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Southern Mn Bakery For Sale

Not Disclosed, Minnesota, US
Asking Price:
$105,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$66,002
Cash Flow:
$32,173

For sale is a hometown bakery, mom and pop set up, with consistent sales and many opportunities for growth. This business is located about an hour outside of the Twin Cities metropolitan area. Included in the asking price are all assets needed to run the operation, including real estate, business equipment and goodwill, along with a normal amount of operating inventory. The current owner has built this business to work around their preferred schedule with the least amount of hassle involved. A willingness to take on more work could lead to rapid growth.

This business has several commercial accounts it supplies on a regular basis, along with walk in traffic due to its downtown location. Sought after in the community for it's breads, cakes, and donuts, this business is a hometown staple. Current ownership performs all of the work needed to conduct the operations. Currently the operations are throttled back due to ownership not wishing to take on additional staffing.
This well kept operation is a turn-key opportunity to take over a bakery tradition that spans almost a century.

Property Information

Real Estate:

Real Property Included

Premises Details:

The building is approximately 2,100 sq ft of finished space. Approximately 50% of the space is kitchen, 20% of the space is storage, and 30% of the space is cafe. Located in a small town MN downtown area, the business is surrounded by other businesses, and enjoys direct access to many larger communities. Parking is on street.

Business Operation

Expansion Potential:

There is spare capacity available to increase the amount produced in the bakery by 4 fold or more. Adding new corporate customers where deliveries take place is a prime target for expansion. In addition, focusing on and marketing specifically for catering, weddings, graduations, and anniversaries could bring in additional revenues.

Competition / Market:

Volatile input prices and numerous diverse shifts in consumer tastes have challenged bread producers, but declining revenue has not been baked into performance. Producers have adjusted their product mix to align with changing consumer preferences and decreased sales volumes in key product segments. Bread, a longstanding staple in the US diet, has been given a new look -- whole grain, multigrain, sprouted, gluten-free and low-carb. In the dessert market, producers are bringing treats with reduced sugar and fat content to the table, packed with whole grains and nutrient-rich ingredients, naturally sourced ingredients, and even providing diabetic-friendly options.

Input price changes also contribute to the industry's sluggish revenue growth, estimated at a CAGR of 0.8% to reach $54.4 billion by 2023, including a 0.8% bump in 2023. In 2020, COVID-19 supply chain disruptions and escalating wheat prices led to rising input costs, putting pressure on profit for companies facing fierce competition, unable to pass on the increased costs. In 2022, the Ukraine-Russia war led to skyrocketing global wheat prices. Future global prices will continue to impact US production and downstream bread producers.

In addition to consumers' preference for healthier products, the US palate is becoming more diverse. And the possibilities for breads and cakes are numerous. Larger commercial bakeries are acquiring smaller artisanal bakeries to enhance their product selection. Imports from Canada and Mexico will continue to comprise the largest share of imports, but imports will contract through 2028, while exports as a share of industry revenue stay positive. Looking forward, industry revenue is anticipated to edge upwards at a CAGR of 0.4% to $55.6 billion through 2028, with average profit creeping up to 3.4% of revenue. -IBIS World

Reasons for selling:

Seller wishes to retire.

Trading hours:

Tues-Fri 6am-12pm; Sat 7am-12pm

Years established:
14

Other Information

Support & training:

Will train for 2 weeks @ $0 cost.

Financing available:

Lender pre-screened with $10,500 down.

Furniture / Fixtures value:
$49,952 - included in the asking price
Inventory / Stock value:
$2,500 - included in the asking price