Price: $150,000 – Weekly Sales: $5,304
*Route can be split and one half purchased for $90k*
Incredible Brooklyn bread route with protected distribution rights for major brands and approximately 75 established accounts in Brooklyn. The route owner is responsible for ordering, delivering and selling Panera, Holsum, Fiber One, Gold Medal, Calise and other bakery products to their customers. The warehouse/depot for product pickup is located in Inwood (Queens).
The current owner averages approximately $5,304 per week in gross sales. Their gross margin after their product cost is approximately $2,500. This is a VERY high commission rate…most bread routes earn 16-20% commission. The route owner is allowed to set their pricing on this route which allows them to make far more money for the same amount of work. 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 and approximately 12 hours per day but an owner could work four or five days per week and shorter days. The company covers 35% stale and all accounts on this route are COD (Cash on Delivery). The truck is currently leased through the company at roughly $272 per week and the new owner can continue that lease. Any other misc equipment that owner has will be included. Full training will be provided by the current owner and company. Some company financing is available.
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 at 3pm.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $5,304 in weekly sales volume. With an average commission rate of 47% the owner generates approximately $2,500 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 $350 per week in operating costs not including the truck lease. This leaves a weekly net of approximately $2,150. 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
A 20% down payment would be required
VEHICLE AND OTHER EQUIPMENT
Truck lease is transferable and any other equipment necessary to operate the route will be provided
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 Monday, Tuesday, Thursday and Friday from approximately 3am to 3pm. 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