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Unique Food Service Related Manufacturer – National Leader

California, Los Angeles
Asking Price $249,000.00
Gross Income $691,866.00
Cash Flow $691,866.00
Furniture, Fixtures & Equipment (FF&E)
Real Estate
Year Established
Number of Employees
Type of Real Estate Offered
Business Type
  • Food Service Products Distribution

This unique light manufacturing company hand crafts customized non-food products to an array of large clients across the Unites States, most of who are in food service industry. The company, which used to be the U.S. division of a large foreign conglomerate, was brought to America in 1975 and is considered the market leader controlling what was once estimated to be 80% of its market. This business manufactures replica, or 'fake' food - customized, standardized, and gift items. This is a highly unique food/restaurant related product that caters to the world s largest restaurant chains and clients (i.e. this get's your foot in the door of the who s who of the restaurant industry). Such replica foods created for restaurants are usually used for displays. They typically include deserts, pizza, hamburgers, seafood / sushi, sandwiches, fruit, etc. but the highly skilled craft need not be limited to food - the same skill could be used in the film industry or craft industry.
Business Details
Location and Facilities: This business is located near Long Beach in a 5,700 square foot facility that leases for $4,000 a month with a lease expiring in September 2016 with two three year options available. The business has a long term secure lease that can be assigned in the sale. All of the company s furniture, fixtures, equipment and goodwill will transfer in the sale. Accounts receivable will not be included in the asking price

Support/Training: 2 wks at 20 hrs/wk

Market Information and Position: Several opportunities to improve profitability exist. The obvious one is the addition of a full or even part-time working owner who plays an active role in the company s management as this does not occur today. What is more, aggressive sales incentives could yield increased sales, as well as entry into new and innovative markets for this product (beyond those that are typically food related, which the company has always specialized in). Competition: It is estimated that only a few competitors exist in the customized product segment of the market.Historically, this firm had been considered to wield near monopoly power as it once commanded approx. 80% of U.S. market share, however, oversees competitors for the less skilled and more commoditized lower margin product have emerged. One U.S. based competitor exists, but is not estimated to have as much market share; tremendous barriers to entry exist in the industry since the typical apprenticeship to learn this demanding trade craft has historically be.

Reasons for Selling:


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