need help/ buying and owning own bread route (small business, wholesale, sales)

[flycessna]

Does anybody have/had experience "owning" their own bread route or something similiar.

I am in the begining stages of researching an opportunity to buy my own route. I have owned several business before (restaurant, rental property) and understand the basics but have no experience in this particular field. How stable is this type of business.

Do you just buy it and instantly start making money? It's almost like buying a job rather than running a business that involves marketing and advertising ect.

How do you put a value on a business like this.

The work seems pretty straight up to me, are there any hidden draw backs that i am not seeing?

Is this something that will last or are these a dying breed?


Thanks everyone, any info will be helpfull!!!!

[OrlandoFred]

Hello flycessna... I know your post is a bit outdated but was wondering if you managed to get answers to your questions or if you pursued this opportunity.

I’m actually pursuing a bread route opportunity myself and I have the same exact questions that you had. I hope you are able to provide me with some insight from your experience. Some of my questions are:

How do you put a value on a business like this?

Are there any hidden draw backs?

How to read financial data? Or better yet what are some financial red flags to look for?

What questions to ask?

I have a financial background and I used to own a very small business so I’m not completely in foreign territory but any insight would be highly appreciated.

Thanks in advance...

[Steve Bagu]

Very old method of doing business.

In the 30's recall milk...bread...farmers with veg wagons all being pulled by a horse down the street selling to potential buyers going house to house. In those days they did not have grocery stores like today.
My dad sold (bread/pastries) in the late 20's and met my mother this way. (He also used a horse and wagon).

In the 40's during the war this was still being carried on.

In the 50's a neighbor down the street still delivered milk in bottles to homes on a regular route he had. I would see him moving the bottles around in his truck at 3-4 AM while I drove by on my way to work.

Today...go pick up any loaf of bread in the mkt and look at where the main office is and plant locations.

That should give you an idea on any possible competition out in the mkt place. Don't be surprised at any legal retaliation or Health laws as to baking/selling your own product in the mkt place.

Not sure about delivering someone elses product...states may vary in that respect.

There are some big companies out there so beware.

I was in the grocery trade for 23 yrs and know the bread routine.

Steve

[OrlandoFred]

Sounds to me you are keeping a family tradition… 23 years is a very long time! I have a lot of extended family in the small grocery business but none in the wholesale distribution…

Thanks for the input... In my case, I’m looking to distribute the baked goods of a very reputable and established name brand. I’m essentially taking over the delivery route/territory of an existing distributor.

The more I keep learning about this opportunity the more I become concerned. For example, the route may be heavily controlled by the name brand, whom really dictate when, where, and what of everything. It sounds as if you are buying a job with no benefits other than the hope that you can make a lot of money. And even then you don’t control how much you make because large food chains deal with corporate and the small guys are more headache than profit!

Still doing my research and will be going on a ride with the distributor this week.

Thanks,
Fred

[Steve Bagu]

Ok...delivering a Bread/Bakery product as a independent is not the same as being a Distibutor.

Distributor is only a middleman to the local retailer.

A distributor can be a franchised person using the brand name on their trucks while delivering a product.

Example; A liquor distributor will carry the same brand of Beer/Wine/Spirits etc as another competitor.

Depending on some areas where the volume of sales will be smaller then a large city...a small distributor will be used.

Do know of a large well named brand of bread that bakes their bread etc at one location and trucks the product at night over 400 miles in one direction alone which is delivered to the grocery mkts the next AM for shelf stocking.

Years back met a bread driver who had a college degree but made more money delivering bread to the Grocery Chain stores then he would have using his degree. He was paid on a volume delivery/sales and his route was a money maker.

Areas of sales will vary of course...still could be done I suppose.

Steve

[jokerz wild]

I actually own a bread route - Ask away and I will give you the insides.