Price: $210,000 – Weekly Sales: $11,000+
*Negotiable*
This listing is for a Gold Medal bread bakery distribution route with a price of $210,000. The owner distributes a variety of bakery/bread products including Gold Medal, Panera, Fiber One and Calise to a variety of grocery retailers. The accounts are located in Brooklyn and Queens while the product pickup location is in Inwood.
The route is currently averaging approximately $11,000 per week in gross sales volume. The route generates approximately $3,400 per week in gross commissions based on the 28-34% commission rate. The commission rate can vary depending on brand, product type or customer type. There are currently two trucks operating the route…one doing drop off accounts and the other servicing the regular accounts. It may be possible to do the truck with one route but would definitely require six or even seven days per week to take care of the customers. This is a turnkey high volume bread route with terrific growth potential for a motivated owner.
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a number one selling food manufacturer. Full training will be provided.
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 has the route operated four and a half days per week with hours from approximately 5am to 3pm on delivery days and 6am-12pm on Saturday.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $11,000 in weekly sales volume. With commission rates varying from 28-34% the owner generates approximately $3,400 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 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 approximately $900 per week in operating costs which includes gas, tolls, insurance, vehicle maintenance, warehouse fees, business admin costs and lost/expired inventory.
The owner currently has two drivers running two routes. One is paid $800 per week and the other $1,100. Net income figures do not account for these labor costs as they are subject to change depending on the owner. It would take two people to run the current operation and there is plenty of room for expansion. Adding a third route is certainly doable.
GROWTH POTENTIAL
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
The company will finance approximately $90,000 of the purchase price for qualified buyers
VEHICLE AND OTHER EQUIPMENT
The current owner is leasing a vehicle from the company. The buyer could takeover those payments or they could purchase their own box truck.
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
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.
The current owner works a total of 5 per week with four days running between 5am-3pm and the fifth only 6am-12pm. If an owner wanted shorter days they could work five or six days per week to make the lessen the amount of work required each day.
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