Bread Routes: Costs, Earnings, and How to Buy a Bread Route

A bread route is a business that delivers baked good products, such as white and organic bread, to grocery stores, convenience stores, restaurants, and other accounts.

A bread route is a distribution business where an independent owner delivers and stocks baked goods to stores within an assigned territory. Most routes include exclusive rights, giving owners protected access to the accounts in their area. Here’s a concise breakdown of how they operate and why they’re popular.

How a Bread Route Works

• Pick up fresh products from a warehouse or depot

• Deliver to retail locations and rotate inventory

• Maintain clean, attractive displays and full shelves

• Start early in the morning and often finish by early afternoon

Territory Rights

• Many routes include exclusive territories, preventing other distributors from the same bakery from selling to the same stores.

Why Bread Routes Are Appealing

• Bread and baked goods are everyday essentials, providing steady demand

• Offers a balance of independence and predictable income

• Builds long-term relationships with stores and customers, creating a stable small business opportunity

Depending on the type of route you’re looking at, purchasing a bread route typically requires 20% of the purchase price – 10% as a down payment and 10% working capital. There are exceptions to this, but for the purpose of these quick Q&As, we’ll focus on the 20% routes.

Getting into the bread route business is relatively affordable, with low down payments and minimal ongoing expenses. Most buyers only need a small upfront investment and a reliable delivery vehicle. Here’s a streamlined breakdown of the main costs:

Route Purchase Costs

• Bread routes can be bought individually or as groups, creating a wide price range.

• Typical price: $60,000–$600,000.

• Down payment: Usually 10%, making entry as low as $6,000.

Vehicle Costs

• A delivery vehicle is required, but options vary based on budget.

• Choices: New or used vans, trucks, or a trailer setup.

• Cost range: A few thousand dollars to about $25,000.

Working Capital

• Bread routes have low expenses, but some upfront cash is still needed.

• Rule of thumb: Keep 10% of the route price for vehicle costs, insurance, and startup fees.

Total Cost of Entry

• Plan to invest roughly 20% of the route purchase price for a complete and realistic startup budget.

Most bread routes are run as an owner-operator model, but it is possible to run in a hands-off capacity.

The owner handles the essential daily tasks of the business. Success depends on consistent delivery work, strong customer relationships, and knowing the territory well. Below is a clear breakdown of typical responsibilities:

Owner-Operator Responsibilities:
Many routes are sold individually and require hands-on daily involvement from the owner.

• Delivering to stores, restaurants, and other accounts

• Ordering product and managing inventory levels

• Maintaining customer relationships

• Early-morning delivery schedule, often ending by early afternoon

Territory Knowledge:
Owners must understand their territory and each store’s product needs.

• Ensures correct product quantities

• Reduces stale product and boosts sales

• Keeps clients satisfied and shelves properly stocked

Hiring and Staffing Options:
Some routes generate enough income to support additional help.

• Single routes: May use a part-time helper for restocking or rotating inventory

• Multi-route operations: More likely to support full-time drivers

• Owner role: Can remain hands-on or shift to a managerial role, overseeing drivers or assigning ordering responsibilities

Bread routes need one delivery vehicle for each route.

Bread routes have straightforward vehicle needs, typically requiring just one vehicle per route. This keeps startup and maintenance costs lower than many other delivery businesses. Here’s the simplified breakdown.

• Number of Vehicles:
  Most routes need one vehicle per route—no large fleet or spares required. Localized territories and non-daily delivery schedules make this workable.

• Maintenance Simplicity:
  Limited mileage and flexible schedules make repairs easier to handle without major downtime.

• Low-Cost Vehicle Options:
  A pickup truck with a trailer can be used instead of a delivery van, reducing both initial investment and ongoing repair costs.

See more insights on fleet strategy.

No, bread routes do not need office space.

All operations can be done from home or from the bakery. Vehicles can be parked at the bakery overnight.

Yes, many bakeries provide in-house financing to purchase a bread route.

A major benefit of buying a bread route is the availability of in-house financing directly through the bakery. This eliminates the need for traditional lenders and makes the approval process faster and easier. Here’s the streamlined overview:

Flexible Bakery Financing

• Most bakeries finance up to 90% of the route’s fair market value.

• Your down payment is simply the remaining balance between the purchase price and the financed amount.

Easier Approvals

• Because financing is handled internally, requirements are generally less strict than banks or SBA lenders.

• If you qualify for the route, you can typically qualify for the financing as well.

One-Stop Convenience

• No third-party lenders are needed—everything is completed directly with the bakery, making the process fast and efficient.

Bread routes generate income through product sales and the commission—often called a discount—paid by the bakery. Owners earn a percentage of every item sold, making revenue directly tied to product sales in their territory. Here’s the concise breakdown:

How Commission Works

• Bread route owners earn a percentage of each product sold.

• Example: If a loaf costs $5 and the commission is 20%, the owner earns $1 per loaf.

• Commission (discount) varies by bakery and by product type.

How Owners Increase Earnings

• Adding new accounts within the territory.

• Expanding shelf space or display opportunities in current stores.

• Building strong relationships with store managers to secure better placement and sales opportunities.

For more details on how bread routes earn revenue, read How Does a Bread Route Profit? 

Bread route prices are commonly evaluated using a “ratio,” which compares the business price to its weekly gross sales. This ratio helps buyers quickly gauge whether a route is priced high or low relative to its earnings.

What the Ratio Means

• The ratio = Route Price ÷ Weekly Gross Sales.

• Example: A $200,000 route with $15,000 in weekly sales has a ratio of 13.

• Typical ratios range from 5 to 35 times weekly sales.

What Influences the Ratio

• Bakery brand: Some bakeries command higher ratios.

• Location: High-demand states or metro areas often sell at a premium.

• Earnings strength: Higher, more consistent sales push ratios upward.

• Route type: Independent routes generally sell for more than company-owned routes.

For more information, read Are Bread Routes a Smart Investment?

The net income of a bread route typically ranges from 65-85% of net revenue. 

Bread route profitability depends on sales volume, commission rate, and the route’s relatively low operating expenses. Most routes generate strong margins because revenue is steady and costs are limited.

Revenue & Commission

• Gross annual revenue: Typically $250,000–$900,000 for a single route.

• Commission rate: Usually 15–21%, taken as a percentage of every product sold.

Common Expenses

• Fuel (generally low due to localized routes)

• Vehicle repairs and maintenance

• Insurance

• Wages (only if a driver or helper is employed)

With limited expenses, most bread routes net 65–85% of their revenue, depending on sales strength, territory efficiency, and staffing needs. For more information, read How Much Money Can You Make Owning a Bread Route?

Yes, you can own more than one bread route.

While most bread route owners operate a single route, many successfully scale to multiple routes. Expanding to two or more routes can increase efficiency, reduce workload, and create a more hands-off ownership structure.

• Owners can run two, three, or even fifteen routes, depending on territory availability.

• Larger operations benefit from economies of scale, making overall management more efficient.

• At higher volumes, owners can hire employees to handle:

  • Loading

  • Delivering

  • Ordering

  • Managing client relationships

This support allows owners to shift from hands-on work to more managerial or supervisory roles.