The Tesco Group has opened the first externally operated Premier franchise store in Hungary, marking a new phase in the retailer’s expansion strategy in the country. The new convenience shop opened on Thursday, 21 May, in Budapest’s 13th district and is also the first Premier franchise unit outside the United Kingdom to be run by an independent partner.
Premier is one of the UK’s largest grocery franchise networks, operating nearly 5,000 stores. The Hungarian launch builds on a pilot project introduced by Tesco last October in Csepel, where the company tested the format by converting an existing Tesco Express store.
Speaking at the opening, Tesco-Global CEO Zsolt Pálinkás described the new shop as “not just a new store, but a new model” for the Hungarian retail market. He said the company plans to gradually involve additional franchise partners while continuing to test the scalability of the concept.
Local focus with international backing
The new Premier store, located on Hegedűs Gyula Street in Újlipótváros, covers around 200 square metres and offers more than 4,000 products. Customers can choose from staple foods, fresh produce, drinks, household items, pet supplies and flowers, alongside around 350 Tesco own-brand products, including Tesco Finest items.
A key novelty is the introduction of “Food to Go” products prepared locally, including hot dogs, wraps and paninis aimed at busy commuters, office workers and students in the area.
The shop is operated by franchise partner Márk Szatmáry and his family, who have more than 20 years of experience in retail. They previously managed another franchise convenience store at the same location, meaning the customer base was already familiar with the team.
Szatmáry said the goal is to serve a broad local audience throughout the day, from parents and schoolchildren buying breakfast to office workers seeking a quick lunch and residents doing evening shopping.
Unlike many modern convenience stores that prioritise self-service checkouts, the new Premier outlet has retained two traditional tills in response to local demand for personal interaction and customer service.
Tesco offers support and growth incentives
Under the franchise model, Tesco provides financial support, IT infrastructure, logistics and access to its established procurement systems. The retailer also offers free logistics and distribution services, with deliveries available up to five times a week.
As Store Insider reported, there is no franchise joining fee, and Tesco says partners can benefit from flexible payment terms, infrastructure investments and ongoing operational support. According to the company, franchise partners joining the network could achieve revenue growth of up to 30% within their first year thanks to the established business model and Tesco’s international expertise.
Pálinkás stressed that Tesco intends to support partners through regular visits, training opportunities and professional guidance while still allowing them to operate independently.
Tesco narrows losses despite difficult retail environment
According to publicly available company data, Tesco-Global reported net revenue of HUF 750 billion for the business year ending 28 February 2025, alongside a loss of HUF 10.5 billion. In the previous year, the retailer posted net revenue of HUF 721.6 billion and a loss of HUF 21.5 billion, indicating an improvement despite Hungary’s challenging retail market conditions.
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