Queensland

Wholesale commercial kitchen & bakery for sale - Live the sweet life!

For Sale | $2,000,000

Bakery Distributors Manufacturers

Revenue
$2,600,000 pa

Location Details
Brisbane

Potential
There is current capacity to increase revenue to $4m pa, thereafter, further growth is possible through working a double shift and sourcing additional storage

It is estimated that the revenue from two key clients will increase by a further $1m over the next 12-18 months based on current projections.

Qld economic future is looking positive post Covid with tourism, infrastructure investment, internal migration and the 2032 Olympics all looking positive for jobs, population and consumer sentiment

Skills
The current owners work circa 28 hours & 12 hours a week respectively. One is the Financial Controller and the other in a GM capacity.

The business has 20+ staff, the key employees occupy the following roles:

Office Manager; Warehouse Manager; Distribution Manager; Executive Pastry Chef

Hours
7.30am 3.00pm Mon to Fri
Next day delivery for all orders made prior to 3pm Mon to Fri and 11am Sun for Mon.

Lease
Lease Expiry 31/12/2029 - Option 2 x 5 years

Employees
The business has a dedicated team of 20+ employees

Reason for Sale
The founding owners are looking to transition to retirement

Located in Brisbane, this wholesale commercial kitchen was established 15 years ago.

The primary motivation was to provide a total food service solution for all customers and the value proposition was a hand finished product of a better quality at a reasonable price to provide customers with a point of difference.

Over the years the business has diversified into different markets and product categories and currently has over 130+ individual product offerings.

The business supplies its products to the following customer segments

1. Traditional Cafes
2. Corporates
3. Distributors
4. Franchisees
5. Independent Retail Supermarkets
6. Hotels and clubs

The business currently has a broad wholesale customer base of 300+ with minimal concentration risk. Only one customer group, who have multiple locations across Australia currently generates > 10% of total revenue.

Distributors historically have not been a major contributor to overall sales, but the business now has an established relationship with a major Australian distributor which has opened up significant opportunities Australia wide.

The business also owns and operates vehicles which delivers direct to the customers doorstep, this allows them to pass on cost savings and provide great service.

The management systems of the business have been formally assessed by International Certifications and comply with the requirements of HACCP Warranty Food Safety Management Systems

Future Growth Opportunities include:

> Have the capacity to increase revenue to $4m per annum with further growth possible through working a double shift and sourcing additional storage
> It is estimated that the revenue from two key clients will increase by a further $1m over the next 12-18 months based on current projections.
> To attract, maintain and grow their second tier retail supermarket customers who wish to differentiate themselves and are looking to source from alternative suppliers.
> Customers in both tourist locations and airport travellers will bounce back
> The economic future for QLD is looking positive post Covid with tourism, infrastructure investment, internal migration and the 2032 Olympics all looking positive for jobs, population growth and consumer sentiment.

History
The founding owners of this business have over 65 years of experience in the hospitality sector.

The business was established in the mid 2000's initially to supply quality products to a related Café Group

Due to space limitations they moved operations and subsequently relocated to an exceptional purpose-built facility near the airport which is their current location.

Over the years the business has diversified into different markets, expanded its product category range and the number of product options within each category.

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Marketing By


Tim Butterfield

Business Brokers Network

Overview

This Bakery Business is one of 324 businesses for sale in Brisbane Central, Queensland, and one of 13 Bakery Businesses in this region that a business for sale currently has on offer. This Bakery Business is for sale in Brisbane Central for the asking price of $2,000,000 and has been on market for less than 3 months.