Perspectives and challenges of franchising in the food distribution sector: strategic opportunity in proximity markets

Madrid, April 10, 2025

The food distribution sector in Spain is
undergoing a significant evolution, consolidating the model
of franchising as a key pillar in a market that combines
resilience, innovation and sustainability. This analysis, based
in the publications of Food Retail & Service (www.foodretail.es ) and
supported by recent data from the Spanish Association of the
Franchise (AEF), explores the perspectives and challenges of this model,
highlighting its potential for investors and entrepreneurs. Brands
as Day, Eroski,
Carrefour Express, Spar, Caprabo, Uvesco,
Coaliment, Consum, Alcampo, Unide, Charter, Sum, BM Supermarkets, Aliprox, Alsara, Traditional’s, Comarket, The Express Pantry, Proxim, Claudio and Taste of America, among others,
they form a diverse and competitive ecosystem that reflects the
strength of the Spanish food retail.

Outlook: a booming sector with brands
leaders

The franchise system in Spain shows a growth
sustained, especially in the food field. According to the
report The Franchise in Spain 2024 of the AEF, the sector generated
a global turnover of 27,623 million euros in 2023 (1.88%
of GDP), with an increase of 2.5% over the previous year.
Within this total, the food retail contributed 8,996 million
euros, representing 32.5%, and operated 78,255 establishments, a
1.3% more than in 2022. In addition, it employed 318,313 people, a
increase of 4.8%, a relevant data in a country with more than 2.5
millions of unemployed. This dynamism is driven by
leading and emerging brands ranging from large chains
even specialized formats.

The local supermarket is the main driver of this
expansion. Dia, with 1,500 franchises, and Carrefour Express, with
1,036 points of sale (91% franchised), lead in capillarity,
while Eroski, with more than 500 premises under its banner Eroski
City, combines its cooperative model with a network of 1,500
total establishments. Spar, present in 48 countries and with more than
600 stores in Spain, stands out for its focus on proximity and
personalized service. Caprabo, with more than 50 years of history,
it operates mainly in Catalonia, while Uvesco, through
BM Supermarkets, invoiced 954 million euros in 2020,
consolidating in the north of the country. Consum, with 928 supermarkets
(374 under Charter), and Coaliment, with more than 1,100 points of sale
within the HD Covalco group (including Trady’s and Comarket),
they reinforce the presence of cooperative and family models.

Other brands also add value to the sector. Alcampo franchise
147 of its 257 supermarkets, Unide operates under a model
cooperative with formats such as UDACO and Unide Market, and Suma, from
grupo Miquel, grows with openings such as the three new franchises
announced by Transgourmet in 2025. Alsara, with premises from 100 to
500 m2 in the south and center of Spain, and The Express Pantry, with
Manchego roots since 1985, are committed to urban proximity and
rural. Alcampo, Proxim, Claudio (Gadisa) and Taste of America,
specializing in American products, they complete a panorama
diverse that responds to the demands of convenience, quality and
specialization.

This model reduces the Capex for the matrices — for example,
Carrefourestimates an investment of 800-1,000 €/m2 for its Express
-, offering entrepreneurs a stable business and investors
high turnover assets. Adaptation to consumption habits, such as
the demand for local and organic products, further drives its
attractive.

Challenges: sustainability, profitability and competition
in a diverse market

The sector faces challenges that require specific strategies. The
sustainability is a priority axis: Dia and Eroski lead with
initiatives such as the reduction of plastics, while Caprabo and Spar
they implement circular economy and Uvesco prioritizes suppliers
local. Alcampo is committed to sustainable online shopping by 2025,
and Consum excels in energy efficiency. However, the AEF
he points out that digitalization – adopted by brands such as BM
Supermarkets and Carrefour Express — and training are essential
to balance costs and profitability, especially for
smaller scale franchisees such as Alsara or La Despensa Express.

Profitability faces pressures from inflation and costs
operations. Coaliment and Traditional’s, without royalties or royalties, offer
attractive margins, while Unide and Suma optimize logistics with
own software. Proxim competes with low prices, but the
ongoing support – such as the Dia Campus or the Consum programs
– it is key for Claudio or Charter franchisees. The investors
they are looking for quick repayments (less than three years), an approach
viable in brands such as Spar or Aliprox (Caprabo).

The competition is intense. Mercadona (25% share), Lidl and Aldi
they are betting on their own large stores, while franchises such as
Carrefour Express, Eroski City and Consum Charter differ with
personalized services and strategic locations. Taste of America
and Comarket, with specific niches, and BM Supermarkets, with
local products, resist thanks to their specialization. The choice
between rural (Spar, Claudio) and urban environments (Carrefour Express,
Sum) demands precise analysis to maximize the return.

Cooperatives and sustainability: a differential value

Cooperatives enrich the model. Eroski, with six million
client partners and 29,806 cooperative members, Consum, with more than three
million members, and Unide integrate participatory governance and
sustainability. Coaliment and Charter reinforce this approach,
aligning profitability with social impact, an attraction for
responsible investors.

Opportunities for investors and entrepreneurs

The sector offers a range of possibilities. Dia, Carrefour Express
and Spar guarantee scalability, while Caprabo and Uvesco
they stand out regionally. Alcampo combines proximity with
omnichannel, and Suma, Alsara and Express Pantry are committed to
accessible formats. Taste of America and Proxim explore niches, and
Claudio and Trady’s prioritize flexibility. Digitalization (Eroski,
BM) and sustainability (Consumption, Co-food) generate loyalty. The AEF
projects a 2025 of expansion, with franchised brands growing
4.2% in turnover in 2023 (17,292 million euros).

The Franchise Innovation Summit (FIS): The largest
instrument for distribution brands
food in expansion

The Franchise Innovation Summit (FIS), promoted by the AEF, is the
the most complete instrument at the service of distribution brands
food in expansion. In 2024 (November 13-14, Madrid)
it brought together 70 brands and 1,000 professionals. The 2025 edition, from 15 to
October 16th at the Riyadh Metropolitan Air, expects to exceed 120
brands and 3,000 assistants, where the distribution sector
food will have a very important weight in accordance with the important
and turnover of the sector. FIS2025 promotes innovation,
sustainability and networking, connecting entrepreneurs and
investors with real opportunities in a booming sector.

In conclusion, the food franchises in Spain, led by
diverse and dynamic brands offer a strategic opportunity
for investors and entrepreneurs. With the support of the AEF and the FIS
as a comprehensive platform, this model is poised to lead
a sustainable and efficient retail, consolidating itself as an engine
economic and social development in 2025.

Raul Calleja. Director of Franchise Innovation Summit