For sale is a 10-year-old company that creates and sells cakes, pastries, and a variety of other delicious desserts. The company supplies its desserts to 11 regions of a well-known high-end natural grocery store (who purchase from the business as separate individual customers, not one large singular customer). 71% of revenue is from one type of pastry, and 29% of revenue is from cakes.
95%+ of the revenue is from stores/distributors, but they also sell to the general public. On select Saturday mornings, the commercial bakery is a “pop-up” shop for local customers to purchase delectable treats. Currently, this 5-star Yelp review company operates with 8 employees, plus the owner and his wife. There are several options for the buyer to expand the business, including offering the products globally, and selling the baked goods to airlines, hotels, restaurants, and cruise ships.
In January, the company will start offering a 3-inch cake, similar to the 6-inch cake already offered. While love for customers and baking would be helpful for the new owner, they should also have a background in French pastries. That being said, the current owner is willing to stay on to help with the operations and new recipe development. There are no written contracts with any of the 11 regions of the grocery customers; they simply place purchase orders. Since the business has access to these stores, they can easily get new products into those locations in order to scale up revenue, which is what they’re doing with the new cakes. The natural grocery store has hinted that once the company becomes a “global vendor,” there will be written contracts. Revenue and earnings have seen a gradual increase for each of the past 4 years. They expect this trajectory to continue with the launch of the new cakes.