Listing ID: 83991
Well respected and known catering and food manufacturing business has pivoted to a new business model that is experiencing tremendous growth from demands created from covid-19. The great news for the next owner is these demands and market segments being served are growing due to the new labor issues faced by many grocery stores as well as reduced competition in catering.
This family business was started in 1938 and services Michigan’s Upper Peninsula and Eastern Wisconsin, providing frozen products to grocery stores, meats for grocery stores and local restaurants, deli salads that include signature potato and tuna salads, Greek, sweet and sour, fettuccine, spaghetti and apple taffy, as well as several store specific recipes, and full-service catering.
- Asking Price: $650,000
- Cash Flow: $250,000
- Gross Revenue: $1,100,000
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $60,000
- Inventory Included: N/A
- Established: 1938
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business is operated from a commercial building where they store equipment and trucks. Location has multiple kitchens, prep areas, coolers and storage. The facility is centrally located on a major artery and can easily deliver to Eastern Wisconsin and throughout the Upper Peninsula of Michigan.
Seller will provide training to help the purchaser take over providing a smooth transition while learning the business and its operating activities, gaining and understanding of the customers and vendor partners.
Wants to retire
Catering: There is little competition for catering in the UP and NW Wisconsin, especially after COVID put several businesses in this industry out. Local catering companies that they compete with would be Ralph's Deli, Jeffery's, NMU Catering, and Border Grill. There really is no competition in their growing meat/deli/frozen. This is now 75% of the business and is where the greatest growth is. Add to that the current buy local and buy UP movement with it’s many supporters, this appears to the an opportunity you don’t want to miss out on.
Deli Salads./Grab and Go: has grown substantially. especially in the deli area. Currently selling deli salads in 16 chain store locations as well as many local grocery and convenience stores. Adding "Grab and Go" products to offerings this fall and continuing to look lor more stores, specifically along our current routes. Additional opportunities also exist in growing catering, meat and frozen products. Ask for more details.
The business was established in 1938, making the business 84 years old.
The transaction shall not include inventory valued at $60,000*, which ins't included in the requested price.
The company has 8 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell operating businesses. Nevertheless, the true factor vs the one they say to you may be 2 totally different things. For instance, they may claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is very essential that you not count totally on a vendor's word, however rather, utilize the seller's answer together with your overall due diligence. This will repaint a much more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Most times, businesses have repeat consumers, which develop the core of their everyday earnings. Certain aspects such as brand-new competition growing up around the location, road building and construction, as well as personnel turn over can influence repeat customers and negatively impact future earnings. One vital point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to construct a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the regional average home income influence future income prospects?