Business Overview:
For sale is a long established, high quality food retailer. With a niche, premium product and access to new customers every day, this business is set to maintain its success for years to come. This company utilizes specialty advertising venues and its convenient location to attract new customers all the time. Personalized service and high quality products keep them coming back.
All assets needed to operate the business are included in the sale price, including leasehold improvements, FF&E, and inventory.
Current owner works approximately 50 hours per week, with that time broken down roughly as 40% sales/service, 40% inventory management, and 20% office/administrative.
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Property Features and Assets:
The facilities are situated in a leased space and are adequate for current operations. No major changes are needed to the current space to maintain operations. Landlord is open to leasing to a new owner.
Assets = $89,275
Market Competition and Expansion:
Operators in the Specialty Food Stores industry sell specialty lines of food products that include baked goods, candy and snacks, artisanal cheeses and premium packaged coffee. Although improved economic conditions and shifts in consumer preferences have been beneficial to the industry, rising competition from other industries has constrained growth for operators over the five years to 2022. In particular, industry operators have experienced intense competition from the specialty food aisles of traditional supermarkets and grocery stores.
However, these conditions were partially offset by rising health awareness and a shifting consumer preference toward premium, all-natural foods. Consequently, diet-conscious consumers have helped to support industry revenue by dedicating a large portion of disposable income to specialty foods, with sales for organic, local and gourmet products rising significantly over the past five years. In 2020, industry revenue increased 1.2% due to the COVID-19 (coronavirus) pandemic. Demand for specialty food increased significantly in 2020 due to the temporary closure of restaurants which caused consumers to increasingly cook at home. However, revenue growth was stifled due to external competition with traditional supermarkets, which are often able to sell industry products for lower prices. In line with positive trends during most of the period, industry revenue is expected to increase at an annualized rate of 2.0% to $9.5 billion over the five years to 2022, including an increase of 1.6% in 2022 alone. Along with increasing revenue, industry profit, measured as earnings before interest and taxes, is anticipated to expand to 8.0% of revenue in 2022, up from 6.2% in 2017.
Over the five years to 2027, the industry is expected to benefit from improvements in the overall economy. Rising per capita disposable income and consumer spending are expected to benefit specialty food stores, weakening competitive pressure from regular supermarkets and other external competitors. Accordingly, industry revenue is expected to grow an annualized 1.6% to $10.3 billion over the five years to 2027. Similarly, industry profitability is forecast to continue improving during the outlook period as consumer spending increases. A strengthening industry and low barriers to entry will likely encourage new entrants, with the number of operators expected to rise at an annualized rate of 0.4% to 45,212 companies over the five years to 2027- IBIS World
There are many avenues for growing this business, including: 1) adding another location, 2) catering more private events, 3) expanding into more corporate gifting opportunities, 4) increasing technology sales via additional online store opportunities, 5) encourage more repeat customers by bolstering secondary sales marketing efforts (rewards programs, subscription plans, return offers, etc).
Reason for Selling:
Owner desires to pursue other interests.
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
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