Cost Analysis of Starting a Supermarket Franchise

Starting a supermarket franchise requires careful financial planning to ensure profitability. Here’s a breakdown of the costs involved:

1. Franchise Fee & Licensing
Most supermarket franchises in India charge a franchise fee ranging from ₹5 lakh to ₹50 lakh, depending on the brand’s reputation and business model. Additionally, government licenses such as FSSAI, GST registration, and trade licenses are required.

2. Store Setup & Infrastructure
Setting up a fully equipped supermarket involves:

Retail space rental – ₹50,000 to ₹3 lakh per month (varies by location).
Store interiors & shelving – ₹5 lakh to ₹15 lakh.
Billing counters & POS systems – ₹2 lakh to ₹5 lakh.
Initial stock purchase – ₹10 lakh to ₹30 lakh.
3. Staffing & Operational Expenses
Hiring cashiers, stock managers, and customer service staff requires a monthly budget of ₹1.5 lakh to ₹5 lakh. Additional costs include electricity, maintenance, and security.

4. Marketing & Branding
Digital & offline promotions – ₹2 lakh to ₹5 lakh.
Loyalty programs & launch events – ₹1 lakh to ₹3 lakh.
Total Investment Estimate
A supermarket franchise in India typically requires ₹25 lakh to ₹1 crore, depending on the brand and location. However, with high footfall and proper management, ROI can be achieved within 2-3 years.