Grocery Delivery Service in Hawaii
A fast growing and profitable home-based grocery delivery service company in Hawaii is being offered for sale with all of the tools, websites, business model, etc. included. Sales have jumped from $106,797 in 2015 to projected 2019 sales of $277,500. 2019 owner’s profits are projected to be over $55,000.
The business concept is that visitors to Hawaii, after a very long and exhausting plane ride, don’t want to spend the time and energy to go grocery shopping when they arrive and would prefer to have someone else do their shopping and delivery groceries and other items to their hotel or condo before their arrive.
Grocery delivery is the fastest growing component of the grocery market in the USA. Industry experts say that the 3-year growth rate for online purchases of groceries was 38.4% (compared to the in-store growth rate of only 0.8%). Grocery delivery service only amounted to only 5% of total grocery sales showing how much upside is available in this market.
Most of their customers are visitors to Hawaii, staying in a condo, house or hotel which has a kitchen, and who want the convenience of having their full grocery order, including alcohol, delivered to them prior to their arrival.
They have a state-of-the-art website with full shopping cart capabilities. Customers browse this website store, which has over 5,000 items, as they would browse the aisles of their local grocery store, adding the items they need to the cart. Once shopping is completed the customers proceed to the convenient and secure checkout and pay by credit card. Customers provide the Company with the delivery location and delivery date and the Company delivers to the customer’s house, condo, or hotel just prior to their arrival in Hawaii. Generally, the Company is paid at least two days before delivery, so they have no investment in Inventory, it’s all paid upfront, thus no working capital investment. They apply a price markup and charge a delivery fee to generate an excellent gross profit margin of 37.8% as of YTD August 2019.
The concept of grocery delivery is relatively new and is growing like gangbusters all across the US and the world. It is especially valuable to tourists who don’t want to waste their valuable time grocery shopping in Hawaii’s paradise.
2019 continues to see excellent sales growth. As of 8/12/19, sales are up about 17% compared to 2018 at the same time. They expect that growth will continue at a very good pace because more Hawaii visitors will learn of the benefits of this service and go to their website.
This is a great business to operate out of your home (the current owners deducted $17,92 of home related expenses off their taxes in 2018); everything is in place for a new owner to keep it moving to continued growth and profitability. There is No Inventory Investment: orders are paid in advance by customers before the food is purchased.
The Business is being offered on a turn key basis and the owners will provide suitable training and sign a long term non-compete agreement. This is a great way to live and work in Hawaii.
Listing ID: Delivery - T
Location: Hawaii (Island Confidential)
Type of Entity: Corporation
Year Established: 2010, converted to corporation in 2013
Asking Price: $110,000
Included Inventory: none
Tangible Assets: $1,000
Non-Compete: 5 Years in Hawaii
Training: 4 weeks; 30 hrs./wk.
Sale Reason: Due to health issues
REAL ESTATE/LEASE DETAILS
Expand partnering with more Vacation Property Management companies
Delivering for other suppliers
Expand the use of couponing
To receive a very detailed Confidential Business Profile, with tax return-based financials, please contact us.