Internal Ref: CFSG2025-102
Summary
A leading wholesale supplier of packaged food and beverages to Melbourne school canteens, also provides outsourced canteen management services. Long-standing relationships and stable profitability.
Revenue
$5,410,000 pa
Rent
$158,000 pa
Expenses
$5,057,000 pa
Net Profit
$392,000 pa
Location Details
Operates from a rented warehouse & office premises close to major highways & freeways.
Potential
The business has shown remarkable resilience throughout the current cost of living crisis, maintaining strong revenue and earnings. Looking ahead, the owner believes there is significant growth potential to unlock by enhancing the business' sales and marketing efforts and digitising aspects of the customer experience.
Skills
Being a well-established business with a strong brand, proven systems and a loyal customer base, the owner believes the business would be a suitable acquisition for either:
a) an existing industry player looking to grow its customer base and/or geographic footprint; or
b) a stand-alone operator looking for a long-standing yet relatively simple business to manage.
Hours
Monday to Friday 6:00am - 4:00pm.
Lease
The business rents its premises from an unrelated third-party. A new lease may be negotiated.
Employees
The business employs a combination of 10 full & part-time staff at its head office. In addition, the business hires some 30 casual staff that work directly in the school canteens the business manages.
Reason for Sale
Having successfully operated the business for the past three-and-a-half decades, the owner wishes to retire by selling the business to a new owner who can build on its strong foundations. The owner is fully committed to assisting the buyer with a comprehensive handover.
About the Business
The business was founded in 1990 originally as a wholesale food supplier focused on supplying football club canteens on Saturdays and Sundays. The Business subsequently shifted its focus to school canteens – both as a wholesale food supplier and as a catering company.
The Business, which is headquartered in Melbourne, currently employs around 10 staff at its head office. In addition, through its catering operation, the business employs some 30+ additional staff that work on-site at the canteens it directly operates.
The business directly supplies approximately 120 primary and secondary schools across Melbourne and a further 150 schools indirectly. Many of these customers have been loyal to the business for 10 or even 20+ years. In addition, the catering operation separately provides catering services to some 15 school canteens. The wholesale supply business is the larger of the two operations in terms of revenue (70%).
The business' main target market is primary schools for both its wholesale supply and catering operations. The key reason for this is that primary schools tend to have more children on campus for longer across the year than secondary schools; for example, Year 12 students finish their school year earlier than children in primary school.
The business maintains strong relationships with a diversified suite of suppliers. All of the business' suppliers are well-known food manufacturing and distribution companies.
Despite the recent cost of living challenges facing consumers, the business has remained remarkably stable and resilient in terms of both revenue and profits. The business also generates strong cash flows with the business' customers paying more quickly than its suppliers demand payment.
The business was established by experienced food industry executive who had previously worked for several high-profile food-related companies. After operating the business for 35 years, the owner has has decided to sell the business and to retire.
History
The business was initially launched as a part-time, weekend venture supplying sporting clubs canteens. An opportunity in late 1990 to acquire a business that supplied school canteen led the business to focus on the school market. To build on its momentum, the business moved into school canteen catering in the mid 1990s. The business moved to its current location in 1999.
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