High Income Bread Distribution Route. Training. Protected Territory
Asking Price: | $225,000 |
Gross Revenue: | $118,000 |
Cash Flow: | $92,000 |
EBITDA: | $92,000 |
Price: $225,000 – Weekly Sales: $6,846
Incredible Woonsocket, Rhode Island bread route with protected distribution rights for major brands to a major chain grocer, several large restaurants and nursing home facilities. The route owner is responsible for ordering, delivering and selling Panera, Holsum, Fiber One, Gold Medal, Bernardino’s Bakery products and other bakery items to their customers. The warehouse/depot for product pickup is located in Fall River, MA.
The current owner averages approximately $6,846 per week in gross sales. The owner earns approximately 33% commission on their sales volume or $2,275 in gross income per week. This is a VERY high commission rate…most bread routes earn 16-20% commission. Operating costs vary from owner to owner but generally include gas, insurance, maintenance and storage/parking.
Schedule is relatively flexible as long as deliveries are made as necessary…the current owner works four days per week (Monday, Tuesday, Thursday and Saturday) and approximately nine (9) hours per day. An owner could work five days per week and shorter days if they preferred to do so. Full training will be provided by the current owner and company.
WHAT ARE THE DAILY RESPONSIBILITIES OF THE ROUTE OWNER?
The route owner is responsible for servicing their customer base and ensuring that product is well stocked and maintained for the consumer. Route owners will order, deliver and stock product accordingly. There is flexibility in the days and hours as long as the customers are being serviced properly. The current owner works four days per week and typically begins loading the truck around 3am and finishes around 12pm.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $6,846 in weekly sales volume. With an average commission rate of 33% the owner generates approximately $2,275 per week in gross commissions. The sales volume can be confirmed through sales reports/invoices. Sales reports and other information can be provided once we receive an NDA submission.
OPERATING COSTS
Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. The current owner has their insurance, handheld computer/printer and vehicle lease payments taken directly from their weekly route settlement. There is very little in terms of administrative/bookkeeping work.
Expenses will vary from owner to owner depending on how far they are from the warehouse and territory, what type of vehicle they use, what rates they receive on insurance, etc. The current owner estimates $420 per week in operating costs not including the truck lease. This leaves a weekly net of approximately $1,852. That figure does not include loan payments, taxes, etc. as they are highly variable from owner to owner.
GROWTH POTENTIAL
There are display opportunities and the potential for more space in stores that is not being maximized with the current route operator.
Nearly every route has growth potential both within the current accounts or by adding new customers to the route. The route owner can work with current accounts and company managers to maximize sales volume. New accounts such as independent grocery stores, restaurants, schools, hospitals and other accounts could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
No financing is available
VEHICLE AND OTHER EQUIPMENT
Truck is available separately if the buyer is interested
TRAINING
The current owner has agreed to provide training to the buyer. In addition to training from the current route owner, the company will provide some assistance when possible and will always provide administrative/sales support. The manufacturer wants their route owners to be successful so you will have a solid support system behind you.
SCHEDULE
The current route owner works Mon, Tues, Thurs and Sat
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