Why did the delicatessen owner start their own business? To make some real “deli”-cious profits!
Opening a delicatessen is a dream for many food enthusiasts — there’s something undeniably appealing about creating a space filled with savory meats, artisanal cheeses, fresh loaves of bread, and mouthwatering sandwiches.
Opening a delicatessen is no easy journey, but you can do it by following the right steps and guidelines. From researching the market to sourcing high-quality ingredients and designing an inviting atmosphere and menu that keeps customers coming back, there’s a lot to consider.
In this post, we’ll share the six most important steps to opening your own delicatessen. Whether you’re opening it within a grocery store or as a standalone business, these tips and the right technology will help you succeed.
What Is a Delicatessen?
A delicatessen, or deli, specializes in selling a variety of prepared foods, including meats, cheeses, sandwiches, side salads, and more.
Delicatessens can operate independently or connected to a grocery store, improving the shopping experience for customers.
No matter how you slice it, the benefits of opening a delicatessen are compelling. If you’re opening a deli in a grocery store, you will boost sales, increase foot traffic, and give customers a better experience. If you’re opening a delicatessen as a stand-alone business, you get these benefits plus the ability to pursue your dream and passion for food.
Here are a few tips to make opening a delicatessen a success.
1. Research the Market
Understanding your target audience is critical when opening a delicatessen. Start by identifying local customer preferences and conducting thorough market research to gauge the demand for deli items.
You’ll want to avoid entering a saturated market, so take the time to analyze your competitors and their locations. What are they offering? How are they marketing themselves? What is their value proposition? By differentiating your delicatessen based on this research, you can carve out a unique niche.
Related Read: 8 Practical Marketing Ideas for Small Grocery Stores
2. Craft a Solid Business Plan
The next step is defining your concept in the form of a business plan.
What will make your delicatessen stand out? Create a unique selling proposition (USP) that highlights your vision. This could be anything from offering specialty sandwiches to focusing on organic ingredients. Your USP will guide and inform any business decisions you make going forward. Think of it as your North Star.
Here are some examples of delicatessen concepts for inspiration:
- Grab and go: Attract the lunchtime crowd with an ever-ready supply of grab-and-go sandwiches.
- Pet-friendly: If you have patio space, you may consider allowing patrons to bring their furry friends.
- Niche menu: No one said your menu has to be boring. Choose a theme, like naming each sandwich after a local public figure or celebrity, and make it fun!
- Loyalty club: Reward your patrons for stopping in! When you show you appreciate them, they’ll return the favor by spreading the word about your establishment.
As you consider your concept, remember to budget effectively. Detail your startup costs, including rent, equipment, inventory, and marketing expenses. Forecast your profit margins by considering your projected average transaction size, foot traffic, and seasonal fluctuations in demand.
Related read: Grocery Store Marketing Plan Example: A Quick Guide for Grocers
Your marketing strategy should also be well-defined. Will you focus on social media, email marketing, local advertising, or a combination of all three? Do you have the resources to manage each effectively? Draw up a content calendar to figure out your marketing cadence and posting schedule to get a better idea of how much work is involved.
Consider:
- Teasing the opening of your delicatessen on social media profiles
- Sponsoring local events
- Promoting and hosting a grand opening
- Offering a special discount or product to the first 100 people who visit your store
Last, outline your operational plans — how will you manage inventory, staff, and the store layout? What technology will you use? Our advice? Don’t be hasty in your search for the perfect point of sale (POS) solution. You want a system that works for you, not against you.
Here are some key deli POS features to look for:
- Deli scale integration
- Inventory management
- Multiple payment options
- Reporting and analytics
- 24/7 support
- Ease of use
Also, consider choosing a POS system that will scale as you grow. Outgrowing your POS means switching to a different provider, possibly paying costly contract fees, and starting all over again.
This is where Markt POS excels: You have control over inventory, reporting, customer communications, and marketing. And best of all? We grow with you.
Related read: Grocery Marketing 101: A Beginner's Guide
3. Choose the Right Location
Location is key for any business. Analyze the types of businesses near the location where you’re considering opening a delicatessen. Consider factors like foot traffic and visibility. Can your deli be seen from the road?
Being close to grocery stores or other competitors can be advantageous, but it’s crucial to assess local demographics and differentiate your business from what they’re already doing.
Also make sure you have adequate parking. While you may have low foot traffic during off-hours, you want to make sure people have room to park during meal times. If not, you’ll miss out on business!
If you’re opening a delicatessen in a grocery store, consider the flow of customers for optimal placement.
Pro tip: Don't overlook the cost of rent in your search, as it can significantly impact your bottom line in the long run. Check out your financial forecast to see if it works with your budget.
Related read: ANSWERED: How Much Does It Cost To Open a Deli?
4. Source Quality Ingredients
Building relationships with reliable suppliers is essential for a successful delicatessen.
Find suppliers who provide high-quality meats, cheeses, and specialty items you can stand behind. If you're opening your deli within a grocery store, you'll likely already have these connections established.
Sourcing local and sustainable products not only supports the local economy but also ensures your offerings are fresh. Plus, it positively impacts your community and can lead to cost savings and greater flexibility in menu development.
Related read: Butcher Shop Inventory Management: 12 Critical Tools and Tips
Before you can start serving customers, you need to obtain the necessary licenses and permits for food service. Health and safety regulations are paramount, so staying compliant is crucial for both your customers and the success of your deli.
Brush up on food safety standards and familiarize yourself with the first in, first out (FIFO) inventory tracking method. This method ensures your oldest stock is sold first, which is ideal for businesses like yours that sell perishable items.
Worried about handling all this? The great news is that a modern grocery POS system can help you manage inventory, track expiration dates, and maintain compliance.
Related read: How To Open a Corner Store: 7 Steps to Success
6. Train Your Team
The last and possibly most important step to success is training your delicatessen staff.
Start by determining your staffing needs based on store size, anticipated customer flow, and hours of operation. Roles may include cashiers, department managers, meat slicers, food prep, and customer service reps.
Use training to engage and motivate employees and ensure they are well-versed in using your POS system, managing inventory, and providing excellent customer service. This is your chance to provide hands-on training with both your equipment and technology.
Allow plenty of time for questions, and host frequent retraining sessions for new employees to collect feedback or answer questions about your operations. When your team understands business best practices, you can expect accurate inventory counts, reduced shrinkage, and top-notch customer service.
Open a Delicatessen With Markt POS in Your Arsenal
Many factors contribute to the success of opening a delicatessen: location, business plan, and quality ingredients, to name a few.
One of the most important tools in your arsenal is your POS system. With the right solution in place, you can track inventory, sales, customer trends, expiration dates, and more all in one place.
Schedule a Markt POS demo today to see how we can help streamline your business operations and make your dream of owning a business a successful reality.
