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What is a Bread Route? How Do You Buy a Bread Route?

A bread route is a small enterprise in which an individual entity buys bread from a firm’s storage facilities, and redistributes it to his assigned territory. The bread route operator earns funds by selling goods for supermarkets and confectioneries.

This is a perfect corporate option for those seeking to supplement their income. Bread routes are sales-driven enterprises run by independent contractors who buy bread from popular businesses such as Sara lee, pepperidge farm, gold medal, flowers bread, etc.

They in return sell to their customers, who are grocery stores, bakeries, and fast food joints in a defined jurisdiction. It is imperative to know that several accounts produce more revenue than many others, necessitating offerings during the entire week, whereas others necessitate less stock rotation.

Offerings may increase during the holiday season, just like Pepperidge and Arnold/Brownberry always do on Thanksgiving. Self-sufficient bread route options are usually arranged by an individual who wants to sell and provide bread for a particular pastry shop.

The Benefits and Drawbacks of Buying Bread Route

A bread route is similar to any other type of routing venture. As an independent agent, you will generally distribute goods to numerous accounts in a defined area. This means that you will be placing products in supermarkets, specialty shops, offices, delicatessens, and other related establishments.

The average cost of purchasing a bread route in the United States is $10,000, so the benefits and drawbacks of this option should always be put into consideration before investing.

Pros

  • A bread route offers a systematic source of revenue
  • When you possess a bread route, you can as well be your own employer
  • You can possibly pick the business and the items you market
  • You’re dealing with a straightforward business model
  • You will determine your income brackets
  • With a bread route, there is continual room for expansion
  • Several routes often include the expense of the truck
  • Several companies route organize financial support
  • You could offload your company at any moment
  • If you sell the route, you maintain the leftover balance on the credit note.

Cons

  • With a bread route, there are multiple economic things to be considered
  • It is not uncommon for a bread route to confront supplier issues
  • You must run your own local company alone
  • Some bread routes may necessitate the use of an intermediary
  • To acquire a funding proposal, you must have a good credit score
  • Several businesses will not permit absentee owners to continue operating the route
  • Purchasing a route can take a long time
  • Collaborating with leading brands can necessitate a huge capital investment
  • Amidst being self-employed, you will still adhere to certain guidelines
  • Under certain instances, guarded routes could become vulnerable.

What Equipment Do You Need to Run a Bread Route?

Possessing a bread route necessitates a few additional requirements, which include:

  • A delivery vehicle: As an independent bread route owner, you would have to own or rent a delivery truck. You’ll also need to purchase insurance because some distributors incorporate a delivery truck in the route’s original outlay, but this will vary, depending on the bakery or producer you collaborate with.
  • The required license: Certain trucks must be operated legitimately with a commercial driver’s license (CDL). The trucks you engage will determine if you need a CDL, so ensure you get the proper permit and class certification.
  • Necessary skills and characteristics: Previous route knowledge might not be required to possess and manage bread routes. Possessing a bread route is a business venture, and the revenue and capital obtained are a natural consequence of your skill and hard work.

Owing to that, an expert demeanor, the capacity to work hard, and the desire to increase sales are required. You ought to have high emotional intelligence and be prepared to cooperate with other enterprises along your route.

  • Schedule flexibility: For the delivery of products, several retailers and enterprises have early morning receiving hours. You’ll be required to adapt with the enterprises along your route; adapting to their schedules and different season requirements.

How to Buy a Bread Route

In purchasing of a bread route, you should contact manufacturers such as pepperidge farm, flower foods, and bimbo bakeries exclusively online. The pepperidge farm bread route requires a 15% down payment, and as such if a bread route is good enough to warrant $160,000 in Houston, the buyer must pay $24,000 as a preliminary payment.

It is preferable to go online, to seek for and purchase a bread route. The costs have always been posted on the sites of pepperidge Farms, Flower Foods, Arnold, and Sara Lee (which are components of the Bimbo bakeries). When calculating the amount, a purchaser can gain a better understanding by analyzing the internet sites, their sector multiplier, and the average sales. Other websites which are providing opportunities to buy bread routes include:

  • Bizbuysell
  • Bizquest
  • Dealstream
  • Routesforsale
  • Loopnet
  • Therouteexchange

How Do Bread Route Owners Make Money?

Distributors disseminate baked goods to route holders at 80% of selling value, and they in return sell to their contracts at 100%. Therefore the route holders have to maintain 20% of the gap as their service charge. Bread route holders profit from the time and hard work they offer in their revenue growth.

They receive compensation of 15-20% on revenues generated by selling bread to their contracts in a given place. In the United States, bread route holders earn on average $60,000 per year.

This encompasses their starting salary, as well as any kickbacks. Revenue commissions differ, depending on the town and demand patterns. According to Glassdoor, bread route owners earn between $4,000- $6,500 per month. So, the more you sell, the more reasonable income you earn.

Conclusion

The bread route is a successful enterprise,  it doesn’t necessitate much capital, and the holders start getting paid immediately. Nevertheless, your revenue is determined by your ambition and willingness to put forth time and energy into the company.

If you operate your enterprise alone, you must develop contact with distributors and key accounts. Close relationships with these entities can lead to the introduction of new customers and suppliers.