Picture a small Korean market in a suburban strip mall. On Saturday mornings the line runs out the door, because shoppers have driven past three chain supermarkets to find fresh kimchi, thin-sliced beef for bulgogi and the instant noodles they grew up with. That loyalty is the opportunity. Getting there takes planning.
To start an Asian grocery store in the US or Canada, confirm there are enough target shoppers near your location, write a business plan with a realistic budget, get your business, tax and food permits, build a mix of distributor and importer suppliers, choose a product mix around fresh and hard-to-find items, set up a POS and inventory system, and market through the community.
Key takeaways
- The US Census Bureau estimated 24.7 million Asian alone-or-in-combination residents in the United States in 2022.
- NielsenIQ projects Asian American spending power to reach $1.6 trillion in the US.
- Canada's 2021 Census counted 2.6 million South Asian and 1.7 million Chinese people, along with large Filipino, Southeast Asian and Korean communities.
- Location is the first decision: you need enough of your target customers within a reasonable drive.
- Fresh produce, prepared foods and hard-to-find imports are what bring shoppers back each week.
Is an Asian grocery store a good business opportunity?
The customer base is large and spread across North America. The US Census Bureau estimated 24.7 million Asian alone-or-in-combination residents in 2022, and NielsenIQ projects Asian American spending power to reach $1.6 trillion in the US.
In Canada, Statistics Canada's 2021 Census counted 2.6 million South Asian people (7.1% of the population) and 1.7 million Chinese people (4.7%), along with about 960,000 Filipino, 390,000 Southeast Asian, 220,000 Korean and 99,000 Japanese people.
Demand often reaches beyond Asian shoppers. Many customers come for fresh produce, snacks, sauces and prepared foods they can't find at a mainstream grocer. A strong Asian grocery store can be a cultural anchor for its core community and a discovery trip for curious cooks.
What type of Asian grocery store should you open?
Store formats vary, and the right one depends on your local community, your space and your budget.
| Format | Typical strengths | Watch out for |
|---|---|---|
| Korean market | Fresh produce, banchan (side dishes), meat | Prepared food permits |
| Japanese grocer | Imported goods, seafood, bakery | Import costs and lead times |
| Chinese supermarket | Broad dry goods, frozen, live seafood | Large footprint and staffing |
| South Asian grocer | Spices, rice, lentils, sweets | Bulk items sold by weight |
| Pan-Asian store | Wide appeal across communities | Inventory spread thin |
Start narrower than you think. A focused store that is excellent at one community's staples usually beats a store that is average at everything.
How do you start an Asian grocery store step by step?
1. Research your market and location
Location is the first and most important decision. Map where your target customers live, visit competing stores, note what they don't carry, watch their busy hours and talk to shoppers. Look at public Census or Statistics Canada data for the neighborhoods around each site you are considering.
2. Write a business plan and budget
Your plan should cover lease deposits and fit-out, refrigeration and freezers, opening inventory, POS hardware and software, signage and enough working capital to cover several months of operating costs. Grocery fit-outs (walk-in coolers, ventilation, grease traps if you cook) often cost more than a standard retail space, so get contractor quotes early and ask landlords about tenant improvement allowances.
3. Get your licenses, permits and tax registrations
Most stores need a general business license, a sales tax or resale permit, and a federal identifier (an EIN in the US or a Business Number in Canada). Food retail also needs health department permits. If you plan to make kimchi, rice bowls or baked goods in house, expect extra food handler training and kitchen inspections.
Canadian stores need to register for GST/HST and follow provincial rules, and Quebec has French-language requirements for businesses and labeling. Rules differ by state, province and city, so confirm the list with your local business office and health department before signing a lease. Our guide to opening a grocery store in Canada covers the Canadian side in more detail.
4. Build your supplier network
Most Asian grocers use a mix of domestic distributors and direct importers. Large importers such as JFC International supply Japanese products across North America, while regional distributors specialize in Korean, Chinese, Vietnamese or Filipino goods. Local farms can supply fresh produce that sets you apart.
Trade shows such as the Specialty Food Association's Fancy Food Show and regional importer expos are good places to meet suppliers face to face. If you import directly, ask your freight forwarder for current container rates and typical transit times, and build that cost and delay into your pricing. Our guide to managing import suppliers and long lead times walks through safety stock and festival planning.
5. Plan your product mix
Most Asian grocery stores organize around a few core categories:
- Dry goods and noodles: high-volume staples customers buy every trip
- Frozen foods: dumplings, fish balls, mochi ice cream, which build basket size
- Fresh produce: Thai basil, bitter melon, Korean pears and other items hard to find elsewhere
- Prepared foods and bakery: if your space and permits allow, a strong reason to visit weekly
- Beverages, snacks and sauces: impulse buys and discovery items
Track margins by category from day one so you know which sections actually pay the rent.
What technology does an Asian grocery store need?
Asian grocery stores have operational needs that generic retail software can miss. Fresh produce, bulk rice and prepared items are often sold by weight, which calls for PLU codes and a connected scale. Imported goods may carry EAN-13 barcodes. Staff and customers may be more comfortable in Korean, Mandarin, Vietnamese or Tagalog. And imports from many suppliers with long lead times need purchase orders and reorder points you can trust. Our ethnic grocery POS checklist lists the tests to run in a demo.
ShelfPerks describes itself as a Store Operating System that puts point of sale, inventory management, supplier management, purchase orders, sales tax by location and staff roles in one setup. Every sale updates stock in real time, and the Plus plan adds expiration alerts and AI-based suggested purchase orders. For rice, produce and other weighed items, ShelfPerks integrates with scales, including Datalogic scale scanners and the Star Bluetooth scale. For language needs at the register, confirm the workflow in a demo with your own products.
Pricing starts with a Free plan at $0 for one user and one location (with a monthly turnover limit of $4,999). Standard is $29.95 a month billed annually and removes the revenue limit. See all plans on the pricing page.
How do you market an Asian grocery store?
Asian grocery stores grow through community connection more than ads. A few approaches that work:
- Use the apps your community uses. WeChat reaches many Chinese shoppers and KakaoTalk many Korean shoppers, often better than Facebook or Instagram.
- Host cooking demos. Show customers how to make Korean barbecue at home or roll sushi, using ingredients from your shelves.
- Show up for festivals. Partner with local cultural groups for Lunar New Year, Mid-Autumn Festival or Diwali events.
- Protect your reputation. Word of mouth travels fast in close communities, in both directions. Festival stockouts, unclear pricing or tired produce get talked about.
For more ideas, see our guide to ethnic grocery store marketing.
Ready to set up your store?
Starting an Asian grocery store takes capital, cultural knowledge and steady operations. Owners who get the product mix, suppliers and community connection right build stores people drive across town for.
When you are ready to set up your register and inventory, you can try ShelfPerks with a 14-day free trial of Premium features, no credit card required, and test it before opening day.
Frequently asked questions
How do I start an Asian grocery store?
Research your location and target customers, write a business plan and budget, get your business, tax and food permits, build a mix of distributors and importers, plan a product mix around fresh and hard-to-find items, set up your POS and inventory system, and market through the community.
What permits do I need to open an Asian grocery store?
Most stores need a business license, a sales tax or resale permit, a federal identifier (an EIN in the US or a Business Number in Canada) and health department permits. Making food in house usually adds food handler training and kitchen inspections, so confirm the list with your local business office and health department.
How large is the Asian American market?
The US Census Bureau estimated 24.7 million Asian alone-or-in-combination residents in the United States in 2022. NielsenIQ projects Asian American spending power to reach $1.6 trillion in the US.
How do Asian grocery stores find suppliers?
Most use a mix of domestic distributors and direct importers, plus local farms for fresh produce. Trade shows such as the Specialty Food Association's Fancy Food Show and regional importer expos help you meet suppliers directly.
