Price: $85,000 – Weekly Sales: $10,175
This listing is for a Mission Foods tortilla and snack distribution route with a price of $85,000. The owner distributes snacks and related products to major grocery retailers. The accounts are primarily in Bellevue and Kirkland. This route averaged $10,176 per week in sales volume in 2019. Sales have increased significantly in 2020. The route generates approximately $1,796 per week in gross commissions with around a 17.5% average commission rate. Commission rates can vary depending on product/store.
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This route has major retail accounts including QFC, Fred Meyer, Safeway, Cash and Carry, Grocery Outlet and Town and Country. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a name brand 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. Most owners make deliveries Monday, Tuesday, Thursday, Friday and Saturday. The current owner works Monday, Tuesday, Thursday, Friday and Saturday with Wednesday and Sunday off. Merchandising can be necessary during busier weeks on Wednesday and Sunday. The current owner utilizes a merchandiser on Saturday during the summers. The merchandising work can be easily outsourced. The route owner will work with company and account management teams to ensure that sales are being maximized and there are no service or inventory issues.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $10,175 in weekly sales volume. With an average commission rate of 17.5% the owner generates $1,796 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), returns and handheld/printer/warehouse expenses. The current owner estimates $295 per week in route operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
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 owner may consider some financing for qualified buyers. Third party funding specialists are available if you are interested in small business/startup financing.
VEHICLE AND OTHER EQUIPMENT
The current owner’s Ford E350 16′ box truck will be included
TRAINING
The current owner has agreed to provide full 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 route owner simply needs to make sure that their customers are taken care of, inventory is being managed properly, and sales are being maximized. The current owner typically works 40-42 hours per week with Wednesday and Sunday off.
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