The best Food Franchises in Spain

If there is one sector that has been strengthened in our country in recent years, it has undoubtedly been the food sector. Supermarkets, food shops and bakeries have proven to be a profitable business even in times of crisis, arousing the interest of entrepreneurs with an investor profile, who are looking for successful businesses in any economic context.??

Challenges of Supermarket Franchises For several years now, the strongest franchises have focused on democratising access to their franchises, both because of the possibility of incorporating new entrepreneur profiles, more focused on self-employment, and because of the consumer trend towards shopping in local supermarkets, which require less space and therefore less investment. List of Supermarket Franchises, their brands for local Supermarkets, and square metres required:?

- Alcampo / Mi Alcampo - 200m2?

- Eroski / Eroski City - 200m2?

- Caprabo / Caprabo Rapid - 250m2?

- Carrefour / Carrefour Express - 100m2?

- Consum / Charter - 200m2?

- Alsara - 100m2?

- Comarket / Coaliment - 150m2?

- Unide - 80m2?

- La Despensa Express - 200m2?

Food is a basic necessity, so its distribution is more resistant to the crisis. Here are the best food franchises in Spain, which could represent a good business opportunity. Keep in mind that they are usually investments of a certain amount (it is necessary to fit out premises, buy the stock of goods), but that there is also usually aid from companies and ICO credits.

The advantages of being a franchisee

As I mentioned before, setting up a franchise is another way of doing business. It has its advantages, mainly benefiting from a brand image, the know-how of an experienced chain and having more competitive purchase prices. Obviously, it also has its drawbacks, in particular the payment of royalties and commissions. Now let's see which are the best franchises in the food sector in Spain:

General food franchises (supermarkets)

1o- Día

In case you didn't know, we would like to tell you that more than 35% of the chain's establishments in Spain are franchises. In fact, it has more than 2,100 franchisees. For some years now, it has been listed on the stock exchange and has renovated its points of sale. The company has been in the news in recent months due to the restructuring of the group, but it continues to be one of the main chains in Spain. It is certainly one of the options to be considered as a franchisee.

2o- Carrefour Express

The supermarkets of one of the world's leading retail chains are open to franchisees. The premises range from 100m2 to 800m2. For larger premises, you can apply to open a Carrefour Market franchise. Obviously, the investment in the latter case is higher, but so is the business potential.

3o- Eroski City

The Spanish chain has 500 food franchises throughout the country. The Eroski City concept is an urban supermarket (as the name suggests) of between 250 and 450 m2. It should be noted that the initial investment is €600 per m2, and that there is no entry fee. The minimum surface area is 250 square metres.

4o- Caprabo

We continue with brands from the Eroski group, this time with the Caprabo supermarkets. From their website, they explain that their strategy is mainly to open centres in Catalonia (their region of origin). However, there are centres in other parts of Spain, so it should be possible to open a franchise in other places.

5o- Spar

Among the food franchises, there is one that is perhaps less well known (depending on where you live), despite the fact that it has more than 1,000 establishments in Spain. This is Spar, a German company with more than 12,000 points of sale all over the world. Its franchises require premises of at least 200m2.

6o- Charter

Charter supermarkets belong to the Consum food chain. It has made a firm commitment to franchising, with some 280 establishments at the moment, and a 16% increase in brand sales in 2018. They are mainly located in the Valencian Community and Catalonia, but there are possibilities of opening in any part of Spain.

7th - Maxcoop

The Unide cooperative has several franchise options, with its different brands (Maxcoop, Gama and Udaco). Apparently they work exclusively with franchisees (unlike the other chains mentioned above, which usually also have their own shops).?It is an important chain, with more than 1,300 shops throughout the country.

8o- Condis

Condis is a leading group in Catalonia with a strong presence in Madrid. It has around 600 establishments, half of which are franchised. In 2018, the chain had more than 6,000 employees and a turnover of more than 900 million euros.

Food franchises in specialised distribution

Outside of traditional supermarkets, there are other food business models that also use franchising. You can take a look at these options, from frozen food to 24h shops that are like automated mini supermarkets.

9o- On board

Frozen food is often an inexpensive option for families' weekly shopping. Moreover, it is a very practical and versatile product, in line with the needs of modern consumers. Moreover, one only has to look at the success of a chain like Picard in France to imagine that a similar concept could be successful in Spain in the coming years.?The Abordo chain, with some 50 shops, mainly in the Valencian Community, is betting on franchising to grow. It is undoubtedly an option to be considered.

10th- Frescuore

Fruit and vegetable shops have multiplied since the last crisis, and perhaps joining a chain like Frescuore could be an interesting option. At the moment it has around 70 establishments in the province of Barcelona, and its strategy aimed at healthy eating could have a bright future.

11o- De Paso

The convenience stores of the Cepsa group, with more than 800 establishments in Spain, are also open to franchisees. These shops are open 24 hours a day, every day of the year, most of them located in service stations, but not exclusively. They are also located in urban shopping centres.

12o- Open 25 Hours

While we are on the subject of shops open 24 hours a day, it is worth talking about the concept of the automatic supermarket, i.e. large-capacity vending machines that sell the most common food products without opening hours or staff costs. Apparently, the market leader in Spain is the Abierto 25 Horas brand, with 190 shops throughout the country.

In summary, the development of small Supermarket Franchises will focus the sector's interest in the coming years, as well as the optimisation of its food distribution networks in order to be able to open and supply Supermarket Franchises in small towns under the same quality conditions.??

Evolution of the food sector

The concentration of Food Franchises in cities has led to the emergence of new food shops specialising in a particular niche, such as organic food shop franchises or bulk food franchises, both born out of the trend for healthy eating and the generation of less waste.?

Similarly, Bakery Franchises have been incorporating new services, such as coffee or pastry shops, and new experiences related to the healthy lifestyle trend, allowing you to buy a sandwich or a smoothie in many establishments.?

In the same sense, the Dietetic Franchises are experiencing a small boom due to the increasing interest of the population to lead a healthy and balanced life.

Miguel ángel Povedano