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In times of crisis, the food franchise is a safe and profitable bet

In times of crisis, the food franchise is a safe and profitable bet

Published in Emprendedores , 29 - May , 2020 abogados franquicias Overview franchises

Enrique Martínez, director of EROSKI Franchises, analyzes the reality of the chain and the food market.

The big food chains have taken a step forward in the current health and economic crisis, with frenetic activity to respond in an agile and effective way to the needs of a population confined to their homes. One of the benchmarks in this market is EROSKI Franchises. Its director, Enrique Martínez, now delves into the conclusions that are being drawn from this complex scenario, the trends that can mark the immediate future of the food sector, the products that are starring in the shopping basket in the current era and in how this supermarket chain faces the present and the coming years.
ENTREPRENEURS: What economic and entrepreneurial lessons are you learning from the crisis caused by the coronavirus?
ENRIQUE MARTÍNEZ: This health crisis is having a very high human cost from which no one is left out, and, furthermore, it is leading to a social and economic crisis that paints a complex future.
At Eroski we have learned to focus on the basic elements of the business, on improving cooperation and co-responsibility among all agents in the value chain, to respond to an emergency situation like this.
The sector has responded in an exemplary way and I believe that we have obtained important social recognition for our work and effort.
In the future, it will be necessary to identify new business opportunities that serve the new trends and needs of our society and help regenerate the economic fabric damaged in this crisis. Food distribution has proven to be one of those benchmark businesses and we believe it will continue to lead an essential role in this recovery.
EMP .: How do you think the food market will evolve in the short and medium term, what new trends and opportunities will the sector star?
 
E.M .: The food sector will continue to be a secure, stable and growing sector. Market trends indicate that a large part of leisure activities will continue to be carried out at home, which means the highest consumption in food in general and in indulgent products such as beverages, pastries and snacks.
Interest in healthy and KM0 products is a trend that has come to stay and will continue to grow in the future. Now more time is spent cooking at home, and interest in fast or prepared food has been reversed.
The preference of customers for making purchases in local supermarkets had already been a constant. Now, this trend is further reaffirmed with the coronavirus crisis. The client seeks closeness, quality and price.
Perhaps we came from a situation of more spending in a shopping basket with more focus on some premium products and less focus on price. In this sense, there may be a growing interest in promotions and offers in the future. In this scenario, the purchase of basic and private label products has increased, a category the latter where we cover all areas and needs of our clients through the Eroski Basic, Sannia, Seleqtia, Natur and Belle lines.
EMP: What products are performing better in terms of sales in the current scenario and which references can lead sales or grow with special intensity in the post-coronavirus stage.
EM: The data of the evolution during the first two weeks of confinement show us a growth of products of basic categories such as legumes, pasta, rice, preserves, oil, milk, piece meat, infant feeding, dairy, sugar, medicine cabinet and products. hygiene and cleaning.
From the third week onwards, basic necessities continue to be in high demand and high demand peaks begin to appear in indulgence products such as chocolate, chips, popcorn or nuts, beer ... Other products that are registering high demand peaks These weeks are products related to confectionery such as flour and yeast.
After coronavirus, sales are expected to continue to be high in all of these categories.
EMP .: What are the competitive advantages of EROSKI Franchises that, in the current crisis scenario, have acquired special value?
E.M .: In this crisis, Eroski's innovative logistics, supply and transportation systems have demonstrated an extraordinary capacity for flexibility, adaptability and intelligence. This has allowed us to continue giving an optimal service, despite the complexity of the situation, where the supply of some products has been lacking.
We have managed to quickly adapt and integrate new suppliers from the primary sector and the industrial sector and to give out these products, which due to the closure of the Horeca sector was not having a way out.
Eroski Franchises has a wide network of idad proximity ’stores, which are the ones with the greatest affluence today and covering the needs of the population. This is due to the fact that they are supermarkets that offer a wide assortment, a top quality service, security and closeness to the customer.
In short, Eroski Franchises has increased its market share and customer loyalty, while our franchisees have felt supported and supported at all times, when they needed it most.
EMP .: How have you reinforced support for franchisees in the current crisis?
EM: We have strengthened support for the franchisee network, in the same way and with the same intensity as in our own network, multiplying supply shipments to stores, reinforcing the range of products and articles in greatest demand, advising and facilitating security policies, but above all, being close and supporting our franchisees on a daily basis.
EMP .: How has Eroski Franchises evolved in the last year and, with the current panorama of health crisis, what growth plans do you have in 2020?
E.M .: EROSKI opened 58 franchises last year, with a global investment of 8.7 million euros and the generation of 346 jobs. For this exercise, we plan to open around 60 franchises.
EROSKI franchises are proximity supermarkets of about 150-400 m², which integrate the local product of each geographical area, with a wide assortment of fresh products and food and which display close and trustworthy attention through its franchisees. All these characteristics of Eroski franchised supermarkets, together with the extensive experience of having franchised more than 500 supermarkets in the last 40 years, make it possible for us to have defined an ambitious and prosperous plan for new franchises for 2020 and next years. In the end, we are an opportunity for the future, in a secure, profitable and growing sector.

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En tiempos de crisis, la franquicia de alimentación es una apuesta segura y rentable
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