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Old 10-10-2007, 05:04 PM
 
Location: South Portland, Maine
2,356 posts, read 4,935,322 times
Reputation: 1511

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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!!!!
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Old 08-04-2009, 02:48 PM
 
2 posts, read 103,801 times
Reputation: 16
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 I know your post is a bit outdated but was wondering if you managed to get answers to your questions or if you pursued this opportunity.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...

Last edited by OrlandoFred; 08-04-2009 at 02:51 PM.. Reason: formatt
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Old 08-05-2009, 10:43 PM
 
Location: So. of Rosarito, Baja, Mexico
6,571 posts, read 17,944,907 times
Reputation: 5919
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
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Old 08-06-2009, 09:41 AM
 
2 posts, read 103,801 times
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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
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Old 08-06-2009, 11:43 AM
 
Location: So. of Rosarito, Baja, Mexico
6,571 posts, read 17,944,907 times
Reputation: 5919
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
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Old 11-04-2009, 09:45 AM
 
3 posts, read 116,026 times
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I actually own a bread route - Ask away and I will give you the insides.
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Old 12-07-2009, 05:05 PM
 
2 posts, read 101,531 times
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I own a bread route and I cant wait to sell mine. You are basically working for the bread company and all the stores that you have your accounts with. All the store managers are pain in a ass. They dont like to run out of bread. I am talking about one bread item out of 70 different bread you carry. They want you to run the perfect business. They always want you to keep your self full. Lots of things that are impossible to do. And everytime your store manager call your DM, they threaten you with the breech of your contract. This is one of the worst business that you will ever get into. I have done this for two years now and I have never been this unhappy.
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Old 12-07-2009, 07:35 PM
 
3 posts, read 116,026 times
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What route are you trying to sell, Maybe I'll buy it. It really isnt as bad as you say if you are good with people. But seriously What bread and What area. I am looking to purchase another route
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Old 12-08-2009, 01:10 PM
 
2 posts, read 101,531 times
Reputation: 20
I am in the Northern VA. I own the Arnold Bread route. 10 thousand a week sale. 6 stores only.
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Old 12-08-2009, 03:19 PM
 
Location: Living on the Coast in Oxnard CA
15,370 posts, read 25,567,363 times
Reputation: 19641
I jumped in here thinking we were talking about the old home delivery type of business. Around here we had guys up into the late 1970's that sold from a brand called Hellms Bakery from panel Suburbans. They had a distinctive horn on the truck and all the neighborhood moms would come out to chat and purchase bread and bakery items from the driver. Back then milk came in the morning as well.

We have so many professionals that are too busy to shop that this type of business has been making a comeback in some areas.

One small note, read a story of one driver that delivered milk by horse drawn cart. He never switched to the truck even after everyone else had. When his milk company told him he had to switch he took one of the bosses on a delivery with him. Showed the boss that all he did was walk down the street and whistle and the horse moved the wagon to the next drop off spot. The truck couldn't do that. He was able to keep delivering by horse untill he retired.

I was not aware that you could purchase bread delivery routs. Is this in all areas or only out of the way locations?
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