You want to sell your bread, cookie and banquet specialty business? Then it is good to know what the takeover market in the field of bread, cookie and banquet specialty stores looks like. Between 2020 and 2022, the number of bakery businesses increased by nearly 16%, representing 500 new bakery businesses.
During the pandemic, there has been a heightened focus on health and wellness, which is benefiting bread and pastry stores. We look for local, natural foods and consume more plant-based products. When we have something to celebrate, we choose more luxurious cookies and pastries.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the retail sector - which includes a bread, cookie and banquet specialty store - an indicative range of EBITDA multiple of 1.9 to 3.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the retail sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the retail sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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What is particularly striking is the increase in the number of warm bakeries with one employee. Here, in fact, there was an increase of 46%!
In figures, the number of bread, cookie and banquet specialty stores(CBS) looked like this in 2024:
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer bread-cake-banquet specialty stores many growth and acquisition opportunities:
Clean label development has become a trend, according to industry association "Bakers in Business. Organic and natural is also taking a prominent place in the baking world, with color additives in particular coming from nature itself these days.
In the culinary world we have seen a trend in spicy products for some time, but spicy flavorings have now arrived in the world of cookies, cakes and pies. Combining new flavors with familiar ones develop into true fusion delicacies. Flavors such as Chili Raspberry, Mango Habanero and Onion & Cheese will revive the baking world.
For confectioners, the future does not look so bright, according to Rabobank. There needs to be innovation and a shift towards convenience, health and online. In addition, there is a major shortage of specialists in the fresh produce industry, which is expected to force many bakers to quit due to lack of succession.
