What makes a great deli, the diminutive for delicatessen? A lot of people don’t even know what a deli is. But don’t worry, we’ll explain it to you.
Deli is like a retail store that sells a selection of less common or foreign prepared foods.
The most difficult thing on running a deli business is finding a good and reliable food supplier, as delis usually sell different and less common kinds of food.
Negotiating a guaranteed sale contract or working out with a local restaurant are two different possibilities for deli businesses. But the fact is: running a delicatessen is not an easy task, as it is a niche market that offers products with higher prices than average.
In the next topics, take a look at how you can sell your deli for the maximum value.
What is your Deli business worth?
If you are a deli business owner and want to sell it, the first thing you have to do is gather finance information to provide potential buyers with numbers that justify the price you are asking.
Then, write a report regarding competition and how other delicatessen stores work around you. Make sure you also provide potential buyers with all information they need before setting your asking price.
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Deli business worth more?
But knowing what your delicatessen business is worth is not enough to set your asking price. Before doing that you have to consider the aspects that make your business worth more.
Does your deli business have delivery options or web presence? Is your business in only one state or there are more stores around United States?
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Deli business sell for?
Delicatessen stores are not a very popular business, but there still has been 228 sales in the United States in the last ten years.
Average sales price was $188k and average multiple was not incredible, but almost reached 2.0.
In the past decade, total transaction value was $43 million, which shows deli businesses are at least very profitable.
What is the most frequent deal size?
Most frequent deal size is $50k, smaller than average sales price. It means that even though average was almost $200k in the last ten years, it is more likely a deli store owner gets $50k from his business sale than a higher price.
Is the Deli market getting bigger?
Yearly total transaction value depends a lot on how many deli stores have been sold, but 2015 was the worst year in this aspect since the beginning of our research, in 2005.
It’s not safe to ensure that delicatessen business market is getting bigger, but it’s alright to say that 2016 is a good moment for selling it.
Are bigger businesses worth more?
From 2010 to 2012, businesses with deal sizes smaller than $250k had a higher profit than the others, but from 2011 until last year, the rule of thumb “the higher the deal size, the higher the profit” works, which is basically the most common scenario for business in the United States.
What states have the most Deli business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California, Florida, New Jersey, New York, Texas and Virginia, you may get a lot more offers than if you are in South Carolina or New Hampshire. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Deli business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your Deli business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Deli, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the delicatessen industry it may likely be a person who already had a store in the field.
Delicatessen stores are not a very popular business in the United States, but still there has been 228 sales in the past ten years, with an average sale price up to $188k.
It’s not possible to ensure that deli market is living its best moment, but it’s living a great moment for those who want to sell deli stores.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts.