Wine franchise
What does a wine franchise include, what are the criteria for the success of such a franchise, we will consider in our article.
Wine and other alcoholic beverages are best sold in two formats: takeaway establishments and dine-in restaurants. These formats can be conceptually categorized as wine shops and wine restaurants, but the distinction is minor, as you'll soon understand.

In both formats, wine takes center stage, though the product selection may include other complementary items. Since wine is the primary focus, the success of these businesses hinges on the conditions for wine supply to the establishment. In other words, customers seek a franchise that offers low prices and a convenient wine delivery system.

Benefits of a wine franchise

What kind of value do entrepreneurs expect from a wine franchise? In addition to the low price and convenient delivery system, the franchisor must provide tools for selling this wine to the consumer.

What could these tools become?

Recognizable wine brand. If Evgeny Aleksandrovich Chichvarkin announces the start of sales of the Hedonism Wine franchise in Russia tomorrow, I assure you that Moscow, St. Petersburg and all the millionaires will be bought out within 3 months: contracts will be signed and money will be paid. Because entrepreneurs will have no doubt that the brand will help sell the product.

Another important tool is knowledge of the product and consumer preferences. And the franchisor must also help his partner in this. Develop a wine list, teach how to work with wine. Without this there will be no sales, that's for sure.

From here other mandatory things follow: selection of the right retail equipment, assistance in choosing a location, assistance in recruiting personnel, but these are common things for other, not necessarily wine, franchises.

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Wine franchise conditions

Conditions will also vary depending on the format and level of support provided.

So, for example, if you purchase a wine restaurant franchise that has a strong brand, technologies for preparing the product in the establishment itself, and also requires a significant level of support from the franchisee, then the conditions for purchasing such a franchise may be:

Lump sum payment: from 1,000,000 RUR
Royalty: 3%-5%
Investment in opening: from 8,000,000 ₽

If this is a wine store that only sells wine, then the cost of such a franchise will be significantly less. The copyright holder bears less risk due to the fact that the product is not produced locally, but only sold. It is also easier for the copyright holder to control retail outlets than a catering kitchen. The conditions for purchasing such a franchise may be:

Lump sum payment: up to RUB 1,000,000
Royalty: from 0 to 3%
Investment in opening: less than 5,000,000 ₽

Wine delivery system

A significant portion of the initial investment in a business is the cost of inventory. Wine is expensive and you need to have quite a lot of bottles in stock to fully trade.
The assortment matrix is usually compiled by the franchise owner; when compiling the assortment, he analyzes the habits and needs of a particular region in terms of tastes and also by price segments.

What to look for when purchasing

If you want to connect your business with wine and are looking for a suitable franchise, you should pay attention to the following aspects.

Sign the supply agreement before signing the franchise agreement.

We have determined that wine prices are the basis of this franchise, so this is the point that should attract your attention first.

Study the franchise brand. How recognizable is it in your region, what is the history of this brand, what is its reputation. What is the target audience of the brand now, and which one do you want to sell to?

Well, if the franchisor receives the main profit from the supply of wine to your partner outlet, most likely, the lump-sum contribution should not be staggeringly large. Naturally, with the exception of some restaurant stories, when in addition to selling you also prepare snacks and provide restaurant service to consumers.

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