Is Kroger a Franchise? (It’s not what you think)
Franchising is a great way for people to take advantage of the brands established by popular retail chains and start a profitable business without investing a lot of effort and time.
Since Kroger’s grocery chain in the U.S. is a household name, you might be wondering – is Kroger a franchise business? Here’s what I found out through research!
Is Kroger a Franchise?
Kroger is not a franchise business. Instead, Kroger is a publicly traded company headquartered in Cincinnati, Ohio, founded in 1883 by American businessman Bernard Kroger.The company has more than 2,800 stores in the U.S.
If you want to learn more about why Kroger isn’t a franchise, it owns Kroger and drives its decisions, and more, keep reading!
Why is Kroger not a franchise?
While Kroger hasn’t released any official statement explaining why it’s not getting into the franchise business, there are several reasons we can infer from the way it runs its business.
Most notably, having a corporate status operated from a single headquarters allows Kroger to optimize its processes and minimize costs, resulting in greater profits.
Full control over how all stores are run gives shareholders and executives greater control over challenges and the opportunity to implement new approaches and innovations more quickly.
For all these reasons, Kroger has decided to keep a company in order to remain competitive with other retail chains like Walmart.
When was Kroger founded?
Kroger was founded in 1883 by American businessman Bernard Kroger, who pioneered the self-service concept where customers choose their own products and bring them to the counter to pay.
The retail chain was founded in Cincinnati, Ohio and is currently headquartered there.
Since then, Kroger has come a long way, opening more than 2,800 stores in more than 30 U.S. states
Additionally, Kroger is now the largest supermarket store in the U.S., with $121.16 billion in revenue, based on fiscal 2019 revenue.
Who Owns Kroger?
Kroger is a public company listed on the New York Stock Exchange (NYSE) and the S&P 500 under the ticker symbol “KR.”
Here are the top 5 companies/entities with the largest stakes in retail chain store ownership:
- The Vanguard Group, Inc. – 9.36% stake
- BlackRock Fund Advisors – 6.96% stake
- Berkshire Hathaway – 6.83% stake
- SSga Funds Management, Inc. – 5.14% stake
- Renaissance Technologies LLC – 2.30% stake
What store franchises are in the US?
While Kroger is not a franchise, you can buy a franchise from several grocery companies in the US, including:
- Club Outlets
- edible arrangement
- grocery store
- 7-Eleven Franchise
- Dunkin’ Donuts
- Circle K
To learn more, you may also be interested in reading Is CVS a Franchise, Is Target a Franchise, and Is Walmart a Franchise.
Conclusion: Is Kroger a Franchise Company?
Kroger is not a franchise business, but a single business entity headquartered in Cincinnati, Ohio.
The retail chain is publicly traded on the New York and S&P 500 stock exchanges, with major investment firms holding shares and ownership.
Other retail and food chains with a franchise model include Edible Arrangements International, Dunkin’ Donuts, Circle K, 7-Eleven, and many more.
