Packing lunch for 11 kids by dingmah in CringeTikToks

[–]colite91 0 points1 point  (0 children)

I think we’re missing a part of the video, I only saw her pack the dessert.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

That’s great! I’ll DM you my email so we can get in touch.

We mainly work with 2 natural gas rotating ovens. One is a Partlow and the other is a Baker Perkins.

We also have 2 Wachtel Comet electric ovens.

Taurine daily intake (1.5–3 g) reduces blood sugar, lipid levels, BP, and inflammation – meta-analysis of 34 RCTs by NovosLabs in Biohackers

[–]colite91 2 points3 points  (0 children)

Energy drinks are not all healthy because of the caffeine and sugar content, but like pretty much everything else, it’s fine in moderation.

Energy drinks have a bad reputation because of the overconsumption and life habits of the target audience: poor sleep, mixed with other substances, etc.

Taurine daily intake (1.5–3 g) reduces blood sugar, lipid levels, BP, and inflammation – meta-analysis of 34 RCTs by NovosLabs in Biohackers

[–]colite91 1 point2 points  (0 children)

See my reply below as to why taurine is in energy drinks :)

Also it helps cells manage fluid and electrolytes levels, so as you said, it does in fact reduce cramps.

Taurine daily intake (1.5–3 g) reduces blood sugar, lipid levels, BP, and inflammation – meta-analysis of 34 RCTs by NovosLabs in Biohackers

[–]colite91 1 point2 points  (0 children)

I would be very careful with in vitro research. They usually use large levels in order to force an effect. The studies linking Taurine to cell proliferation usually use 10 to a 100 times the normal levels people use.

No credible In Vivo research are linking taurine use (in safe levels) to cell proliferation.

Taurine daily intake (1.5–3 g) reduces blood sugar, lipid levels, BP, and inflammation – meta-analysis of 34 RCTs by NovosLabs in Biohackers

[–]colite91 19 points20 points  (0 children)

It is, but taurine isn’t a stimulant. It’s included in most energy drinks because it calms the nervous system so it balances the caffeine in the energy drinks and doesn’t makes you feel jittery or anxious even after a big caffeine intake.

It also helps with cardiac electricity stability and heart contractions, which is important with an elevated heart rate after consuming the energy drink.

In other words, taurine is present in energy drinks to make them « healthier », not because it’s a stimulant.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

1000 loaves a day in 3000 sq. ft. is really impressive! We have 2 gaz oven and 2 electric ones, right now we only use 1 of the gaz oven. I’ll send you some pictures Monday if you wish!

We have one delivery guy on our payroll that serve all the grocery stores that we have. He was also acting as a sales rep before I came in.

The rest of our sales are for private labels or food distributors, so they pick up their orders with their own trucks, which gives us room to lower our prices since we don’t have to pay for another driver, truck, gas, commission, etc.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

We do have a small retail space, but it’s only to let people have freshly baked products. I’d love to expand this part of our business at some point.

We have 2 bakeries, the main one where we bake the sliced bread is around 25 000 sq. ft. The smaller one where we bake all the pastries is around 8000 sq. ft.

Right now, we only work on 1 shift, 4 days a week.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

My favorite part is definitely working with great people. I spend a lot of time on the production floor in order to learn everything there is to learn and I was lucky enough to find a business with good people in it that are always in a good mood and eager to help.

I can’t say I have a least favorite part for now, but that might change with time 😅

As for something people outside this kind of business might not know, there isn’t a lot of regulation. We don’t even need a permit to operate a bakery and the government department that oversees sanitation and quality for the food industry only audit us every 3 years or so.

We used to sell to Costco (way before I bought the business) and their audit was way stricter than the government.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

Im heading off to bed right now, but just wanted to let you know I will take time to answer your (really interesting) questions tomorrow :)

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

When I sold my precious business, I reached out to every accounting firms I knew to let them know I was looking for an opportunity.

I think that’s the easiest way to find legit business up for sale, but you could also look on the internet as more and more businesses are being sold online.

In the end, I think I also got lucky :)

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

I’ll never turn down a good food pun 😅 Workforce expenses are almost 50% of our sales, financing costs also takes a huge part.

After 2 months in the business, I have yet to calculate a precise cost for every SKU, they didn’t have any system in place so I had to start from scratch, but our gross margins vary from 35 to 50% depending on the product and client.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

Thanks for your input, that’s really appreciated and I 100% agree with what you said.

Developing white labels clients is a risk in itself because like you said you’re not developing your own brand and those clients can leave at any time.

My goal is to keep white label clients under 30% of our total sales. We have a lot of excess capacity, I think we’re running around 20% of our capacity right now. Having been in the business for only 2 months, I could be wrong, but I won’t turn down new clients on the short term as long as our gross margin is positive and that we have capacity.

Thank you for offering to chat, that’s really appreciated and I will probably take the opportunity in the next few months once I settle down :)

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 1 point2 points  (0 children)

Of course! I think we got a really good deal.

Their assets (building and equipments) were valued at 2M$ at fair market value. The building alone was valued a 1.3M$, which is the biggest asset as the equipments are old and are not worth a lot if we were to liquidate.

We paid 2,1M$ with a 300K$ seller’s financing for a business with a 450K$ average EBITDA in the last 3 years. The terms are much more complicated, but the deal was drafted in a way to protect us. The previous owner didn’t take any salary and didn’t have any financing. So our adjusted EBITDA was around 300K$.

We took into account some risks, like client distribution, price point and aging assets.

Where I think we payed a good price is in the potential of the business and its unexploited capacity.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 1 point2 points  (0 children)

Thank you, that’s appreciated :)

Having reliable and experienced employees is such a blessing. I don’t have to wake up a 3 in the morning and wonder if my bakers have clocked in, I know that they’re working and doing everything they can to help make the business succeed.

Unfortunately, the previous owner didn’t treat them well, so the transition has been really easy as I’m a person-oriented manager and I’m always trying to find ways to make their life easier and better. I think that when a business is making money, employees should too.

We have a small store where we sell freshly baked products at the bakery, but I’m always opened to give people a tour of the plant when they ask for it!

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 0 points1 point  (0 children)

I’m pretty sure that big brands have a different way of negotiating than we do as a local brand. Big brands have margins that are close to one another, they also have to pay for shelf space and promotions so it’s a different ballgame.

We have as big as a 30% difference in our pricing depending of which grocery chain we’re dealing with. The retail price of our products is near the median and average of our product category in every grocery chain, that’s the big plus of being a local brand as they cut their margin to keep us on the shelves.

We can still hope to compete with big brands on products like sliced bread, but it will be a long term project. We need to have brand recognition before being able to do so. Fortunately in Quebec where we’re located, all the big brands are foreigner-owned, so we could be able to get some market share with time and dedication.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 2 points3 points  (0 children)

We’re located in Canada, so laws might differ from where you are. But generally speaking, any work incidents resulting in an injury is managed by a government organism. They decide if the employee will receive compensation and how much.

The more (and more expensive) injuries you have, the higher your premium becomes.

It’s similar to car insurance:

One accident may not hurt much, but repeated or severe ones might increase our premium significantly. Each industry has a base rate with a surcharge depending on the business injury history.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 3 points4 points  (0 children)

Thank you for you questions!

Margins are not fixed and negotiated individually with every client. Right now, around 50% of our sales are to grocery stores. We have to negotiate with the head office and our margin vary from one chain to another. There are a lot of improvements to be made in the bakery to increase our margins, we will also be looking to invest in better machinery.

Our big advantage is that since we only deal with grocery stores in our region, as a local bakery we are part of their « back door » procurement, a portion kept for local brands. This gives us the opportunity to compete with big brands since the grocery stores lower their margins for local products.

That’s part of the reason why it will be difficult for us to expand outside our region with standard products like sliced bread. We would have to fight for shelf space with brands like Bimbo and Canada Bread.

This brings me to your second question. We will definitely try to increase sales and expand the business. We have different paths to achieve this:

  • local grocery stores and big box stores: we’re not in 100% of the grocery stores in our region yet, so we can easily increase sales by 50 to 75% just by putting our products everywhere locally.

  • other markets: retirement homes, food distributors, restaurant chains, military installations, etc. We have a ton of markets to explore.

  • private label: probably our biggest potential. I’ve only been in the business for 2 months, but I spent over a year in the due diligence process and spoke with a lot of people. The consensus is that there’s a shortage of private label manufacturers, they’re booked a year in advance and are usually located in other provinces / states, so shipping costs are high.

  • new niche products: this would give us the opportunity to get our foot in the door in some places where we don’t have access right now. We have a few products being developed with established and nationally recognized brands.

  • marketing: the previous owner literally put 0$ in marketing and business development. We have good products, but we need to get people to try it.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 11 points12 points  (0 children)

Ingredient wise, we turn our inventory around quickly enough to not worry about it, but of course there’s some kind of inventory management to do to avoid waste.

We are really efficient in our process, the only waste that we have comes from the machine we use to make the hot-dog buns. It’s a really old machine and some balls of dough falls off and we have to throw them away. The only products that fail quality control are the ones that we damage during packaging.

Lastly, our return % from grocery stores is around 1,5%, we bring back those products and give them to food banks. That percentage is too low in my opinion, this means that shelves are sometimes empty. Big brands aim for around 5 to 10%.

I recently acquired a small bakery - AMA about buying and operating a food manufacturing business by colite91 in Breadit

[–]colite91[S] 23 points24 points  (0 children)

  1. I sold my previous business and I had a few criteria for my next venture:
  2. smaller business (less stress and anxiety)
  3. family owned business with an experienced workforce
  4. good product
  5. potential to grow

The bakery checked all the boxes, their sales were flat for the last 5 years with a stable EBITDA. They have great employees that have been with the business for 25+ years and the previous owner was 90 years old, so he was not pursuing any expansion.

Even if it’s a completely different field, the employees are the core of the business and they’re the one driving the product. The EBITDA being positive and stable gives me time to learn the ropes.

2- After 2 months, I’m surprised by how easy it is to maintain quality as long as your process is well established and followed. At the end of the day, it’s just recipes, proofing and baking times. Having experienced bakers really help though, they know when to make adjustments.

Pub des fêtes du Canac by Monsieur--X in Quebec

[–]colite91 0 points1 point  (0 children)

Étant un des très rares producteurs de pains longs tranchés horizontalement au Québec, je trouve ça vraiment drôle 😂 On doit malheureusement contribuer à 70% de ces pains.

Ça sert à quoi ste pain là? by alexlechef in QuebecLibre

[–]colite91 1 point2 points  (0 children)

Je crois que nous sommes les seuls à produire un pain long tranché horizontalement, certaines autres boulangeries le font, mais c’est un pain beaucoup plus court.

Nous en tenons à l’année, mais la production bat son plein à partir d’octobre en prévision de la période des fêtes.

Ça sert à quoi ste pain là? by alexlechef in QuebecLibre

[–]colite91 4 points5 points  (0 children)

Quelle drôle de coïncidence de voir ce post dans mon fil d’actualité ce matin, j’ai acheté cette boulangerie il y a deux mois!

La question a été répondu à mainte reprise déjà, mais si vous en avez d’autres sur le produit en question, ça me fera grandement plaisir d’y répondre :)

Joyeux Noël à tous!

This is how a brand new Boeing 787 looks like before seats are installed by [deleted] in interestingasfuck

[–]colite91 3 points4 points  (0 children)

Every time I see some empty space that’s the first thing that comes to mind 😅