Retail Bakery – South Central Minnesota

Initially opened in 1970, this family-owned, main street bakery, offers full bakery services for locals and businesses around its rural community in the South Central region of Minnesota.

As brought under new ownership in 1980, this business is classified as a sole proprietorship. The current owner has many community ties with churches, local fairs, and restaurants allowing the business to drive consistent sales. The current owner is looking to retire within the next year from the business to focus on another venture within the area but is willing to work with a new owner for up to one month for training purposes. Currently, the business is open to the public six days a week, providing service to walk-in customers and an average of three wholesale clients. With a loyal community, the walk-in business contributes nearly 85 percent of total revenues. Current staff is made up of three long term, well-trained staff that are expected to stay on with the business through and after transition.

This bakery is the only full-service bakery in a 35-mile radius, setting them apart from other smaller bakery operations. Specialty products include custom order cakes, pastries, cookies, and breads. Walk-in business is supported through small order pastries and coffee for the local business community as well as foot traffic from a nearby school with an open lunch hour. Currently, the business holds a pizza franchise inside it as well, that is separately organized and non-transferable but has developed more traffic within the bakery since its opening and could be an opportunity for new ownership to launch themselves. With these businesses long term commitment to the community, it is looked as one of the more consistent storefronts in town and has a loyal following from both long-time locals and newer citizens. As this business is seen for its consistency, local walk-in traffic and wholesale clients have not fled the business over product price changes throughout time. With this loyal following, the owner has implemented minimal marketing leaving room for a new owner to take further efforts to break into different communities.

The current facilities and equipment are all state-licensed, health department compliant and have been maintained to keep them in good condition. The business sits in a space approximately 3,600 square feet with about one third set up as a café seating area and the rest as a production facility. Part of the space includes a large unfinished basement that is currently used as office space for the owner but provides development opportunities if needed for expansion. The business must transfer through outright purchase, and the real estate can be negotiated for purchase, lease-to-purchase or lease arrangement. High-value equipment with the sale of the business includes two Hobart mixers, an additional 80-quart floor mixer, oven sets, labeler, coolers, showcases, café area tables and seating, freezer, and all associated bakery equipment. As negotiable with the sale, a licensed food truck equipped with fryer can also be included to assist a new owner with outreach to community events.

Listing price: $145,000 - $180,000

If interested, please contact South Central Minnesota Small Business Development Center Regional Director Mike Hahn at 507-389-1008 or mike.hahn@mnsu.edu for more info.