Following the opening of its first store in Csepel, the British-style convenience chain, Premier is now launching another shop in Budapest, this time in the city’s 13th district. The move marks the company’s first-ever franchise expansion outside the United Kingdom — and it is happening in Hungary.
Premier chain enters a new phase
On 21 May, the first Premier store operated by an official franchise partner will open on Hegedűs Gyula Street in Budapest’s 13th district. This is not only a milestone for Hungary, but also a significant international step, as it will become the first franchise-operated Premier shop outside the UK.
Behind the expansion stands the Booker wholesale network, which has successfully operated the Premier convenience chain across Britain for years. The latest opening clearly signals that Tesco could be planning to turn the concept into a major retail player in Hungary over the long term.
The Csepel store was only the beginning
Premier’s story in Hungary began last autumn, when a former Tesco Express store in Csepel was quietly transformed into a Premier convenience shop, according to Pénzcentrum.
While the Csepel branch is expected to remain company-operated, the new shop in the 13th district will launch under a franchise model. This is particularly important because franchising allows for faster expansion with lower investment risks. As a result, the Premier chain could appear in several Hungarian cities within just a few years.
What shoppers can expect
Premier shops are primarily designed for quick and convenient everyday shopping. Customers will find essential groceries, fresh bakery products, drinks, ready meals, snacks and household necessities. The concept is essentially a modernised version of the traditional corner shop, tailored to fast-paced urban lifestyles.
With this move, Tesco appears to be responding directly to the growing dominance of discount supermarkets and changing consumer habits. More and more shoppers are looking for smaller, easily accessible stores instead of large hypermarkets, especially in densely populated urban areas.
A new competitor on the market
Hungary’s retail sector has undergone major changes in recent years. Alongside chains such as Aldi, Lidl, Penny and Spar, a completely new retail model is now emerging. Rather than targeting large weekly grocery shops, the Premier chain focuses on immediate daily shopping needs. We previously covered how fuel prices could change in the coming months, here.
According to analysts, the franchise-based model could also prove highly attractive to smaller entrepreneurs, as it allows them to join a retail system backed by a well-known international company. If the concept proves successful, dozens of Premier stores could open across Hungary in the near future.
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I really don’t see what this store can offer the average consumer than those already in the market can’t or don’t.
There are so many options available already, including the various ABC bodegas, that the only thing I personally look for is either courteous staff (a genuine rarity!) or self-checkouts (so I don’t even have to interact with the discourteous staff).
Soar, gas stations and Pennyarket already offer the take and go. I wonder how, if poverty increases, and with a lack of good logistic and gasoline/diesel these ships can be succesful. The more you shop, the more you spent. Sounds as if Bulgaria is the poorest paid EU country afterall.
I also wonder if franchising is interesting if it is true that new businesses don’t need to pay tax. If that is the case it is better to go bankrupt every 4-5 years.
I doubt more small shops are needed with ABCs and bakeries.
Small shopkeepers have to raise their prices to be able to pay the rent, not to mention the salaries. Tesco never been succesfu in Hungary. In average the ships look dirty, unfriendly service and hardly anything for sale.