Foodservice distributor
Encyclopedia
A foodservice distributor is a company that provides food and non-food products to restaurant
s, cafeteria
s, industrial caterers
, hospitals and nursing homes.
A food service distributor functions as an intermediary between food manufacturers and the food service operator (usually a chef, food service director, food and beverage manager, and independent food preparation businesses operator owners.) Food service distributors procure pallets and bulk inventory quantities that are broken down to case and sometimes unit quantities for the foodservice operator. Most foodservice operators purchase from a range of local, speciality, and broadline foodservice distributors on a daily or weekly basis.
Often a food manufacturer may hire a food service brokerage company to represent the manufacturer in a local market. The broker helps the food manufacturer market its products through the foodservice distribution system, which ranges from getting items stocked at the distributor to working with operators to purchase items from the distributor.
A broadline distributor services a wide variety of accounts with a wide variety of products, while a system distributor stocks a narrow array of products for specific customers, such as restaurant chains.
Food service distribution companies can range in size from a one-truck operation to larger corporations. There are many independent broadline foodservice distribution companies that service chain and multi-unit restaurants based on master distribution agreements with national food service groups. These groups provide distributor members procurement capabilities rival the purchasing power of largest distributors. These distributor groups also provide distributor members group private label
brands as well as marketing and quality assurance services.
In the US, the industry is highly fragmented, with Sysco
capturing ~17% of the market, US Foodservice with about ~9%, PFG
with 5%, and the rest being spread across a host of smaller, regional players.
Before the advent of redistribution, only the largest food service distributors could purchase enough products from an individual food manufacturer to fill up an entire truck. Smaller distributors were forced to purchase in less than truckload
(LTL) quantities, putting them at a significant logistical disadvantage to the larger distributors.
In the food redistribution model, a redistributor will purchase in truckload quantities from many food manufacturers and warehouse the products. Individual distributors can then purchase multiple manufacturers' products from the redistributor and fill up an entire truck to save on shipping costs. The largest food re distributor in the U.S. is Dot Foods
, followed by Sysco
.
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
s, cafeteria
Cafeteria
A cafeteria is a type of food service location in which there is little or no waiting staff table service, whether a restaurant or within an institution such as a large office building or school; a school dining location is also referred to as a dining hall or canteen...
s, industrial caterers
Catering
Catering is the business of providing foodservice at a remote site or a site such as a hotel, public house , or other location.-Mobile catering:A mobile caterer serves food directly from a vehicle or cart that is designed for the purpose...
, hospitals and nursing homes.
A food service distributor functions as an intermediary between food manufacturers and the food service operator (usually a chef, food service director, food and beverage manager, and independent food preparation businesses operator owners.) Food service distributors procure pallets and bulk inventory quantities that are broken down to case and sometimes unit quantities for the foodservice operator. Most foodservice operators purchase from a range of local, speciality, and broadline foodservice distributors on a daily or weekly basis.
Often a food manufacturer may hire a food service brokerage company to represent the manufacturer in a local market. The broker helps the food manufacturer market its products through the foodservice distribution system, which ranges from getting items stocked at the distributor to working with operators to purchase items from the distributor.
A broadline distributor services a wide variety of accounts with a wide variety of products, while a system distributor stocks a narrow array of products for specific customers, such as restaurant chains.
Food service distribution companies can range in size from a one-truck operation to larger corporations. There are many independent broadline foodservice distribution companies that service chain and multi-unit restaurants based on master distribution agreements with national food service groups. These groups provide distributor members procurement capabilities rival the purchasing power of largest distributors. These distributor groups also provide distributor members group private label
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
brands as well as marketing and quality assurance services.
In the US, the industry is highly fragmented, with Sysco
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
capturing ~17% of the market, US Foodservice with about ~9%, PFG
Performance Food Group
Performance Food Group Company is a company that was founded in 1875. Headquartered in Richmond, Virginia, United States, the company distributes a range of food products....
with 5%, and the rest being spread across a host of smaller, regional players.
Redistribution
An emerging trend in the foodservice distribution business is redistribution.Before the advent of redistribution, only the largest food service distributors could purchase enough products from an individual food manufacturer to fill up an entire truck. Smaller distributors were forced to purchase in less than truckload
Less than truckload
Less than truckload shipping is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down in to units less than . Full truckload carriers move...
(LTL) quantities, putting them at a significant logistical disadvantage to the larger distributors.
In the food redistribution model, a redistributor will purchase in truckload quantities from many food manufacturers and warehouse the products. Individual distributors can then purchase multiple manufacturers' products from the redistributor and fill up an entire truck to save on shipping costs. The largest food re distributor in the U.S. is Dot Foods
Dot Foods
Dot Foods is the largest foodservice redistribution company in the United States. Dot offers over 100,000 products from 700 food industry manufacturers. Dot consolidates those products and delivers in less-than-truckload quantities to distributors nationwide on a weekly basis...
, followed by Sysco
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
.
External links
- EttlineFoods
- Australian Foodservice Distribution
- The International Foodservice Distribution Association Web site
- Foodservice Distribution Online
- American Restaurant Association
- http://www.afdr.org The association for Foodservice Distributor Representatives]
- Foodservice Distributor Listing