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northernms

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Reply with quote  #17 

@ellaryan205 Personally I shop at 4 different farmers markets and 5 different grocery stores for my family. But where I live for most restaurants it totally makes sense to pick one honorable partner. If I opened a restaurant in Chicago or NY I'd be more all about my concept and quality and would want a handful of good specialty suppliers. I would be embarrassed if my customers saw a Sysco truck pull up behind my restaurant. I've even seen reviews on Yelp decrying that exact thing. but for your average restaurant....WGAS.


@LinesintheSand LOL

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Justketchup

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Reply with quote  #18 

I have been on this site for the past 12 years and I finally have to chime in.
When I worked for big blue back in the mid 2000's, The formula I was told it costs a customer $22 per invoice (Probably $25 or more now).  The $22 is the cost that includes the time/wage for a person to receive and put away products, Person time to pay the invoice, "net" interest savings lost if not paid on time and other possible accrued interest in bank account saving or "Float".   The last one would be for a major foodservice chain of course.  The $22 was up here in the expensive northeast, so it might be different around the country.  
So if the chef here thinks he is saving money he might be on some items, but in the long run, he is not.  
 
To cherry pick some items might be beneficial to this chef due to the type of restaurant, but unfortunately all large distributors made customers like him aware of the ShanaGans played over the years. 

This business had its fun time of large margins until Rest Depot came to the market and disturbed the status quo. Now I know the people that buy from RD I didn't want to sell to these know it all's anyway, so they could crash and burn.  I wanted partnerships  with the chefs that wanted to learn and have fun.  Unfortunately there is few and far between of these chefs now.

my $.02

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commoditiesguy

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Reply with quote  #19 
Keep an eye on this Amazon grocery store concept.
And there are some that believe they will be getting into the "distribution" business as well.

Sad as it is, you can only make so much of a living off the relationship-side of the business anymore.
Those days (and customers) are becoming few and far between.
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misterfood

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Reply with quote  #20 
OK, I have to chime in on this Ellenville guy.
     First, if he did a good analysis of his purchases, I bet a very large percentage come from Freskeeto, with whom he says he has a family relationship, and is in Ellenville.  Really, plastic wrap, garbanzo beans, do the numbers, it adds up.
     Second, his purchases from local farmers is probably less than he thinks, in terms of total yearly purchases, but every one is noted on his menu.  "Local".
     Third, and most important.  The market is changing.  I set up an order a few months ago, using prices for an important GPO.  Towels, toilet paper, roasted red peppers, anything that weighed less than a case of #10 cans.  Total invoice would have been about $800, say.
     I went to Amazon Prime.  No delivery charge. 2 day delivery.  Same stuff, same brands.  $600. 
     Boys and girls, this is your competition. Wait until the plastic wrap is delivered by drones.
                          Your Friend and Mine,
                                       Misterfood
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northernms

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Reply with quote  #21 
You guys are right. Amazon Prime is here.

What's more unnverving is the baby boomers that are bitter over the millennial habits being so different. The old guys of the industry are in denial.

If you are a giant broad line distributor your days are probably numbered.

But if you're smaller/regional you have the opportunity to identify and fill the niches.
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laser

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Reply with quote  #22 
The large, well funded distributors will adapt. It will take them a little longer because of the battleship analogy. The business continually evolved over the 35 plus years I was in it,  and continues to do so today.Technology has basically sped up the changes. Merry Christmas everyone.
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Mr Food

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Reply with quote  #23 
northernms....

You are correct, This is why I feel that Sysco has slowed growth compared to its history.  In the past each OpCo had the ability to "feed" its marketplace, with the local needs.  Today Sysco wants to be more like McDonalds... all the same, yes you might get mustard on your burger in the south, but its a difference most people won't even notice.  Every customer has his own belief, either your going to fill that belief/need or the other guy will.  All beliefs are not the same... all needs are not the same....  

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Reply with quote  #24 
Quote:
Originally Posted by laser
The large, well funded distributors will adapt. It will take them a little longer because of the battleship analogy. The business continually evolved over the 35 plus years I was in it,  and continues to do so today.Technology has basically sped up the changes. Merry Christmas everyone.


What is a well funded distributor? Sysco has a current market cap of $30.75 billion plus $1 billion in debt give or take, US Foods has a market cap of $5 billion plus another $5 billion in debt, a debt that extracts about $200 million per year just in servicing fees. PFG has a market cap of $2.5 billion with a $1 billion in debt.

All total you have claims against production, and consumption totaling $44 billion that didn't exist 35 years ago. (even if stated in 1985 equivalent dollars).

So I don't see this "well funded" profile. What I see is ever increasing financial claims in an environment of collapsing living standards for 80% of the US population.

Sooner or later....


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Reply with quote  #25 
Quote:
Originally Posted by Mr Food
northernms....

You are correct, This is why I feel that Sysco has slowed growth compared to its history.  In the past each OpCo had the ability to "feed" its marketplace, with the local needs.  Today Sysco wants to be more like McDonalds... all the same, yes you might get mustard on your burger in the south, but its a difference most people won't even notice.  Every customer has his own belief, either your going to fill that belief/need or the other guy will.  All beliefs are not the same... all needs are not the same....  


Sysco has slowed because a 300 lb Tic sitting atop an 80 lb dog will eventually kill the dog and hence kill itself.
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northernms

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Reply with quote  #26 
Sysco

Polaroid
Tower Records
Borders
Blockbuster


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LydiaLoftis

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Reply with quote  #27 
I found this site while looking for information related to cyber coaching for restaurants. Hope it will be a great platform for getting relevant information. Custom essay writing service
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chefblue

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Reply with quote  #28 
Investigator,



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chefblue

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Reply with quote  #29 
Investigator,

     You might want to re-check your numbers on the debt load at US Foods....closer to $8 billion than $5 billion. Wall Street says that US Foods recently announced plans to sell 7 million shares of its stock held by principals...maybe to raise enough by diluting its stock to help pay its debt? Maybe enough to finally get their money out of the IPO? Sound business decision????

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chefblue

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Reply with quote  #30 
My bad, just saw a new offering submitted to SEC. US Foods is looking to sell 41,400,000 shares of stock, not 7 million. Guess they want to pay off something.
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ChefBlue
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Reply with quote  #31 
Quote:
Originally Posted by chefblue
My bad, just saw a new offering submitted to SEC. US Foods is looking to sell 41,400,000 shares of stock, not 7 million. Guess they want to pay off something.


The two private equity companies "Clayton Dublier and KKR" are the "stock sellers" in this secondary public offering. They're putting up 30 million shares at a total value of $1 billion.

US Foods is NOT selling any stock and as such will not share in the proceeds from the sale!

I would look for Blackstone to be a buyer as they move to merge PFG and USF.

But it's just another dividend being extracted from the US Foods operating company by their slave masters.
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solands23

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Reply with quote  #32 
Quote:
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