The demand for authentic South Asian produce in the US continues to increase, and the idea of starting a business with a Patel Brothers franchise is more appealing than ever. Its huge range of Indian and South Asian products has turned Patel Brothers into a brand name in the diaspora. If you are considering tapping into this lucrative market, learning from the experience of starting a Patel Brothers franchise is a good option.
Knowing the Patel Brothers Brand
Founded by Mafat and Tulsi Patel in 1974 in Chicago, Patel Brothers now has over 57 locations in 19 states in the US. Patel Brothers is a brand that trades in authentic South Asian foods like spices, grains, lentils, snacks, etc. Quality and authenticity have given them a reputation for trustworthiness in ethnic grocery items. Patel Brothers is currently operated by Mafat’s sons, Swetal and Rakesh Patel.
The Reality of Franchising with Patel Brothers
While franchising with Patel Brothers is intriguing to a lot of people, it must be noted that the business has traditionally granted franchises only to family and close friends. This would work to maintain the company’s core values as well as operating procedures.
More Franchise Opportunities:
- Best Franchise Under $50k in the USA
- How to Start a QuikTrip Franchise
- Best Bagel Franchises in the USA
- How to Open a Portillo’s Franchise
How to Work With Patel Brothers
While you can’t franchise with them, you can:
- Buy from their wholesale division – Get products for your own store. Use store design consulting services and get listed on their store locator.
- Lease a space – Sometimes they rent store locations. Requirements are $750K+ liquid capital, food retail experience, and prime location approval
- Sell their brand products – Stock Patel Brothers items in your shop and benefit from their distribution network.
“We buy 60% of our products from Patel Brothers wholesale. Their name brings customers!” – Priya M., Atlanta store owner.
Costs and Profit Potential
Opening a grocery store is costly. Major expenses involve leasing or buying real estate, renovation, stock, staff, and advertising. Though precise amounts differ, startup capitals range between $300,000 to $500,000, depending on where the store will be located and its size.
Startup Costs Comparison
| Store Type | Initial Investment | Avg. Annual Revenue | Profit Margin |
|---|---|---|---|
| Patel Bros Supplier Partner | $300K−$500K | $1.5M−$3M | 15-25% |
| Independent Indian Grocery | $500K−$1M | $2M−$5M | 20-30% |
| Major Metro Flagship | $1.5M−$3M | $5M−$10M | 18-22% |
Data Source: 2024 Ethnic Grocery Market Report
Revenue Breakdown (Typical Store)
- Dry Goods: 40% of sales (rice, lentils, spices)
- Frozen/Refrigerated: 25% (dosa batter, paneer)
- Produce: 15% (fresh curry leaves, okra)
- Prepared Foods: 20% (and growing rapidly)
Looking at Other Options
If you are not a Patel family member, do not despair. There are still ways through which you could connect with the brand or enter the South Asian grocery market:
- Consulting Companies: Companies like Star Brands Consulting Group assist entrepreneurs in exploring franchise opportunities with established brands, such as Patel Brothers .
- Independent Ventures: A self-owned South Asian grocery shop offers flexibility and the opportunity to establish a unique brand identity.
- Other Franchises: Search other successful South Asian grocery franchises that might offer simpler franchising options.
But here’s what most franchise guides won’t tell you: While Patel Brothers doesn’t offer traditional franchising (yet), there are proven strategies to partner with them or create a similar successful ethnic grocery model.
Where to Open Patel Brothers Grocery Shop
Top 5 Markets for Indian Groceries
- New Jersey/New York Metro (Highest density)
- Silicon Valley/Bay Area (Affluent demographic)
- Dallas/Houston (Rapid growth)
- Chicago Metro (Established market)
- Charlotte/Research Triangle (Emerging hub)
Site Selection Tips
- Minimum 30,000 South Asians within 5 miles
- Near complementary businesses (sari shops, temples)
- Easy highway access for regional shoppers
- Ample parking (15+ spaces per 1,000 sq ft)
Steps to Open a South Asian Grocery Store like Patel Brothers Franchise
If you choose to go it alone, here’s a step-by-step guide:
1. Market Research
Know the demographics of your target market. Determine the demand for South Asian goods and evaluate the competition.
2. Business Plan
Create a detailed business plan with your store concept, target market, product offerings, marketing tactics, and financial projections.
3. Legal Requirements
Register the business, acquire the required licenses, and maintain adherence to local health and safety regulations.
4. Location Selection
Select a location that has high visibility and access. Being close to South Asian communities can be beneficial.
5. Supplier Network
Build relationships with good suppliers to maintain a steady inventory of genuine products.
6. Store Setup
Plan your store layout for efficient customer movement. Purchase good shelving, refrigerators, and point-of-sale equipment.
7. Marketing Strategy
Use both online and offline marketing channels. Use events and promotions to interact with the community.
✅ The Verdict: Is This Right For You?
Best For:
✔ First-gen immigrants with retail experience
✔ Investors with $500K+ capital
✔ Those passionate about Indian culture
Challenges:
❌ Intense competition in major markets
❌ Perishable inventory management
❌ 24/7 owner involvement is typically needed
Patel Brothers Franchise FAQs
Does Patel Brothers offer traditional franchising?
No. As of now, Patel Brothers operates all stores corporately and doesn’t offer traditional franchise opportunities. However, they have wholesale partnerships and occasionally lease store spaces to qualified operators.
What’s the profit potential for an Indian grocery store?
Successful stores report:
- 1.M−5M annual revenue
- 15-30% profit margins
- 3-5 year ROI timelines
What are the biggest operational challenges?
- Inventory management (many perishable items)
- Staffing (need multilingual employees)
- Competition (from mainstream stores carrying ethnic products)
How do I source authentic Indian products?
Top wholesale options:
- Patel Brothers Wholesale (national coverage)
- Deep Foods (Northeast specialty)
- Local ethnic distributors (for regional specialties)
What licenses do I need?
Essential licenses include:
- Business license
- Food establishment permit
- Resale certificate
- FDA food facility registration (if importing)
Can I run this as an absentee owner?
Not recommended. Successful stores typically require:
- Owner’s presence during peak hours
- Hands-on management of perishables
- Cultural understanding of customer needs
Are there financing options?
Potential sources:
- SBA 7(a) loans
- Community development funds
- Ethnic business associations
- Family/investor partnerships
When is the best time to open?
Ideal timing:
- Pre-holiday periods (September before Diwali)
- Avoid summer months (slower traffic)
- Align with lease cycles (shopping center renewals)
Final Thoughts: Though franchising with Patel Brothers might not be directly possible, there are plenty of opportunities in the South Asian grocery market. By doing extensive research, planning carefully, and integrating with the community, you can set up a successful business that services the increasing demand for genuine South Asian goods.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.
Discover more from 99BusinessIdeas
Subscribe to get the latest posts sent to your email.