above, there are also convenience stores operated by other petrol stations like Carltex and Petron. Even though it’s a crowded space, we are seeing new players like PrestoMart (with only 4 outlets at the time of writing) venturing into the convenience store business.

We are not able to list those smaller or mom-and-pop convenience stores here, do leave a comment below if we missed out on any big convenience store brands here!

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60 Popular Franchises in Malaysia and How Much They Cost (2022)

• October 25, 2022

Buying a franchise can be a convenient alternative to starting a business from scratch. The franchise owner will already have the brand, products, price and marketing materials ready for you to use.

They will even guide you on how to run the business on a day to day basis, which can be an advantage for people with no business experience.

The biggest drawback of buying a franchise is that they can be expensive to set up. Other than spending money to set up the business, you need to pay the franchise owner a franchise fee.

You may have thought about buying a franchise business but are not sure if it is the best option for you.

In this post, I will first explain to you the pros and cons of buying a franchise business as well as thirty popular Malaysian franchises you can buy. By the end of this post, you will be able to decide if buying a franchise is right for you.

Let's get started.

What is a franchise?

A franchise is described as

a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company. The franchising company, or franchisor, signs a contractual agreement with the franchisee, explaining in detail the company’s rules for operating the franchise.

When you buy a franchise, you do not need to worry about things like:

• What products do I sell and how much do I sell them at?
• What should I call my business?
• What equipment should I buy for my business?
• Are people interested in what I sell?
• What profit margin can I expect from this business?

These are all taken care of by your franchise owner. All you need to do is manage the business. For people who do not want to set up a business from scratch, this can be a big advantage.

While this may make buying a franchise sound like the ideal business, you should consider the cons of buying one before making the decision to buy.

Let's look at that in the next section.

The Cons of Buying a Franchise

Though the convenience of a franchise can make it an attractive business option, the following disadvantages can make it a less ideal option:

1. Buying a franchise can be expensive. Other than the cost to set up the business, you will need to pay a franchise fee to the franchisor. Depending on how popular the brand is, this fee can be anywhere between US$1,000 to US$3million or more.

Initial setup cost = Franchise Fee + Setup Costs (Equipment, Furniture, Furbishing of Premise)

The final set up cost can easily add up to US$200,000 - 1,000,000 or more. If you do not have enough capital, you may need to get a loan to finance your franchise.

2. Franchises are inflexible.  In a franchise, the franchisors dictate how the business is run. You often do not get to say how the marketing for the business is run. Instead, you need to follow the guidelines set by the franchisor or risk having your franchise rights terminated. For business owners who want to be creative, this may feel restrictive.

3. Mistakes made at other branches can destroy your business.  Even if only one of the franchise stores makes a mistake, customers may assume that there is a problem with the brand and stop buying from all stores. This means that even if you are doing everything properly, your business can still fail because of what other franchises are doing.

Though there are many disadvantages of buying a franchise, the potential of making a lot of money is huge if you are able to pick a good franchise and manage it well.

Which Franchise Should You Buy?

Your choice on the franchise to buy depends on how much capital you have and what industry you want to be in. To help you with that decision, I have gathered thirty popular Malaysian franchises in six different industries or you to choose from. Malaysian franchises are usually more affordable compared to those from the U.S.

The franchise fee and setup cost information are available for most franchises. Some franchises, however, prefer you to ask them for a customized fee. For franchises where the cost information is not available, I have listed their contact information so you can reach them for a consultation.

Use the menu below to jump to any franchise you're interested in:

Food & Drinks Franchises

PappaRich offers Malaysian cuisines in a homely ambience. Their menu includes Malaysian staples like nasi lemak, ice kacang, PappaRich outlets can be found all over Malaysia as well as in countries like Australia, Brunei, China, Hong Kong and the United States.

Country of Origin:  Malaysia

Franchise Fee:  N/A

Initial Capital Investment:  RM1.5million (Outlet in Malaysia) / USD1 million (Outlet outside Malaysia)

Royalty:  5% Monthly for 5 years

For more info about franchising PappaRich,  click here .

7-Eleven Franchise

7-Eleven is a 24-hour Japanese convenience store franchise that has gained popularity throughout the world. With a few hundred outlets in Malaysia, it's one of the most recognisable convenience stores nationwide!

Country of Origin:  Japan

Initial Capital Investment:  from RM250,000

Royalty: N/A

For more info about franchising 7-Eleven in Malaysia, click here .

FamilyMart Franchise

FamilyMart is one of the most popular convenience store chains in Japan, best known for its in-house Japanese food. In 2018, FamilyMart opened its first outlet in Malaysia.

FamilyMart is wholly operated by QL Resources Sdn Bhd in Malaysia. At the moment, there is no information about its availability for public franchising under the company.

Tealive Franchise

Tealive is Malaysia's biggest homegrown bubble tea brand. Since its inception in 2017, Tealive has grown over 200 outlets across Malaysia, Vietnam and Australia.

For more info about franchising Tealive, click here .

Liang Sandwich Bar Franchise

The Taiwanese franchise Liang Sandwich Bar opened its first outlet in Johor in 2017. Since then, it has grown quickly, opening outlets across both West and East Malaysia thanks mainly to the popularity of their brand ambassador Jay Zhou.

Country of Origin:  Taiwan

Franchise Fee:  N/A

Initial Capital: N/A

Advertising Fee: N/A

Royalty Fee: N/A

For more info about franchising Liang's Sandwich bar, contact 0127228230 (Jarvin Leow) or email [email protected].

Gongcha Franchise

Started in Gaohsiong, Taiwan in 2006, Gong Cha has become one of the most recognised bubble tea chains across Taiwan, Malaysia, most of Southeast Asia and around the world. With more than 1,500 stores worldwide and growing, Gong Cha is arguably one of most loved Taiwanese bubble tea brands in the world.

Initial Capital:  from RM300,000

For more info about franchising Gong Cha, click here .

Sharetea Franchise

Established in 1992, Sharetea is one of the oldest Taiwanese bubble tea brands in the world. With over 500 outlets in 18 countries, with most of their stores in North America, Sharetea has found loyal fans who have loved their drinks for decades.

Initial Capital:  US$ 260,500.00 - US$ 436,400.00

Advertising Fee:  N/A

For more info about franchising Sharetea, check out Sharetea's Franchise info page .

McDonald's Franchise

McDonald's is the most popular fast food franchise in Malaysia. Its golden arches are one of the most recognisable logos no matter where you go. With fans from primary schoolers all the way up to grandparents, McDonald's is a brand that continues to thrive decades after its inception.

Country of Origin:  U.S.A

Franchise Fee:  US$45,000

Initial Capital:  RM1,500,000 – 3,500,000

Advertising Fee:  5%

Royalty Fee:  5%

For more info about franchising McDonald’s, e-mail to [email protected] (attention: Premita Dhaliwal)

Starbucks Franchise

Starbucks is one of the fastest growing cafe chains in the world. Best known for their unique touch to coffee and their casual and elegant ambiances, Starbucks has over 140 outlets in Malaysia.

Starbucks Coffee chain is wholly owned by Berjaya Group and is not open for franchising.

Hot & Roll

Hot and Roll is a Malaysian franchise that serves hot wraps with a variety of fillings such as Chicken & Cheese, Chicken Floss, BBQ Chicken and Apple Cinnamon. Hot and Roll outlets are available throughout Malaysia, Singapore and the UAE.

Franchising Hot and Roll appears unavailable on its official site at the moment.

Marrybrown is a Malaysian fast food chain that serves fast food staples like burgers, french fries and soft drinks. Since its inception more than 36 years ago, there are now over 400 Marrybrown outlets in 15 countries worldwide including Malaysia,  Indonesia, China, Sri Lanka, Tanzania, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia.

Franchise Fee:  RM120,000 per unit

Initial Capital Investment:  RM800,000 - 1,000,000

Royalty:  4% of gross profit

Advertising:  3% of gross sales

For more info about franchising Marrybrown, click  here .

Big Apple Donuts

Big Apple is a Malaysian franchise that offers donuts with 24 different types of toppings. Big Apple outlets are all around Malaysia and Cambodia.

Franchise Fee:  USD300,000

Initial Capital Investment:  USD1.5 - 3.0 million

Royalty:  5% of monthly gross revenue

For more info about franchising Big Apple Donuts, send an email to [email protected].

OldTown White Coffee

Franchise Fee:  RM80,000

Initial Capital Investment:  RM700,00 - RM1,000,000

Royalty:  5%

Advertising Fee:  3%

For more info about franchising OldTown White Coffee, click  here .

ChaTime is a popular Taiwanese bubble tea chain made popular by entrepreneur Bryan Loo but now has been handed over to Will's Group.

Initial Capital Investment:  N/A

Royalty:  N/A

For more info about franchising Chatime, click here .

The Chicken Rice Shop

The Chicken Rice Shop serves Hainanese chicken rice made with their own recipe as well as other Malaysian cuisines. The Chicken Rice Shop has outlets in Malaysia, Australia, Singapore, Indonesia and other ASEAN countries. With more than 80 outlets worldwide, The Chicken Rice Shop is the largest chicken rice restaurant chain in the world.

For more info about franchising The Chicken Rice Shop, click  here .

Nelson's serves popular snacks such as corn in a cup and waffles. Since 1985, Nelson's now has over 1,000 outlets in 17 countries including China, the Middle East, Brunei and more.

Franchise Fee:  RM5,000 - 12,000 (for 5 years)

Initial Capital Investment:  RM15,000 - 60,000

Royalty:  No royalty

For more info about franchising Nelson's, click  here .

CrazyPotato

Crazy Potato serves UK-style french fries with toppings such as Wasabi Mayo, Sour Creamio, Pickle Mayo and more.

Crazy Potato UK official website is no longer available, with only the Malaysian Facebook page active .

Manhattan Fish Market

The Manhattan Fish Market serves American-style seafood dishes inspired by the Futton Fish Market in Brooklyn.

Franchise Fee:  USD20,000 - 30,000

Initial Capital Investment:  USD280,000 - 490,000

Royalty:  N/A

For more info about franchising The Manhattan Fish Market, click  here .

Ayam Penyet AP

Ayam Penyet AP's signature dish is the Ayam Penyet which is an Indonesian cuisine originated from Surabaya. Ayam Penyet AP has over 30 outlets in Malaysia and one outlet each in Brunei and Myanmar.

Franchise Fee:  RM100,000

Initial Capital Investment:  RM577,000 - 752,000

For more info about franchising Ayam Penyet AP, click  here .

Kyros Kebab

Kyros Kebab serves kebabs (wraps) with fillings like chicken, beef, lamb, jumbo chicken sausage and more. There are over 30 Kyros Kebab outlets in Malaysia.

Franchise Fee:  RM50,000

Initial Capital Investment:  RM120,000 - 285,000

Royalty:  5% of monthly gross

For more info about franchising Kyros Kebab, click  here .

Rotiboy serves fresh buns and loafs but its signature is the Rotiboy bun, a bun with butter filling and coffee flavoured topping. From its first branch in Bukit Mertajam, Penang (Malaysia) in 1998, Rotiboy has now grown to Dubai, Indonesia, Saudi, Singapore and Thailand.

Information about franchising Rotiboy is no longer available on their official website.

SCR (Singapore Chicken Rice)

SCR serves chicken rice along with other Malaysian cuisines. SCR has over 20 outlets all over Malaysia and two outlets in Brunei.

Franchise Fee:  RM70,000 - 90,000

Initial Capital Investment:  RM450,000 - 700,000

Royalty:  4% of Gross Turnover

For more info about franchising SCR, click  here .

Daily Fresh

DailyFresh sells snacks and desserts like cup corn, waffles, gelato using kiosks. Starting with its first kiosk in Johor, Malaysia, there are now over 800 DailyFresh kiosks in 15 countries including Malaysia, China, Indonesia and Dubai.

Franchise Fee:  RM25,000

Initial Capital Investment:  RM85,000 - 120,000

Royalty:  2% Royalty + 3% Advertising Fee from Gross Sales

For more info about franchising DailyFresh, click  here .

Burger Bakar Abang Burn

Burger Bakar Abang Burn serves Malaysian-style burnt burgers. Burger Bakar Abang Burn has over 20 outlets all over Malaysia.

Franchise Fee:  RM15,000

Initial Capital Investment:  RM85,000

Royalty:  5% from monthly gross

For more info about franchising Buger Bakar Abang Burn, click  here .

Assam House

Assam House serves Ipoh-style Chinese cuisine using its own unique cooking style. Assam House has outlets all over West Malaysia.

Information about franchising Assam House is no longer available on their official website.

Winner's Fried Chicken

Winner's Fried Chicken is a local franchise chain serving fried chicken since 1987. It also exports its seasoned flour overseas to countries like Canada, Taiwan, Singapore, and Bangladesh.

License Fee:  RM1000

Initial Capital Requirement:  Below RM5000

Royalty:  None

Advertising Fee:  None

For more info, please check out investment opportunities with  Winner's Fried Chicken here.  Or check out its  website

Pizza Express

Pizza Express is a pizza chain serving mainly pizzas made with hand-stretched dough and hand-breaded chicken wings alongside sides, desserts and salads.

Franchise Fee:  RM60,000

Initial Capital Requirement:  RM500,000 - 750,000

Advertising Fee:  2%

Marketing Fee:  3%

For more info, please visit  Pizza Express' franchising page . 

Education & Training Franchises

Another popular business category is education and training.

Math Monkey Franchise

Math Monkey is a Malaysian franchise chain which aims to excite young children to learn Math in a fun and exciting using their own proprietary method.

Initial Capital Investment:  N/A

For more info about franchising Math Monkey, click here .

Eye Level Franchise

Eye Level is an education chain that specialises in personalised coaching in Math and English. It was established in the US in 1976 and has grown to 18 countries worldwide.

Franchise Fee:  RM13,000

Royalty:  Varies depending on business model

For more info about franchising Eye Level, click here .

Q-dees offers "early childhood education by developing holistic, fun-filled programs that are highly effective in stimulating a healthy sense of curiosity, a passion for learning and instilling moral values."

Initial Capital Investment:  RM100,000

Royalty:  5%

For more info about franchising Q-dees, click  here .

Global Art & Creative

Global Art & Creative offers programs to nurture and develop the creativity of young children. Global Art & Creative now has 550 centers in 13 countries including the US, Myanmar, Hong Kong, Cambodia and Indonesia.

Franchise Fee:  RM20,000

Initial Capital Investment:  RM50,000 - 100,000

Royalty:  15%

For more info about franchising Global Art & Creative, click  here .

Smart Reader Kids

Smart Reader Kids offers early childhood education programs. Smart Reader Kids has 300 franchisees across Malaysia and 100 globally.

Franchise Fee:  RM40,000 - 50,000

For more info about franchising Smart Reader Kids, click  here .

Retail Franchises

Watson's franchise.

Watson's is one of the most popular pharmacy chains in Malaysia as well as the Southeast Asia region.

Unfortunately, Watson's does not operate with the franchising model and is wholly operated by the company itself.

Guardian Franchise

Next to Watson's, Guardian is another one of Malaysia's most loved pharmacy chains. 

Unfortunately, Guardian does not operate with the franchising model and is wholly operated by the company itself.

Love, Bonito Franchise

Love, Bonito began as a e-commerce store selling fashionable clothes for the young, modern woman in Singapore. It has since expanded throughout Southeast Asia and opened up boutique physical outlets to cater.

Country of Origin:  Singapore

Franchise Fee: N/A

For more info about franchising Love, Bonito, click  here .

Vincci Franchise

Vincci is a Malaysian ladies' footwear brand. Since its inception in 1981, Vincci now has over 100 outlets across South East Asia, the Middle East and North Africa.

Franchise Fee:  RM38,000

Initial Capital Investment:  RM400,000

Royalty:  4%

For more info about franchising Vincci, click  here .

Poney is a Malaysian kid's wear brand. Poney outlets are present in all states of Malaysia as well as in countries like China, Singapore, Indonesia, UAE, Iran and Vietnam.

For more info about franchising Poney, click  here .

Paidini is a Malaysian brand that sells men's and women's fashionwear and accessories. Padini has outlets all over Asia and the Middle East.

For more info about franchising Padini, click  here .

Ms. Read is a Malaysian brand that sells plus sized clothing for women. Ms. Read outlets are available in Malaysia and Singapore.

Initial Capital Investment:  RM250,000

Royalty:  7%

For more info about franchising Ms. Read, click  here .

SenHeng sells electronics and gadgets. It has over 100 branches throughout Malaysia.

Information about franchising SenHeng is no longer available on their official website.

Focus Point

Focus Point is an optical chain store that started in Johor, Malaysia in 1989. Since then, it has opened over 190 outlets in Malaysia.

Initial Capital Investment:  RM400,000 - 500,000

Royalty:  5% of Gross Monthly Sales

For more info about franchising Focus Point, click  here .

Bonia is a luxury fashion retailer specializing in leather goods. It has over 700 sales outlets and 70 boutiques across Asia.

Initial Capital Investment: N/A

Cleaning Franchises

AquaNano is a Malaysian coin-operated laundry chain. There are over 30 AquaNano laundries all over Malaysia.

Initial Capital Investment:  RM76,000 - 125,000

Royalty:  No royalty

For more info about franchising AquaNano, click  here .

LaundryBar is a coin-operated laundry chain in Malaysia. LaundryBar is the first in Malaysia to use hospital food grade detergents, softeners and sanitizers in their washers.

Initial Capital Investment:  RM167,000 - 281,000

For more info about franchising LaundryBar, click  here  (website) /  here (Facebook page) or contact +6012 7411 328

Mr. Clean is a full-fledged laundry service provider offering professional dry cleaning to special fabrics cleaning treatments.

Initial Capital Investment:  RM130,000 - 300,000

Advertising fee:  3% of monthly gross

For more info about franchising Mr. Clean, click  here .

Health & Beauty

Clara international.

Clara International is a Malaysian beauty salon and academy chain. There are over 50 Clara International beauty centers in Malaysia, China, India, Brunei and more.

Initial Capital Investment:  RM138,000 - 200,000

Royalty:  1% of monthly gross

Advertising Fee:  3% of monthly gross

Service Fee:  1% of monthly gross

For more info about franchising Clara International, click  here .

Fitness Franchises

Anytime fitness franchise.

Anytime Fitness started in the US in 2002 and has since grown their gym outlets all over the world. Anytime Fitness' 24-hour gyms are one of the most popular gyms across West Malaysia.

Country of Origin:  United States

Initial Capital Investment: from US$100,000

For more info about franchising Anytime Fitness, click  here .

Bonus: Franchising Resources

Learn more about the franchises in Malaysia by clicking on the links below:

Malaysia Franchise Association  - All franchise businesses in Malaysia must be registered with the Malaysian Franchise Association (MFA)

Malaysian Business Magazine Online (Franchise section) - More details on the cost and requirements of buying franchises in Malaysia

iFranchise Malaysia - A franchise directory for franchises available in Malaysia

Buying a franchise is a convenient alternative to setting up a business from scratch. All you need to do is follow the roadmap and guidelines your franchisor provides you.

The biggest drawback in buying a franchise is that franchises can be very expensive. This may put a financial strain on those who do not have a lot of capital.

Having said that, it is possible to gain a positive and sustainable return if you manage to buy a popular enough franchise and manage it well.

You can consider buying a Malaysian franchise because it is more affordable compared to franchises from the U.S.

15 Popular American Franchises in Malaysia and How Much They Cost

25 Popular Singaporean Franchises and How Much They Cost

30 Popular Philippines Franchises and How Much They Cost

Know a popular franchise from Malaysia that's not included her? Suggest them in the comments below.

Join other smart people who like to read about business

Subscribe and get my weekly newsletter packed with the latest insights about business in Malaysia so you can make smart decisions for yourself.

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96 Responses

Would you share with me list of Franchise Children Cloth that have in Malaysia either than Poney?

As I am aware, Poney and Padini Kids are the only two kid clothing franchises in Malaysia. The other brands you should be able to get supplies of clothes from but they are not for sale as ‘franchises’. For Padini kids, you can use the same contact form as Padini.

– Lu Wee

why Padini company dont want to set up business in Brunei? it will dream come true for bruneian people

Sorry, don’t really know as I’m not from Padini. Maybe one day!

How much for cost of investment The Chicken Rice Shop?

The information is not publicly available. Go to the link I have provided and send an inquiry to find out.

are there any local coffee franchise (kiosk/cafe)? We are looking to invest into a good coffee business.

There are a few good local coffee businesses scattered around Malaysia. But most of them have not registered themselves for franchising.

Hi Mr Lu, beside the 3 educational franchise, is they any others education that can share?

I also interest in online affiliate referrer for local education & Singapore syllabus education , do you have any information?

Do you mean you want to become an affiliate for the educational institutions? Or you are looking for the affiliate in Malaysia?

Hi Mr Lu, Is there any franchise for a technology based business such as mobile application or software companies in Malaysia? and any idea whats the franchise cost?

Hi Patrick,

I don’t think so. Normally mobile app and software companies do not use the franchise model to grow their business. They are funded either by their own profits or by capital injections from Venture Capitalists.

Hope that helps.

May I know how about Kim Gary Restaurant, thank you

Hi there, could you share me how much does it cost to open a Texas Chicken Restaurant franchise in Malaysia? I can’t find one on the internet.

Hi Mr Lu, how do I franchise cotton on , as I can’t find in internet

Hi Lye Aun,

This list only includes Made in Malaysia franchises. Cotton On is an Australian brand that I don’t think is using the franchise model to grow. Instead, they might be expanding their brand through JVs. If you are really keen, try to email the HQ and ask if there are opportunities for JV.

Hope that helps you.

HI Mr Lu, may i know what are the top 3 best pub to franchise? such as movida.

Hi, this article is about franchises from Malaysia. As I am aware Movida and other pub franchises are not from Malaysia. I will try to cover those franchises in a different post. Apologies on not having the info for you.

Thanks for this article! Hope you can include next time smaller scale (licensing) businesses such as Winner’s Fried Chicken – the hawker fried chicken stall concept 🙂

It’s a good opportunity for those with very low capital startup 🙂

Sure, I think it is important for us to consider low-cost opportunities for aspiring franchisees. Are you related to Winner’s Fried Chicken? If you have information for the franchise do let me know!

Yes, indeed. May I have the email for me to send you the info? 🙂

Please send me the info through my contact form here: https://entrepreneurcampfire.com/contact-us/

Thank you very much.

Hi, Mr Lu , can you help to find out franchise for Cinnabon stall .. the one like this shopping mall , a small store . Thank you very much .

Sure, I will prepare an article feature popular international franchises Malaysians might be interested in in the near future. Do stay tuned. This particular article is about local franchises.

we have a similar interest open a cinnamon stall. Please contact me shah

Hi lu wee, I like to have more detail about VINCCI AND PADINI franchise PLEASE

Hi Ahmad Khalish,

Have you tried to contact them through the forms?

Can you pleas find the detail for MacDonald franchise

Sure, I’ll include it in another list for international franchises.

How about San Francisco Coffee

We will update once we have the info.

Hi, Tang. I would like to know which any franchises is willing to license its operation and way to apply to it.

Have you checked out the Winner’s Fried Chicken on the ‘Featured Business Opportunities’ section? You can license that for less than RM5,000!

Do u know any agent that can guide me to purchase one of these franchises? Thanks

Each franchise is handled by different people. You need to contact the one you want directly. Some franchises are handled by agents, but some are not. It depends on which one you want. But you need to contact them directly. The contact info is on this page itself or on their website.

Can you help me on familymart shop?

Sorry currently I don’t have the info, but will update this list once I do!

Manage to get the details for family Mart ?

Family Mart is not currently available for franchising in Malaysia.

Do you have info for getting franchise for the fish bowl

Nope, sorry. I’ll add it to the list next time if I find it.

Do you have any retail business franchise? like mini mart or convenient shop franchise detail?

Actually there are quite a number of them but I have not yet added them in this article. I will update this article to include them. Do check back again!

Is it easy to start franchise for Foreigner in Malaysia? I’m from Bangladesh and interested to do business in Malaysia specially any suitable franchise. Your advice would be highly appreciated. Thanks

Thanks for dropping by. I’d say it’s always going to be a little tougher for people of foreigners to set up any kind of company in Malaysia. The first requirement is that you will need to have a Malaysian director be a majority stakeholder (>=51%) if you want to go the route of setting up a totally local company. Other than that you may need to have a paid-up capital of RM100k or more depending on the company type and industry you are in.

Of course, there are other options that may involve creating JV with a local company etc, but these will need to be discussed with a professional which I am not qualified to do.

Hopefully, this helps!

Hi, pls list the latest info for year 2018. Thanks

Hey Vickernesh,

Sure, we are working on it! Stay tuned.

Hello admin, how do I get to become a tyre retail franchisee? I do really hope that you can help me. Thanking you in advance.

Sorry, I don’t really understand what you mean. Tyre retail is the name?

Hello.. Do you have any info or do you know the estimated cost for watson or guardian franchise?

From what I understand, Watson’s and Guardian are a chain of stores, but not open for franchising. I could be wrong, though. I’ll check and update this list when I find more info!

Hi, Do you have any info for FAMILYMART or KK SUPER MART franchise?

Hi, already updated with Family Mart info, but don’t have info yet for KK Super mart. Will update once I do!

May I know is there any information regarding the franchise for Egg Drop?

Hey SL, will be updating this list soon so will see if I can find info on Egg Drop for you!

Any information regarding franchise for Egg Drop?

Not yet. Will look it up for you and update. Thanks!

May i now information about the franchise for Starbuck kiosk?

Starbucks is privately owned and not using the franchise model to expand. I’ll include this information in this article for other readers’ reference.

Hey Wee Tang,

Thanks for the informative article. Would you happen to have any info regarding CleanPro or Dobi Queen?

You’re welcome! Sorry, don’t have any info on them yet.

do you have any info on aunty annies?

Not at the moment but will update!

Hi can u give info for family mart?

The info is in the article already.

Hi Lu Wee Thanks for your informative and useful articles. 1. What percentage of franchises in Malaysia are owned by individuals and what percentage are owned by corporations? 2. What is the average % of net profit or loss for above two franchisee groups? 3. With RM2 million and choice of only 2 investments (franchise or bank saving certificate with 6% annual return), which one do you choose? Thank you very much JB

Those are very good questions, but for Q1 and Q2, I don’t have a direct answer for right now. Might need to gather the information and add them in for you. Apologies for the inconvenience.

For Q3, personally, I would invest it in a franchise. But that’s given that RM2m isn’t all I have 🙂 If RM2m is all you have, you need to diversify your capital into different risk segments.

I am more interested in the downstream of petroleum/retail sector

I will look for some in the future and add them here if I find any 🙂

Hi Ms Lu, May I know the price to open up a black whale bubble tea shop, and also Xin fu tang? Thanks!

Hi Bernard,

Will try to find more info and update to the list.

Hi Lu Wee, this is a really good and informative article you did here. Really appreciate your effort in this. It helps young business rookie people like me. I was looking over up and down in internet for franchise of Family Mart but not able to find any. They mentioned in news article that they’re open to public franchise once they’re stable which I assume it is time now as they have open up quite a number of stores in KL already. Could you share me with if you find any contact info to Family Mary of QL (their company)? Thanks.

Hmm, do you have a link to that news? Is it in recent months? The last I checked (around 6 months ago), they were still private. It means that even though there are many stores in KL, they may be all operated by QL right now. I’m pretty sure if they opened up their franchising opportunity, we’ll be able to quickly find information on it. I’ll definitely keep this page updated when there is any new info on it!

Hi Ms Lu Wee, this article is very informative. I have been doing researched regarding few matters but still i could not find information about it. May you could help me on this. I would like to seek your advise regarding few questions:

1. How much roughly capital basically require by foreigner to open a business in Malaysia? 2. What kind of visa does a foreigner has/obtain if they open a business in Malaysia? 3. Example, if a foreigner wants to open a business in Malaysia, does he/she needs to have any local involve in the business? Is there any link you can help to provide me that can give me information about these questions.

I appreciate your replies and kindly looking forward for this.

Thank you so much!

Hi Ms Sha. Sure, I’ll try my best to help.

1. Hm, this is a pretty open ended question. This really depends on what type of business you are thinking of starting. Any ideas for now? 2. I’m not sure about this, sorry. 3. As I understand, you will need to have a Malaysian partner with 51% share holding in a private limited company. Unfortunately, I can’t think of any links on top of my mind. This is something a Nigerian friend shared with me some time ago.

Hope this helps!

Any good koreAn fried chicken franchise?

I’ll keep a watch on this!

Hi Ms. Lu , i would like to get franchise info for 99 supermart, family mart & kk supermart , they open for franchises ?

Hi Thian, those are chains not available for franchise, unfortunately.

I have a 2 storey shop for now I rent and I plan to open a tuition center on the 1st floor and Bookstore at the ground floor.

I need advice from you

How about the uncle don and brewhouse ?

How about the uncle don and brewhouse cafe bar franchise??

Will look into it.

IM LOOKING FOR FRANCHISE BUSINESS INFOR FOR MANJAKU. ARE THEY OPEN FOR FRANCHISE?

how i want contact?

I would like to know more about Pharmacy franchise in Malaysia. Kindly share.

Hi, I’m looking for pet shop franchise, kindly share the lists, thank you

Anyone have the franchising fee and setup cost for Zus Coffee? Thanks.

Hi Good Day!

We are from Container Kebab Malaysia. We are a Food and Beverages company of a kebab chain in Malaysia.

We would like to enquire if we can get featured in your website. Our company’s profile and the information of our company can be viewed in our website at http://www.containerkebab.com.my

You are also welcomed to call us anytime at 016-801 5560. We hope to hear a good news from you soon. Thank you so much.

Cheers, Ainum Sari Othman Admin Executive Container Kebab Malaysia.

hi, im looking for convenience store like 7E…any information for this, but not 7E

Anyone have the franchising fee and setup cost for mamma bunz? Thanks.

HI I WOULD LIKE TO KNOW KOREAN FRANCHISE CHOICES.

Hi. I would like to know about Padini franchise. thank you.

Hi. I would like to know about Padini franchise & Roti boy franchise. thank you.

Hi I would like to know about Roti boy franchise

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How Much Does It Cost to Open a Mini-Mart: Unveiling the Capital Expenditures

By henry sheykin, resources on mini-mart.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Startup Costs

Introduction

The convenience store industry in the US has been growing steadily in recent years, with a revenue of over $700 billion in 2021. This growth is expected to continue as people look for quick and easy solutions to their daily needs.

Have you ever considered starting a mini-mart business? A mini-mart, also known as a convenience store, can be a profitable venture if done correctly. However, before launching your business, it's crucial to understand the startup expenses that come with it.

In this blog post, we will take a closer look at some of the one-time costs you'll need to consider when opening a mini-mart. These costs include everything from rental fees to initial inventory and licensing fees. By the end of this post, you will have a better idea of how much it costs to start a mini-mart, enabling you to make informed decisions when launching your business.

So, without further ado, let's dive into the costs associated with opening a mini-mart business in the US.

• Rent or purchase of commercial property
• Initial stock inventory
• Store fixtures and equipment
• Point of sale software and hardware
• Advertising and marketing expenses
• Legal and licensing fees
• Security systems and cameras
• Employee training and uniforms
• Initial utility deposits and setup fees

Startup Costs:

Starting a mini-mart or convenience store business involves various expenses, including rent or purchase of commercial property, initial stock inventory, store fixtures and equipment, point of sale software and hardware, advertising and marketing expenses, legal and licensing fees, security systems and cameras, employee training and uniforms, and initial utility deposits and setup fees. For example, rent or purchase of commercial property can range from $1,500 to $10,000 per month or $20,000 to $250,000, depending on the location and size of the property. Similarly, initial stock inventory can cost between $10,000 and $50,000, while store fixtures and equipment may cost between $5,000 and $20,000.

Legal and licensing fees can range from $1,000 to $10,000, depending on the type of permits and licenses required by the local authorities. Similarly, security systems and cameras may cost between $2,000 and $5,000 to ensure the safety and security of the store and its customers. Employee training and uniforms may cost between $500 and $2,000, while initial utility deposits and setup fees may cost around $500 to $1,000.

While the startup costs for opening a mini-mart or convenience store can vary significantly depending on the location, size, and specific requirements of the business, it is essential to plan and budget for these expenses carefully. By doing so, entrepreneurs can ensure that they have the necessary resources and financial support to launch and grow a successful mini-mart business.

1. Rent or purchase of commercial property

When starting a mini-mart business, one of the most significant costs you will incur is the rent or purchase of commercial property.

The cost of renting or buying a commercial property can vary widely depending on several factors such as location, size, and market demand. According to recent statistics, the average cost of renting commercial space in the United States is around $40 per square foot annually. This means that a 1,000 square foot commercial space could cost you around $40,000 per year.

If you decide to purchase a commercial property, keep in mind that the upfront cost will be higher, but you may be able to save money in the long-term as you will not have to worry about rent increases or losing your lease. The median cost of commercial property in the United States is currently around $200 per square foot, meaning that a 1,000 square foot property could cost around $200,000.

It's also essential to mention that while commercial property costs can be high, there are ways to reduce your expenses. For example, you could consider sharing a commercial space with another business or renting a space in a less crowded area. Additionally, negotiating favorable lease terms such as rent reductions or lower security deposits could help you save money.

• Key takeaway: The cost of renting or purchasing a commercial property is a significant expense when opening a mini-mart store, averaging around $40 per square foot annually for renting and $200 per square foot for purchasing in the United States.
• Example: A mini-mart owner in Miami, Florida, wants to rent a 1,500 square foot commercial space in a high-traffic area. The expected cost of rent per year would be $60,000.
• Example: A mini-mart owner in San Francisco, California, decides to purchase a 1,200 square foot commercial property in a prime location. The cost to buy the property would be $240,000.

2. Initial stock inventory

When it comes to opening a mini-mart, one of the most crucial factors to consider is the initial stock inventory. This is the amount of money needed to invest in the products that will be sold in the store. According to recent statistical information, the average cost of the initial stock inventory for a convenience store can range anywhere from $10,000 to $50,000 , depending on the size and location of the store.

It's important to keep in mind that the initial stock inventory should include a variety of products to attract customers and generate revenue. Some of the most in-demand products include snacks, soft drinks, cigarettes, lottery tickets, and basic household supplies. Other products, such as fresh food, bakery items, and freshly brewed coffee, can also prove to be popular and profitable.

To determine the required amount for the initial stock inventory, it's important to consider the store's target market and the competition in the area. Conducting market research and analysis can help in identifying the products that are in demand and may help in predicting sales.

In addition to purchasing merchandise, the initial stock inventory also includes equipment and supplies needed for store operations. This can include shelves, coolers, cash registers, and other essential items. The costs of these items can vary significantly, with equipment costs ranging from $2,000 to $10,000 based on the store's size and needs.

• Example 1: A small mini-mart located in a relatively low-traffic area might require an initial inventory investment of around $15,000 , including shelves, a cash register, and basic products such as snacks, soft drinks, and cigarettes.
• Example 2: A larger convenience store located in a high-traffic area might require an initial investment of around $40,000 to $50,000 . This investment would include a wider range of products, equipment, and supplies, including fresh food, coffee, and lottery tickets.

Overall, the initial stock inventory is a significant investment for opening a mini-mart. It's important to carefully budget and plan for the inventory to ensure that the store will have the necessary products to attract customers and generate income.

3. Store fixtures and equipment

When opening a mini-mart, store fixtures and equipment are among the essential expenses. Latest statistical information shows that the average cost of fixtures and equipment for a convenience store in the US ranges from $50,000 to $100,000.

Refrigeration equipment is one of the most significant expenses, with an average cost of $10,000 to $20,000. This equipment includes walk-in coolers and freezers, display cases for beverages, and reach-in coolers for perishables. With a high demand for cold beverages and snacks, a mini-mart cannot afford to overlook the importance of investing in quality refrigeration equipment.

Shelving and racking systems are also critical for a mini-mart's success, accounting for an average expense of $20,000 to $40,000. A mini-mart should have proper shelving systems to accommodate different products, such as snacks, candy, and quick meals that clients need on the go.

Point of Sale (POS) system is a computerized system used for sales transactions and inventory management. POS systems cost an average of $2,000 to $20,000, depending on their features and complexity. An advanced POS system will help a mini-mart keep track of sales, inventory, accounting, and employee management.

Furniture and fixtures for seating, display, and decor can cost $5,000 to $20,000, depending on the mini-mart's size and target audience. These expenses include chairs, tables, couches, store displays, and signage for product promotion.

• For example, a mini-mart located in a busy urban area with a large student population can opt for funky and trendy furniture and decor to attract this audience. This will not only make the mini-mart more appealing but also increase customer satisfaction and repeat business.
• On the other hand, a mini-mart targeting families may decide to have spacious seating and play areas for children, which may require higher expenses to provide specialized equipment such as playpens and gaming consoles.

Overall, the costs of store fixtures and equipment can vary depending on the mini-mart's size, location, and target audience. Therefore, it is essential to research and consider these expenses while developing a business plan to ensure that the mini-mart has all the necessary equipment to operate successfully.

4. Point of sale software and hardware

Point of sale (POS) software and hardware are essential for operating a successful mini-mart business. The cost of POS software and hardware can vary depending on several factors, including the size of the business and the type of equipment needed.

According to recent statistical information, the average cost of a basic POS system for a small convenience store ranges from $1,500 to $2,500 USD, while a more advanced system can cost upwards of $5,000 USD. The cost of hardware, such as a barcode scanner, cash register, and credit card machine, can add an additional $1,000 to $2,000 USD to the total cost.

It is important to note that the cost of POS software and hardware can be affected by various factors, such as customization, installation, and maintenance. Additional features, such as inventory management, customer relationship management, and analytics, can also increase the cost of the system.

When choosing a POS system, it is important to consider the specific needs of the business and determine what features are necessary for the daily operations. For example, a mini-mart that offers gas may require a POS system with pump monitoring capabilities.

There are several options available for purchasing POS software and hardware, including cloud-based systems and on-premise systems. Cloud-based systems typically have lower upfront costs but require a monthly subscription fee. On-premise systems, on the other hand, require a larger upfront investment but may have a lower overall cost in the long run.

• Examples of popular POS software include Square, QuickBooks POS, and Lightspeed Retail.
• Examples of popular POS hardware include barcode scanners from Zebra Technologies and Honeywell, cash registers from Sharp and Casio, and credit card machines from Verifone and Ingenico.

5. Advertising and marketing expenses

One of the key components of any successful business is effective advertising and marketing. While the specific amount a mini-mart owner should allocate to these expenses will depend on various factors, it is generally recommended to set aside between $5,000 to $10,000 for advertising and marketing expenses during the first year of operation.

The bulk of this budget will likely be spent on print and digital advertising (e.g., placement in local newspapers, flyers, social media advertising). According to recent surveys, the average cost of print advertising ranges from $500 to $2,000 per month , while digital marketing costs between $2,500 to $15,000 per month , depending on the specific strategies and platforms used.

In addition to traditional advertising, mini-marts can also benefit from sponsoring local community events (e.g., sports teams, charity events), participating in local fairs and festivals, and hosting in-store events or promotions. These events can help generate buzz around the store and attract new customers. The costs of these efforts can range anywhere from $500 to $5,000 per event.

Another important aspect of marketing for mini-marts is developing a strong online presence. This includes creating a website, establishing social media accounts, and optimizing the store's Google My Business listing. While creating a basic website can be done for relatively low cost ( $500 to $1,000 ), ongoing efforts to optimize SEO and social media engagement may require additional expenses.

Overall, it's important to remember that advertising and marketing expenses are an investment in the long-term success of the mini-mart. By effectively promoting the store's offerings, creating a strong brand image, and fostering positive relationships with the local community, the mini-mart can attract and retain a loyal customer base.

• Recommended advertising and marketing expenses during the first year: $5,000 to $10,000
• Average cost of print advertising: $500 to $2,000 per month
• Average cost of digital marketing: $2,500 to $15,000 per month
• Cost of sponsoring local events: $500 to $5,000 per event
• Cost of creating a basic website: $500 to $1,000

6. Legal and licensing fees

Starting a mini-mart requires a significant amount of legal and licensing work. Therefore, it is important to consider these costs from the outset. In the US, the cost of legal and licensing fees can vary widely depending on the state and city where the business is based.

The average cost of obtaining a business license to open a mini-mart is around $50 to $500. However, the cost can go higher in some states, such as California, where the annual fee for a retail establishment license can be up to $1,000.

Additionally, it is essential to register for an Employer Identification Number (EIN) with the Internal Revenue Service, which is free of charge. Other legal expenses include getting a resale permit - a document that allows a business to purchase goods from a wholesaler or manufacturer without paying sales tax. The cost of a resale permit varies, but it is often less than $100.

In addition to these expenses, creating a formal structure for the business, such as a limited liability company (LLC), can protect the business owner from personal liability and provide tax benefits. The cost of registering an LLC can range from $50 to over $500, depending on the state and required legal fees.

Overall, the total cost of legal and licensing fees for a mini-mart can range from $100 to $2,000, depending on the state regulations and legal requirements.

It is imperative to note that failing to obtain the necessary licenses or permits can result in significant financial penalties. Moreover, operating a business without the proper legal documentation can lead to legal problems and potential closure of the business.

• Obtaining a business license: $50 - $1,000
• Employer Identification Number (EIN) registration: Free
• Resale permit: less than $100
• LLC registration: $50 - $500
• Total legal and licensing fees: $100 - $2,000

Therefore, it is essential to research the legal and licensing requirements in the state and city where you plan to open a mini-mart and budget accordingly to avoid any legal troubles or financial penalties.

7. Security systems and cameras

Theft and vandalism can pose serious threats to mini-marts. Installing security systems and cameras is a crucial step to prevent such incidents from happening. The cost of security systems varies based on the size of the store, the number of cameras, and the level of security desired. Basic security systems can cost around $500, while more advanced systems can cost up to $5,000, depending on the features.

In addition to security systems, security cameras can help deter crime and provide valuable evidence if incidents occur. The cost of security cameras ranges from $100 to $2,000 per camera, depending on the quality and features of the camera. A good security camera should have a wide-angle lens, high resolution, and night vision capabilities to provide clear images in low-light conditions.

Wireless security cameras are becoming increasingly popular due to their flexibility and ease of installation. The cost of wireless cameras ranges from $50 to $500 per camera, depending on the features. Wireless cameras are easy to install because they do not require any wires or cables. They can be placed anywhere in the store and can be accessed remotely through a mobile app or web interface.

It is important to note that investing in a security system and cameras is not only about preventing crime but also about creating a safe environment for customers and employees. By providing a safe and secure shopping experience, mini-marts can increase customer loyalty and trust.

To ensure the proper functioning of security systems and cameras, regular maintenance and upkeep are crucial. The cost of maintenance can range from $100 to $1,000, depending on the level of maintenance required and the number of cameras and devices in the system. Regular maintenance can include upgrading software and firmware, cleaning cameras, and fixing any issues that arise.

• Example 1: A small mini-mart with basic security needs may only require a basic security system with one or two cameras. The cost of such a system can be around $700-$800.
• Example 2: A larger mini-mart with advanced security needs may require a more complex security system with multiple cameras, alarms, and sensors. The cost of such a system can be around $3,000-$4,000.

8. Employee training and uniforms

Employee training is an essential aspect of running a mini-mart. The cost of training employees varies depending on the type of business, location, and duration of training. The average cost of training an employee for a mini-mart ranges from $500 to $2,000 per person. This includes on-the-job training, safety training, and customer service training.

Uniforms are also important for employees working in mini-marts. Uniforms provide a professional image and identify employees easily. The cost of uniforms depends on the type of uniform, the number of employees, and the quality of the material. The average cost of uniforms for a mini-mart ranges from $500 to $1,500 per employee per year.

It is also important to consider ongoing training for employees. This includes refresher courses and new product training. The cost of ongoing training varies depending on the type of training and the frequency of training. The average cost of ongoing training for a mini-mart is around $500 per employee per year.

Mini-marts can also offer incentives for employees who complete additional training or certifications. These incentives can include bonuses, pay raises, or additional time off. The cost of these incentives depends on the type of incentive and the number of employees who qualify for them.

• Example: A mini-mart owner may offer a $100 bonus to employees who complete a safety certification course.
• Example: A mini-mart owner may offer a pay raise to employees who complete additional customer service training.

Investing in employee training and uniforms can lead to increased customer satisfaction and employee retention. Well-trained employees can provide better service and increase sales, while uniforms can enhance the professional image of the mini-mart.

• Example: Mini-mart employees who receive regular training and wear uniforms may receive positive feedback from customers, leading to increased loyalty and repeat business.

9. Initial utility deposits and setup fees

In order to start a mini-mart business, there are some initial costs that need to be considered. Besides the rent costs, there are also utility deposits and setup fees. The utility deposits and setup fees are related to setting up your store's utilities such as electricity, water, and gas, as well as obtaining permits from the local government. These costs vary depending on the location and the size of the store.

In the United States, the average cost for utility deposits and setup fees for a mini-mart is around $2,000 to $5,000. These costs can vary based upon the location of the mini-mart, as well as the utility company policies. In some locations, the setup fees can be lower or higher, depending on the area's zoning laws and regulations.

Setting up the utilities for your mini-mart should also include permit fees which can cost up to several hundred dollars depending on the local government's regulations. These permit fees are necessary for obtaining the required licenses and permits to operate your store legally.

It is essential to contact the local utility company to get an estimate of the utility deposits and setup fees before starting your mini-mart business. Utility setups are a one-time fee, and so it is vital to budget accordingly when starting your business.

Additionally, there may be extra fees related to connecting the store to the grid, such as hook-up fees. Hook-up fees can range from $300-$500. This fee is paid to the utility company to connect your store's electricity, water, and gas to the main grid. This is a one-time charge and shouldn't be overlooked in the initial setup cost plan.

To summarize, setting up utilities for your mini-mart business, including utility deposits, setup fees, permits, and hook-up fees, can cost around $3,000 to $6,000. It is important to plan these costs carefully to ensure that your budget doesn't take a significant hit. To reduce the impact from these costs, some store owners opt to lease property that already includes utility connections and permits, which can greatly reduce these costs.

• Utility deposits and setup fees can cost around $2,000 to $5,000 for a mini-mart in the US
• Permit fees can be several hundred dollars depending on the local government's regulations
• Hook-up fees can range from $300-$500

Opening a mini-mart business involves significant startup costs, but it can be a profitable venture when managed efficiently. To recap, we have covered some of the significant expenses you'll need to consider when launching your mini-mart business.

Rent or purchase of commercial property is likely to be your most considerable startup expense, depending on your location and size. Expect to pay anywhere from $1,000 to $10,000 a month depending on your location and size. As for initial inventory, be prepared to spend an average of $20,000 on stock items before your store opens. Store fixtures and equipment, including everything from shelving units to refrigerators, can cost you anywhere from $5,000 to $20,000.

Software and hardware expenses, such as your point of sale system and security cameras, might cost around $5,000-$10,000, while licensing fees range from $100-$500, depending on your location. Advertising and marketing will need a budget of around $5,000-$10,000, while employee training and uniforms can start from $1,000-$2,000.

Overall, the estimated cost to open a mini-mart can be anywhere from $50,000 to $100,000. Note that these costs are only one-time expenses, and your ongoing expenses will include salaries, rent, utilities, and inventory purchases. Conduct thorough research and consider hiring a consultant to create your business plan and identify other expenses unique to your business to make informed decisions.

While the beginning steps of opening a mini-mart may seem daunting, the potential rewards for your business and your community can be significant. With careful planning and management, your mini-mart can provide the necessary convenience to customers and become a vital asset to the community.

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Big Ten and SEC are again the top conferences in revenue with athlete pay plan on horizon

The big ten held a narrow edge over the southeastern conference in revenue for the second straight year and the atlantic coast conference again ranked a distant third among the major conferences.

(AP) - The Big Ten held a narrow edge over the Southeastern Conference in revenue for the second straight year and the Atlantic Coast Conference again ranked a distant third among the five largest college sports conferences, according to tax filings released this week.

The five leagues combined to generate $3.55 billion in the 2022-23 fiscal year, with the Big Ten reporting revenue of $879.9 million compared with $852.6 million for the SEC. The ACC saw the most significant increase, going from $617 million in 2021-22 to $707 million.

The Pac-12, which will see 10 of its 12 members disperse to other conferences in 2024-25, generated $603.9 million. The Big 12 was fifth at $510.7 million.

The details were disclosed in the same week all five conferences and the NCAA agreed to pay a total of $2.8 billion to settle antitrust litigation that is expected to also lead to the creation of a first-of-its-kind revenue-sharing system where schools will directly pay their athletes for the first time.

The Big Ten and SEC have emerged as super-conferences after a wave of realignment led to schools leaving one league for another over the past two years. The most dramatic development from that was the demise of the Pac-12, but the earning power of the Big Ten and SEC is also a major development, feeding angst and concerns among the remaining conferences.

SCHOOL PAYOUTS

Twelve of the 14 Big Ten schools each received about $60.5 million from the conference, with 2014 additions Maryland and Rutgers getting about $58.8 million apiece.

The SEC distributed $51 million to each school. Each ACC school received between $43.3 million and $46.9 million; Notre Dame, an independent in football, received $22.1 million.

Big 12 schools received distributions ranging from $43.8 million to $48.2 million. The Pac-12 distributed about $33.6 million to each of its members, down from $36 million the previous year.

COMMISSIONER COMPENSATION

Jim Delany, who stepped down as Big Ten commissioner in 2020, received $3 million in retirement compensation and another $2.8 million in deferred pay. Kevin Warren, Delany's successor who left in April 2023 , was paid $3.7 million.

SEC Commissioner Greg Sankey was paid about $3.6 million

The ACC paid Jim Phillips about $2.8 million in his first year as commissioner.

The Pac-12 paid former Commissioner George Kliavkoff $3.98 million. Larry Scott, who preceded Kliavkoff, was paid $2.28 million, including $1.5 million through a separation agreement. The Pac-12 amassed $6.7 million on legal fees, about three times more than any other conference.

Bob Bowlsby, the former Big 12 commissioner, was paid $17.2 million in his final year. That included $12.3 million for the remaining three years on his contract and $2.6 million in deferred compensation. Brent Yormark earned $1.2 million in his first year as Bowlsby's successor,

Four of the Power Five conference's fiscal years ended June 30, 2023; the SEC's ended Aug. 31, 2023.

AP college sports: https://apnews.com/hub/college-sports

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Laurel wants to annex Calhoun community

L AUREL, Miss. ( WHLT ) – A recent proposal from the City of Laurel to annex the Calhoun community in Jones County is drawing criticism from business owners.

Laurel Mayor Johnny Magee said the city would benefit from economic growth if the city line expands into the Calhoun area down Highway 84 West.

Magee said annexation would increase property taxes, but he said the cost would be offset by the area being covered by the city’s full-time fire department, which would reduce insurance rates.

The plan would also include sanitary sewer services, garbage pickup and street maintenance.

“Anytime you start saying taxes are going to increase, then people, they hesitate. You know, nobody wants prices to increase. But there is a there is some some positive coming from the increase,” said Magee.

Scott Carmichael, owner of Mac’s Mini-Mart, criticized the idea.

“The business people do not want this. The City of Laurel is offering us sewer and water and police and fire protection. The sewer system is going to cost hundreds of thousands of dollars to run it out here. No one’s going to connect to it unless they have a problem with their existing sewer system. The garbage pick-up service is not a service they will offer us. We will have to pay for it,” Carmichael said.

Magee said the process could take a couple of years to complete. The annexation has to be filed in court and approved by a judge.

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