Differences Between FedEx Ground Routes and Bread Routes

What Are Bread Routes?

Bread routes and other independent distribution routes encompass a wide range of opportunities for independent distributors across the United States. Bread routes specifically refer to independent delivery operations that cater to businesses such as grocery stores, retail outlets, conventions, hospitals, and more, ensuring a steady supply of bread products.

The most common bread routes in the United States include Martins bread routes, Flowers bread routes, Gold Medal bread routes, Sara Lee bread routes, Bimbo bread routes, Mission bread routes, Pepperidge Farm bread routes, Arnold’s bread routes, Mrs. Fields bread routes, and more.

Apart from bread routes, independent distributors can explore various other options such as Boar's Head routes, Pepperidge Farm routes, Bimbo routes, candy routes, flower routes, and many more, each offering unique products and clientele. 

FedEx Routes vs. Bread Routes

Entrepreneurs seeking opportunities in the e-commerce logistics and package delivery industries often come across various types of delivery routes, including FedEx Ground routes and bread routes. While both offer unique advantages, it's essential to understand the key differences between them to make an informed decision. 

In this blog, we will highlight some of the specific differences between FedEx Ground routes and bread routes, exploring their operations, requirements, and potential for success. 

Nature of Operations

FedEx Ground Routes

FedEx Ground routes involve delivering packages and parcels on behalf of FedEx Ground. As an independent contractor, you will be responsible for picking up packages from a local FedEx Ground facility, organizing them for efficient delivery, and ensuring timely drop-offs to residential and commercial addresses within a designated territory.

FedEx Ground businesses are multi-truck operations, typically consisting of 5 - 20 trucks per operation. FedEx Ground contractors are familiar with managing a team of drivers and taking financial advantage of a larger-scale operation.

Bread Routes

Bread routes, on the other hand, focus on delivering baked goods to retail establishments, such as grocery stores, convenience stores, and restaurants. As a bread route owner, you'll work with a bakery, delivering fresh bread and related products to customers within a specified territory. Your role includes managing inventory, interacting with customers, and maintaining relationships with the bakery. The bread route driver is responsible for stocking the bread isles, removing old product, and advertising the bread products to customers.

Most often, bread routes are single-truck operations and most distributors do not take full advantage of economies of scale. Logistics professionals and FedEx Ground contractors looking to get into other types of distribution routes, such as bread routes, can take advantage of their experience operating multiple routes to really make an impact in the bread route space.

Relationship with the Company

FedEx Ground Routes

As a FedEx Ground contractor, you operate as an independent business owner under a contractual agreement with FedEx Ground. You'll work closely with FedEx Ground employees in the terminals, following their delivery guidelines and utilizing their systems and technology for efficient operations. While you have full flexibility in managing your drivers and routes, you're still subject to certain operational and contractual requirements set by FedEx Ground that must be met to maintain your contract.

Bread Routes

Bread routes often involve a direct relationship with a specific bakery or bread manufacturer. You may operate as an independent contractor or as a distributor affiliated with the bakery. The level of involvement and support from the bakery can vary, but you'll generally have more autonomy in managing your route compared to FedEx Ground routes.

Vehicle and Equipment Requirements

FedEx Ground Routes

All FedEx Ground routes require a scanner that drivers use to log deliveries throughout the day. FedEx Ground contractors are typically required to own or lease their delivery vehicles, adhering to specific requirements set by FedEx Ground. These requirements include but are not limited to, branding specifications, DOT inspections, and safety technology requirements. Additionally, contractors are responsible for maintaining their vehicles, including insurance, fuel costs, and necessary repairs.

Bread Routes

Bread routes are often single-truck operations and the standards for those vehicles are less controlled compared to FedEx Ground vehicles. Most bread routes use step vans, transit vans, or box trucks, similar to the FedEx Ground industry. Even though the vehicle requirements are generally less stringent compared to FedEx Ground routes, you still need a reliable and well-maintained vehicle to transport the bakery products. The reality of the bread route industry is that most distributors are not optimizing the use of their vehicles.

This presents an opportunity for entrepreneurs and logistics professionals to come into the space and stand out among other bread route owners by establishing professional standards. Many FedEx Ground contractors have spare vehicles in their fleet. Contractors have a unique opportunity to utilize unused vehicles in more diverse markets to generate additional revenue.

Schedule and Workload

FedEx Ground Routes

Most FedEx Ground operations deliver 6 or 7 days a week depending on the availability of Sunday deliveries in a particular region. FedEx Ground contractors are required and expected to deliver all packages that are assigned to their territory every single day. It’s entirely up to the contractor to determine how many routes are needed to service the available package volume.

In addition to deliveries, FedEx Ground contractors are also responsible for picking up packages from businesses in the territory. These pickups have specific time windows that must be met to maintain the service standard. Driver schedules and specific routes can change depending on the day, available volume, and required pickups for the day. 

Bread Routes

Bread routes also involve early morning deliveries to retail establishments, ensuring fresh products are available for customers. Often, bread route drivers start their day around 1:00 AM to get produce to the customer before opening hours. 

However, the schedule can be more flexible than FedEx Ground routes, allowing you to manage your time and workload. Bread route owners only deliver to the customers they have an agreement with. Bread routes have full control over generating additional customers and marketing their products to local groceries and stores.

Financial Considerations

FedEx Ground Routes

In a FedEx Ground route, your revenue primarily comes from the fees paid by FedEx Ground for each successfully delivered package. The amount you earn depends on factors like route volume, distance, and the efficiency of your operations. All of the package volume and potential revenue is provided by FedEx Ground. How efficiently you deliver the packages and how well you manage your operational expenses will determine how profitable your business will be.

Bread Routes

Bread route profitability is typically based on the margin between the wholesale cost of bakery products and the retail price you sell them for. Your success depends on factors like the number and loyalty of your customer base, efficient inventory management, and the potential for upselling additional bakery products.

It’s important to note that pay and contract structures for bread routes can vary depending on the specific manufacturer and size of the account. Some contracts involve cash payments, and many bread route owners do not maintain their receipts in an organized manner. The wild west of bread routes could present an attractive opportunity to someone with the business acumen to build a financially stable and profitable operation that can later be sold for a healthy profit.

Learn more about bread routes for sale

FedEx Ground routes and bread routes offer different opportunities within the delivery industry. Understanding the differences and similarities in operations, relationship with the company, vehicle requirements, schedule, and financial considerations is crucial in determining which route type aligns best with your goals and capabilities. Whether you prefer the structure and technology-driven operations of FedEx Ground routes or the flexibility and customer-oriented approach of bread routes, both can provide rewarding entrepreneurial experiences.

You can learn more about logistics routes and business opportunities through our Bread Routes 101 E-course. Join now to get started on your educational journey into logistics.