In an effort to support local vendors and pass the savings on to consumers, startup Tàstès Markets is reimagining the typical grocery store model. The business is currently generating new funding for its unique grocery store shopping experience with a regulatory crowdfunding campaign.
Secure new financing
Fundraising efforts for Tàstès are currently underway on the crowdfunding platform WeFunding. The start-up company is looking to raise $ 1.07 million from investors on the platform as the business prepares to build its first location in Austin, Texas. To date, the crowdfunding campaign has generated more than $ 15,000 in new funding for Tàstès.
“The goal of our grocery store is to financially empower our food suppliers to do what’s right for us, humanity and the planet,” said Cheryl Cunningham, founder and CEO of the startup business. “They need a good amount of profit to use better quality ingredients, hire more people and be more sustainable.”
The Wefunder campaign is just one part of a $ 3 million seed funding initiative launched by the grocery store startup. In addition to a closed preseder round of $ 300,000 and increased crowdfunding from current regulation, Tàstès is also looking to secure $ 1.7 million from venture capital firms and angel investors to get its business up and running.
Construction on the first Tàstès location in Austin is scheduled to begin sometime in November. The startup company expects its grocery store grand opening to come in April 2022.
Democratize shelf space
Tàstès takes a very unique approach to the standard grocery store model. Rather than generating revenue from a percentage of item sales, the startup simply charges local vendors for the shelf space in its building. In fact, 100% of sales go to the supplier.
The goal of this model is to provide suppliers with more income to improve their business and pass the savings on to customers. By sourcing primarily products from local suppliers, the startup can mitigate the large expenses associated with long-distance logistics.
Another major difference between the model used by the start-up and the one used by a standard grocery store is that Tàstès actually allows consumers to vote for the products they want to see in the store. The business also wants its grocery store to be seen as an attractive destination for shoppers and plans to have other attractions, including a coffee shop and a bar with local beer on tap.
Revolutionizing the supermarket industry
Tàstès is trying to enter a mass market with its unique business model. According to a report by IBIS World, the US supermarket and grocery market. The US has an estimated value of $ 758.5 billion. The industry is expected to grow 2.3% during 2021.
The startup will have to compete with a large number of existing grocery stores and supermarkets. While Tàstès may not offer as wide a selection as traditional grocery stores, the startup believes it can capitalize on consumers looking for specialty and local products. So far, Tàstès has already provided 40% of its available shelf space to interested sellers.