Owning a butcher shop

ShepFL · Jan 15, 2012

Local fella came and saw the Baker Co. FLA 1861-1961 play tonight. He saw me acting as 1888 Dr. and said I reminded him of butcher. Fella owns the local butcher shop - been here 45 yrs.

We got talking about how Dr.s then were more like vets or butchers. As we talked I told him of my experience doing home butchering and we compared notes on technique and making sausage.
He mentioned he is wanting to sell his shop so he can retire (he is 62 yr old). Anyone here have any experience running a local butcher shop?

Competition is Super Wally World with their gassed meats to keep it red and one local grocery store. The other grocery store (Food Lion) is shutting down.

Thinking out loud while it will be A LOT of work it just might be a business venture to get into.
I am thinking of offering locally raised meats (beef, hogs) selling to local restaurants and having a smoked meat or bakery section. In fall offering butchering services for the local and out of state hunters.

What are your thoughts on the good, bad and ugly?

Got me thinking

Chris(WA) · Jan 15, 2012

Friend of mine had a shop (actually two, one then the other)He did real well when it was a one man operation with his wife and son helping out a bit with her doing the books and son cleaning, etc. Doing game and farm kill were big cash incomes.The meat case did very well too along with smoked meats, jerky sausage etc.
He bought a bigger shop as business grew and he had the opportunity. That was a two-three man operation with a kill truck. Between hiring help, trying to have any time for himself/family and paying to fix run down old compressors it ran him into the ground.
If you can keep it small and under control financially and time wise it would be a good deal.

Charlie M · Jan 15, 2012

You definitely need something to differentiate you from the super store as you will never compete on price. Having something different and better quality will certainly help. Small butcher shops are few and far between around here because of competition and burdensome government rules that are expensive for the little guy. If you can advertise home grown with no modern chemicals there are a growing number of people looking for that. Sounds like you have some good thoughts - good luck if you decide to give it a try.

Lesformore · Jan 15, 2012

The first thing I would do is ask to look at his books and see what kind of profit he has made over the last few years and how many people he had to employ. Doing all of what you are talking about will be very labour intensive, especially if you are going to operate your own abatoir. The more people you employ the more headaches you have. Unless it pays really well, I would stay away from it.

John M · Jan 15, 2012

The local shop here has been in business since the 60s. The owner passed away in the late 90s, and his son took over the business. He tried going bigger and expanding, almost lost it. Now he just buys all his meats local, slauhgters himself, and only has one other person working for him, his son, who will probably take over in the next few years. He tried the game processing, and still does a few for his freinds and good customers, but shys away from it with others.

JMS/.MN · Jan 15, 2012

There are 8 butcher shops within 17 miles of me. Couple with 4-5 employees, others 1-3 man shops. Some 2nd-3rd gen.

Anonymous-0 · Jan 16, 2012

Almost every town has a butcher and a bakery here.... Some of the smaller ones just have sides brought in and cut/prepair for the counter... They make a lot of thier own lunchmeat and stuff along with salami, etc....
Supermarket prices are better but these folks have the advantage of being across the street, being someone you know (sees you coming and starts on your order) and smelling good... A lot of the supermarkets have bakeries and butcher/meatcounters also tho.........

Good luck...

gene bender · Jan 16, 2012

You can only sell what quality the locals raise. There is good money processing customers meat IF you can meet all the regulations. Here in IOWA the good cornfed stuff sells excellent and those who i know that raise them have no end of willing buyers wanting their product.

kyhayman · Jan 16, 2012

Im going to be the nay sayer here. To me, people want premium butcher shop quality and Wlmart pricing and hours of operation. With the economy not in great shape and not looking to be any time soon I just dont see how people can continue to pay ever higher prices for meats. There are a dozen shops within driving distance to me that are shuttered.

NW Ohio Tim · Jan 16, 2012

We have 5 or 6 little butchers within a 15 mile circle of us. They all seem to do a booming business. The one is within 2 miles of a WalMart & Meijer and has people consistanly lined up buying meat from them.

I'm sure the big boys sell more volume, but he sells enough. You don't have to be the biggest in the neighborhood, do a good job, treat people right and you'll do OK.

People will pay extra to walk in and see the same face behind the counter everyday who is friendy and helpful. You'll never get all the people who want the cheapest, but there are enough people left who understand quality to keep you afloat..... around here anyways.

Good luck, let us know how it turns out.

Tim

hd6gtom · Jan 16, 2012

We had a meeting of the local Grow Food for Profit organization last friday. They stated there is no longer a liscened poultry processing plant in Iowa. In the last 3 months new regulations have forced the last 3 to shut their doors. Something else, sure the place you are contemplating buying is not operating under any grandfather rules and you will be forced to upgrade the plant the minute you sign the contract.

ShepFL · Jan 16, 2012

Thanks fellas! Lot of good information and variables to consider. This is the only local butcher shop in a 25 mile radius.

I do plan to keep it small but need a niche market that is why I was thinking of locally produced animals. Fella I buy my beef from does an OUTSTANDING job with his feeder steers. I like the kill truck idea - I could go out to the hunting clubs on a "route" and process right there on site.

Folks here in the South as a rule don't hang their venison. Being from Idaho I still hang mine for 7 days min.

Mike M · Jan 16, 2012

You will fall under lots and lots of laws and regulations !

Way back in the late 60's early 70's my uncle moved his operation to the adjoining farm property.
Somewhere along the line he now wasn't able to butcher or have a smokehouse.I'm sure it really has to be bad now.

johndeerefan · Jan 16, 2012

Sell organic beef and pork for big $$$ to those crazy people

mkirsch · Jan 16, 2012

It's not the same everywhere.

If you're living in a real depressed area, odds are people are going to be getting their meat from the cheapest source. They simply don't have the money to pay extra for "quality" or "familiar face" even if they would.

Also don't kid yourself. "Everyone" is not willing to pay extra even when they do have the money. Only a select few are. If you happen to live in an area with an extraordinary concentration of such people, you'll make a lot of money. Otherwise, you will go out of business in short order.

With the business changing hands, there will be a more rigorous inspection done by the various agencies. Odds are the previous owner had a few conditions that were "grandfathered in" that don't meet current code. You will have to meet ALL current regulations to open your doors.

Owning a butcher shop

ShepFL

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Chris(WA)

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Charlie M

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Lesformore

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John M

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JMS/.MN

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Anonymous-0

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gene bender

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kyhayman

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NW Ohio Tim

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hd6gtom

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ShepFL

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Mike M

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johndeerefan

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mkirsch

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