Become a FabJob Guide to Kitchen Store Owner Store_Sample_Guide.pdfBecome aFabJob Guide to Kitchen...

Open your own cookware or cooking shop!

Alisa Gordaneer

FabJob Guide to

Become a Kitchen Store

Owner

Visit www.FabJob.com

ContentsAbout the Author .............................................................................9

Acknowledgements .........................................................................9

1. Introduction ..........................................................................................10

1.1 The Kitchenware Industry ..........................................................12

1.2 Owning a Kitchen Store ...............................................................14

1.2.1 BenefitsofBeingaKitchenStoreOwner ........................14

1.2.2 A Typical Day .....................................................................16

1.3 Inside This Guide .........................................................................18

2. GettingReady .......................................................................................20

2.1 Skills and Knowledge You Will Need .......................................20

2.1.1 Culinary Skills and Knowledge ........................................20

2.1.2 Interpersonal Skills .............................................................22

2.1.3 Retail Management Skills ..................................................24

2.1.4 Business Skills .....................................................................26

2.2 Learning by Doing .......................................................................30

2.2.1 Work in a Kitchen Store .....................................................30

2.2.2 Get Volunteer Experience ..................................................31

2.2.3 Do Direct Kitchenware Sales .............................................32

2.2.4 Work at a Mall Kiosk ..........................................................33

2.2.5 Work in a Restaurant Kitchen ...........................................33

2.3 Be Your Own “Mystery Shopper” .............................................34

2.4 Learn From Other Store Owners ................................................39

2.4.1 Talk to Kitchen Store Owners ...........................................39

2.4.2 Join an Association .............................................................41

2.5 Educational Programs .................................................................43

2.5.1 Business Courses ................................................................44

FabJob Guide to Become a Kitchen Store Owner

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2.5.2 Culinary Courses ................................................................46

2.6 ResourcesforSelf-Study ..............................................................47

2.6.1 Books ....................................................................................47

2.6.2 Websites: Magazines, Reviews, and Blogs ......................48

2.6.3 Trade Shows ........................................................................52

3. StartingYourKitchenStoreBusiness ..............................................55

3.1 Choosing Your Niche ...................................................................55

3.1.1 Small Appliance Stores ......................................................57

3.1.2 General Cookware Stores ..................................................58

3.1.3 BakewareandSugarcraftStores .......................................58

3.1.4 Tabletop and Serveware Stores .........................................59

3.1.5 Organizer and Storage Stores ...........................................59

3.1.6 Gourmet Stores ...................................................................59

3.1.7 Other Niches ........................................................................60

3.2 OptionsforStartingaKitchenStore ..........................................60

3.2.1 Buy an Established Store ...................................................61

3.2.2 Franchising ..........................................................................67

3.2.3 Opening a New Kitchen Store ..........................................73

3.3 Choosing a Store Name ...............................................................73

3.4 Your Business Plan .......................................................................75

3.4.1 What To Include In a Business Plan .................................77

3.4.2 Start-UpFinancialPlanning ..............................................83

3.4.3 A Sample Business Plan .....................................................93

3.4.4 Business Plan Resources ..................................................108

3.5 Start-UpFinancing .....................................................................109

3.5.1 GettingPrepared ...............................................................110

3.5.2 Equity vs. Debt Financing ...............................................111

3.5.3 Borrowing Money .............................................................113




3.5.4 Finding Investors ..............................................................115

3.5.5 Government Programs ....................................................118

3.6 LegalMatters ...............................................................................119

3.6.1 Your Business Legal Structure ........................................119

3.6.2 Business Licenses ..............................................................126

3.6.3 Taxes ...................................................................................128

3.6.4 Insurance ............................................................................131

4. SettingupYourRetailStore ............................................................135

4.1 Finding a Location ......................................................................135

4.1.1 Possible Locations .............................................................136

4.1.2 Points to Consider ............................................................139

4.1.3 Signing Your Lease ...........................................................146

4.2 Store Design ................................................................................155

4.2.1 Outside the Store ..............................................................156

4.2.2 Inside the Store..................................................................158

4.2.3 Store Security ....................................................................162

4.3 Displaying Merchandise ...........................................................164

4.3.1 Maximizing Sales ..............................................................164

4.3.2 Creating Window Displays .............................................166

4.4 Retail Equipment and Supplies ................................................169

4.4.1 Items You’ll Need .............................................................169

4.4.2 Suppliers ............................................................................173

4.5 Obtaining Your Inventory .........................................................176

4.5.1 Wholesalers .......................................................................177

4.5.2 Manufacturers ...................................................................179

4.5.3 Prices and Terms ...............................................................181

4.5.4 Consignment .....................................................................182




5. RunningYourBusiness ....................................................................186

5.1 Store Operations .........................................................................187

5.1.1 Developing a Procedures Manual ..................................187

5.1.2 AreasofOperationsChecklists ......................................189

5.1.3 SettingHoursandPolicies ...............................................191

5.2 Inventory Management .............................................................193

5.2.1 InventorySoftware ...........................................................193

5.2.2 Inventory Tags and Labels ..............................................194

5.2.3 Taking Inventory ...............................................................195

5.3 Pricing Merchandise ..................................................................199

5.3.1 Guidelines ..........................................................................199

5.3.2 Retail Pricing Formulas ...................................................201

5.3.3 ProfitMarginvs.PercentageMarkup............................202

5.3.4 Standard Markups ............................................................204

5.4 GettingPaid .................................................................................205

5.4.1 Accepting Debit Cards .....................................................206

5.4.2 Accepting Credit Cards ...................................................206

5.4.3 Accepting Payment Online .............................................208

5.4.4 Accepting Checks .............................................................208

5.4.5 HandlingCash ..................................................................209

5.5 Financial Management ..............................................................210

5.5.1 Bookkeeping ......................................................................210

5.5.2 Financial Statements and Reports ..................................212

5.5.3 Building Wealth ................................................................220

5.6 Employees ...................................................................................224

5.6.1 Employees versus Contractors .......................................224

5.6.2 BeforeYouHire .................................................................226

5.6.3 RecruitingStaff .................................................................230

5.6.4 TheHiringProcess ...........................................................233




5.6.5 New Employees ................................................................237

6. GettingandKeepingCustomers ....................................................241

6.1 Marketing Tools ..........................................................................241

6.1.1 Printed Materials ..............................................................242

6.1.2 Your Website ......................................................................248

6.1.3 Social Media .....................................................................254

6.2 Marketing Techniques ...............................................................258

6.2.1 Advertising ........................................................................259

6.2.2 Free Publicity .....................................................................263

6.2.3 NetworkingandReferrals ...............................................269

6.3 Events ...........................................................................................270

6.3.1 Your Grand Opening ........................................................270

6.3.2 Cooking Classes ................................................................274

6.3.3 Other Events ......................................................................276

6.4 Customer Service ........................................................................280

6.4.1 Greeting Customers .........................................................280

6.4.2 Making the Sale .................................................................281

6.4.3 Returns and Exchanges ....................................................284

6.5 Increasing Sales ...........................................................................285

6.5.1 GiftCertificatesandGiftCards ......................................285

6.5.2 GiftRegistryServices .......................................................287

6.5.3 GettingRepeatBusiness ..................................................289






1. Introduction“Runningakitchenstoreallowstheownertofullyexpresshisorherloveofcooking,createacommunityoffoodloversandenrichthelivesofthestore’scustomers.”

— Perry Reynolds, International Housewares Association

Congratulationsontakingthefirststeptowardsstartingupyourownkitchenstore,astepintothefascinating,ever-changing,trendyandtastyworldofculinaryspecialtyretail.You’reabouttospendyourdayssurroundedbyuniquegadgets,beautifulkitchenequipmentandaccessories,temptingcookbooksandfun,interestingpeoplewhoareaspassionate about cooking as you are.




Mostpeoplewhoareinterestedintheideaofowningakitchenstorehave certain things in common, so we think we might already know a littlebitaboutyou.Doyoulovetocook?Doyouknowthedifferencebetweenagarlicpressandacitruspress?Areyouforevertryingnewkitchengadgetsandperfectingtheculinarytechniquesthatnewtoolsmakepossible?Perhapsyou’repassionateaboutacertainbrandortypeofkitchenware,orhaveavastcollectionofretrokitchengear.Ormaybeyou’reafoodiewhoenjoysmeetingotherfoodiesinacasual,helpfulatmosphere.Inanycase,you’reprobablyacapablehomechef,havespentalotoftimeinkitchenstores,andknowwhatyoulikeanddon’tlike about them.

Kitchenstoressellawiderangeofproductsrelatedtopreparingandservingfood,andoneofthebiggestadvantagesofopeningyourownstoreisthatyougettodecidewhichoftheseproductsyouwanttocarry.Whetheryouchoosetofocusonaparticularkitchenniche,oryouplantoofferaone-stopshoppingexperience,theproductpossibilitiesareendless,fromcookwareandbakewaretokitchentools,accessories,and small appliances. You can stock placemats, serving bowls, and othertabletopitems,aswellasgourmetnon-perishablefoodstuffandcookbooks.

You’ve probably got a discerning eye when it comes to quality kitchenware,andknowthebest typesof tools foreachcookingtask. Maybe you’re already an expert in using a cookie press, or a mandoline.Ifso,you’llprobablybeanaturalsuccessatsellinginaretailenvironment,whereyou’llhelppeoplefinditemsthatmatchtheircooking needs and challenges, as well as their home and cooking style.

And, selling kitchen products may not be your only opportunity to turn aprofit.Withtherightfacilities,youcanalsochoosetoofferyourspaceforprivatepartiesorcookingclassesanddemonstrations.Learnaboutthese, and other marketing strategies, in Chapter 6.

Chancesareyou’vespentabitoftimeshoppinginkitchenstores,andyoumightpossiblyhaveworkedinoneortwo.Whileitcanbefunandrewarding to work in someone else’s shop, nothing quite compares to thesatisfactionofrunningyourownbusiness,andtakingcreditforyourownideasandflashesofbrilliantcustomerservice.




Thischapterlaysthefoundationfortherestoftheguide.Itprovidesinformationandstatisticsaboutthekitchenstoreindustry,describesthebenefitsofowningyourownstore,andoutlinesthestep-by-stepinstructionsyou’llfindineachchaptertogetstartedonthisexcitingcareer path.

1.1 TheKitchenwareIndustry“This industry is doing very well. People are still cooking. … Kitchen storeownersaresellingawonderful,functionalpracticalitemthat’sbasicallyrecession-proof.”

— Laurie O’Halloran, editor, HomeStyleMagazine

Themarketforhousewaresissolidandcontinuestogrowincertainareas, despite current challenging economic conditions. According to theInternationalHousewaresAssociation’s2008 State of the Industry Report, the global housewares industry was worth $301 billion in 2007. And in 2015 (per www.housewares.org/press/releases/iha/292), that same global market had expanded to $346.9 billion; that’s a healthy 15% increasein7years,severalofwhichweredifficultrecessionaryyears.IntheU.S.,spendingonhousewareswasnearly$76billionin2007,andwas estimated at $82.2 billion in 2015.

“Timehasshownthatwhengrowthof theU.S.economyslows,consumer spending on housewares remains steady,” Phil Brandl, the presidentoftheInternationalHousewaresAssociation,toldResponse Magazine inMarch2008.Headded,“Whilethere’sprobablylessspendingoverall,consumerstendtofocustheirremainingpurchasesonhomeproducts,especiallyastheystayathomeandfeatherthenest.”

Currentlifestyletrends,suchasagreaterawarenessofhealthyeating,more inclination towards “green” products, and “nesting” at home insteadofspendingmoneyinrestaurantsandentertainmentvenues,have all contributed greatly towards the housewares industry. “We’re spendingalotmoretimeeatingathome,eatingtogetherasafamily,”LisaCaseyWeiss,lifestyleconsultantfortheInternationalHousewaresAssociation,toldtheCanadianPressin2007.“We’retryingtofindproducts and ways to have a meal at home.”


http://www.housewares.org/press/releases/iha/292



InSeptember2017,theIHAreported(inablogpostathttps://blog.housewares.org/2017/09/13/whats-trending-now) on recent trends, statingthat“fromtheDeepSouthtotheFarWest,productsthatinspirehealthiercookingareahitwithshoppers;themarketforgrillingtoolscontinuestoflourishyearroundinallsortsofweatherasmoreconsumerscookoutofdoors;andstoreownersreportthatgettingmorelocal(bothintermsofproductsandcommunityinvolvement)isamustforindependentretailers.”

Inaddition,thegrowingpopularityofcelebrity-hostedcookingshowsand television channels like The Food Network and The Cooking Channelhavegivenconsumersagreaterawarenessof,andinterestin, quality kitchen tools and equipment. As these shows continue to grow in popularity, retailers will have greater opportunities to cash in on celebrity name recognition with branded cookware and cookbooks. Thesecelebrityconnections“havecreatedanewlevelofexcitement,”saysLaurieO’Halloran,editorofHome Style Magazine.“Thesecross-promotionswithcelebritieshaveincreasedtheturnoverrateforinventory.”

In addition, the housewares industry taps into a desirable consumer demographic. According to Housewares Marketwatch, most housewares consumersfallintothedesirabledemographiccategoryofhavinganannualhouseholdincomeofgreaterthan$75,000,butagrowingnumberofconsumersfromthemiddleincomebracket($30,000to$54,900)arebeginningtobuyalargenumberofhousewaresaswell.Thisrepresentssignificantgrowthpotential,astherearefarmoremiddle-incomehouseholdsinboththeUnitedStatesandCanada.Research also shows that while large chain retailers have an edge in the small kitchen electrical appliance category, housewares consumers prefertobuytheircookingutensils,cookwareandbakeware,andtabletopaccessoriesfromkitchenspecialtyretailers.Byidentifyingconsumer demographics in your area, you will be able to closely match yourstore’sproductstotheneedsofyourpotentialclients.

TIP: VisitHousewaresMarketwatchatwww.housewares.org/education/marketwatch to keep an eye on market trends.


https://blog.housewares.org/2017/09/13/whats-trending-now

https://blog.housewares.org/2017/09/13/whats-trending-now

http://www.housewares.org/education/marketwatch

http://www.housewares.org/education/marketwatch



1.2 OwningaKitchenStore“Kitchen store owners are passionate people, energetic, who love what they do … they love cooking.”

— Laurie O’Halloran, editor, HomeStyleMagazine

1.2.1 BenefitsofBeingaKitchenStoreOwner

MeetotherfoodiesIfyou’repassionateaboutpastry,orhaveagourmetstreakwiderthanasheetoffreshlymadelasagnanoodle,you’llbeincomfortablecompanyin your own kitchen store. Your expertise will be sought out by people aspassionateaboutfoodasyouare—anddoublyappreciatedbythosewhoarejuststartingout.You’llgettotalkabouttechniques,swaprecipes and hear about exciting new dishes all day long.

TastytreatsWithyummygourmetingredientsandhigh-endcookingequipmentonhand,you’llfindarenewedorheightenedjoyincooking.Bytryingouttheitemsyouhaveinstock,you’llbeabletomakeinformedrecommendations,helpcustomersfindjustthethingthey’relookingfor,andenjoytastytreatswheneveryouwant.

FunatmosphereCookingis funwhenyouhavetherightequipment,andpeopleshoppingforcookingequipmenthavethatsenseofexcitementatfindingjusttherightpan,servingdishortool.Yourclientswillbeexcited to try out their new purchases, and you’ll be excited to tell them about all the things they can do with them. Plus, the bright colors andshinytexturesofkitchenstoremerchandisemakeforapleasant,beautifulenvironmentinwhichtowork.

InterestingproductsNew kitchen tools and gadgets are being invented all the time, and every year brings new colors and styles to your inventory. You’ll always havesomethinginterestingtodo,try,admireorsell,andthisever-




changingparadeofspecialtymerchandisewillmakeyourdaysexcitingand varied.

HostcelebritychefeventsBy holding cooking classes and demonstrations at your store, you’ll haveavenuethat’sready-madeforanyvisitingchefsorcookbookauthorstogiveademonstrationorholdabooksigning.Ifyoustockcookbooksorname-brand cookware, you’ll have an automaticconnectiontothosecelebritychefs,throughtheirbookorcookwaredistributors’ marketing departments. When they’re on tour, your store couldbeoneoftheirstops.

HostexcellentdinnerpartiesWhatbetterplacetoshowoffyournewstockorlatestgadgetsthanatadinnerpartyforyourfriends,familyorbusinessassociates?Byhavingaccess to the latest gear, you’ll be able to impress others with your cookingandentertainingskills.Plus,thoseimpressedguestsmightjustwant to try your recipes at home, which means you can promote your products even without trying.

BeyourownbossAstheownerofakitchenstore,you’llhavetheresponsibilityofmanaging a store the way you think it ought to be done, and will get totakecreditforthesuccessfuldisplays,bigsalesdaysandsuccessfulpromotions that you come up with and do. You’ll be able to schedule yourhourstosuityourneeds(withinnormalretailhours,ofcourse),andwiththehelpofstaff,cantakebreaksandvacationswhenyoudecide you want to.

AnexcusetowatchcookingshowsIt might sound silly, but you’ll need to know about the latest techniques andequipmentbeingusedbytelevisionchefs likeJamieOliver,TheBarefootContessa,MarthaStewartandNigellaLawson.Yourcustomersarewatchingtheseprograms,andyoucanbetthatifNigellarecommendsanewtypeofwhisk,they’llbeaskingforitthenexttimethey stop in.




FinancialRewards

Cooking the books might not be a sound business practice, but cookingupprofitsiseasyinthekitchenstoreindustry.Accordingtohousewares industry statistics, retail store managers in this business makeamedianannualincomeof$45,349.Withproductsthatretailfromanywherefromafewdollarstoafewhundreddollars,therangeofsalespossibilitiesisasbroadasitisdeep.Plus,asakitchenstoreowner,youhavethefreedomtogoasfarasyouwantwithsales,bringing in as much as you can in as many hours as you want to put in. You are limited only by your own time and energy.

1.2.2 ATypicalDayGenerallyspeaking,yourworkingenvironmentwillbeclean,well-lit,andcomfortable.Exceptforfranchisebusinesses(whichwe’lldiscussin more detail in Chapter 3), the store’s environment and design will belargelyyourowncreation.Thethemeorfeelofthestoremayrangefromwarmandcozyorbrightandcheerful,toclassicandstylish,depending on your store’s concept and design. Although we’ll also discusslateronhowtochoosethesizeofyourstoreanditslocation,yourbusinessmaybelocatedinavarietyofvenues,fromashoppingmalltoastand-alonelocation.

Dependingonthesizeofyourstore,youmayneedonlyoneortwoemployeesorseveral.Youwillbespendingalotoftimedealingwithyourcustomersandstaff,soit’simportantthatyouenjoyworkingwithpeopleandarepatientandcourteous.Youwillalsobeonyourfeetafairamountduringthedaydealingwithavarietyoftasks,whichwillrequireplentyofenergy,patience,andcourtesy.

BeforeYouOpen

A typical day varies somewhat depending on the store, but in most cases,willbeginwitharoutinemuchlikethefollowing:

• opening up the store

•turningthesecuritysystemoff

• turning the lights and computer systems on




• checking the employee schedule

•checkingyourdailycalendarforanyspecialappointmentsormeetingsforthatday

• checking your voicemail and email

•gettingchangeandsettingupcashregisters

•settingthestoretemperatureandputtingonthemusicsystem

•makinganybankdepositsfromthedaybefore

•holdinganynecessarystaffmeetingsfortheday

• checking that the store is neat, clean and well stocked

DuringStoreHours

During store operations, you and your employees will need to:

•receiveandcheckdeliveriesofmerchandiseand/orsupplies

• greet customers and assist them with their purchases

• ring up purchases

• handle problems and returns

• answer the phones

• deal with employees’ concerns

• place merchandise or supply orders as needed

•makesureshelves,sellingflooranddisplaycasesareinorderandwell-stockedthroughouttheday

•checkonstaffregularlytomakesureoperationsaregoingsmoothly

AfterClosing

Attheendoftheday,youwillneedto:

• gather sales and merchandise data and statistics




• close out the cash registers

•tallytheday’sreceiptsandplacetheminasafeordepositthemat the bank

• check stock inventory and receipts

• clean and straighten the store

•checkorrearrangeshelfandwindowdisplays

• complete paperwork and correspondence

• review the employee schedule

•makemanagementnotesforthenextday

•checkthatallequipmentisproperlycleanedandshutoff

•checkthatthelightsareturnedoff,andthesecuritysystemisonbeforeleaving

Other periodic responsibilities include paying taxes and bills, dealing withpromotionandadvertising,keepingabreastofnewproductsandother innovations in the industry, negotiating with suppliers, keeping licensescurrent,andattendingtradeshows.

Becauseyouwillbejugglingalotofimportantresponsibilities,it’sagoodideatomakeadailychecklisttofollow,aswellasaweekly,monthly,andseasonalchecklist,asneeded,tobesureyoudon’tforgetany important steps. We’ll show you how to set up a store procedures manual in Chapter 5, “Running Your Business.”

1.3 InsideThisGuideThe FabJob Guide to Become a Kitchen Store Owner is organized to help takeyoustep-by-stepthroughthebasicsyouwillneedtoopenandoperateyourownstore.Thechaptersareorganizedasfollows:

Chapter 2 (“Getting Ready”) explains how to learn the skills you will needasakitchenstoreowner.Itcoverswaysoflearningfromexpertsand through observation. You will also discover how to “earn while youlearn”bygettingajobintheretailindustry,andtogainspecial




skillsbyvolunteeringforcommunityorganizations.You’llalsofindresourcesforlearningmore.

Chapter 3 (“Starting Your Kitchen Store Business”) will help you decide whatkindofstoreyoushouldopen.Thischapterdiscussesdifferentproducts you can sell and will help you decide whether to buy an existingstore,operateafranchise,oropenanewstore.Italsoexplainswhatyouneedtogetstarted,includingyourbusinessplan,start-upfinancing,storename,andotherimportantmatters.

Chapter 4 (“Setting Up Your Retail Store”)offerstheinformationyouneed to actually set up your store. It gives advice on how to choose a location, get merchandise to sell, and arrange displays. You will also discover what equipment and supplies you will need.

Chapter 5 (“Running Your Business”)takesyouintotheday-to-daychallengeofrunningyourstoreonceit’sopen.Itexplainshowtodevelop a procedures manual, and covers inventory management, financialmanagementandpricing,andworkingwithstaff.

Chapter 6 (“Getting and Keeping Customers”) explains how to market your business and discusses important customer service concepts. It alsogivesyouideasforspecialeventsandpromotionsyoucanusetomakesureyourstoreisaspopularandprofitableasitcanbe.

Byfollowingthestepsinthisguide,youwillbewellonyourwaytolivingyourdream—openingyourownsuccessfulkitchenstore.

YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Kitchen Store Owner.Toorderanddownloadthecompleteguidegoto https://fabjob.com/program/become-kitchen-store-own-er/.


https://fabjob.com/program/become-gourmet-food-store-owner/

https://fabjob.com/program/become-kitchen-store-owner

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