One frozen food retail business you can check out is M&M Food Market. Based in Canada, this retail chain has over 1,500 locations. They sell seafood, meats, vegetables, prepared meals, and more similar to a butcher shop. This chain has been in business for 40 years and could be your next business opportunity since they accept franchisees.
The size of the frozen food market is probably bigger than you’d guess. According to Statista, the industry is expected to reach $366.3 billion by 2026, a 40% increase from 2018’s data. So if you’re looking to get into the business of selling frozen food, the analysts think this is a good time to do it.
How much does it cost to open M&M Food Market?
To start franchising this frozen food retail chain, you’ll need a liquid capital of $150,000 and a net worth of $300,000. The investment to expect is $320,000 and the franchise fee is $30,000.
Financial Requirements and Fees
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The following below are the fees and financial requirements you can expect when you franchise M&M Food Market:
|Fees / Expenses||Financial Amount|
M&M Food Market also states that new store construction costs are $350,000 to $450,000 and that re-franchised store fees are $100,000 to $500,000+. Royalties and advertising Fees for both national and local areas are 11%.
Average Sales / Revenue per Year
M&M Food Market has not disclosed their financial records so it is difficult to get an official data of their revenue. However, according to Datanyze, they have reported that M&M Food Market’s revenue is $20.2 million. According to this report, one M&M Food Market in Ontario generated $822,456 in gross revenue.
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M&M Food Market Franchise Facts
|Incorporated Name||M&M Food Market|
|Industry||Frozen Food Retail|
|Subsector||Food and Beverage|
M&M Food Market started in 1980 in Kitchener, Ontario as M&M Meat Shops. The M&M stands for the founders Mark Nowak and Michael Voisin. Their goal back then was to sell restaurant-quality food at a great value along with an exceptional service to customers. Though their name has changed as well as their look, M&M Food Market’s goal has remained the same since the early days.
The items that M&M Food Market sells is wide ranging and are estimated to be about 450 quality products at any time. They offer:
- Appetizers (mozzarella sticks, shrimp cocktails, chicken wings, etc.)
- Butcher Items (Striploin steaks, boneless and skinless chicken breasts, etc.)
- Prepared Meals (Lasagna, meat loaf, pot roasts, etc.)
- Seafood (Lobster tails, fish fillets, salmon, etc.)
- Single Serve (Shepherd’s Pie, buttered chicken, soup, noodle dishes, etc.)
- Sides (Scalloped potatoes, onion rings, fries, etc.)
- Vegetables (Green Beans, Brussels sprouts, mixed vegetables, etc.)
- Bakery (garlic bread, buns, baguettes, etc.)
- Desserts (pies, bars, cakes, etc.)
- Gluten-free (meatballs, pork tenderloin, mashed potatoes, etc.)
- Vegan (veggie burgers, vegetable medleys, Spanish rice, etc.)
- Vegetarian (dips, risotto, spring rolls, etc.)
Aside from frozen food items, M&M Food Market also sells pantry essentials such as dressings, seasonings, and sauces. They also sell kitchen essentials such as tongs, bowls, knives, and more.
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M&M Food Market assures you that their products are carefully selected and that they are prepped well with ingredients that are well-portioned. Their products do not contain artificial colors, sweeteners, and flavors. Their food products are also flash frozen, a process that preserves freshness and flavor.
To franchise M&M Food Market, fill out their online inquiry form found here. You will then download their Franchise Information Kit which contains all the details you are looking for.
Afterward submitting the application, you will undergo a phone interview. If you pass the first verification steps, you’ll need to sign a Non-Disclosure Agreement (NDA), Financial Verification, and Store Financials Review. At this point you will also get to read M&M Food Market’s Franchise Disclosure Document.
You’ll also go through a Credit/Legal Checks & Personality Assessment after signing all the documents needed. You’ll also get to meet the corporate management team from M&M Food Market. You might even get to shake the CEO’s hand. The last part of the franchising process will finally to sign the Franchise Agreement and complete the training program.
The criteria that M&M Food Market is looking for in their franchise partners are the following:
- Passionate about food and the M&M Food Market brand.
- Actively involved in the success of the business. This is not a passive business opportunity.
- An investor with a proven track record in business ownership.
- Committed to working with the local community.
- Skilled in business and marketing.
- A strong communicator with effective selling skills.
- Aligned with the M&M Food Market model, procedures, and vision.
As franchise partners, you will be able to go through an on-site and in-class training with M&M Food Market’s experts so they can teach you in running the business. You will also receive ongoing virtual training, regular communication with Area Managers, and support from the head office so you can be assured of the proper assistance in running your M&M Food Market location.
You can also franchise multiple M&M Food Market locations. For now, Canada is the only area that M&M Food Market is open to franchising, specifically in the following areas:
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- British Columbia
- Nova Scotia
M&M Food Market has won numerous awards and is recognized by many brands such as being Canada’s 50 Best Managed Companies, Winner of the WOW Award for Customer Experience in Ontario and Quebec, and Double Finalist Award for the 2019 Retail Council of Canada.
At present, M&M Food Market is owned by Parkland Corporation who is known as a big operator of convenience and fuel marketing businesses. The CEO for M&M Food Market is Andy O’Brien and their headquarters is located at Mississauga, Ontario.
How Much Does M&M Food Market Make in Profit?
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There is no known official data as to how much M&M Food Market makes in profit. According to independent butcher shops and meat market owners we’ve surveyed, it’s not uncommon for these establishments to operate at a profit margin of 20%.
Of course, M&M Food Market is not really a traditional butcher shop. They could operate at a profit margin closer to 29.9% similar to frozen food products. Frozen food businesses can operate above average considering minimal food waste due and also less labor required to serve food than a butcher. This means you can hire lower cost employees to manage this store than a traditional butcher could.
Advantages of an M&M Food Market Franchise
There are several advantages in franchising M&M Food Market. Here are some of them you can expect:
M&M Food Market is not all about business. They support sustainable initiatives as they operate throughout Canada. These initiatives include upgrading to LED lighting, energy-efficient freezers using marketing materials and flyers that are environmentally friendly and encourage customers to use reusable bags when shopping. Aside from these, 90% of the seafood that M&M Food Market sources meet Sustainable Seafood Policy.
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M&M Food Market has received favorably good reviews from customers, franchisees, and workers. One franchisee claims working with M&M Food Market is not stressful. Meanwhile, a worker reviewed M&M Food Market on Indeed as a great place to work. Reviews on their products by customers show that their food items are of good quality.
With this kind of feedback, you’re signing up with a business that values service and quality.
Growth and Innovation
M&M Food Market has a long history of growth and innovation. The company has remained relevant for four decades. From changing their name, improving their technology, and even changing their look, M&M Food Market has gone through so much. But it doesn’t seem like they’re stopping there. They’re all for improving and keeping up with the times to satisfy franchisees and their customers.
Challenges of an M&M Food Market Franchise
Running a business, even as stable as M&M Food Market, still poses some challenges. Here are a few of them you can expect so you’re ready to face them.
Not Available Outside Canada
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Back in 2008, M&M Food Market ventured into franchising in the United States. They called the stores MyMenu. However, it didn’t last long and they closed in a span of a few years, directing all their business efforts into focusing on their Canada locations.
Until now, there has been no news of M&M Food Market branching outside of Canada again. So if you’re a franchisee looking to bring M&M Food Market to your not in Canada, you’ll probably need to look elsewhere.
There is a comment on Reddit about how M&M Food Market’s can be expensive. The comment was 4 years old but it does give one some perspective how the products that M&M Food Market sells may not be affordable some customers. Obviously, this is a touchy subject because from a business owner perspective, you need to build margin into each sale. Fortunately, franchise has proven they are able to pass higher prices to consumers.
Is the M&M Food Market Franchise Right For You?
M&M Food Market is considered as one of Canada’s profitable businesses to franchise. So if you have the budget and the passion to sell frozen food and if you live in Canada, check out the locations that are open for franchising and give them a shot.
What is an alternative M&M Food Market franchise?
A business that also sells fresh meats, prepared food, and other specialty items as well as having available franchise locations in the United States is The New York Butcher Shoppe. They’ve been in business since 1999 and are known to operate on small retail spaces that are 1,100 to 1,600 square feet.
To franchise The New York Butcher Shoppe, expect the investment to be around $300,000 to $390,000 with a franchise fee of $35,000.