Price Drop! Professional Kitchen Supply & Knife Sharpening Franchise. Central Mtns, CO but Relocatable.
This is a 17 year old mobile knife sharpening and professional kitchen supply franchise. He sells chef tools and cutlery directly to restaurants hotels, country clubs, resorts, and restaurants from Vail to Aspen to Grand Junction and everywhere in between. The company has a large customized box truck that is fitted with a proprietary knife sharpening system and also carries a diverse inventory of equipment and utensils that their customer base can purchase from, much like a Snap On Tool Truck but for Chefs. He generates 70% of his sales from products and equipment, such as garbage bags, latex gloves, cookware, utensils, knives and uniforms. Revenue is also generated by the sale of front and back of the house supplies and equipment that include all items a professional restaurant can use from salt and pepper shakers to walk-in coolers. The franchise has comprehensive brochures that customers can order out of which generates a commission. 30% of their sales is knife sharpening, 70% from product sales. He can make a new edge, change the bevel, take the burr off, or just clean the edge.
The earnings for 2017 were 129,422 on sales of 529,703. The 2016 earnings were 126,562. This company has 1 full time employee and one part time plus the owner who is full time. The owner uses the main truck to visit his biggest and best customers to sharpen their knives on the truck 5 days a week. The other full time employee sharpens knives at a location they lease and visits smaller customers mostly delivering and selling the products they represent, when not assisting the owner on the truck. They also have a knife leasing program where the employee picks up and delivers leased knives so that they are always sharp. The hourly employee uses a 2nd vehicle which is owned by the Seller.
The company’s revenues come from long term customers that pay in a timely manner. They have approximately 95% in recurring revenue from long term customers. The company has had steady long term 8% growth rate and the seller believes that should continue.
This company can be based out of anywhere within their territory. The Seller and the Franchisor can teach a new buyer and employee all that they need to know to be able to sharpen and sell their products. The Franchisor offers classes such as: continuing education seminars and buying conferences throughout the year. The Seller states that “80% of people that visit the inside of their truck buy something”. The products are professional quality, well displayed and help to sell themselves.
The sales price is $335K plus his cost of inventory which is currently $36K. The sales price includes all other assets including the big box truck and all sharpening equipment that is estimated to have a current value of $36K.
Location: Currently based out of Rifle, CO but can be located anywhere in Central or Western CO along the I-70 corridor between Vail and Grand Junction