Anyone experienced acquiring or operating a bakery shop?

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December 17, 2022

by a searcher in Salado, TX 76571, USA

Came across opportunity to take over and acquire local bakery. Seller opened shop 6 months ago but a recent family emergency is requiring her to move back to her country to take care of family member. She is owner/operator/baker and has few employees for the shop.

Due to urgency of sellers situation, they are motivated to make a deal to sell asap, and can train new owner (me) for 3 weeks. All equipment and kitchen appliances are new and cost itself is more than acquisition price.

if we were to annualize the 5 months of business since it’s been open, the revenue is 280k with SDE at about 150k. They would sell the businesses for a fraction of that SDE.

Would appreciate any input and especially connect with any one with experience opening, operating, or acquiring a small bakery cafe. My initial thought is to add value by placing a marketing strategy (currently none) and bringing on a full time baker/operator.

Would appreciate any thoughts or input you have. Thanks!

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Reply by a searcher
in Salado, TX 76571, USA
Wow, this is a great community...thanks for the feedback! One note, those are the numbers annualized from the initial 5 months and not accounting for the initial startup in equipment and appliances. I will dig further into numbers, but what i'm initially seeing based on initial 5 months: revenue is###-###-#### 2k/day and expenses are 9-10k/mo. Essentially, seller is selling business for cost of initial invest of equipment and appliances, which were all purchased new when bakery opened (6 months ago).

@Brian - would love to connect with you. I will dm!
commentor profile
Reply by a searcher
from University of Houston in Houston, TX, USA
Justin, I was a partner and in charge of Operations for a coffee/cafe concept for 6 years. We did internal baking for a number of years but eventually outsourced to a local wholesale baker. I can tell you that those margins are not possible. This is a high volume low margin business, mostly due to the cost of labor & rent. Happy to discuss in detail.
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