Ever dreamed of having a business from home?
If yes, you’re not alone. For many Filipinos, starting a sari-sari store is a small but significant step towards financial freedom. It’s not just a business—it’s a way to serve the community, support the family and build a future.
I remember as a kid, afternoons weren’t complete without stopping by my Tita’s sari-sari store. I would trade my baon coins for a bottle of soda or a pack of candies. But what made it special was the sense of community. Her store wasn’t just about selling goods; it was a hub where neighbors shared stories, laughter and sometimes even life updates.
If you’re thinking of opening your own sari-sari store this 2025, this guide will walk you through every step—from planning your inventory to avoiding common mistakes. Along the way, I’ll share a few lessons learned from real-life store owners who turned their dreams into successful businesses.
A sari-sari store is a small neighborhood convenience shop that sells everyday essentials: snacks, canned goods, toiletries, rice and sometimes even mobile load or soft drinks by the glass.
It plays a big role in Filipino life. Think about it—where do you go when you suddenly need a sachet of shampoo, a pack of noodles or even just a quick soft drink on a hot day? The nearest sari-sari store.
According to the Philippine Retailers Association in 2024, sari-sari stores account for 35% of the country’s total retail sales.
That’s a big contribution considering many of these stores are family-owned and operated right outside someone’s home.
Even as big supermarkets and online shopping platforms grow, sari-sari stores remain relevant for daily convenience—especially in barangays and provinces where access to malls and supermarkets is limited.
In a word: yes.
But profitability depends on good planning and execution.
Typical sari-sari store markups range between 10% to 30%. Essential goods like canned food, soft drinks, instant noodles and toiletries have lower margins but higher turnover.What’s changing is how sari-sari stores are evolving. More and more stores now offer e-wallet payments (GCash, Maya) and services like bills payment, remittance and even Shopee/Lazada pickup points.
According to the Department of Trade and Industry (DTI), about 7% more sari-sari stores now accept digital payments compared to last year.
In short, while competition is tough, modernization is opening up new opportunities for smart store owners.
Realistically, a sari-sari store can earn around ₱5,000 to ₱20,000 in profit per month depending on size, inventory and location.
Let’s get practical. Here’s your blueprint to setting up a successful sari-sari store:
Before you spend a single peso, you need a solid plan.
Identify your target market. Are you serving students, office workers, families or a mix?
Survey nearby stores. What products are missing? What items move fast?
Decide on your operating hours. Early mornings and evenings are peak times in most communities.
Pro tip: If you’re near a school, stock up on affordable snacks and school supplies. If near an office, quick meals and coffee will be popular.
The good news is that starting a sari-sari store doesn’t require a fortune.
According to the DTI (2024), the average startup cost for a sari-sari store is between ₱30,000 and ₱100,000.
Here’s a basic breakdown:
Initial inventory: ₱15,000–₱60,000
Store setup (counter, shelves): ₱5,000–₱20,000
Permits and registration: ₱2,000–₱5,000
Miscellaneous expenses (cash box, weighing scale): ₱2,000+
Start with the essentials. It’s better to grow your inventory gradually based on customer demand rather than overstock and risk spoilage.
Operating legally builds customer trust and keeps you out of trouble.
Here’s what you need:
Barangay Clearance
Mayor’s Business Permit
DTI Business Name Registration### 4. Set Up Your Store
Your setup affects both sales and safety.
Tips:
Open shelving so customers can see all products.
Fast-moving items (candies, soft drinks, cigarettes) at eye level.
Grills and good locks.
Clean and organized. A tidy store attracts more customers.
My neighbor converted a part of her living room into a sari-sari store with just two wire racks, a simple counter and a homemade signboard. Today, her store is the go-to spot in our street because it’s neat, bright and welcoming.
Inventory mistakes can sink your business faster than you think.
Tips:
Track which products sell and which don’t.
Don’t overstock perishables.
Adjust inventory based on seasons. (Example: more ice candy and cold drinks in summer.)
Use a notebook or Excel sheet to monitor stocks and sales. This discipline pays off.
Pricing too high scares customers away. Pricing too low kills your profit.
Standard markups:
Canned goods, dry goods: 10%-15%
Snacks, drinks: 20%-30%
Offer bundle promos like “Buy 5 instant noodles, get ₱5 off”. Small deals make a big difference to Filipino consumers.
Good service won’t bring in new customers—you have to market, even in small ways.
How:
Grand opening discount (example: 10% off all snacks on your first week).
Loyalty cards (e.g., “Buy 10 soft drinks, get 1 free”).
Post on community Facebook groups.
Partner with nearby schools or offices for bulk orders.
Marketing doesn’t have to be expensive. A friendly attitude and word-of-mouth referrals still work.
Even the best intentions can be derailed by avoidable mistakes:
Overextending utang. Always keep a ledger of credits and set a limit.* Using store profits for personal use too soon. Separate business and personal money.
Poor inventory control. Dead stocks tie up your capital.
Ignoring customer preferences. Always listen and adjust your stock accordingly.
A sari-sari store owner I interviewed once told me that her first business failed because she kept lending without keeping track. She learned the hard way: always treat your business like a business, even if it feels like a favor to a friend.
Once your store stabilizes, think about scaling.
Here are some ideas:
Offer bills payment and mobile load.
Sell frozen goods or fresh produce.
Partner with apps like Lalamove, Shopee, Lazada for pick-up points.
Accept QR code payments.
Modern sari-sari stores that adapt and evolve will have a better chance of long-term success.
Ana from Laguna:
Ana started her sari-sari store with just ₱25,000 from her freelance jobs. She reinvested 50% of her profits every month. Within two years, her small store grew into a mini grocery and she now has two helpers.
Jomar from Cebu:
After losing his office job during the pandemic, Jomar started a sari-sari store in their front yard. His twist? He offered “pasabuy” services for neighbors who were too busy to shop. Now he’s planning to open a second branch in a nearby barangay.
Their stories show that with smart decisions and consistency, small beginnings can lead to big results.
How much can I earn monthly?
Typical profits range from ₱5,000 to ₱20,000 per month depending on sales volume, expenses and location.
Can I start small and grow later?
Yes. Many successful store owners started with just a few essential items and expanded their inventory over time.
What’s the biggest challenge?
Managing credit (utang) and cash flow while keeping inventory updated are among the top challenges for new store owners.
Starting a sari-sari store is not just about selling goods—it’s about being part of your community. It’s an opportunity to build relationships, serve neighbors and have a steady income for your family.
If you’re ready to take the next step but need a little help with financing, try partnering with Radiowealth Finance Company (RFC).
RFC has business loan options designed for Filipino entrepreneurs to help you turn your sari-sari store into a growing business.
Take the first step now.
Radiowealth Finance Company Inc.
SEC Company Reg. No. AS9600005A
Certificate of Authority No. 173
The DMG Center, D.M. Guevara St.,
Mandaluyong City,1550
+63 961-136-1661
+63 919-914-9306
Join our mailing list
for news and updates*
© 2021 Radiowealth Finance Company. All Rights Reserved
