How to buy a Pyaterochka franchise?
Miscellaneous / / April 04, 2023
Everything is as simple as possible: franchisees are franchise buyers. These entrepreneurs acquire the right to work under the trademark of an already existing brand. That is, they conduct their business according to the business model and under the name of another company.
In Russia, franchising appeared in 1990s. Then, in this way, mainly new branches of foreign companies were opened.
Now businessmen cooperate more with Russian brands - to their share account for 87.5% of the franchise market. Almost half of the enterprises opens in the service sector for business and the population, and a quarter - in public catering. The top 5 industries also include non-food and food retail, as well as manufacturing. Basically, franchises develop regional companies, but they are popular both in Moscow and St. Petersburg.
If the brand is well-known, then at least you won’t have to invest in promotion. In fact, when buying a franchise, you are given a ready-made business where you do not need to invent anything. In addition, Pyaterochka is one of the most visited stores among the population.
I had a choice: open my own store or run a franchise. On reflection, I realized that with the second option there are more opportunities, so I decided to work with Pyaterochka and never regretted it. At the moment, my team and I have been cooperating with the brand for three years. The business is developing well, and we see Pyaterochka as a reliable partner who comes to the rescue in any situation.
Investing in a grocery business is one of the least risky strategies for franchising. This industry is developing steadily under any economic conditions, because products are a basic need that people will not give up. Thus, a survey of the Romir holding, conducted in March 2022, showedthat 47% of consumers, in case of difficulties, will limit themselves to recreation and entertainment, and 45% will revise the budget in favor of buying food and other everyday goods.
If you are not yet very experienced in entrepreneurship or are just looking for a stable niche with a covered “rear”, working on a franchise will save you a lot of problems and pains. Search for suppliers and logistics partners, long-term forecasting, marketing strategy - the parent brand has already thought of all this for you.
At the same time, entrepreneurial freedom when running a franchise business is still present: you will make decisions and manage your business. “Maneuverability” is lower here than in your own business, but the franchise market is more predictable. The parent brand is interested in the successful business of partners, therefore it will tell you how to avoid common mistakes.
Commercial network "Pyaterochka" - one of leaders franchising market in Russia in the field of food products. Today, there are more than 220 chain stores operating in the country with a total area of over 100,000 m². By building a business with Pyaterochka, you become part of a large community of entrepreneurs. You will need to maintain the quality of service and actively participate in the life of the brand. In return, you receive constant assistance and a business that generates income from the first months.
The network is regularly top-3 Russians' favorite grocery stores. And in 2020, Pyaterochka became the most recognizable retailer: 95% survey respondents of the research holding Romir said that they are familiar with the brand. This position in the market will allow you not to spend a lot of money on advertising and not earn an image from scratch.
Partners of the companyPyaterochka", which is included in X5 Groupmay conduct business under a well-known trade name. But this is not only a matter of reputation: the brand provides consulting and IT support, turnkey retail business technology, streamlined product deliveries and advertising campaigns.
At the same time, Pyaterochka franchisees do not buy goods, but take them for sale, for which they then receive an agency fee. Everything is transparent here - on average, 20% of the store's monthly revenue is obtained. Such a scheme is called reverse franchising and is still exclusive on the Russian food market. You can still suggest changes in the assortment - the retailer will analyze whether the new product will be in demand, add it if necessary, and determine the price. Also, Pyaterochka will make a forecast of turnover and profitability, agree on the supply of products and, if necessary, tell you where to open a store.
There are not many food franchises in Russia. Mostly small shops. This is great, but not the level that Pyaterochka has. So I decided to contact them. I remember when I got to a franchise exhibition, I saw that Pyaterochka offered such a format. I talked with representatives, I liked it, and since then my professional journey with the brand has begun.
Before working with Pyaterochka, I knew nothing about reverse franchising and had no experience in building a food retail business. I was in the grocery business. Representatives of the brand told me in detail how the reverse franchise works and what its benefits are for me. This, of course, is an advantage of the brand: I have not seen other programs on the Russian market in which the parent organization supplies the goods itself, and I receive income in the form of agency fees.
In addition, partnerships are important to me. With this, the brand is also in full order. Cooperation with a large company, which always helps and goes forward in difficult times, gives a sense of stability. Today I already have two stores, and I plan to open more.
Before buying a franchise, my partners and I were engaged in development: we built, sold and leased commercial premises to large retailers, including Pyaterochka. We had no retail experience. Over time, there were a lot of buildings - and we thought about our own business. But we understood that it would take a lot of time and money to create and promote our own trading network.
Then we decided to plunge into the world of franchising. Working with various large retailers, we were able to evaluate their approaches to cooperation and business in general. Pyaterochka has the best service, order in stores and, in my opinion, the highest quality approach to working with staff. Another indisputable advantage is the reverse franchising model, in which all the main operational tasks for the supply of goods to the store are taken over by the parent brand. It also bribed the fact that Pyaterochka is the largest and, perhaps, the most famous chain of convenience stores in Russia with a huge loyal customer base. Therefore, with the right choice of the location of the future store, one could not worry about attendance.
- A lump sum is the purchase of a franchise.
- Supply and installation of equipment, including commercial and refrigeration equipment.
- Repair of the premises according to the Pyaterochka standard. The franchisor will provide detailed terms of reference for repair and construction work and will help to conclude contracts with suppliers of commercial and warehouse equipment.
- Rent and other monthly expenses for the maintenance of the premises.
Oleg Tendit
According to my calculations, the estimated payback of the store was three years, but in reality it turned out faster. The first store will pay off in two years - according to the current forecast, only 4 months are left before the payback. The second one is even faster.
Dmitry Kravchenko
The reverse franchising model assumes greater involvement from the parent brand in all key business processes. In addition, Pyaterochka provides franchisees who open more than one outlet with good preferences. For example, as owners of 26 franchise stores, we now pay a minimum lump-sum fee for each new outlet. This gives us the opportunity to more effectively reinvest money in business, in the reconstruction and opening of new stores.
Pyaterochka supports franchisees in solving daily problems. For example, in one of the cities we could not recruit the required number of staff - and in this matter, Pyaterochka joined in and helped find employees.
Payback on our projects averages from two years. This is a good pace - in Russia, a business that pays off in 4-5 years is considered effective. The payback rate depends on many factors, for example, on the right location, in equal degree convenient for the buyer and remote from direct competitors, from the presence of a professional team. In this case, you can pay off in two years.
It is important to understand that, whatever the support from the parent company, a lot depends on the investor himself. You won't be able to work through the sleeves. We need results, efficiency. It is necessary to work hard, study and comprehend the intricacies of the food retail industry every day.
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