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Old 05-02-2013, 09:06 PM
 
6 posts, read 178,875 times
Reputation: 18

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So I have owned several bread routes.. Flowers and Pepp Farm..

Im looking to buy another one.. I understand the numbers well..

Bread routes like Pep, Arnold and Martins sell at about 23 or 24 x 1.

So if the route sales for the week are 9,000. you times that by 23 and thats what the VALUE of the route is.

Company that will finance you, will pay about 80-90% of the loan.. The rest is yours to pay.. Thats where you get the "Down Payment" from..

If the downpayment The higher the downpayment the more ??x1 you are paying..

The rule of thumb is to not pay more then 23x1.. Do not pay for cash stops cause those are not guaranteed and can be fraudulent. If they are selling you the truck you wanna know how old it is and how worn out it is.. most of these guys will throw the truck into the deal.

Finally.. as said before.. There is more then just throwing bread onto your truck and delivering it. For some of these companies you need to pay your own gas, taxes, uniforms, maintenance and on top of it you will most likely not get much time off..

Its in my blood and before you buy into a route you better ride with the guy and make sure its in yours..

Routes that have 1 good week and 1 bad week then a good week and a bad week, are not being run right.. Those are the guys that are plowing it out there.. make sure your gonna get a route that SELLS bread and now stales bread. Cant many money off stale.

Good luck.
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Old 05-03-2013, 01:42 AM
 
64,507 posts, read 66,075,955 times
Reputation: 42955
a bread route sounds like something you can make a lot of dough in lol.
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Old 05-03-2013, 06:44 AM
 
1,610 posts, read 3,839,293 times
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I owned 2 snack routes over a 26 year period its hard work no sick days or vacations
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Old 06-17-2013, 09:20 PM
 
1 posts, read 42,894 times
Reputation: 13
jerichox

Thanks for your input and recommendations. I am seriously considering a Flowers Bread route. It's stating a weekly net of $1200. Purchase price is $160k. I almost purchased a FedEx route, but decided not to based on incorrect figures.
What are the benefits / risks of owning a Flowers Bread opportunity as an absentee owner. Mostly concerned about the risks: backup driver, days per week delivery, is it a dedicated territory, risks of losing territory.

I am ok with the benefits, but need another perspective on the risks.

Thanks
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Old 06-20-2013, 01:59 PM
 
5,617 posts, read 13,387,287 times
Reputation: 2771
Quote:
Originally Posted by qlty View Post
I will tell you one thing its very scary driving that truck up there in the winter (lots of Ice on roads) I know this first hand.
Sullivan COunty too is very seasonal for tourist and second home owners, and Jewish. Make sure its kosher. Also its a lot of space in that county and driving , its a rural area so gas could really be a killer. Everything is far apart. Also not a huge population, I think its a terrible choice for a route. Plus a high gas, high tax state!!! Recipe for disaster!

Last edited by stevemorse; 06-20-2013 at 02:39 PM..
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Old 06-25-2013, 08:36 AM
 
Location: South Portland, Maine
2,356 posts, read 4,935,322 times
Reputation: 1511
Quote:
Originally Posted by jerichox View Post
So I have owned several bread routes.. Flowers and Pepp Farm..

Im looking to buy another one.. I understand the numbers well..

Bread routes like Pep, Arnold and Martins sell at about 23 or 24 x 1.

So if the route sales for the week are 9,000. you times that by 23 and thats what the VALUE of the route is.

Company that will finance you, will pay about 80-90% of the loan.. The rest is yours to pay.. Thats where you get the "Down Payment" from..

If the downpayment The higher the downpayment the more ??x1 you are paying..

The rule of thumb is to not pay more then 23x1.. Do not pay for cash stops cause those are not guaranteed and can be fraudulent. If they are selling you the truck you wanna know how old it is and how worn out it is.. most of these guys will throw the truck into the deal.

Finally.. as said before.. There is more then just throwing bread onto your truck and delivering it. For some of these companies you need to pay your own gas, taxes, uniforms, maintenance and on top of it you will most likely not get much time off..

Its in my blood and before you buy into a route you better ride with the guy and make sure its in yours..

Routes that have 1 good week and 1 bad week then a good week and a bad week, are not being run right.. Those are the guys that are plowing it out there.. make sure your gonna get a route that SELLS bread and now stales bread. Cant many money off stale.

Good luck.
This is an old thread and No I haven't moved forward with this. The recession had me focusing in other areas but I still am interested in this.

No wants to hear "hey I am going in 50%" but I am considering, if companies allow it, that once the route is established and running well I might bring my son on board and teach him the business. He could start off by working with me and filling in for me and then maybe someday I can buy another route with him or sell him mine ect.. do you see stuff like this happen?

Also, Flowers just bought out Country Kitchen not to far from me in Lewiston.. It's not necessarily a product I am in love with but I hear the drivers might be changing from company drivers to route sales owner operators as I guess this is flowers MO.. any thoughts on what companies you like best?
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Old 07-23-2013, 12:51 PM
 
6 posts, read 178,875 times
Reputation: 18
Quote:
Originally Posted by gt0066h View Post
jerichox

Thanks for your input and recommendations. I am seriously considering a Flowers Bread route. It's stating a weekly net of $1200. Purchase price is $160k. I almost purchased a FedEx route, but decided not to based on incorrect figures.
What are the benefits / risks of owning a Flowers Bread opportunity as an absentee owner. Mostly concerned about the risks: backup driver, days per week delivery, is it a dedicated territory, risks of losing territory.

I am ok with the benefits, but need another perspective on the risks.

Thanks

Flowers does not want absentee owners.. thats just an easy way for them to breach you and take the route..

Flowers is great if you dont have the money down.. but its hard work and they keep growing...

its a dedicated territory with some bid accounts (stores you do not own but could lose at any time. i.e burger kings and other fast food accounts)

You work normal vending days.. mon-sat with Sunday and wednesday being a "pull up day"

You can lose your territory for breach of contract just like ANY of these companies.

Know your contract and just dont be in a pain in the ass.

FLOWERS WILL SELL you the route.. do not buy a flowers route from a broker.. flowers routes go for 10x1 from flowers!

The numbers you are saying sound wrong.. UNLESS its 1200 after route payment, truck payment, insurance coverage, personal insurance coverage and fica already taken out of the check. these are things i would ask.. once again.. stay away from a broker.
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Old 07-23-2013, 12:53 PM
 
6 posts, read 178,875 times
Reputation: 18
Quote:
Originally Posted by flycessna View Post
This is an old thread and No I haven't moved forward with this. The recession had me focusing in other areas but I still am interested in this.

No wants to hear "hey I am going in 50%" but I am considering, if companies allow it, that once the route is established and running well I might bring my son on board and teach him the business. He could start off by working with me and filling in for me and then maybe someday I can buy another route with him or sell him mine ect.. do you see stuff like this happen?

Also, Flowers just bought out Country Kitchen not to far from me in Lewiston.. It's not necessarily a product I am in love with but I hear the drivers might be changing from company drivers to route sales owner operators as I guess this is flowers MO.. any thoughts on what companies you like best?
Flowers is the easiest to get in to cause they always need people.. Right now they are expanding big time with IBC gone.. also you do not need any money down to get a route..

However its the hardest work out of all the companies.. Some long hours perhaps and ****ty stores.

FLOWERS WILL SELL you the route.. do not buy a flowers route from a broker.. flowers routes go for 10x1 from flowers!
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Old 09-06-2013, 10:36 PM
 
18 posts, read 75,401 times
Reputation: 38
I find the bread business difficult.

Theres some cons to bread routes some people dont realise..

-Most companies pay for the stales, but, up to a certain %.
-Bread has a really short shelf life. 6-7 days?
-Short shelf life means you have alot of returns to pull out from stops aspecially in the slow season
-Nowadays large supermarkets have a "vendor violation" policy, where if they find an outdated product on your shelf, you get fined 40-75 dollars depending on the store.
-Short shelf life, means you have to go to the warehouse to pick up fresh bread, in the AM, every single day. You will be waking up way earlier than other vendors since stores have recieving hours.


in retrospect, I have a potato chip route.

-Shelf life of my product is 2 months so stales are low.
-You dont have to go to warehouse to load up every single day(if you get a big enough truck)
-You can start later in the day if you want.
-more flexibility, if I want to skip a stop or take a day off I can, bread is more important aspecially cash stops; if you supply the rolls and they have no bread to make sandwiches, you'll have ticked off owners. If you skip a day with bread, you might get an outdate and a vendor violation.
-Supermarket stops when it comes to bread is more visits per week to the same store. Most bread guys have to be at these supermarkets 5 times a week, other vendors like pepperidge farm cookies 1x a week, stella doro cookies 1x a week, chip guys 3x a week, alot less.

Bread is just way more work and requires way more dedication since the schedule is not flexible. One can not simply say "i will take off or start work extremely late today", when it comes to bread. Bread has probably the most responsibility out there.
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Old 09-07-2013, 05:17 AM
 
6 posts, read 178,875 times
Reputation: 18
Thats so true.. I think bread does take dedication.. Some people will work 7 days a week if they do pullups and stuff..

Chips or cookies not so many hours.. however the price to obtain some of these routes are high..

Snyders seems reasonable but so many people complain about them..

Pepperidge Farm Cookies is the crown jewel.. But at 40 or 50 x 1... you need deep pockets to obtain a route..

A lot of routes are going to less stores.. Like an arnold route (bimbo) most only have two stores.. most guys are done by 9am.. Bread has changed a lot with IBC being gone..

Good points though oreo!
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