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French Oriented Food Manufacturer - FDA Prep Kitchen and Attractive Rent

Overview

This food manufacturer with a Food and Drug Administration (FDA) permitted food preparation kitchen specializes in producing a few baked products that are French favorites, using the highest quality all natural, additive and GMO free and locally sourced ingredients. The company retails its frozen products via a third party distributor that caters to nearly 30 stores in a premium 200+ unit regional grocery store chain, with an approximate 70% balance of products sold directly to restaurants. The highly efficient production facility boasts attractive rent and stellar freeway access.

Additional Details

Facilities

The 1,000 square foot facility leases for $1,200 per month on an annual lease with a 1 year option. All of the business’s furniture, fixtures, equipment and goodwill be included in the sale. Equipment includes a walk-in cooler and freezer, 2 sets of stacked ovens, a range top, mixer, 2 preparation tables and a 3-bucket sink. An estimated $2,000 in inventory will be sold at cost at close in addition to purchase price.

Competition

The company operates in a highly competitive space but has been embraced by customer and a signature grocery brand, which lends incredible credibility to the company’s products and its brand. Its existing shelf space coupled with its decade long history may help it to edge out competition when it comes to landing new accounts and customers.

Growth & Expansion

New operators will want to capitalize on not only the existing brand’s store presence and revenue base to add additional complementary products (and ideally obtain the same type of retail shelf space for them), expand into additional premium grocery stores (via the same 3rd party distributor or other options), and capitalize on the kitchen to develop additional products or the buyer’s own, explore catering (health department, building and safety, lease permitting), farmer’s market, direct to consumer and other retail channel outlet options.

At a Glance

French Oriented Food Manufacturer - FDA Prep Kitchen and Attractive Rent
  • Asking Price $250,000
  • Gross Revenues $233,420
  • Inventory $2000
  • Potential Cash Flow $120,000
  • Location Covina, CA

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