I have the opportunity to buy a bread truck business for $110k truck included. After expenses the net each week is $1900. I don’t bake the bread just pick it up in the mornings from the distributor and deliver from 5am-noon. My plan is to run it myself M-T and hire someone for $25hr Friday and Saturday. I can still pocket over a grand each week and only have to work 4 days. Does this sound smart? Im only borrowing $50k with a 10yr loan. I’m a mortgage broker and I’m out of work and need to find something stable while the real estate market recovers. Anyone else ever run a delivery business like this?
Do you need to buy the business to achieve this?
Would you be happy with half that income but saving $100k ?
Just checking, do your numbers include the insurance for all potential drivers?
What makes you think it’s going to be that easy to find somebody who wants to work Friday and Saturday only?
As long as you know you are buying a job and not a business sure. Such a small operation doesn’t seem to offer any real security. It could be gone in a blink.
What happens if the company baking bread goes out of business or hires their own delivery drivers?
It’s more of a job than a business, but yes. They can be legitimate. I’ve known a few.
The 110k isn’t a bad price, but be aware it may not be that easy to contract out on Friday and Saturday.
There’s a reason there’s so much turnover in bread delivery route sales. At any time in any territory you will find lots of routes for sales. The successful ones are the owner/operators that understand they’re buying a job. They’re committed to servicing their route, getting up at 2am, picking up from the DC at 3am and being at the first Walmart by 5am. Lots of buyers are enamored by the numbers and 3 months in are looking to sell their route because the lifestyle isn’t for them.
The more entrepreneurial ones will find 8-10 new customers per week in the territory that they can squeeze in. The dishonest ones will quickly find the customers with weak receiving policies and put merchandise on their invoice that never makes it in the store. “Direct Store Delivery (DSD)” route owners are notorious for shady practices.
You’re limited by the inventory you can hold in the truck and the receiving times your customers have. Collections also becomes an issue.
If that Citgo gas station is having problems paying its bills, that’s your loss. Can’t take back week old bread.
One of my cousins has been doing this with Flowers Bakery for 15 years. He’s put his 2 kids through college, paid off his mortgage, bought a beach house, and has made a nice living for himself with just a HS degree. He brags about being done by 12p and having the rest of the day to play golf and coach baseball. It’s certainly a viable strategy for a nice life, but don’t look at it as an high upside entrepreneurial opportunity.
How do you grow the business?
How do you handle a sick day? A vacation?
If you hire someone for weekends: Do you need general liability insurance? Do you need workers comp? How do you know that $25 is sufficient?
What company is the route with? Also be ready for the unexpected ALWAYS. Truck maintenance , store complaints, company changes, you name it.
It is a big headache but pretty lucrative. I’ve been in the business for 4 years now
Do you need a CDL to drive the truck do you have one? Will your $25/hr employee have one?
You’re likely being unrealistic about the hours.
Also, does the budget include repairs or if gas goes up $1/gal like it does sometimes? What about money for a replacement truck?
As others have said, you’re buying a job. You decide if that’s what you want to do. I wouldn’t do it without talking to other drivers.
Where did you hear about this opportunity?
The $1900 a week is after tax gas and insurance ect… I have a couple young people (daughters friends who are interested in the position) and I’m happy to be a hands on owner. I’ll work for a year until I can get it going. I’ve met several ppl who have been successful at running a bread truck. My big concern is the hours.
general motors announced today that they will build a train that will run each day on a regular basis. they are calling it the " general electric train ".
Why not just get a job with an existing company driving bread around? Same take home pay, and you won’t have to pay 110k and you have no liability or worries.
Surely you can’t be serious ? Have you run ANY numbers ?