Feedback

What is the Cost of a "The New Shop" Franchise?

The New Shop, India’s fastest-growing 24/7 convenience store and instant hyperlocal delivery retail network, offers a robust franchise model for entrepreneurs looking to capitalize on the booming convenience retail market. Here’s a detailed breakdown of the franchise cost and benefits associated with owning a "The New Shop" franchise.

Franchise Cost Breakdown

1. Initial Investment
   • Interior & Equipment: INR 15 Lakhs
   • Inventory: INR 8-10 Lakhs
   • Franchise Fees: INR 5 Lakhs
   • Total Investment: INR 28-30 Lakhs

Detailed Breakdown of Costs

1. Interior & Equipment Costs

• Interior (Furniture): Design and layout according to the business model.
• Signage & Branding: Includes vinyl branding, category signage, wallpapers, etc.
• Display Equipment: Ice cream counters, island racks, wooden shelves, billing counters, etc.
• Chilling and Freezing Equipment: Air curtains, air conditioners, and CCTV cameras.

2. Inventory Costs

• Product Categories: Bakery, breakfast snacks, FMCG categories like beverages, chilled, frozen, home, self-care, and gadgets.

3. Franchise Fees

• A one-time fee that covers licensing, training, marketing support, and initial setup guidance.

Franchise Support

"The New Shop" provides comprehensive support to its franchise partners to ensure smooth operations and optimal profitability.

1. Layout & Interior Design

• Providing layout designs in a 2D format according to the dimensions of the site.
• Detailed specifications related to materials, dimensions, vendors, and brands of racks, counters, ceiling, flooring, wallpapers, electric work, air conditioning, air outlets, plumbing, signages, woodwork, and branding.

2. Equipment SOPs

• Providing a list of equipment according to layout with vendor/brand options.

3. Branding/Marketing Content

• Access to all marketing/branding content including banners, videos, pamphlets, hoardings, posters, signages, menus, and visual merchandising.

4. HR SOPs

• Detailed HR manual outlining manpower requirements along with key competencies, documentation, job responsibilities, organization chart, and policies.

5. Accounts/Relationship Manager

• Assigning an accounts/relationship manager from TNS to act as a single point of contact for the franchisee.

6. Inventory SOPs

• Providing a list of initial SKUs to be sold along with distributor details.

7. Training

• Remote and on-site training for the franchisee and staff on inventory management, billing software, customer service, visual merchandising, F&B operations, stock management, ordering, sales, and marketing.
• Access to all content on staff training.

8. Licensing

• Assistance in obtaining licenses to run the store.

9. Staff Accessories

• Providing uniforms and accessories (complimentary for the first 8 staff members).

10. Dashboard Access

• Creating user credentials for inventory management and billing software.

11. Online Presence

• Listing on Google My Business, Swiggy, Zomato, Dunzo, Magicpin, and TNS website and delivery app.

Financial Overview

1. Monthly Revenue Potential

• Offline Sales: INR 9,00,000
• Online Sales (TNS App): INR 3,00,000
• Online Sales (Zomato/Swiggy): INR 3,00,000
• Other Income: INR 20,000
• Total Revenue: INR 15,20,000

2. Monthly Expenses

• COGS: INR 10,41,400
• Rent: INR 50,000
• Manpower: INR 80,000
• Electricity: INR 60,000
• Other Costs: INR 10,000
• Royalty: INR 50,800
• Total Expenses: INR 12,92,200

3. Net Revenue

• Net Revenue: INR 2,27,800
• Net Revenue Percentage: 15%
• Payback Period: 12-18 months of operations

Advantages of Owning a "The New Shop" Franchise

1. Coolest Brand

• High brand recognition and customer loyalty.

2. Everything Under One Roof

• A diverse range of products and services ensuring high footfall and repeat customers.

3. Low Investment, High ROI

• Minimal initial investment with a high return on investment and a quick payback period.

4. Highest Industry Margins

• Negotiated margins for franchise partners ensuring profitability.

5. Omnichannel Presence

• Integrated sales channels including offline stores, TNS app, Zomato, Swiggy, and more.

6. End-to-End Support

• Comprehensive support in training, operations, marketing, technology, and legal matters.

7. Easy Exit Mechanism

• Simplified exit procedures for franchise partners.

8. COVID/Lockdown Proof