Freehold Wholesale Bakery With Retail Outlet For Sale

Business description

This highly established bakery has been supplying the surrounding region with high quality bakery and confectionary products for over 80 years and in that time has built up a sterling reputation based on quaility, consistency and reliability.

The current vendor has run the business for the last 25 years and has developed both the wholesale and retail sides of the business. Approximately 60% of current turnover comes from regular wholesale clients (circa 15 mile radius) with the remaining 40% coming from the retail oulet, which is located in a busy town with some 3,500 inhabitants. It is the only retail baker in the town.

The bakery provides traditional breads as well as seeded and organic varieties not to mention confectionary. In addition to this the retail outlet sells complimentary products such as chutneys, jams and pickles. The orgainic flour used by the bakery is bought direct from a working water mill.

Equipment:

The bakery has built up an extensive range of plant and equipment over the years and has a range of high quality ovens, mixers, trays, provers, turri dividers and moulders to produce a wide variety of products. In addition to this there is a walk in freezer and refrigerated areas. The retail shop is fitted with the necessary counter displays and chillers.

The oil fired bakery furnace was rebuilt in the 1990’s and is serviced twice a year.

The company also has 3 sign written delivery vehicles (one is owned) as well as office and pc equipment.

All equipment is included within the sale price.

Customer Service:

The company has a superb reputation forged over some 80 years by providing fresh quality produce. Staff are highly experienced and ensure consistent levels of customer service. The business is a member of The Federation Of National Bakers.

Key Strengths:

• Market presence-historical
• Reputation
• Infrastructure
• Customer base
• Limited competition
• Staff
• Profitability

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business has consistently grown year on year. Current turnover is circa £230,000. Gross Profits circa £136,000 p.a. Net Profits circa £30,000. The business has an excellent level of plant and equipment , all of which is well maintained and serviced. The bakery itself is freehold and in a good state of repair. The business has a loyal customer base and experienced and trustworthy staff. It represents an excellent investment opportunity.

Property information

Property:

Freehold

Location:

Bakery- Freehold circa £125,000. Building is 30 years old. Total area is circa 2160 square feet. Comprises bakery, stores, office and staff toilets. There is parking for 6 vehicles. It is located in a picturesque setting. The furnace is oil fired.

Retail Shop- Ideally located in middle of busy village with no real competition. Shop has good frontage and is rented. Current rent is £62/week.

Business Operation

Expansion potential:

The business has the capacity to increase sales without having to invest in further equipment. The company does very little in the way of proactive sales and could certainly expand its coverage and customer base.

Competition / Market:

The business does very little advertising and marketing (local telephone books) preferring to rely on word of mouth recommendations and referrals to stimulate business.

Reasons for selling:

The vendor wishes to take early retirement.

Trading hours:

Bakery operates 6 days 22.30-1200
Shop 6 days: 07.45-1600 (except Monday and Thursday when closes at 13.00)

Employees:

The vendor, a baker, works full time in the bakery and also takes care of administration. In addition to this the bakery also employs two further bakers/drivers full time, a part time pastry cook and a part time driver. The shop has 4 part time shop assistants, all of whom are very experienced.

Other information

Support & training:

The current owner will provide all necessary training and handover to ensure a smooth transfer of the business to new owners.