Co-op

About Co-op

The Co-operative (or Co-op) franchise has a great deal of experience providing its customers with high-quality products and its approach to success is very much based on teams working closely together to innovate and achieve great results. The Co-op franchise stores sell a variety of branded and own-brand fairtrade products. As well as selling products from supermarkets, Co-op franchises also offer their customers the opportunity to benefit from the Co-op’s membership scheme, granting a five per cent discount on Co-op brand items, and an additional one per cent portion is given to local community projects.

Co-op franchise partners enjoy all the advantages of a complete service model and will receive full support and training from the Co-op head office as they start to build their new business.

At present Co-op can develop franchising models of any scale, which means that stores can open in previously unexplored locations to find new customers and markets. The rollout of the wider franchise network has been based upon an extensive trial featuring a few stores. This early trial was hugely successful and the profits soared instantaneously thanks to the Co-operative food brand.

How does the franchise model work?

Co-op is looking for franchisees who have already had success as an independent retailer. Franchisees will need to meet certain criteria before they can start their own Co-op business. First, they must already operate a convenience store with weekly sales of at least £20,000 (not including VAT and Lotto, Paypoint and Post Office sales). The store must cover a sales area of over 2,000 square feet and have a warehouse of more than 800 square feet.

Co-operative food franchisees get a store design similar to the mainstream Co-op brand in terms of space, style, layout and merchandising. The franchise model also includes Co-op EPOS and behind-the-scenes services, automated replenishment and planograms for your store. Franchisees benefit from a seven-day delivery service and a 24/7 helpdesk service.

Additionally, Co-operative franchisees can expect account management to help them grow, as well as Co-op membership and community support, which helps them to make a positive difference to their local community and wholesale society.

Why do customers choose the Co-operative food franchise instead of its supermarket competitors?

Being part of the Co-operative food brand brings many advantages over supermarkets, online retailers and any independent retailer. As a franchise partner, you will have access to an excellent, ethically-sourced, fairly-traded, own-brand product range, found only in Co-operative stores.

Franchisees also benefit from the combined knowledge and experience of the Co-operative group’s retail operations and the wholesale business of Nisa. This means that franchisees gain from this combined expertise for food supplies.

Co-operative food helps its franchisees in other ways, too. For instance, it also introduces the idea of category management and shopper missions when considering the wide range of Co-op products. This approach helps franchisees to understand consumer behaviour and choices. It also helps franchisees to benefit from customised data and market analysis to ensure that their stores are giving the customers what they want.

What experience and skills must Co-op franchisees possess?

The Co-op has long prided itself on its ethical approach to business and so potential franchisees must be committed to the company’s principles with their own grocery store. They include self-help, self-responsibility, democracy, equality, equity, solidarity. The Co-operative values dictate that Co-operative stores be open, participatory organisations and show co-operation and concern for the local community to the wholesale benefit of society.

Did you know?

Co-op has an expected revenue of AOR after 2 years!

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How much does a franchise cost?

Franchisees will need to invest between £250,000 to £ 300,000. However, Co-op assists in securing third-party funding. There are no upfront fees but a 3 per cent ongoing management services fee.

Can franchisees receive initial financial support?

The Co-operative Food business is long-established and banks and building societies are likely to look upon such a renowned franchise in a favourable light. In fact, the support from head office will go beyond getting the finances required: premises will undergo a refit to be transformed into a Co-op franchise store, which Co-operative Food will work with retailers on and contribute elements – principally the EPOS and Co-op fascia and branding. More important for the company is the location (not just size), and choosing partners who are aligned with the Co-operative values and principles. 

When might I return a profit when running a Co-op franchise store?

The returns are likely to be good in the first year of operations. Although a limited sample size, Co-operative food has seen at least a 50 per cent uplift in sales in the three franchise food stores that it has launched as part of the trial.

What training and support does the Co-operative franchise team offer franchisees?

Co-operative Food provides all the necessary training you will need to develop your business in a sustainable manner. This will include comprehensive training on how to operate a Co-operative store, such as the technology for reducing environmental impact, looking at staff rotas, absences and contracts or how to record and use sales data in the store for efficiency and profitability. There will also be guidance on touch screen technology used in the store and how staff can benefit from its use. Much of the training is delivered online, but while it is comprehensive, franchisees will also be expected to show initiative as they develop the business with an ongoing ability to train themselves in a context of support from the operations teams.

What locations or territories are available?

Franchise opportunities are available throughout the UK. Fill in the enquiry form on this page to find out if the territory of your choice is available.

What are the franchise terms of agreement and renewal? 

It is a 10-year franchise agreement with the right to renew for another term. Please note this is an opportunity to open a Co-operative store, not a Co-operative bank or one of its other services.

How in demand is the Co-op?

This is an opportunity to operate a franchise with the UK’s number one convenience retailer. You will operate exactly as its own 2,500 locations, with the same award-winning range of products, cutting edge operations and IT systems and the same operational excellence which the Co-op is rightly famous and proud of.

How can I register my interest in becoming a franchisee?

Submit your interest today by clicking the enquiry form on this page. Once you’ve submitted interest, a member of the Co-op franchise team will be in touch to discuss further and ensure it is the right fit for both Co-op and the partner. At this point, they are more interested in retailers with an existing food business on site or sites they are looking to buy.