Price: $180,000 – Weekly Sales: $7,400
Incredible Woonsocket, Rhode Island bread route with protected distribution rights for major brands to major chain grocery accounts. The accounts are all retail locations. 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 West Warwick, RI.
The current owner averages approximately $7,400 per week in gross sales. The owner earns approximately 32% commission on their sales volume or $2,350 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 eight (8) 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 $7,400 in weekly sales volume. With an average commission rate of 32% the owner generates approximately $2,350 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 $300 per week in operating costs not including the truck lease. This leaves a weekly net of approximately $2,050. 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 four days per week from approximately 4am to 12pm. A new owner could add additional days to lighten the workload on a day to day basis.
Owning a route means that you are an independent owner/operator/contractor. You are ultimately responsible for the success of the route operation and you will need to find route coverage if you are sick or on vacation. Most route sellers and existing owners have a coverage person whose contact information they can share. Otherwise you are free to train someone to run your route while you are unavailable. It can require some effort and coordination to setup time off…but it does provide a lot of flexibility once you have a person or two that can cover your route operation when requested.
PURCHASING PROCESS AND REQUIREMENTS
Route buyers will have an opportunity to meet with both the current route owner and the management team at the company. You will need company approval to purchase the route. Credit checks and background checks may be necessary as well. Most companies are requiring that route owners have an LLC or corporation so that they are personally separated from the business. The incorporation process is relatively straightforward for most states and can typically be completed through your state’s secretary of state/business registration website.
REQUEST MORE INFORMATION
Our route blog is a fantastic place to find more information on the distribution route business. There are a wide variety of articles including overviews on different types of routes (bread, snack, vending, etc) and others that discuss general route operating topics.
If you are interested in acquiring more information on this route please submit our non-disclosure agreement here. Please note the route number or route location on your NDA submission so that we can send over the correct information.
If you have any other questions please feel free to contact us through this form or by email at Jay@TheRouteExchange.com