Website Closers® presents a highly niche eCommerce Brand that offers Custom Built Refrigerated Display Cases for the Sushi Industry. In business for 2 decades, they have steadily climbed in sales and size in the US by targeting the Sushi Industry with their products, letting them develop into a widely recognized leader of their field. Though they originally operated through traditional sales channels, they saw incredible results by opening an eCommerce Website to make their display cases more accessible to the general public and restaurant owners. The company enjoys an 80% Repeat Order Rate from its restaurant clients, and this along is a highly valuable element of this business … since this residual goodwill can continue to provide sales to this company in addition to first time buyers.
Operations
The company has developed a starring role in the sushi market as it has grown and developed into a beloved cuisine in American food culture, making it easy for them to obtain a market share that is steadily rising alongside the industry. They have rightfully earned a loyal customer base that consistently returns for repeat purchases, see consistent year-after-year growth, and enjoy substantial profit margins across all products.
Product assembly is handled by their highly competent team in the US.
Their average customers are sushi chefs or restaurant owners who are often of Asian descent and fall within the age range of 35 or older. While they have a modest 8 SKU count, their display cases are highly customizable, giving them a vast array of products that can be tailored to the specific demands of any customer. They have become a reliable option for restaurants everywhere in the US, as they often require displays made to size.
The acquisition is government certified and includes roughly $100,000 worth of inventory and a further $100,000 in assets: all of which can be easily transferred to the buyer.
They have an Average Order Value of 4,000, and as their products tend to last between 5 to 10 years before a customer looks for a replacement, their consumer base knows the investment is well worth it. The long lifespan of their display cases, high quality, and great performance has given them an 80% repeat purchase rate.
Human Resources
The owner’s main responsibilities consist of administrative work and overseeing production as necessary. The company also employs 7 staff members working in the following capacities:
- 1 Full-Time Sales Rep
- 1 Part-Time Office Assistant
- 5 Full-Time Production Employees
They operate out of a 6500sf facility, and as most are tenured and have been working for the company for over 10 years, the buyer can look forward to inheriting a trained and trustworthy team to help them manage operations.
Scale
This brand has required little to no paid marketing, with their outstanding organic growth rate letting them become immensely profitable. As such, they have more than a few scale opportunities that the buyer can make use of post-transition.
One of the most promising scale opportunities for rapid growth would be to implement a small amount of marketing in search, video and social marketplaces. Their low amount of competition means that the cost of advertising is likely to be lower as a ratio of Average Order Value.
If they’re interested in focusing on their organic traffic, then they could use social media platforms to showcase their products and engage with their target audience. They can interact directly with customers through comments, direct messages, and polls, all of which would improve brand/consumer relationships, boost brand awareness, and strengthen sales.
Email marketing is a tactic worth exploring, as it would be a cost-effective method for them to retain their existing customer base and encourage new buyers to stay with the brand. Once they build up a subscriber list, they can send targeted emails offering exclusive promotions, new product updates, and industry insights.
They can also see straightforward improvement by adding new products, as adding complementary SKUs to their profitable sushi display cases would let them upsell, cross-sell, or sell to an entirely new customer base for more profit. This move would improve their Average Order Value and help them appeal to a wider audience.
The company could increase their revenue further by increasing production and expand their selling network by introducing a second distribution center.
As with many companies, international expansion is something that would likely be highly beneficial for the brand. They could explore new markets by looking into opportunities abroad and identify countries or regions with a growing demand for sushi or a lack of suppliers in their niche to learn the best regions to expand into. They could then establish partnerships with distributors or retailers in those areas to better meet demand.
Summary
Sushi has become an integral part of American cuisine, evolving from an “exotic” niche cuisine to a widely known, widely loved meal option for consumers everywhere across the US. They can be found in fast food joints and high-class restaurants alike, and their breakneck growth shows that they aren’t likely to go anywhere anytime soon. This has created a great playing field for a buyer who knows how to make a strong acquisition even stronger.
