Route Overview – Bread, Snack and Chip Routes

Day to Day Route Overview

The purpose of this article will be to provide more information on the day to day responsibilities of an independent route owner.  It is important to note that all routes are unique and some of this information may not apply to another route even if it is distributing the same line of products.  Route owners can provide more detailed information on the schedule of deliveries and other tasks for their specific route.  The information below will offer an overview of how a typical day goes on a wholesale distribution route…

3am-6am Start Time

The first responsibility is to pickup the truck and, if necessary, load it with product for the day’s deliveries.  Most bread route owners load their trucks and deliver products the same day.  Snack, cookie and other owners can often load the truck with inventory the day before so that it is already loaded when they arrive in the morning.  It is normal for the route owner to leave their truck at the warehouse facility overnight.  Once you pickup the truck and load your product for the day you drive to your first stop.

box delivery truck

Deliveries

Route owners primary responsibilities are to deliver products and stock shelves/displays.  It is important that orders are accurate and fulfill the needs of the store and its customers.  All deliveries should replenish items that are running low and fill any displays.  A good route owner will forecast sales until their next delivery date and make sure that the store has enough of each product to last until that next delivery.  At the same time, delivering too much product can result in increased returns and complaints from the store.  Once the order is determined the route owner unloads the products from their truck and creates a delivery invoice for the store.

The invoice and product are then brought in to the store and checked by a receiving manager.  The “receiver” is in charge of incoming deliveries and will verify your invoice.  Receivers are often in charge of the backroom and establishing a good relationship with them is a huge advantage.  You will rely on them to get checked in quickly and they will often tell you about upcoming promotions or requests from store management.  They will also help you with billing issues if they arise.  Once the order has been checked by the receiver you are free to continue onto the main floor of the store.

The next step is to fill the shelves and displays with your product.  If a new promotion is starting then you may need to change your displays or even build new ones.  Displays are key to growing sales.  Remember that you make more money and increase the value of your route with more sales.  Once you finish stocking your product you can return to the backroom.  Any extra inventory will be kept in the backroom.

bread delivery

Returns/Credits

Returns and credits are a normal part of business for most routes.  Whether a product goes past its expiration date or gets damaged on the shelf, the store will want to be refunded for that item.  Returns and credits should be taken care of immediately.  Creating a return/credit invoice for these items is very easy and usually follows the same process as creating a sales invoice.  You can either complete your returns when you bring in your delivery or after you have finished stocking the shelves.  Both store management and receivers appreciate when these credits are handled quickly and easily.  Depending on the company you may need to bring these return items back to the warehouse.

Store Management

The key to building a successful and lucrative route business is creating a positive relationship with store management.  Store managers can decide how much space you have for your product in each store.  This is a relationship sales based business.  Managers want their stores to be successful and as a route owner you can help them accomplish that.  If they know that you are motivated and reliable they will be much more likely to give you display opportunities.  It is important to note that several route owners/vendors are often competing for a limited amount of space.  If you have a positive relationship with store management then they are much more likely to help you be successful.

On the other hand, a poor relationship with store management will make your job more difficult and stressful.  Not only can they affect your income by limiting your shelf and display space but they can also make simple tasks such as checking in your delivery more difficult than necessary.  Local store managers will also have direct access to your company’s district and regional managers.  The last thing you want as a route owner is to have your district/regional manager calling you with complaints from store managers.

If you see the store manager while you at the store you should greet them and ask how things are going.  It is always a good idea to ask about upcoming promotions, holidays, etc.  This will show them that you are thinking ahead.  Make sure they know that you are trying to increase sales and that you would be interested in any additional sales opportunities in the store.  They will gladly reward the route owners who they know will do a good job with their extra opportunities.

store management

End of Day

After the route owner has finished doing their store visits for the day they can return to the warehouse or wherever they keep their truck.  Some owners will print paperwork which would include a summary of sales and credit invoices for the day.  Depending on the route type they might also refill their truck with any product that they need.  This is a good time to think about what each store will need the next time a delivery is made.

Routes do have flexible schedules but deliveries do need to be made during receiving hours.  Most large grocery stores will have receiving hours sometime between 3am-3pm.  Depending on what time they decide to start and how busy of a day it is, a route owner can expect to be done anywhere from 9am-3pm.

the route exchange

Sherman Texas Mission Tortilla Route

Mission Tortilla Route in Sherman, Texas

mission route for sale

High volume Mission tortilla route located in Sherman, Texas. Mission is the best selling brand of tortillas, tortilla chips, dips and other products. The route includes nine accounts including Wal-Mart, Kroger, Albertson’s and others. Another Kroger store is set to open in 2017 and will increase the income generated as well as the overall value of the business.

This route is currently averaging $8,718 per week in sales. The owner is paid at 18 to 19% commission. After stales, credits and returns, the owner receives an average of $1,300 per week or $67,600 for the year. There are many weeks where the route does $10,000+ in sales and will continue growing over the next several years.

Expenses include a handheld computer and printer which are rented from Mission for $25/week. The owner has a local storage unit for their inventory which is $25/week. Gas/insurance/maintenance for the vehicle are approximately $100/week. Total expenses are approximately $7,800 per year which means the route generates $60,000 in net income.

The schedule is very flexible as long as the deliveries are made during store receiving hours. The current owner works 4am-12pm on Monday/Thursday, 4am-11am on Tuesday and Friday, and 4am-8am on Wednesday. They currently have someone who does their weekend pull ups at the stores. This person could be retained or you could takeover that responsibility.

Route comes with the trailer used for deliveries. Turnkey opportunity. You will receive training and start making money on day one. Financing may be available through a third party for qualified buyers.

Types of Vending Machine Businesses

Bulk Candy, Drinks, Snacks, Toys, Electronics…The list goes on.

There are a large variety of vending machine routes available in the United States.  The most traditional is probably the bulk candy route which consists of machines that take quarters and dispense handful amount of candy, nuts, mints, gum or other treats.  Now there are DVD rental vending machines, pizza making machines, vending machines that sell iPads and more!  The vending industry is extremely large and can offer a great deal of variety between products.  Below you will find a quick breakdown of the routes and their differences…

Bulk Candy

Bulk candy routes may be the simplest of all vending route options.  Machines are fairly standardized with U-Turn, Northwestern and VendStar being the most popular manufacturers.  Route owners are responsible for placing machines at locations and servicing them as needed.  The service visits are quite quick because the machines can be cleaned and refilled quickly.  You will often find bulk candy machines in waiting areas, entrances/exits of busy retail locations, restaurants, grocery stores, etc.  Owners purchase bulk candy or other products at a wholesale price and then sell that product from their machine at anywhere from $0.25 to $1.00.

u-turn terminator

Drink and Snack Machines

Another common vending route consists of drink and snack vending machines.  These are the types of machines that you often see in office buildings, malls, car repair waiting rooms, hotels and other locations where consumers are passing by or waiting.  The food machines are often stocked with candy bars, potato chips, pretzels, cake snacks and other quick food products.  Some advanced machines can store entree items.  Drink machines will have water, soda, energy drinks, athletic drinks or any other beverage that will fit in the machine.  There are many manufacturers of these machines…newer companies include HealthyYou, Naturals 2 Go, Genesis, Seaga and many others.  More traditional machines include Dixie Narco, Vendo, Royal, AP, Crane and Rowe.  Examples of these machines are shown below.

vending route for sale

Drink and snack vending typically provides larger sales revenues than bulk candy simply due to the pricing of items.  Certain drinks can sell for up to $2.00 each in a vending machine.  Larger routes can require an SUV, van or box truck to handle deliveries while some of the smaller routes can be serviced from any economy sized vehicle.  Some vending route owners only have a few machines which may only require a few hours per week.  Others can build routes that are 50+ locations and require a full-time schedule.

Please contact us if you have any questions regarding vending machine businesses.