Neighbourhood grocery shop

Local residents, workers and passing trade who want quick, convenient shopping close to home.

You buy stock from wholesalers and suppliers and sell at a markup. Profit depends on location, product mix, wastage control and keeping rent and wages in check.

• Customer service
• Stock ordering and budgeting
• Negotiating with suppliers
• Managing fresh food and waste

• Food business registration with your local council and food safety requirements in your state
• Rules on selling tobacco, alcohol or lottery products, which usually need separate licences, so check before planning to stock them
• Lease terms, rent reviews and council zoning or signage approval
• Public liability and property insurance, plus workers compensation once you hire
• Thin margins, stock wastage and competition from big supermarkets
• Registering for GST once turnover reaches the threshold

Startup costs are typically around $40,000 to $200,000, depending on the shop size, opening stock, fit-out and lease terms. These are estimates only, so get quotes for your own site and check rent and fit-out costs first.

Monthly revenue is typically around $20,000 to $100,000, depending on location, range and passing trade. That is sales before costs, and margins can be thin, so check stock wastage and competition. The estimate assumes at least about 45 hours a week.

Check food business registration with your local council and your state's food safety requirements. Selling tobacco, alcohol or lottery products usually needs separate licences. Also check lease terms, council zoning and signage approval, insurance, and GST registration.