How much does a Tortilla Manufacturing & Distribution cost to buy?

A typical Tortilla Manufacturing & Distribution sells for 3x to 5x annual revenue. With average revenue of $1.5M, expect to pay $4.5M to $7.5M.

How much does it cost to start a Tortilla Manufacturing & Distribution?

Startup costs range from $250K to $1.5M depending on location, equipment, and scale.

Physical

/100 score

Fair

Tortilla Manufacturing & Distribution

Q: What are the profit margins for a Tortilla Manufacturing & Distribution?

The average profit margin for a Tortilla Manufacturing & Distribution is around 12%. Major costs: masa harina/flour, packaging film, refrigerated delivery trucks and drivers, plant utilities (gas-fired griddles), production line workers, and food-safety compliance (USDA/SQF).

Mexican restaurants need tortillas every single day

Wholesale tortilla bakeries press, cook, and pack corn and flour tortillas for restaurants, grocery stores, and food-service distributors. Daily delivery routes generate sticky B2B revenue — a single Mexican restaurant might buy 10,000 tortillas per week. The category is growing 6%+ annually and remains highly fragmented at the regional level.

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Avg Revenue

$1.5M

Profit Margin

12%

Acquisition Multiple

3x - 5x

Startup Cost

$250K - $1.5M

Difficulty

4/5

How It Works

Industrial tortilla machines (Lawrence, BE&SCO) produce 10,000-60,000 tortillas/hour. Refrigerated route trucks deliver daily or 3x/week to restaurants, taquerias, and grocery accounts. Pricing runs $0.05-$0.12 per tortilla wholesale; margins compound on volume and route density.

Revenue Range

Low End

$600K

Typical

$1.5M

High End

$5.0M

Pros

+Daily-consumption product with extreme account stickiness
+Hispanic food category growing 6%+ annually with no signs of slowing
+Highly fragmented industry — easy roll-up opportunities
+Multi-channel: restaurants, retail, food-service distributors

Cons

-Capital-intensive equipment with ~10-year depreciation
-Thin margins on commodity inputs (masa, flour, oil)
-Refrigerated logistics required for fresh tortillas

Best For

Operators with food-manufacturing or route-distribution experience in Hispanic-dense markets

Operating Costs

Major costs: masa harina/flour, packaging film, refrigerated delivery trucks and drivers, plant utilities (gas-fired griddles), production line workers, and food-safety compliance (USDA/SQF).

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-46877/mo

after debt service

Deal price — $6.0M

Range: $3.8M (3×) to $9.0M (5×+)

Down payment — 15% ($900K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

Standard SBA 7(a): 10 years for business acquisition

Down payment

$900K

15% equity injection

Loan amount

$5.1M

85% SBA-financed

Monthly payment

$62K/mo

$2.3M total interest

Monthly profit

$15K/mo

at 12% margin

Monthly cash flow after debt service

$-46877/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.