How to Open a Profitable Brick & Mortar Candy Shop Business
| BY JOSH ROTHSTEIN
The candy business is fun, colorful, and full of wonderful opportunities to bring joy to your community. At Redstone Foods, we’ve been part of this vibrant world since 1966, and we know that nothing beats the satisfaction of providing treats that put smiles on people’s faces. A brick-and-mortar candy shop not only offers a chance to sell products that create happiness, but it also lets you build an inviting space where nostalgia, fun, and excitement come to life.
Owning a candy store is rewarding—and can be very profitable! According to recent reports, the global confectionery and snacks market is valued at $586 billion and is expected to grow annually by 5.4% CAGR (compound annual growth rate) through 2029. From kids hunting for the latest sweet sensations to adults seeking their childhood favorites, there is constant demand for sweet treats in the candy world. If you’ve been dreaming of opening your very own candy store, we’re here to help guide you through the process!
Starting any new business is exciting but comes with its share of challenges, and a physical store requires a bit more planning and investment than starting an online candy shop. However, the rewards of having your own colorful, bustling candy shop on Main Street are going to be well worth it!
Whether you're opening your store as a sole proprietorship—where you own the business and assume full responsibility—or as a partnership with shared ownership and responsibilities, it’s important to understand the structure that works best for you. Let’s explore the steps you will need to take to create your own successful brick-and-mortar candy shop!
1. Create a Business Plan
As with any business, the first step is to write a business plan that outlines your store’s strategy, target market, budget, and financial projections. Whether you plan to focus on nostalgic candy, international sweets, modern treats like sour gummies and artisanal chocolates, snacks, sodas, or even ice cream, a well-crafted plan is crucial for attracting investors and staying organized. A strong business plan will help you anticipate potential challenges and outline the steps you need to take to ensure your candy shop turns a profit.
2. Research Local Regulations and Secure Necessary Permits
Brick-and-mortar stores require compliance with local health and safety regulations, especially when selling food and beverages. Reach out to your local health department to understand the permits required for selling packaged and bulk candies. Along with food handling permits, you will also need a business license, a seller’s permit, liability insurance, and an Employer Identification Number (EIN). Each state may have slightly different requirements, so be sure to do your due diligence and get everything squared away before you open.
3. Determine Your Startup Costs and Secure Funding
Opening a physical store requires more capital than starting an online candy shop, but there are some creative ways to manage costs. You’ll need to budget for leasing or purchasing a location, store design, inventory, shelving, signage, and point-of-sale systems. The amount you’ll need depends on the size of your store, its location, and product selection.
You should plan to invest anywhere from $15,000 to $80,000 for a small, modest storefront, while a larger store in a high-traffic retail area could require a budget of $100,000 to $200,000. If you're short on cash, you can explore business loans from financial institutions, small business grants, or you could find potential investors to fund your sweet venture.
Additionally, the U.S. Small Business Administration (SBA) offers several loan programs designed to help small business owners secure the funding they need. An SBA loan can be a great resource for opening your candy shop, offering lower interest rates and flexible repayment terms compared to traditional loans.
4. Select the Perfect Location
As any small business owner will tell you, location is everything! You’ll want to be in an area with high foot traffic, such as downtown shopping districts, malls, or busy suburban centers. Consider your location’s proximity to schools, theaters, or family-friendly venues that will help you attract your target audience.
Your store’s visual appeal and easy access will play a huge role in driving foot traffic, so make sure your storefront is eye-catching and inviting. Bright colors, large windows, and playful displays can help create a fun, playful space that draws customers in.
5. Choose Your Candy Selection
One of the most fun parts of opening a candy store is curating your product selection! Whether you specialize in retro candy, international confections, or modern health-conscious treats, make sure you offer a decent variety of the types of candy that will keep your customers coming back to try something new.
Stocking seasonal items, local favorites, and trending candies is also a great way to help your store stand out from others in your area. Reach out to candy distributors like Redstone Foods to help you choose the right products for your store’s target market. Our customer service representatives are always ready and willing to help!
6. Design a Visually-Engaging Store Layout
A candy shop’s charm lies in its visual appeal. Your store layout should make it easy for customers to browse and explore their favorite sweets. Bulk candy bins, colorful shelves, and themed displays can create a fun, interactive environment. Invest in high-quality shelving and display units to keep your products organized and accessible.
You should also strongly consider how to create flow within the store, guiding customers to explore new treats with ease. Many physical locations benefit greatly from helpful signs that serve as a guide through your product selection. Signs like “new flavors”, “manager’s special”, or “popular on TikTok” are a great way to draw attention to different areas of your store. Operating a clean, well-organized store will also encourage repeat visits, helping you build a loyal customer base for your small business.
7. Develop a Marketing and Advertising Strategy to Promote Your Shop
Promoting your candy shop is key to its long-term success. Although word of mouth advertising is important, it alone is not enough! A strong online presence, starting with a well-designed website, will help potential customers find you, even if they aren’t in your immediate area. Your website should include important details such as store location, hours, candy offerings, and an easy-to-navigate online store if you decide to sell candy online.
Search engine optimization (SEO) is essential for ensuring that your website ranks high in your local search results, making it easier for people to discover your shop when they search for local candy stores or specific treats. Additionally, incorporating social media platforms like TikTok, Instagram, and Facebook into your digital marketing plan can help showcase your colorful products, promotions, and events to your local community. Email campaigns are another great way to keep your customers informed about grand openings, sales, and special promotions.
You could even consider using online sales as part of your marketing strategy. Selling candy through your website can boost your store’s sales, bring in more profit, and help increase your bottom line. Additionally, partnering with delivery services like Uber Eats or DoorDash can expand your reach beyond foot traffic, allowing customers to enjoy your sweet treats from the comfort of their homes. This convenience could be a great way to increase sales, especially during busy holidays or special promotions.
Don’t forget to get involved in your community by hosting events like candy tastings, holiday-themed promotions, or participating in local fundraisers to build goodwill and establish your brand in your local community.
To round-out your overall marketing strategy, consider using traditional advertising methods such as flyers, radio spots, and local newspaper ads. These can be a great asset to help further your store’s reach, while getting the attention of even more potential customers in your area.
8. Keep up With Inventory and Seasonal Trends
Maintaining a well-stocked candy shop is essential for keeping your customers happy. Keep an eye on the latest industry trends in the candy world – whether it’s a viral TikTok challenge, seasonal favorites, or nostalgic treats that are making a triumphant comeback.
Plan ahead for busy seasons like Halloween, Christmas, and Valentine’s Day, as these holidays often see a major spike in candy sales. Stay on top of your inventory so you never run out of best-sellers – this will keep your customers (and your profit margins) satisfied year-round.
9. Hire the Right People
The right team can truly make or break your candy shop. Hiring employees who are not only passionate about candy and sweets but also enthusiastic about sharing that passion with your customers can elevate the business to entirely new heights. Look for people who bring positive energy and have the kind of upbeat, pleasing personality that will make customers feel welcome and eager to return.
Don’t overlook high school students seeking after school or seasonal jobs. Younger employees may have their finger on the pulse of what’s trending on TikTok and in the schoolyard, giving your store a fresh perspective on what products are going to be popular with the younger generations. Their insights could be valuable in stocking the right products and keeping your shop up to date with the latest candy trends.
When building your team, focus on finding team members who are not just there for a paycheck, but find people who genuinely care about providing a fun, memorable experience for their customers. Whether it’s recommending the perfect treat or offering a warm smile, the right employees will help create a lively and engaging atmosphere that keeps customers coming back for more.
Opening a brick-and-mortar candy store can be a dream come true for many. I know we all had dreams of becoming Willy Wonka when we were kids, and now you can! Through careful planning and dedication, you can create a candy store that will become a beloved neighborhood destination, bringing smiles to all who enter through your shop’s doors. It's like every day will be Candy Day!
If you're ready to embark on this sweet adventure, Redstone Foods is here to help. We provide expert insights and a vast selection of wholesale candies, sodas, and snacks to stock your shelves with the hottest products.
Create an account with us online today or give us a call. We’d love to hear more about your vision, and how we can support you through this incredible journey of starting a business. You’ll quickly find out why Redstone Foods is America’s favorite candy distributor!
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