Opportunities In The Natural Food, Vitamin,
Supplement, Specialty & Bulk Food Boom
During the 1990's, serious bulk buying of grains, beans, flours, spices, nuts, mixes, pastas, natural foods, confectionery products and condiments became extremely popular amongst Canadian consumers. This, combined with the rapidly growing consumer interest in natural, organics and vitamins makes the future prospects look even brighter. This awareness and renewed popularity to Nutter’s is primarily due to:
- The enhanced interest of customers with renewed lifestyle and wellness goals,
- The immense sales growth of vitamin, herbal and supplement products,
- Growing emphasis towards sugar reduced, salt and preservative free products, non-allergenic, gluten free and organic/naturally grown products,
- Improved staff training, customer service and product nutritional information,
- Enhanced product selection,
- Competitive pricing, and
- Simplified packaging and minimal waste.
Additionally, the attractive appearance of Nutter's Bulk and Natural Foods specialty stores has added a new ingredient to shopping…we provide a pleasurable and value added shopping experience instead of a chore.
Since early 2000, the boom in natural and health foods has created a new generation of retail concepts. Nutter’s offers an extremely diverse product selection in an attractive surrounding. Nutter’s has become one of the most popular new concepts on today’s specialty food retailing scene.
The specialized nature of Nutter’s Bulk and Natural Food stores does not lend itself to the merchandising approach typical of large supermarket chains. The personalized service, product knowledge, close quality control and aggressive merchandising, necessary for successful operation requires the attentive type of management typical of small, highly motivated entrepreneurial manager/owners.
Revised Date: November 2008
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Alternatives For Entering The
Natural & Speciality Food Business
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Generally speaking, an individual (or group) who desires to enter into a business has three alternatives:
- Buy an existing business,
- Start a new business, or
- Franchising.
As natural and specialty food stores are a unique retail concept in Western Canada, the amount of existing businesses available for sale are extremely limited. Consequently, the opportunity to enter into the rapidly expanding natural and specialty food business is, practically speaking, limited to starting an entirely new business or operating a franchise.
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Why A Franchise?
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A franchise could be a viable option for getting into a business for yourself. Basically, there are three reasons why you may wish to become a franchisee.
The first reason is that you have the desire to be in business, but lack the required expertise. Operating a franchise means that you will not only receive the necessary training from the franchisor, but will also work within proven operating guidelines.
The second reason is that you may be reluctant to invest your money in a high risk venture. This can be the case when starting a new business of your own. Operating a franchise usually means your investment risk is lower since you will operate under an established name or trademark, where the product or service offered is familiar to the public. As well as offering an element of goodwill, a franchised business is operated with a proven business format. Also, a franchise is only established as a result of extensive planning and marketing on the part of the franchisor.
The third reason is often one of the expecting an improved return on your investment, because you are part of an experienced franchise system.
A franchise is a contractual privilege granted or awarded by one person or company (the frachisor) to another person or company (the franchisee). The privilege awarded by the frachisor to the franchisee is the right to sell, in a specified manner, a particular product or service within a specified territory. The product or service is usually identified by a trade name, trademark, logo or other commercial symbol over which the franchisor has exclusive control.
Typically, the franchisor has developed a product and/or service along with a certain format for operating a business. The product, service and method of operating the business are identified by the franchisor’s name, trademark or other owned commercial symbol. To become a franchisee, you enter into an agreement with the franchisor whereby, for a certain amount of money, you will be awarded the privilege to sell the franchisor’s products and/or services. You will also agree to operate your business in conformity with the franchisor’s established methods. Your “right” is usually restricted to a specific territory.
The franchisor provides you with a proven product or service along with marketing know-how and standardized operating methods. You have the benefits of the franchisor’s name and goodwill, product and service research, management training, coordinated advertising programs and group purchasing ability. Of course, you benefit from the profits on your sales. In turn, the franchisor benefits from your ongoing royalties or service charges.
To understand fully what is meant by a franchise, it can be helpful to know the major differenced between a franchise and starting your own business.
A FRANCHISE
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STARTING YOUR OWN BUSINESS
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Operational training provided by franchisor.
Licence to use a trade name or
trademark.Franchise operation completely identified with franchisor.
Ability to sell a proven product or service.
Buying a package, which provides ability to
start full operations sooner.
Profit and loss forecasts may be more
accurate as based on proven similar
operations.
Greater chance of initial success.
Sales territory defined (and protected)
by franchisor. (Exceptions may apply).
Less working capital may be required
because of tighter controls and better
terms from suppliers.
Ability to implement proven promotional
programs.
A competent management team, capable
of providing ongoing assistance and direction.
A collective franchise network to enhance the
exchange and sharing of ideas, opinions and problem solving capabilities.
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Management ability based on your expertise.
Time required to establish name. But more
identification of owner to business.
Time required to establish name, products
and/or service.
May have to start slowly. Longer time to realize
full potential.
Risk of errors in estimating expenses, sales and
profits, especially for an unproven venture.
Greater chance of failure due to time required for
establishment and possibility of mistakes, especially in marketing and planning.
No restrictions on territory. However, no
protection from invasion by established franchise.
You determine premises, equipment and fixtures
based on the image you want and your available capital.
Risk of wasted advertising expenditures with
unproven programs.
No management assistance, should problems
develop.
Limited outside input or feedback.
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The Nutter's Franchise!
An Exciting Retail Opportunity In The
Natural And Specialty Food Specialty Market.
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Nutter’s was one of the first Western Canadian specialty bulk and natural food stores. Since its inception in 1982, Nutter’s has grown from a single store in Medicine Hat, Alberta, to 28 stores across Western Canada and one store in the United States. This success rate is due to a number of factors including:
SELECTION – No other specialty, bulk and natural food store offers a typical selection of over 5000 items – ranging from breakfast cereals, exotic teas and coffees, natural and organic products, vitamins, herbs and supplements, aromatic spices, dried fruit, pastas, grains and beans, gluten free foods, to fine quality baking needs.
CLEANLINESS – a clean, healthy, friendly store atmosphere – no messy containers or bins, but rather a brightly decorated store with attractive dispensing containers (which eliminates product contamination).
QUALITY – high rate of product turnover, plus direct purchasing from our manufacturers and suppliers, combined with warehouse support from head office, ensures superb product selection and maximum freshness.
Nutter’s is the only major retail chain in Western Canada concentrating exclusively in bulk and natural foods, baking ingredients, specialty food products, vitamins and supplements.
Inability of major food chains to devote the time, supervision, training and space necessary to aggressively market natural and specialty foods is another opportunity for Nutter’s.
PRICE – Nutter’s purchasing power allows for cost savings, which reflect in competitive retail prices and customer value.
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Nutter's Provides It's Franchisees
A Total Franchise Package Including:
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- Locational analysis (including site selection assistance).
- Property Leasing Support.
- Complete store layouts.
- Exterior sign design.
- Store equipment packages, including custom manufacturing of store fixtures.
- Point of sale systems.
- Complete operating packages – from accounting systems to extensive merchandising, promotional programs and staff training.
- Capital and operating budgets.
- Coordinated franchise wide promotional programs.
- Management training programs.
- Sample advertising layouts and on going advertising assistance.
- Identification of suppliers plus supplier relationships providing excellent terms and product pricing.
- Additional warehouse and packaging support from head office (Canada only).
- Training and support in inventory management and control.
- On going operational and management problem solving, support and feedback (for all franchisees).
- Training programs for staff development and skill enhancement.
Nutter’s franchise offers a unique combination of total retail and operational support – providing entrepreneurs the opportunity to enter a rapidly expanding and exciting specialty food retailing market with attractive growth possibilities, second to none in the natural food industry.
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Nutter's
Applicant Qualifications
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The qualifications Nutter's desires in a prospective applicant fall into three distinct categories.
- Personal qualities.
- Overall business background and working experience.
- Financial position/resources.
Nutter’s desires individuals who have an extensive and thorough business background, preferably with a strong history of supervisory and managerial experience. Experience in a retail environment, especially specialty, natural or health food related, is a definite asset.
Nutter’s is interested in highly motivated people with a proven track record, whether running your own business or working for a corporation – big or small!
Nutter’s desires people who will be prepared and committed to the physical and emotional rigours of operating a high intensity specialty retail and natural food operation.
The ability to work well with others in a team environment, develop staff skill sets and build strong fellow franchise operator relationships is very important.
Nutter’s seeks individuals who are willing to commit and devote their full time and dedication to a Nutter’s business. We do not grant licences to investors, groups or corporations. Partnerships or silent partners, although not recommended, will be considered on a location by location basis.
Our evaluation of an individuals’ personalities, qualities and characteristics are integral elements we look for. We seek operators who will give 100% to their communities, customers and Nutter’s.
Additionally, we also require the following:
- Divesture of all non-passive business interest prior to acquiring and operating a Nutter’s Bulk and Natural Food operation.
- Direct ownership with on-premise managment (no absentee ownership)
- 3A commitment to complete Nutter’s initial training program and ongoing operational and management enhancement seminars to our satisfaction.
If you wish to pursue your interest with Nutter’s, please complete the enclosed application form and return it to our office.
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Nutter's Franchise Areas
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Nutter's has twenty-eight stores operating in Alberta, British Columbia, Saskatchewan, Manitoba and one location in Nebraska, with location in:
ALBERTA
Medicine Hat
Lethbridge
Red Deer
Camrose
Leduc
Lloydminster
Rocky Mountain House
Jasper
Wetaskiwin
Olds
Canmore
Drayton Valley
Okotoks
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SASKATCHEWAN
Swift Current
Moose Jaw
Kindersley
Prince Alberta
Estevan
Assiniboia
Yorkton
Melfort
Humboldt
North Battleford
Saskatoon
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MANITOBA
Dauphin
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BRITISH COLUMBIA
Salmon Arm
Kamloops
Cranbrook
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UNITED STATES
Scottsbluff, Nebraska
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