Successful In-House Brand: Scaling Commercial Restaurant Equipment Ecommerce Retailer
This is a high-growth, branded eCommerce retailer that caters to the commercial restaurant equipment industry. It offers a wide range of products from smaller sinks to larger business assets like refrigerators and conveyor ovens. The business uses a 25,000 square foot warehouse as a drop-ship hybrid model for higher velocity impulse buys to ensure the satisfaction of B2B buyers. The business boasts a strong revenue of $11.7 million with over 20,000 SKUs offered, making it easily scalable internationally. The business has sold over $6 million in white label products, making it a trusted name in the food service industry.
OPERATIONS
This business uses a hybrid fulfillment model with robust supplier relationships to keep costs low while retaining control over quality standards. The company utilizes a hand-tailored Salesforce integration for aggressive growth, allowing for organic and direct sales. The business can scale with lateral product additions, comprehensive paid advertising campaigns, or even wholesale or brick and mortar expansion. Owners can capitalize on its strong reputation of having a customer base of around 30,000 by launching outbound marketing campaigns to bring in new customers.
The business uses a warehouse that is utilized as a drop-ship hybrid model to keep costs down and facilitate fast product delivery. The business enjoys robust supplier relationships and a dexterous and potent outbound sales platform.
MARKETING AND KEY METRICS
The business has scaled massively with only minimal investment in paid online advertising, relying mostly on word of mouth and reputation alone. The key to their success has been their strong reputation in the North American market.
The business can scale instantly with lateral product additions in cross-sell segments, comprehensive paid advertising campaigns, or even wholesale or brick and mortar expansion. The company’s well-known name in the food service industry makes it easily scalable internationally. The business boasts a large customer base of around 30,000 that is ready for outbound marketing of all kinds.
The business has a strong revenue of over $11.7 million and over 20,000 SKUs on offer. The average ticket value is around $800. The business has sold over $6 million in white label products and has a customer base of around 30,000.
The business has a customer base of around 30,000 and a key demographic of foodservice businesses and commercial kitchens. This includes small businesses and large franchises that use commercial kitchens for their daily operations. Customers are primarily located in North America, but international scaling is ideal.
BUSINESS MODEL & RESOURCES NEEDED
Current ownership is willing to train and transition new owners, making it a great opportunity to step into a market otherwise fraught with costly entry requirements such as working capital, brand differentiation, and reputation challenges
THE INDUSTRY
The commercial restaurant equipment industry is a highly profitable and recession-proof industry. This industry is diverse, ranging from small businesses to large corporate franchises that use commercial kitchens for their daily operations. This industry includes a wide range of products, such as appliances, sinks, cutlery, refrigerators, and more.
OPPORTUNITIES TO SCALE
Opportunities for scaling include horizontal product additions in cross-sell segments, shipping internationally, implementing comprehensive paid advertising campaigns, and expanding through wholesale or brick & mortar. Owners can capitalize on its strong reputation and high visibility with one of the world’s most reliable and high-volume repeat buyer demographics.
Asking Price: $5,325,000
Gross Income: $11,718,000
Cash Flow: $1,348,000
Year Established: 2012
Employees: 1
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