How to Open a Convenience Store in Australia (2025)

Opening a convenience store in Australia can be a rewarding business venture, especially as consumer habits increasingly shift toward seeking convenience.
The convenience store industry has a significant market size, with an estimated revenue of $203.0 billion in 2024. This guide outlines the essential steps to successfully open your convenience store, considering various options, including franchising, independent ownership, and government registration.
How to Start a Convenience Store in Australia?
1. Understand the Convenience Store Concept
A convenience store offers a wide range of everyday items, including groceries, snacks, beverages, toiletries, and other essentials. The primary appeal of convenience stores lies in their accessibility and the quick shopping experience they provide.
Types of Convenience Stores
Independent Stores:
Owned and operated by individuals or small businesses, independent stores allow for flexibility in product selection and branding.
Franchise Stores:
Operated under an established brand, these stores benefit from brand recognition, support, and a proven business model.
2. Research the Market
Before starting your convenience store, it’s crucial to conduct market research to understand the landscape:
Target Audience:
Identify the demographics of your potential customers. Consider factors such as age, income level, and shopping habits.
Location Analysis:
Evaluate various neighbourhoods to determine the best location based on foot traffic, competition, and accessibility.
Industry Trends:
Stay informed about current trends in the convenience store market, such as the demand for healthier food options and the impact of technology on shopping habits.
3. Create a Business Plan
A solid business plan is essential for guiding your convenience store's development and attracting potential investors. Your business plan should include:
Executive Summary:
Outline your business goals, mission, and vision.
Market Analysis:
Summarise your market research, including customer demographics and competitor analysis.
Operational Plan:
Detail your store’s layout, product offerings, and staffing needs.
Financial Projections:
Include startup costs, revenue forecasts, and potential funding sources.
4. Choose Your Business Model
When deciding how to operate your convenience store, you can choose between independent ownership or franchising. Here’s a closer look at both options:
A. Independent Convenience Store
As an independent owner, you have the freedom to select your products, branding, and operational strategies. This option allows for greater creativity and flexibility. Within this category, you have two primary pathways:
1. Buying an Existing Store
Overview: Purchasing an established convenience store can be a faster route to opening your business. It often comes with an existing customer base, inventory, and trained staff.
Benefits:
- Established customer loyalty.
- Existing supply chains and vendor relationships.
- Immediate cash flow.
Cost: Initial investment typically ranges from $200,000 to $1 million, depending on location and what the store offers.
Considerations: Assess the store's financial health, location, and reputation before purchasing.
2. Opening a New Store
Overview: Starting from scratch allows you to create a store tailored to your vision and community needs.
Benefits:
- Complete control over branding and product selection
- Ability to innovate with new concepts and services
Cost: Initial investment typically ranges from $300,000 to $1 million, depending on location and offering.
Considerations: This route requires more time and effort for market research, store design, and customer acquisition.
B. Franchise Convenience Store
Opening a convenience store franchise offers the benefits of an established brand and operational support. Franchisees typically receive training, marketing assistance, and a proven business model. Here are some popular convenience store franchises in Australia:
Popular Franchise Options
1. 7-Eleven Australia
Overview: A well-known convenience store chain offering a wide range of products, including groceries, snacks, and fuel.
Investment: Initial investment typically ranges from $200,000 to $1 million, depending on location and range of offers.
Royalty Fees: Franchisees typically pay ongoing royalty fees based on a percentage of their gross sales.
2. Caltex
Overview: Known primarily for fuel, Caltex stores also feature convenience retail sections selling food and drinks.
Investment: Initial investment ranges from $200,000 to $1 million, depending on the site.
Royalty Fees: Franchisees typically pay ongoing royalty fees based on a percentage of their gross sales.
5. Secure Financing
Financing your convenience store is a critical step. Options include:
Personal Savings: Utilising your savings can reduce debt but may pose personal risks.
Bank Loans: Approach banks or financial institutions for business loans, ensuring you have a well-prepared business plan.
Investors: Seek investors interested in funding your venture in exchange for a share of profits.
6. Find a Suitable Location
Choosing the right location is vital to your convenience store's success. Consider the following:
Visibility: Ensure the store is easily visible and accessible to customers.
Foot Traffic: Locations near schools, public transport, and residential areas often attract higher foot traffic.
Rental Costs: Balance the rental costs with the expected customer volume and potential revenue.
7. Obtain Licences and Permits
Starting a convenience store in Australia requires various licences and permits, including:
A. Business Registration
Register Your Business Name: You must register your business name with the Australian Securities and Investments Commission (ASIC) if it's different from your own name.
Choose a Business Structure: Decide whether your business will be a sole trader, partnership, company, or trust, and register it accordingly.
B. Local Council Permits
Zoning Approvals: Check with your local council for zoning laws to ensure your store complies with land-use regulations.
Development Approvals: If you plan to modify the premises, you may need a development approval from your local council.
C. Food Safety Licences
If you plan to sell food items, ensure compliance with food safety regulations:
Food Business Registration: You may need to register your food business with your local council. This registration often requires inspections and adherence to food safety standards.
Food Handling Certificates: Ensure you and your staff complete food handling courses to comply with safety and hygiene standards.
D. Other Regulatory Requirements
Insurance: Obtain appropriate insurance coverage, including public liability insurance, product liability insurance, and workers' compensation insurance.
Tax Registration: Register for an Australian Business Number (ABN) and Goods and Services Tax (GST) if your turnover exceeds the threshold.
8. Design Your Store Layout
An efficient store layout enhances the shopping experience. Consider:
Product Placement: Utilise visual merchandising techniques and position high-demand items near the entrance to attract customers.
Aisle Design: Create clear, easy-to-navigate aisles for customers.
Checkout Area: Design a dedicated checkout space that minimises wait times.
9. Invest in a Good POS System
A reliable Point of Sale (POS) system is essential for managing sales, inventory, and customer data efficiently. A good convenience store POS system offers numerous benefits, including:
Streamlined Transactions: Fast and accurate processing of sales transactions.
Inventory Management: Real-time tracking of stock levels, helping you avoid overstocking or running out of popular items.
Customer Insights: Collecting data on customer purchases to tailor marketing efforts and improve customer service.
Reporting and Analytics: Generating reports to monitor sales trends, peak hours, and overall store performance.
Consider POS systems that offer features tailored to convenience stores, such as integrated payment processing, loyalty programs, and mobile compatibility.
10. Hire and Train Staff
Your staff plays a crucial role in the success of your convenience store. When hiring, focus on:
Experience: Look for candidates with strong retail skills like customer communication and sales techniques.
Training: Provide comprehensive training on store operations, product knowledge, and customer service.
11. Implement Marketing Strategies
Attracting customers is essential for your store's success. Consider the following marketing strategies:
Social Media Presence: Utilise platforms like Facebook and Instagram to promote your store and engage with the community.
Loyalty Programs: Implement loyalty programs to reward repeat customers and encourage long-term loyalty.
Community Involvement: Participate in local events to increase visibility and build relationships with customers.
Bonus Content: Convenience Store Marketing Ideas
12. Monitor Performance and Adapt
Once your convenience store is operational, continually assess its performance. Use key performance indicators (KPIs) to track sales, customer satisfaction, and inventory turnover. Be open to customer feedback and willing to adapt your offerings to meet their needs.
Putting it All Together
Opening a convenience store in Australia in 2025 can be a lucrative business opportunity. By conducting thorough market research, creating a solid business plan, and choosing the right business model—whether franchising or independent ownership—you can set yourself up for success. Stay adaptable and responsive to your customers' needs, and your convenience store can thrive in this competitive market.
Contact Us for POS Systems - POSApt
Are you ready to elevate your convenience store with a reliable and efficient POS system? At POSApt, we specialise in providing cutting-edge POS solutions tailored to meet the unique needs of convenience stores. Our systems streamline transactions, manage inventory, and offer valuable customer insights, ensuring your business runs smoothly and efficiently. If you're interested in learning more about how POSApt can help your convenience store thrive, please contact us.
Disclaimer
This article is intended to provide a general overview of the steps involved in opening a convenience store in Australia. It is not an exhaustive guide, and individual circumstances can vary widely. We strongly recommend conducting your own research and seeking professional advice tailored to your specific situation. While we strive to provide accurate and up-to-date information, we cannot guarantee the completeness or accuracy of the content. Regulatory requirements, market conditions, and financial considerations may change over time, and it is important to verify all information with relevant authorities and experts.