East Haven CT High Income Bread Distribution Route for Sale

Seller Financing Available

Price: $300,000 – Weekly Sales: $22,500

This listing is for a Schmidt bread distribution route with a price of $300,000. The owner distributes a variety of bakery products to major grocery retailers including Walmart, Shoprite, Stop and Shop and also to several restaurants including Popeyes and Olive Garden. The warehouse facility for product pickup and the accounts are located in the Manchester, Wethersfield & Windsor.

The route is averaging $22,500 per week in gross sales. The routes generate approximately $4,200 per week in gross commissions based on the 25% commission rate for grocery deliveries and 10% for fast food deliveries. This is a very high sales volume route with consistent sales volume and growth potential.

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 major food manufacturer. Full training will be provided.

The owner has a truck currently used for the operation is included as well. The truck is a 2019 Isuzu NPR with approximately three years remaining on a lease to own agreement.

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. With an owner operator approximately 45 hours per week would be required. Most owners operate Monday, Tuesday, Thursday, Friday and Saturday with Wednesdays and Sundays off. Merchandising/restocking may be necessary on busier weeks and that work can be outsourced if the owner is interested in doing that.

GROSS EARNINGS/COMMISSIONS

The route is averaging $22,500 per week in gross sales over the last 52 weeks. The routes generate approximately $4,200 per week in gross commissions based on the average commission rate. 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 $700 per week in operating costs which would include gas/fuel, insurance, vehicle maintenance, computer/handheld costs, etc.

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 $700 in weekly expenses which leaves a weekly net of approximately $3,500. 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

Approximately $142,000 of financing is available through the company. The remaining $253,000 would be due at the closing

VEHICLE AND OTHER EQUIPMENT

The current owner’s box truck is included. The truck is a 2019 Isuzu NPR