Price: $104,000 with truck, $94,000 without truck
Owner also has distribution rights for Taki’s snack products which would generate an additional $700+ per week in gross sales
This listing is for a Bimbo bread/bakery distribution route with a price of $104,000 including the 2008 GMC truck ($94,000 without the truck). The warehouse for product pickup is in Glendale Heights and the accounts are in Streamwood. This route is currently averaging $5,911 per week in sales volume and it generates approximately $1,125 per week in gross commissions. This territory consists of established major grocery accounts and has great growth potential. The current owner only works 20-25 hours per week!
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer Bimbo Bakeries. This route has major retail accounts including Walmart, Target and Jewel. 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 five days per week (with Wed. and Sun. off) with some flexibility as long as deliveries are made during receiving hours. The current owner generally works from 4am-9am. Merchandising can be necessary at busier accounts during holidays or large promotions but that work can be easily outsourced if the owner chooses to do that. 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 $5,911 in weekly sales volume. With an average commission rate of 19% the owner generates $1,125 per week in gross commissions. The owner receives 21% on all products except for Beefsteak (16%) and Walmart Great Value private label bread (14%). 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), route payment (depending on whether financing is used), and handheld/printer/warehouse expenses. The current owner estimates $150 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. This route currently has FOUR stores which keeps the schedule light and leaves plenty of time to service other locations. 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
Company financing is available through Bimbo and their bank partner. A minimum $25,000-$30,000 down payment will be required. The remaining amount can be financed for qualified buyers.
VEHICLE AND OTHER EQUIPMENT
The current owner will include their 2008 GMC box truck with the route or remove it from the deal if the buyer does not need it
INVENTORY MANAGEMENT
One of the biggest responsibilities for route owners is inventory management. Route owners “purchase” product from the company and then resell it to their customers. They earn a designated commission which is added on to the cost that the store/customer pays for the product. The route owner does NOT pay for product upfront. Instead, the route owner is put on credit terms with the company and they balance your account on a weekly basis. For example, if you order $5,000 worth of product from the company in one week but also invoice $6,000 worth of sales to your stores, the company will issue a settlement check to you for the $1,000 difference. Returns/stale and damaged product are handled differently by each company but are generally covered and reimbursed for bread routes.
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.
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 and they may ask for a simple business plan. Background and driving record checks may be necessary as well. Most companies are requiring that route owners are incorporated 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