Looking to start your own convenience store, but don’t know what to do? No need to worry. Here we have prepared a detailed blog about best convenience store models from which you can take inspiration to grow your own store.
The blog explores the best and trending convenience models and ways that can help you choose the right model. Let’s explore.
Top 5 Convenience Store Models to Grow Your Own Store
Convenience stores have been around since 1927. The concept that revolutionized how we get almost everything including fuel, food, groceries, and so much more from one place is nearly 100 years old. According to Statista, there are more than 152,000 convenience stores in the entire United States.
Since its inception, the convenience stores have become more than just a place of shopping, it has evolved into community hubs where locals meet, share information, and grow stronger together. Here are the top five convenience store models that you can take inspiration from for your own store.
Traditional Neighborhood Convenience Store
The first in the line is our friendly neighbourhood convenience store. You must have been to the convenience stores in your locality that are owned by someone you know or from the same locality. It is one of the most common models of convenience stores. It has a small footprint and all the essential items that locals need including snacks, beverages, tobacco, lottery, and basic groceries. Such stores require low startup and operating costs and are backed by a strong local community.
Most Suitable for:
- First-time owners
- Residential and suburban locations
High-Traffic Express Convenience Store
You must have been in one of those convenience stores near busy areas like transit hubs or downtown corridors. These stores are no less than a boon when you are in a hurry and need fuel, food, or any other daily essentials. They have fast transactions with focus on grab-and-go food, ready-to-drink beverages, and require minimal browsing. Such convenience stores have high turnover and strong peak-hour sales.
Most Suitable for:
- Urban locations
- Areas with commuters or students
Food-Centric Convenience Store
Food-centric convenience stores are one of the fast growing convenience store models. As the name suggests, food and beverages are the core of this model. They have higher margins compared to packaged goods and repeated daily visitors. You can find made-to-order sandwiches, hot food, coffee, and bakery items. However, these models require staffing, food safety, and equipment investment.
Most Suitable for:
- Gas stations
- High-traffic roads
- Owners willing to invest in operations
Service-Based Convenience Store
Now, this is a unique convenience store model. It is quite different from what we expect from a convenience store. Such models introduce differentiation through services. Here, you can find more than just daily essentials including bill payments, money transfer, ATM access, and package pickup. It has very high foot traffic, frequent visits, and strong community reliance. This model earns from service fees and cross-selling retail items.
Most Suitable for:
- Underserved or cash-heavy communities
- Rural or immigrant neighborhoods
Franchise or Hybrid Convenience Store
It is one of the most popular models of convenience stores, and it also requires quite high upfront investment. The most famous example of this model is 7-Eleven. It is a brand-driven model. Such models are franchise operated or partner with independent convenience stores using franchise systems. You get brand recognition, supplier discounts, proven layouts, and pricing.
Most Suitable for:
- Owners planning multi-store growth
- Investors seeking structured systems
How to Choose the Right Model For Your Store
As of now, you understood about the best five convenience store models. However, now the question arises what model to choose. Take a chill pill, we got you. Here we have prepared some questions that will help you determine the right convenience store model for you. Let’s take a look.
What is your location traffic like?
These first and probably the most important questions of all. It solves a major headache in determining the right model. If the location you are planning to open your convenience store has high foot traffic then express and food-centric models will be the best choice. And if the foot traffic is low, then traditional or services-based models will perform better.
How much capital can you invest?
Another important question. This question plays a crucial role in explaining what convenience store model will be the best for your budget. If you have low capital then two models including traditional and service add-ons are a better option. However, if you can invest high, then food-focused and franchise models are the best option.
Do customers want speed, food, or services?
Next comes the question, that directly addresses the potential customers you will have. There are mainly three types of customers – commuters, travelers, and locals. All three have different needs. Commuters look for speed, travelers want food, and local communities want services. If your location has more commuters then the express model is a go-to-choice, whereas if there are more travelers then, obviously the food-centric model will excel, and if you are opening in locality then you should go for traditional models.
How much space do you have for your store?
The space you have for your convenience store determines what type of model will be the best option. If you have a small store then a service based or express model is a great choice as these models require less space, whereas if you have more space then a food-centric model will be a better option.
What level of involvement will you have in daily store operations?
Now, this question is a must to answer. There are usually two types of convenience store owners. The first ones are those who remain present all day in the store and second who are not. If you are going to remain present all day long in the store then food-centric and hybrid models are better options. And if you are not involved in daily operations and rely on managers then franchise, express and traditional models are best for you.
Wrapping Up
Now, you know everything you need to know about convenience store models and who they are most suitable for. Additionally, you also know how to choose the right model for your convenience store. Follow the well-defined approach and grow your own convenience store.