Tips for Investing in a Bread Delivery Route
August 30, 2021
If you’re looking for an independent business opportunity, consider a bread route. Usually, a bread route requires the delivery of brand-name bakery products to accounts in a specific region or location. Many national brands offer bread routes for sale to independent contractors.
If you’re a self-starter, a bread route could be a great fit for you.
Here are some tips for investing in a bread delivery route.
What is a bread route business?
Bread routes are an independent sales business that distributed a variety of baked goods. Just like any other routing business, a bread route delivers products to accounts in a specific region or area. You will typically operate as an independent contractor, delivering to various accounts in a specific territory. Your route will typically include grocery stores, bakeries, restaurants, cafeterias and many other food-related businesses.
What other equipment will I need to buy for a bread route?
Besides the actual cost of the route, you’ll also need to invest in equipment—specifically delivery vehicles—and be prepared to manage the expenses associated with facilities (either rented or your own home), assets (vehicles, computers, technology, etc.) and business software (financial, route planning, etc.). Online routing software, like MyRouteOnline, can make a FedEx delivery route more efficient—and profitable.
Are bread delivery routes profitable?
The owner of the route is paid commission for their sales efforts. Bread routes typically come with an established book of business, so you’re generating income from the very beginning. However, national distributors determine your commission. One common structure the distributor sells you the bread at 80% of retail, then you sell the product to your accounts at 100%. Your income is the 20% difference.
Are bread routes a good investment?
Your effort will determine your income levels. Owners can add new products and accounts regularly, expanding their revenue base. Usually, you can purchase a bread route for less money than it takes to buy into most other business opportunities. With an established territory and regular deliveries, your income will become very stable. Bread products also are considered recession-proof products.
What companies offer bread routes for sale?
Most national and regional brands of a variety of baked goods offer bread routes. You choose the company that you represent. Pepperidge Farm, Gold Medal, Mrs. Fields, Arnold & Sara Lee, and Flowers Bread are just a few of the nationally known brands.
Why are so many bread routes for sale?
Bread routes are sold for the same reasons as other businesses. The most common reason is retirement. Additionally, national brands may establish new routes in growing areas or locations where demand exceeds capacity.
