Welcome back to Laura & Sarah’s newsletter where we explore Unconventional Entrepreneurship.
We are continuing our series on circular business ideas. If you missed our intro to circular economy, you can check it here.
For this series we are exploring small circular businesses anyone could start with less than $25k. Today we are taking on the grocery giants by starting a micro local food market.
FOOOOOOOD - One of Sarah’s favorite things.
The food supply chain that dominates where we get most of our daily calories is linear, priortizing profits and growth over our health and ecosystems. We all gotta eat and our grocery bill seems to rise daily so let’s look at one business idea that can contribute positively towards circularity in our food system.
My dream is to own a communal farm with YOU where we grow our own food and are closely tied to how it’s produced. Until then, 90% of our food budget is going to the biggest supermarket chain in the Netherlands: Albert Heijn. (What’s with Alberts becoming grocery giants???).
As I eat my tasteless plastic packed produce and wonder where it was picked and by whom, my mind spins with all the damage and waste I know I’m supporting just to eat.
This doesn’t include how these big chains pressure farmers and increase demand for cheap processed food with little to no transparency on its effect on the environment or our health.
From Grocery Giant to Mini-Market: the Consumer Experience
When we moved to Mauritius, the internets made me think I would shop within walking distance from my house in an open-air market with fresh local produce sold at a bargain to be placed in my chic rattan basket.
But this was not reality.
I soon found myself, like most Mauritians, spending several hours a week in a huge box market (SuperU) fighting for parking and cart space to buy overpriced produce and pantry items in bulk so I wouldn’t have to drag myself there for another 7 days.
My personal hell in paradise.
Seeking Local Solutions...
A local farm entrepreneur advised me to only feed my children frozen veggies imported from Europe due to the chemicals and lack of safety oversight on food produced locally.
There were a few not-so-convenient organic or CSA-style services with limited selections, so we still had to go to SuperU every week. Until…
In the midst of covid, a small scrappy and deeply passionate couple opened a micro-storefront down the road from us. They worked with local producers and farmers to bring the best the island had to offer along with quality basic pantry items. They shared my concern for the unregulated use of chemicals and sourced from farmers whose practices they knew and trusted.
I was soon able to go to the SuperU market only monthly. Instead the kids and I walked down the road to get a few pantry items, veggies for dinner, fresh fruit, and even pre-made meals frozen from a local producer. They also had things like local kombucha and gluten-free selection they brought in for us.
I can not think of anything that changed our quality of life as much as that market. With 3 small kids, two full-time jobs, and one parent commuting to Kenya, getting groceries had become a painful chore. Sometimes taking up half the weekend and increasing daily stress with rushed stops on the commute between work and home.
When Bazar Cononniers opened it saved us real time, made meal prep easier, and daily life less stressful. Have you ever had to wrestle 3 kids in and out of car seats to go somewhere they hate? Now we walked with joy and adventure to get treats at the rustic market.
We reduced our waste by not buying more than we needed and with almost no plastic packaging. They collected our glass jars, cardboard boxes, bags, egg cartons and would reuse them for clients and their producers. They also had vendors with returnable jars we would pay a deposit to use.
Local and micro can take on the giants
The cornerstones of circular food systems are regenerative farming practices, local production, access to low-impact food, and reduction of food and packaging waste. The small market can be more agile than a large corporate to make these cornerstones profitable.
Small organic, biodynamic, and regenerative farmers struggle to get their products to customers, since they can’t produce the quantity big chains demand. Same for small-batch crafters of specialty foods. At the same time, consumers are paying more and more for poorer quality food from big grocery chains.
Micro grocers can compete with the giant grocery conglomerates both on quality, convenience and even price (as there is less competition, the big boxes have increased consumer prices while driving down the price they pay producers). Targeting a local region with delicious and convenient nutrient-dense food is a way to help reduce the exploitation of land and damage of highly processed food on all levels including our bodies.
The example I used from Mauritius could be applied everywhere I’ve ever lived. Even the US suburbs - though that may be the most difficult - AND SO…
The first image is from when the shop opened, the second is more recent - that’s right! - they are still going strong despite opening during a pandemic in a country that literally shut down the grocery stores.
The lesson I take away from these photos is critical to so many small businesses: start with what you have. They had a vision; they also knew they wouldn't have enough capital to make the vision of the 2nd photo come to life right away. So they focused on their key value add for the community: bringing in high-quality products that the neighborhood wanted instead of a beautiful facade. This way they didn’t have a huge investment and debt over them before they started making money.
Building a Business: Starting a MicroMarket in the American Suburbs
Now let's see how you could start a micro-market in the US with less than US$25K initial capital. Let's unpack three key elements for a micro-market: 1) Location; 2) Food Sourcing; and 3) Differentiation.
How to Find a Storefront Location.
Unfortunately, urban planning in the US prioritizes big box and corporate retail chains rather than mixed use and walkable main streets. We need a location that is walkable or in a shopping are where people are regularly going.
Storefronts have gotten a bad reputation in the digital age, but there's plenty of data that they are still relavent, and other aspects of independent local retail contribute to creating healthy communities.
This is coming from my personal experience owning and running physical stores. I’m not going to go deep into that now, but I want you to think of your favorite shopping area, maybe someplace you visted while traveling or a shop where you've met the owner. Can you imagine how they contribute to the community more than the next Micheal's or Big Grocery store?
Most urban areas have mini (less than 200 sq m or 2000 sq ft) storefronts and destination areas where retail is condensed and people are walking around. If you live in an urban area, get to know the local business owners - they will likely be first to know when a space is about to come available.
But what about car-based cities where zoning has separated commercial retail from residential areas?
Shopping in the Netherlands
Shopping in the US Suburbs
SIDE NOTE: Want to geek out on urban planning around people vs cars? Check out Not Just Bikes on YouTube.
Let’s look at a neighborhood in North Denver where some of my friends have created a suburban community village by buying houses in the same neighborhood.
A quick study of this neighborhood shows that there are some huge food deserts, interestingly near some of the wealthier neighborhoods. This area (in my opinion) is a suburban nightmare completely built around a car culture, so drop any dreams of a cute walkable market mixed in with residential housing. People are going to have to drive and park.
Looking at the available commercial retail space, there are opportunities worth considering to open a shop in a 2000 - 6000 sq foot space. Next to the pet store for example.
For a busy parent, this is a perfect spot to get a few things you need between Costco runs and pick it up quickly on the way home. The difference between popping into a store like this vs the SuperWalmart across the street when you are in a hurry or, god forbid, have small children can not be understated.
When thinking about location, find a high traffic spot where people might be already or enjoy going. Get to know local shop owners who can let you know when space might be available.
Sourcing Products.
Like many things in being an entreprenuer, this is not easy. If you like the idea of getting to know where your food comes from and building relationships with like-minded entrepreneurs, it will be worth every email and long drive.
Where I would start…
Make a list of urban farmers, micro farmers and culinary artisans within 200 miles of my shop and start sending introductory messages.
I would look for them on IG, TikTok, as well as associations and old fashioned web searches.
I would want to find several urban farms and a composter who I can work with to deal with any waste and who I can help find a market for their seasonal overages.
I would look for community food artisans who can only do small batches and a community commercial kitchens to find culinary geniuses who would want to provide you with prepared food, baked goods and other specialities.
I would eventually look further afield (500+ miles) and more traditional wholesale food resources to make sure I have suppliers all year round.
When thinking about sourcing, spread the word widely and think about what can make you stand out.
How to differentiate yourself?
Cater to certain diet types, lifestyles, or ages. I looked at buying a microgreens business a couple of years ago. My idea was to have a subscription for women in perimenopause. Just floating the idea around I had a potential partner and a list of initial clients despite being new here and knowing almost no one.
A niche can help you find clients, build loyalty, and decide on the initial products.
Niche Ideas:
- keto/paleo
- vegan
- gluten-free
- kid-centric
- Convenient yet healthy food at the same price as McDonald's
- Pre-seasoned frozen
- Regenerative meat
- Fermented-foods.
- Produce direct from market garden farmers and food forests
Local and micro can take on the giants
Small organic, biodynamic, and regenerative farmers struggle to get their products to customers, since they can’t produce the quantity big chains demand. Same for small-batch crafters of specialty foods. At the same time, consumers are paying more and more for poorer quality food from big grocery chains.
The cornerstones of circular food systems are regenerative farming practices, local production, access to low-impact food, and reduction of food and packaging waste. The small market can be more agile than a large corporate to make these cornerstones profitable.
Micro grocers can compete with the giant grocery conglomerates both on quality, convenience and even price (as there is less competition, the big boxes have increased consumer prices while driving down the price they pay producers). Targeting a local region with delicious and convenient nutrient-dense food is a way to help reduce the exploitation of land and damage of highly processed food on all levels including our bodies.
The example I used from Mauritius could be applied everywhere I’ve ever lived. Even the US suburbs - though that may be the most difficult - AND SO…
Last Thoughts on the Mico-market
The small grocer could work as a delivery or retail brick and mortar. I would argue for a retail space unless there is no option for that in your neighborhood due to the poor city planning and zoning that has moved retail spaces away from where we live. You may have to get creative or look for a nearby neighborhood that has some commercial or retail space available. Ideally walkable. Best if your storefront is near other shops or destinations like specialty coffee, convenience stores, or bakeries.
Another option is to be the go-between local producers and your neighborhood by starting a CSA or some direct ordering and delivery service. I’ve been raving about this new direct from European farms service we just signed up for - so yummy.
Let me know in the comments below if you want to see the financial models and basic business plan for one of these niches or in a particular region.
Thanks for dreaming with me!
Below you’ll find a couple more examples of food markets I enjoy here in the Netherlands. And some further reading.
Hielke’s Verswinkel (Fresh Market) in Abcoude
As I was writing this I had to visit a Doctor in a nearby town here in the Netherlands. I arrived early and was looking for something quick to eat. I was dreading having to walk up to the Albert Heijn ( and get my normal bland snack. Instead I luckily wandered into this oasis
What struck me was the prices and quality of the food. Their prepared food was less expensive and far superior to the big grocery. The layout was beautiful and they had all one needed for sustance.
Shopping in little store like this is a dream for my over active and easily distracted mind.
6 Euro for this salad, easily 10 at the big chain supermarket where the increased price gets me more plastic and less quality
Tayba Market - Lunetten Utrecht
I lied earlier when I said that I have to shlep to the Albert Hiejn to get groceries. In reality it’s a 5 minute very pleasant walk by ducks and canals. There are 2 big box grocery shops to choose from, but between the giants is an independent Sirian market. I love it.
Further reading:
Merging Grocery Giants Threaten Americans' Food Security
Supermarkets and the Environment
How Bad Are Supermarkets for the Environment?
The Global Food System: An Analysis
Why Supermarket Monopolies Are Bad for the Farm Economy
Responses