sample business plan for online grocery store

Grocery Store Business Plan Template

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You’ve come to the right place to create your grocery store business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their grocery stores.

Below are links to each section of your grocery store business plan template:

Next Section: Executive Summary >

Grocery Store Business Plan FAQs

What is a grocery business plan.

A grocery business plan is a plan to start and/or grow your grocery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your grocery business plan using our Grocery Business Plan Template here .

What Are the Main Types of Grocery Businesses?

A grocery business can either be small scale or large scale. Small format groceries are usually small, family-run stores like a neighborhood store, convenience store, or health food store. Large scale groceries, on the other hand, are supermarkets that offer a wider variety of products and goods sold.

What Are the Main Sources of Revenues and Expenses for a Grocery Business?

The primary source of revenue for grocery stores is its food, beverage and alcohol sales.

The key expenses for grocery businesses are wages, rent or mortgage, cost of products sold, and utilities. Among the other expenses are insurance, equipment maintenance, and marketing. 

How Do You Get Funding for Your Grocery Business Plan?

Grocery stores are typically funded through small business loans, personal savings, credit card financing and angel investors. Inventory financing is also common for part of their funding needs.

What are the Steps To Start a Grocery Store Business?

Starting a grocery store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Grocery Store Business Plan - The first step in starting a business is to create a detailed grocery store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your grocery store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your grocery store business is in compliance with local laws.

3. Register Your Grocery Store Business - Once you have chosen a legal structure, the next step is to register your grocery store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your grocery store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Grocery Store Equipment & Supplies - In order to start your grocery store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your grocery store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful grocery store business:

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Grocery Store Business Plan Template [Updated 2023]

Grocery store business plan template.

If you want to start a Grocery Store or Supermarket business or expand your current Grocery Store business, you need a business plan.

The following Grocery Store business plan template gives you the key elements to include in a winning Grocery Store or Supermarket business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Grocery Store business plan:

Grocery Store Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Grocery Store Business Plan Template

Grocery store business plan.

If you want to start a grocery store or supermarket business expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 8,000 entrepreneurs and business owners create business plans to start and grow their grocery stores and supermarkets.

Below are links to each section of your grocery store business plan template:

Next Section: Executive Summary >

Grocery Store Business Plan FAQs

What is the easiest way to complete my grocery store business plan.

Growthink's Ultimate Grocery Store Business Plan Template allows you to quickly and easily complete business plan for your grocery business.

Where Can I Download a Grocery Store Business Plan PDF?

You can download our business plan PDF template for grocery stores here . This is a business plan template you can use in PDF format.

What Is a Grocery Store Business Plan?

A business plan provides a snapshot of your grocery store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research about the grocery store industry to support your plans.

Why Do You Need a Business Plan?

If you’re looking to start a grocery store or grow your existing grocery store you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your grocery store in order to improve your chances of success. Your grocery store business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Grocery Store?

Grocery Stores are usually funded through small business loans, personal savings, credit card financing and/or angel investors.


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Grocery Store

Grocery Store 284


3816 South Johnson Street Springfield, Missouri 65802

This business plan is prepared to obtain joint financing in the amount of $2,746,000, to begin work on site preparation and modifications, purchase equipment, and to cover expenses in the first year of operations. We are seeking joint financing from our local Economic Development Fund.


Company summary, market analysis summary, strategy & implementation summary, management summary, financial plan.

Viking Grocery Stores–Springfield, will be located in the old Lloyd building, located at 3816 South Johnson Street, in the heart of Springfield, Missouri. This business plan is prepared to obtain joint financing in the amount of $2,746,000, to begin work on site preparation and modifications, purchase equipment, and to cover expenses in the first year of operations. We are seeking joint financing from our local Economic Development Fund.

Viking Stores–Springfield, will be incorporated initially as a corporation. This will shield the owners and all other investors from issues of personal liability. The investors will be treated as shareholders and therefore will not be liable for more than their personal investment. Owner Jones Stewart will contribute $70,000 ($20,000 in sweat equity and $50,000 in cash) towards this business venture.

The financing, in addition to the capital contributions from the owner and shareholders, will allow our store to successfully open and maintain operations through the year. A large initial capital investment will allow our store to provide its customers with a fully featured grocery store. A unique, upscale, and innovative environment is required to provide the customer with an atmosphere that will inspire continued use. The successful operation of year one will provide our store with customers that will allow it to be self-sufficient in year two.

The Viking Store concept, as shown in our plan, has an excellent profitability level and growth rate. Our competitive edge, along with new retail techniques and technology, puts our store in the forefront of the retailing of perishable and nonperishable consumer goods. We are living in an age where unique grocery store environments are in great demand. Our store will differ from the traditional grocery store because of our added personal touch.

As a leading wholesale distributor, our commitment is to provide quality products and services in a cost-effective manner, enabling Viking retailers to excel in serving their customers. If you're interested in being supplied by Viking Stores, Inc., the initial, minimum objectives are:

Our most fundamental philosophy is the concern for people. This strong belief in people is the determining factor that motivates our operations in developing our relationship with our employees and customers.

We believe that our responsibility for customer satisfaction is not focused solely on the sale of a product, but rather is the total relationship a customer experiences when interacting with our organization. We believe in honesty and truth in all transactions and in providing products of the highest quality and at fair prices. We should do everything possible to provide outstanding service in marketing the products we sell.

Our philosophy of concern for people gives our Viking Store the drive to be a good corporate citizen. We believe we have a responsibility to be a good neighbor in maintaining our property in first-class condition and by making the appearance of our plant, facilities, equipment, and grounds as attractive as possible, making them an asset to the communities that support our company.

We at Viking Store of Springfield, are committed to bringing you the best all-around shopping experience. Our nice pledge campaign includes an intense training session for all of our employees, and a firm understanding and commitment to deliver these pledge points at the Viking Store in Springfield, Missouri.

Advantage of Selling Viking Brands

Viking Grocery Stores–Springfield will be part of Viking Stores, Inc., a premier regional grocery/drugstore retailer and wholesale distributor based in Kansas City, Missouri. As a result of five acquisitions since 1999, Viking Stores, Inc., now owns and operates 113 supermarkets and 21 drugstores throughout Missouri and Illinois.

Viking Stores, Inc., also distributes more than 40,000 private label and national brand products to more than 325 independently owned grocery stores in Missouri, Illinois, and Arkansas and serves as wholesale distributor to 8,700 convenience stores in nine states throughout the Midwest.

Company History

At the end of 1917, a group of independent grocers discussed forming a cooperative to create buying power for group members. In early 1918, 27 members incorporated the Kansas City Grocery Company, a name it kept until 1954 when the company became Viking Stores, Inc., In 1959, the company produced its first private-label Viking brand product—coffee.

Although the company changed its cooperative status to "for profit status" in the early 1970s, the publicly held company did not become publicly traded on the NASDAQ until August 2000 following Viking Stores' merger with Morgan Food Town in St. Louis, Missouri. For the fiscal year ending March 25, 2000, Viking Stores and Morgan Food Town had combined revenues of $3.8 billion, $1.2 billion of which was retail grocery sales.

Company Ownership

The Viking Store–Springfield will be a corporation. Currently it will be owned and operated by Jones Stewart and his investors.

We have located the ideal location for our operation. Our store will be located at 3816 South Johnson Street, Springfield, Missouri.

This site will contribute to our success due to being formally used as a grocery store.

Also a real estate company, Viking Stores' Market Space Corporation is in business to offer buildings and properties for sale or lease. Their buildings can be converted to meet various business needs and offer prime locations and ample parking. Throughout Missouri, Arkansas, and Illinois, they have existing improved properties as well as outparcels and land for sale. Market Space Corporation can provide demographic information on their locations to expedite any purchase transactions. Leasing is also an option. Both stand-alone buildings and tenant space within buildings where others businesses operate can be leased. Examples would include strip malls housing such operations as dry cleaners, video stores, hair salons, pizza shops, etc.

Hours of Operation

Store hours will be 7 days a week from 10:00 A.M. until 10:00 P.M. Checks and all major credit cards will be accepted. A food stamp policy along with other policies will be in place.

Start-up Summary

Start-up costs will be financed through a combination of owner investment, short-term loans, and long-term borrowing. The start-up chart shows the distribution of financing.

Start-up Plan

Grocery Store

The store will sell over 40,000 private label and national brand products to the community.

By household size, grocery spending ranges from an average of $51 per week in one-person households to $130 per week in households of five or more. Per-person spending is inversely correlated with household size: per-person weekly expenditures are only $23 in households with five or more members but $35 in one-person homes, according to the the Food Marketing Institute.

To make our advertising and printing dollars work their smartest, we need a team that will work its hardest. The Viking Creative Services Department is ready to meet those needs by providing everything from concepts and design to printing and signage. They are experts in the process of creating and printing advertising, brochures, newsletters, business forms, stationery/business cards, P.O.S. materials, screen-printed clothing/merchandise, and weekly 4-color grocery insert mailers/circulars. Whether we need a bag stuffer, a new logo, billboard advertising, radio spots, TV commercials, or a video, their creative and professional team of associates and state-of-the-art printing equipment offer customers high-quality products in a timely and efficient manner.

Market Segmentation

Seventy-three percent of our shoppers are female head of the households, 11 percent are male head of the households, 15 percent are both and 1 percent are other. Household Income: Average weekly household spending ranges from $68 for shoppers earning under $15,000 to $118 for those earning more than $75,000 per year. Spending on groceries at the consumer's primary store also increases with income from $57 per week for those families earning $15,000 or less per year to $95 per week for those earning over $75,000.

Target Market Segment Strategy

Our store will meet the grocery needs of the surrounding neighborhood of female or male head of households earning $15,000 per year or more.

We will reach our consumers by taking full advantage of Viking Stores' single clearinghouse for manufacturers' coupons, Viking and manufacturers' in-ad coupons, and warehouse damage coupons. Our redemption programs will include Viking gift certificates, selling-show vouchers, and mail-in rebates. Other services include the Viking Gift Certificate program, inad coupon redemption, and scan-down service to manufacturers and brokers.

Technology: Electronic Marketing

Viking is committed to keeping up with technology changes, thereby gaining a competitive edge in the marketplace. Computers and other information systems are integrated to provide management information and time-saving tools.

These include:

Support is always available to answer system and software development questions, or provide programming solutions as new industry developments appear.

To support our retail store(s), electronic marketing allows us to access complete data analysis and marketing services. These services include data storage, strategic planning/consultation, sourcing for card/key tag manufacturing, custom marketing program development, promotions and campaigns, electronic marketing training and education, retailer-specific data analysis, and support of third-party programs.

Building store traffic, generating consumer excitement, accelerating sales and profits, and positioning our store competitively in the market will be relatively simplified by the use of the Sales Promotions Department at Vikings. By combining their purchasing programs with trendsetting insight, Viking has created over 100 profit-generating retail promotions each year. Viking retailers select those promotions that best meet their unique marketing needs. Backed by TV spots, circulars, P.O.S. materials, sweepstakes and more, this promotional activity is key to our retail success.

We will also promote our store using information gathered from our Mystery Shopper Program. This program was developed to provide monthly feedback to owners and managers on the status and condition of the stores. The program focuses on these major areas:

Each store is visited by a mystery shopper once a month, making sure that all shifts are experienced at least twice a year. Employees are eligible to earn cash incentives and top stores are honored with awards quarterly.

In order to portray the professional image that Viking Stores' customers have come to expect, a selection of uniforms are available. Uniform requirements are facilitated with the use of a contracted distribution and laundry service.

Industry Analysis

According to FMI United States regional average weekly household spending in 1999 was fairly equal across regions, with shoppers in the Midwest spending $83; the South, $83; the East, $98; and the West, $92 per week.

As a progressive leader in the food distribution industry, Viking Stores, Inc., based in Kansas City, Missouri, owns and operates 113 supermarkets and drugstores in Missouri and Illinois under the Ames' Markets, Family Supermarkets, Food Fair, Gordon's Markets, Sunshine Markets, and The Bond banners. Under the direction of corporate leadership and a Board of Directors, Viking Stores, Inc., will continue to foster innovation and support and promote growth of the company to ensure its success.

Sales for Viking Stores' retail grocery segment increased 59.1 percent to $148 million during the first quarter of fiscal 2001, reflecting additional sales from the acquisition of 23 Gordon's Markets and three Sunshine Markets in fiscal 2000. Comparable store sales increased approximately 4.4 percent in the first quarter, primarily because of the company's promotional programs and continued emphasis on product-line expansion.

Grocery distribution segment sales for the quarter declined 2.5 percent to $360 million from $369.3 million for fiscal 2000. Convenience store distribution sales also declined 1.8 percent to $211.5 from $215.4 million. Sales declines in both distribution segments were associated principally with the elimination of intercompany sales for Gordon's Markets and Sunshine Markets.

Gross margin for the quarter widened to 13.1 percent from 12.2 percent, reflecting the higher margins associated with the retail grocery operations acquired in fiscal 2000.

"We are very pleased to begin fiscal 2001 with solid profitability," said William Miller, Viking Stores' President and Chief Executive Officer. "Excluding non-recurring items, this represents the second consecutive quarter of earnings improvement. We are very committed to our retail strategy and believe the approach is beginning to show meaningful results. As we continue integrating our retail acquisitions and bring their performance to optimal levels through enriched promotional programs and expanding product lines, we expect financial profitability to accelerate."

Mr. Miller stated, "Earlier this week, St. Louis, Missouri-based Morgan Food Town shareholders approved the previously announced merger with Viking Stores. Our shareholders also approved certain changes to Viking Stores' charter which were necessary to complete the merger. We are very pleased to welcome Morgan Food Town into Viking Stores rapidly growing retail operations. Adding Morgan's 73 supermarkets and deep-discount drugstores more than doubles our retail store base to 113, gives us a well respected regional name, and significant presence in the greater St. Louis market. The merger represents a significant step forward in our strategic plan to become a major regional retail grocery operator."


Marketed at a lower shelf price than national brands, Viking brand products give Viking retailers a competitive advantage. Viking Stores backs Viking brands with year-round promotional support including a big fall and early spring sale.

The store will be in walking distance of area shoppers, whereas the next nearest grocery store is two to three miles from our store location.

Viking will help us grow and develop our store. Building a new store or undergoing expansion can be a tremendous challenge for retailers, especially when trying to run a business at the same time. Viking store development services include everything from securing real estate and financing to construction and decor. It's another area in which Viking helps retailers solidify strong market positions.

In addition to our store will be space available for two other retail establishments.

Competitive Edge

Viking provides a service which helps us manage the information related to our retail business more effectively. Viking Stores, Inc., offers us the complete integration of pricing, promotions, scanning, receiving, and electronic payment systems, including EBT and human resource functions at store and corporate levels. Their commitment to putting retailers in the fast lane with state-of-the-art, point-of-sale technology keeps us on the leading edge.

Sales Strategy

Our store will sell mostly the Viking store brand instead of the national brands. We feel this is a growing trend amongst shoppers.

Purchases of store or lower-priced brands, instead of national brands, decreased with slightly more than one in ten consumers (15 percent) doing so "pretty much every time" they shop— down three percentage points from 1991. Over half of consumers (52 percent) are doing so "every time" or "fairly often" when they shop. Almost one in four (22 percent) of larger households (five or more members) report purchasing store brands "every time" they shop and almost as many (18 percent) with annual incomes under $15,000 said they buy store brands "every time" they shop according to FMI.

Sales Forecast and Additional Income

The following table gives a run-down on forecasted sales and income. Our sales are based on the industry standard of $11.17 per square foot (store size: 25,000 square feet) for our weekly sales estimate. We expect our sales to grow at least 1 percent per new store brand item added to our product line for a total of 10 percent per year. We also expect to cut cost approximately 10 percent a year through bartering and other means of relationship building.

The remaining 25,000 net square footage not being used for the grocery store will be leased to the public at $4 a square foot.

Grocery Store

Warehousing and Transportation

Purchasing from suppliers throughout the world, Viking Stores warehouses over 40,000 products in St. Louis, Illinois, Kansas City, and Tulsa, Oklahoma. Supplying nearly 500 stores with these quality products at the lowest cost can only be achieved through a proficient distribution system. Viking Stores' state-of-the-art facilities combine manual labor with mechanical technology for optimum efficiency. Viking Stores' streamlined warehouse operations and sophisticated systems expedite product flow and reduce costs in procurement, inventory control and labor.

Today, Viking Stores, Inc., Transportation has two locations, one based in Kansas City, the other in Tulsa. Its combined fleet of 245 full-time drivers travel over 12.5 million miles per year. They utilize 116 tractors, 193 dry van trailers, and 176 refrigerated trailers. In a typical week, they average 2,397 delivery stops, delivering between 28 and 33 million pounds of product. Viking Stores' routing department builds 1,234 truckloads of product per week with an average load size of 25,000-28,000 pounds. Viking Stores Transportation utilizes the latest computer technology including the TRUCKS Routing System, CADEC on-board computers, and the Maintenance Control and Management System.

Much has changed over the years in the transportation system at Viking Stores including the fleet design, safety, and performance of the vehicles used in transporting product. Associated Markets' trucks of the 1940s, not much more than delivery vans, used to service the company's customers. For years, Viking used Delivery Line to carry its groceries, while it had its own drivers (about 20 in 1965) to haul perishables. The truck used was an early 1950s model with a 30-foot trailer.

Viking started its own transportation department in 1967, the same year that many Delivery drivers lost their jobs during a labor dispute. Viking hired many of these drivers. Four people in routing, two in dispatch, and 75 drivers hit the road. The Viking tractor/trailer (40-footer) was one of the first owned outright by Viking Stores.

The trailer of the 1980s and 1990s was the 50-footer, more than twice the size of the Associated Market's trucks of the 1940s. It was nationally recognized for its safety-conscious design. Viking Stores, Inc., has been praised for having one of the most cost-effective fleets anywhere. In 1989, a complex computer program called TRUCKS was used to organize each and every trailer load of product. It could route 100 loads in less than 5 minutes. Viking Stores' transportation fleet also became involved in backhauling activities.

People are our most valuable asset and Viking Stores' ProActive Consulting Services provides a complete line of human resource services designed to help us develop the greatest potential from our associates. The people we employ are also a major investment in our company. It is their goal to help us fully capitalize on this investment. Viking Stores' staff is highly experienced in the retail supermarket industry and familiar with its unique problems and opportunities.

Our store will hire one Manager, one Assistant Manager, four Cashiers, four Laborers/ Stockers, and four Administrative Workers. Our Store Manager will have a college degree and several years of experience with managing a retail store.

Personnel Plan

The personnel plan is included in the following table. It shows the Manager's hourly pay, followed by that of the rest of the staff. Each of these positions will overlap to make sure the customers are receiving excellent customer service and that adequate help is on hand.

Grocery Store

Viking stores prides itself on being in touch with the financial side of the business at all times. This starts with our budgeting program that sets sales goals, establishes payroll budgets, and creates criteria for gross margin, shrink, expenses, and profit. Exception reporting directs operations in the right direction, saving time, and measuring results.

We will manage and grow our store with a full range of financial services that include five-year financial planning, business valuations, estate planning, buying/selling a store, and financing assistance. Viking will save us valuable time and money plus the headaches and worry often associated with complex money matters.

From Viking, we will receive a complete portfolio of financial, accounting, and payroll services, including comparative operating statements, bank reconciliations, sales tax returns, payroll tax returns, periodic and operational review, cash flows, break-even analyses, financial projections, wages, taxes, deductions, check printing, and deposit advice. It is these kinds of thorough information and accurate recordkeeping that allow Viking retailers to make sound business decisions for the future.

Important Assumptions

We do not sell anything on credit.

Grocery Store

Break-even Analysis

By using a conservative markup of 50 percent, we will have to sell $120,000 worth of goods to break even. A break-even analysis table has been completed on the basis of average costs/ prices.

Grocery Store

Projected Profit and Loss

We predict consulting and accounting costs will go down in the next three years. Normally, a start-up concern will operate with negative profits through the first two years. We will avoid that kind of operating loss by knowing our competitiors and our target markets.

Grocery Store

Projected Cash Flow

We are positioning ourselves in the market as a medium risk concern with steady cash flows. Accounts payable is paid at the end of each month while sales are in cash, giving the Viking Store–Springfield an excellent cash structure.

Grocery Store

Projected Balance Sheet

All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2002.

Grocery Store

Sales Forecast

Grocery Store

General Assumptions

Grocery Store

Profit and Loss (Income Statement)

Grocery Store

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Online Grocery Store Business Plan Report

Executive summary.

The business plan is a development of an online grocery store that sells groceries and consumer goods. The mission of the business is to provide fast and reliable delivery of groceries and consumer goods to all the esteemed customers at the comfort of their homes.

We will write a custom Report on Online Grocery Store Business Plan specifically for you for only $11.00 $9.35/page

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The goal of the business enterprise is to realize a market share in the UAE through the facilitation of grocery shopping for individuals and the society. The objectives of the business are as follows:

The business targets the whole population of United Arab Emirates. The groceries and other consumer goods will be delivered at the customers at comfort of their homes under no extra costs. This would attract large consumer base and make the company have a large market share.

The business will capitalize this and provide fast and reliable services that are. The business projects a profit of 250,000 dirhams at the end of the first financial quarter. The projection is low but because of the competition, entry costs and other barriers, this is good start for the business.


The E-Commerce Online grocery would be designed to enable consumers from the United Arab Emirates to make their shopping online with ease, at the click of a button.

The products would be delivered to their premises or requested places at no delivery or transport fee but at the same prices as those at the grocery store. Products like groceries, health supplies, pet foods, cleaning products and detergents, among other consumer products, would be provided. Consumers would be able to shop at their convenience and the goods delivered at the comfort of their homes.

General Company Description

Business concept/idea.

The business concept behind the business plan is to provide an online shopping platform to the population of United Arabs Emirates. It would involve selling of groceries and other consumer products and delivering them to the customers upon purchase.

The concept is the first of its kind in the region in the sense that customers will not be charged delivery fee. Instead, the products will be delivered at the same price as that of the local grocery stores. The speed, convenience, and fast delivery after shopping online would be used as an advantage to capture a large customer clientele.

Mission statement : the mission of the business enterprise is to provide fast and reliable delivery of groceries and consumer goods to all the esteemed customers at the comfort of their homes.

Company Goals and Objectives : the goal of the business enterprise is to realize a market share in the UAE through the facilitation of grocery shopping for individuals and the society.

Business philosophy : the online grocery store will offer unique services to its customers at a lower prices because it beliefs in customer satisfaction and loyalty.

As a grocery products provider, the business will employ the SMART principle in making its objectives when entering the new market (Mulin, 2010). The following are the business objectives’

The business enterprise targets all the segments in the population. However, the largest target groups are those customers who cannot have adequate time of visiting the local grocery stores. The company will also target internet users who can make online shopping and who cannot travel to the shopping centers because of the distance and commitments.

In general, the business targets the whole population because the world has changed to technological services and nobody should be left out. Online shopping and marketing has become predominant in other countries but this would be of its kind in the UAE. Online shopping and marketing is growing and becoming more competitive.

It is deemed to be fully competitive and congested in the next five years as we are living in the technological era. It will also take advantage of being first of its kind and earn a market share. The company will provide the grocery products to its clients at the same price as that of grocery stores at their convenience saving their time and energy. By keeping time it will be possible to expand and maintain market share.

Prior to the launching of the company, several factors which are essential in establishing would be put into consideration. These would be achieved through the use of SWOT analysis. The use of the SWOT analysis helps in the recognition of external and internal factors with a view to realizing the company’s marketing objectives (Dooley, 2006).

Operational plan

The operation of the company shall be based on the designed website, employees, the delivery of services, and consumer goods.

Website content and feeling

The website for selling the products will be designed in such a way that all the needs of the customers are met and addressed. It will be easy to access online shopping in a more reliable manner and in the shortest time possible. The website will be captivating and appealing to the eyes and it will also act as a branding of the company.

The website will also be designed to make the customers feel that they were shopping directly from a grocery store. This would make them feel at home and at the right online shopping grocery store. The website would include the following contents:


The company will have a grocery store with modern refrigeration system to keep perishable goods. It will also partner with other groceries stores to sell their products online to the esteemed customers. So as to make deliveries in time to the customers, the company is planning to acquire five motorcycles for supplying groceries and other consumer goods to the customers.

The reason why motorcycles will be used is their ability to navigate to the rural and inaccessible areas that cannot be accessed by motor vehicles.

Other than the use of motorcycles, the company will acquire three vans that are capable of transporting bulky grocery products and consumer goods to hospitals, schools, police stations, and schools across the United Arab Emirates. Within a period of two years, the company is planning on acquiring a refrigerated truck that can transport perishable groceries like vegetables.

Marketing plan

The marketing plan would be based on the 4ps of marketing strategy to aid in achieving the company’s goals and objectives. According to Mullin (2010) marketing objectives should be based on the SMART principle so as to realise the market share and organisational goals. The SMART principle comprise of the following acronyms: specific, measurable, achievable, reliable and time conscious/bound.

The prices of the products would be same as those of the local grocery stores. The company would provide groceries and other consumer goods and would be located online. The products would be distributed and delivered to the customers at their convenience and requested time.

Management and Organization

The management team shall comprise of the partners, whereby one will be in charge of the finances. He will oversee the financial transactions and keep all the financial records. The second will head the operations and offer technical services to the customers. The third partner will deal with the customer care department and be responsible for talking orders and calls.

He/she will foresee the daily running of the enterprise and maintain the customer clientele and the expansion of the enterprise. The professional and advisory support will include, management advisory board, attorney, accountant, insurance agent, banker, consultant, mentor and other advisors.

The company shall have extra 6 employees whereby 3 shall be motorcyclists, 2 will be van delivery van drivers, and one messenger. Overall the company would be having 9 people that would ensure the goals and objective of the company is realized.

Financial plan

The financial plan would entail a 12 month profit and loss projection, cash flow projection, a balance sheet, and break even analysis. The first year profits are estimated to be 250,000 dirhams.

The major assumption is that competition shall be stiff and as such, it would be impossible to make abnormal profits. Other expenses to consider are web designing and hosting costs, as well as the delivery cost that would be accounted for by the company. All the costs and expenses will be included in the financial plan.

Reference List

Dooley, D. (2006). Business. Book 2 . Oxford: Heinemann.

Mullin, R. (2010). Sales promotion: how to create, implement & integrate campaigns that really work . Philadelphia: Kogan Page Limited

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IvyPanda. (2022, April 19). Online Grocery Store Business Plan.

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IvyPanda . (2022) 'Online Grocery Store Business Plan'. 19 April.

Grocery Store Business Plan Sample

1.0 executive summary.

“Jolly Groceries Ltd. ” operating as “Jolly Groceries” (The Company), was incorporated on January 5, 2021, in the state of New York by Neil Stallen and Tim Wilson. Jolly Groceries is a specialty grocery store founded to meet a strong neighbourhood need for quality, Middle Eastern grocery options in the Brooklyn and Downtown New York area. 

The Brooklyn area of Downtown New York currently lacks any good grocers or reliable shops to get fresh or specialty products from the Middle East. Mr. Stallen and Mr. Wilson currently operate another grocery store on the other side of town (Macky Market, 837 Bidwell Street, New York) and regularly talk to downtown residents about their need for a specialty ethnic grocery store in their communities. Aside from offering hard-to-find grocery products in Jolly Groceries, their pricing will be more competitive with 0.5% less mark-up on most international products in the store. 

Mr. Stallen (15 years of grocery experience) and Mr. Wilson (with 10 years) will be co-owners of the store with 51% and 49% share respectively. Their combined experience and leadership will contribute to the success and rapid growth of the Company.  Jolly Groceries’ target customers include Turkish, Iranian, and Arabic immigrants who now live in Downtown New York. They crave the nostalgic tastes of their home country that they can’t find anywhere else locally.  

Jolly Groceries is currently seeking a $250,000 loan under the SBA Loan Program to help with launch activities and essential capital and equipment purchases. The shop plans to open in June 2022.  The Company seeks to contribute to a world where everyone has access to their favourite foods from their home country or region, no matter where in the world they live. These foods from home will be affordable and easy to find or sourced through Jolly Groceries.

2.0 Business Overview

Jolly Groceries is a new specialty ethnic grocery store opening in June 2022 in the trendy Downtown New York neighbourhood of Brooklyn. The store will carry local and international foods from the Middle East and open seven days a week from 9 am to 10 pm to serve the local community and local Middle Eastern Immigrants.

The Company will be a partnership between Mr. Neil Stallen (owning 51%) and his business partner Mr. Tim Wilson (owning 49%). Mr. Stallen currently owns another grocery store (Aria Market) in New York, where Mr. Wilson is the manager. The two partners have a combined 25 years of experience in the grocery industry. 

The store is for the whole community, but the main draw will be for the specialty Middle Eastern products that Aria Market doesn’t have room to stock. It will be physically larger than their Bidwell location, with over 7,000 sq ft of retail space plus 3,900 sq ft of back office, food prep, and inventory storage in the back. 

Jolly Groceries will fill a local need for a local grocery store for residents and tourists alike.  During the summer months, as the tourist population in New York increases, the market expects to see increased demand for their products, which will lead to a growth in sales.  

The Company plans to become a local hub for the local Middle Eastern community. As such, the Company will: 

2.1 Industry Overview

The grocery industry is not expected to become obsolete anytime soon. Consumers are looking to get all their everyday grocery staples and specialty items from one place. With the COVID-19 pandemic, many restaurants were shut down, so customers turned to more fresh food and produce, so grocery stores saw a dramatic increase in success and profitability. 

Now, as we’re coming to the end of the restrictions put in place by the pandemic and restaurants are beginning to reopen, the industry is expecting a temporary drop throughout the rest of 2021 as people buy fewer groceries and eat out more. All economic indicators and predictions show this drop to last no more than one to two years before average growth returns for the industry. 

Jolly Groceries keeps a close eye on how consumers’ grocery buying habits are evolving. Consumers are becoming more health-conscious and are looking for healthier produce, organic products, and gluten- or GMO-free groceries. This is a need that Jolly Groceries can cater to. 

2.2 Mission & Vision Statement

Jolly Groceries’ mission is to create a world where everyone has access to their favourite foods from their home country or region, no matter where in the world they live. 

Jolly Groceries’ vision is to become a hub for the Downtown New York community to get fresh local produce and specialty grocery items from the Middle East without travelling far or paying a premium. 

2.3 Goals and Objectives

In terms of business growth, the Company has set the following revenue goals:

Jolly Groceries also hopes to become a hub for Middle Eastern immigrants in the neighbourhood. 

2.4 Core Values

Jolly Groceries staff and managers will make all business decisions and day-to-day operations with the Company’s four core values in mind:

2.5 Key Success Factors

The success of Jolly Groceries is dependent on the following key external drivers : 

Internal factors that will be pivotal to the success of Jolly Groceries include:

2.6 Staffing

Many staff are required to keep the store operational. In their experience operating Aria Market on Bidwell Street in New York, they found most of their qualified applicants through in-store signage. For Jolly Groceries, staff will be recruited the same way.  

A few key staff member positions for the store include:

Staff will be paid between $15.65 and $18 per hour in the first year, $16.25 – $19 per hour in year two, and $17 – $20.50 per hour in year three of operation.

2.7 Management Team

Mr. Stallen started his experience in the grocery industry as a convenience store manager for two years. He went on to be the owner of Aria Market for 15 years. He has experience in all aspects of grocery store operations. 

Mr. Wilson will be the store manager as he has extensive experience as the store manager for Aria Market. He will be paid $60,000 per year in year one, $72,000 in year two, and $78,000 in year three. 

Mr. Tim Wilson

I am an efficient and experienced retail sales manager capable of assessing customer needs, managing a team and preparing staff schedules. I am a fast learner who is good at multitasking, prioritizing tasks and ensuring all targets are met or exceeded. 

Academic Qualifications

Work Experience

Retail sales manager | Iran | 2010-2016

Store Manager | Aria Market, New York, US | 2018-2020

3.0 Products & Services

To be competitive in the market, Jolly Groceries will reduce its product mark-up. Competitors typically mark-up grocery products 2x, but the Company will only mark up 1.5%.

It is expected that meat and produce will make up the majority of revenue, at 40% and 25% respectively. General grocery sales will contribute 20% of the total business revenue. Overall sales for the first few months are expected to be slower as Jolly Groceries becomes known in the community. Within six months, the Company plans to double its average monthly revenue to coincide with the busy winter and holiday months. 

3.1 Products

Jolly Groceries will mix local and international (mainly Middle Eastern) produce and grocery products. This includes departments for Halal meat, general grocery, nuts, deli, and bakery.

The Company is planning to stock popular, reliable brands of Middle Eastern grocery items, including: 1&1, San Remo, Sadaf, Krinos, Badr, Golestan 

To offer customers the best possible prices, Jolly Groceries will purchase from several reputable wholesale suppliers, including: Krinos Food, San Remo Rods, M&H, Baloot Bakery, Saman Bakery, Van Whole Produce, Fresh direct

To ensure a good mix of local and imported products, we will also offer locally grown produce, including Ambrosia apples, tomatoes, berries, and beets.

4.0 Operations

The grocery store will open in June 2022 in the trendy Downtown New York community of Brooklyn.

Business Address : 120 Tanker Street, New York, BC

The owners choose this location due to its proximity to a main transportation route in and out of the downtown core. Its corner location includes large windows to entice and attract people from anywhere in the intersection. 

The purchase of this location includes over 10,700 sq ft:

4.1 Equipment

In addition to spending $350,000 on renovations to the existing space, Jolly Groceries plans to make the following purchases: 

4.2 Inventory

The Jolly Groceries location includes 7,000 sq ft of retail space for inventory and a 2,700 sq ft storage space. The stock kept on-site will change seasonally and will be purchased based on demand. 

Initially, the Company will use $180,000 from the SBA Loan Program to purchase inventory for opening. 

4.3 Health & Safety Guidelines

As a grocery store, all employees and Company will always follow WorkSafe NY guidelines, local laws and bylaws, as well as any particular recommendations and regulations by Public Health. This includes:

5.0 Market Analysis

The need to buy groceries isn’t going away anytime soon. However, how and where consumers get their produce and groceries is changing. During the global COVID-19 Pandemic, grocery spend increased by 12% as expected. However, the industry is preparing for a -7% dip in 2021 as the economy reopens and many consumers start eating in restaurants again. This drop will be short-lived until 2023 when the market shifts back to a growth phase.

IBISWorld predicts that supermarkets and grocery stores will begin increasing their stock of ethnic foods over the coming years as the immigrant population in US grows:

“In addition to organic foods, IBISWorld expects supermarkets and grocery stores to increase their stock of ethnic foods. US is culturally and ethnically diverse, with a large immigrant population from Europe and Asia. As immigration is expected to be the primary reason for overall American population growth, demand for ethnic foods in US is expected to increase over the next five years. Consequently, industry participants that devote more retail space to ethnic food products are anticipated to outperform their competitors over the coming years.” IBISWorld

Supermarkets & Grocery Stores in US (NAICS Report 44511CA)

Industry profits are expected to remain relatively stable over the next five years. A key driver for future earnings in this market is the projected increase in consumer’s disposable income. In addition, Americans are becoming more health-conscious. There is increasing demand for specialty produce and products to cater to niche foods, high-end foods, organic items, gluten-free, and non-GMO foods. These products often come with a higher sticker cost, so as disposable income increases, so will spending on these items. 

5.1 Competition

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IGA Food Stores  

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Nesters Market  

sample business plan for online grocery store

Choices Markets  

5.2 Competitive Advantage

One of Jolly Groceries’s most significant advantages is that its prices are lower than most of the Company’s competitors. Competitors mark up most products by 2x, whereas Jolly Groceries will only be 1.5x. This extra 0.5 % savings can be passed on to customers. 

Other key differentiators include:

5.3 Risk Analysis

Risk: In a business that provides fresh produce and groceries, rodent control is paramount. Rodents on the premises could mean being shut down by Public Health and could cause health issues. 

To mitigate this risk, rodent traps will be installed in inconspicuous areas of the shop, and fresh produce will be covered overnight.

Risk: The summer months and November through December are commonly busy times for grocery stores. Jolly Groceries expects to see higher revenue during these months. In the lower revenue months, the Company could experience cash flow irregularities. 

To mitigate this risk, extra profits from the busier months will be saved to cover costs during the slower months if necessary. 

Risk : Retail stores are at risk of being hit by vandals and thieves. Stolen goods and damage to the property can be expensive and tarnish the reputation of the business. It can also put the safety of staff and customers at risk. 

To mitigate this risk, Jolly Groceries is installing state-of-the-art security cameras and alarm systems in the shop. These measures are likely to deter or eliminate any thefts or break-ins. 

Risk : Improperly managed stores risk stock building up faster than it can be sold. Excess stock not only creates a mess in storerooms but can also expire more quickly than it can be sold, leading to un-saleable merchandise and a loss of profits. 

To mitigate this, the Company is using the expertise of both partners who understand the buying cycles of grocery products to reliably predict when to reorder products to minimize overstocking and storage complications, especially when it comes to fresh groceries and produce. 

6.0 Sales & Marketing Plan

The Brooklyn area of Downtown New York, where the shop will be situated, has a growing Iranian population. People and families from throughout the Middle East (including Turkish, Iranian, and Arabic) also live in the nearby neighbourhoods of Olympic Village and Chinatown. The store’s primary target customer will live within 20 km from the store, but those from outlying communities who come into the city for work may also stop by for groceries on their way to or from work. 

As much as they love their new home in the US, they have a deep love of the food and grocery products from their home countries. And, when they have relatives visiting from back home, they want to show them that New York has some of their favourite foods.

Some of the foods they find challenging to buy in New York include some authentic dried fruits, dates, spices, herbs, teas, and fresh vegetables. Now that the pandemic is nearly over, their disposable income is increasing, and they can afford to get these specialties from the grocery store again. 

Family is a key value for Jolly Groceries’ target customers. They enjoy eating great food with their friends and family. They may also want to introduce Middle Eastern specialty meals and foods to their American friends. 

The customers living in Brooklyn are also craving more local choices for fresh produce, regardless of their ethnicity. The store will cater to that need in the local neighbourhood. 

6.1 Key Channels

While a large portion of Jolly Groceries’ customers will be walk-ins who pass by on the street from the local neighbourhood, the Company will also be engaging in several marketing tactics to attract customers and keep them up-to-date about the business. 

Social media will be a primary channel, and Jolly Groceries will start with a Facebook Business Page and an Instagram account. The primary goal of these channels is to build up a sense of community by sharing valuable information about the store and community. Mr. Wilson will manage these accounts.

Jolly Groceries will also create a Google listing, so the Company appears on Google Maps. The Company will run Google Ad campaigns to target more specific and localized demographics. 

Print flyers and ads will be created and distributed through US Post to local residences in Jolly Groceries’s target neighbourhoods. 

6.2 SWOT Analysis

7.0 financial plan, 7.1 income statement .

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7.2 Cash Flow Statement

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7.3 Balance Sheet

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