Kyle, Lockhart and Luling TX Mission Tortilla Distribution Route for Sale
Price: $85,000 – Weekly Sales: $15,640
This listing is for a Kyle, Lockhart and Luling, TX area Mission tortilla distribution route with a price of $85,000. The owner distributes a variety of tortilla related products including Mission brands to major grocery retailers including HEB, Walmart, Target and several others. The warehouse for product pickup is conveniently located in Kyle. Food distribution routes are largely recession proof and retain their value exceptionally well regardless of market conditions.
The route is currently averaging approximately $15,640 per week in gross sales volume. The routes generate approximately $2,800 per week in gross commissions based on an average 18% commission rate.
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 makes deliveries four days per week and works a total of approximately 45 hours per week. Some weekend hours doing restocking/merchandising work can be necessary on busier weekends.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $15,650 in weekly sales volume. With an average commission rate of 18% the owner generates approximately $2,800 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. Sales can be increased by adding accounts or growing sales volume within the current accounts.
OPERATING COSTS
The current owner estimates $120 in gas cost per week, $55 for vehicle insurance, $20 for vehicle maintenance, $132 for storage and some other misc expenses for approximately $650-$700 per week in total expenses.
Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. There is very little required 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 per week in operating costs which includes gas, insurance, storage, maintenance, handheld computer/printer, and expired product expenses.
The current owner currently has about $650-$700 in weekly expenses which leaves a weekly net of approximately $2,100 for the route. That figure does not include labor costs, 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. This is a terrific territory with new products being introduced and a great account base. A motivated owner should be able to increase sales quite easily if they put in the time and effort to grow the business.
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 could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
N/A
VEHICLE AND OTHER EQUIPMENT
2016 Ford E350 box truck is negotiable but not included in the current price. A pallet jack and rollers are included with the route purchase
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
This route requires approximately 40-45 hours per week over four (4) delivery days. The owner makes deliveries on Monday, Tuesday, Thursday and Friday. The current owner also sorts and loads their truck with inventory on Wednesday and Saturday. Delivery days are 8-9 hours in length.
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
