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IKnowStuff

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Reply with quote  #1 
This changes everything. Sysco can buy USF now and it will be acceptable, given this new PFG/Reinhart footprint. Stay tuned. 
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Reply with quote  #2 
IknowStuff-- do you think the food distribution business can handle another merger/buyout?  How much debt is on the books and off the books from 3 decades of this behavior ? You know our resident economist and spelling/grammar expert has real concerns with minimum wage initiatives so I wonder his thoughts too regarding another $1/2-$1  billion in debt load added to the already existing billions in debt.

Here is what Willie Tennis Rokefeller had to say about minimum wage- "he's a real economist", hell he's a genius.

the wait staff is the largest group of employees in a restaurant.  The cost to the owner to move that team to regular minimum seems that it would be burdensome and a lot of menu pricing would need to take place.....
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ISellLettuce

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Reply with quote  #3 
Quote:
Originally Posted by IKnowStuff
This changes everything. Sysco can buy USF now and it will be acceptable, given this new PFG/Reinhart footprint. Stay tuned. 



The PFG/Reinhart acquisition did very little to expand the footprint. They overlay nearly perfectly on a map. There's still half the map this doesn't affect. Performance already had a handful of house on the west coast.

What it did is give Performance more saturation and density in markets they were already in and expanded their reach a tiny bit way up north.

This actually makes it LESS likely a Sysco/USF merger would ever go through given that consolidation, but I would expect both of them individually to be looking. With the market as high as it is, it makes for an expensive market.
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Salamiking

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Reply with quote  #4 
Pfg street is new in my area and has been beating me up.
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formerdsr

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Reply with quote  #5 
Better service and better prices will always win out. No pressure to buy Scoop (or the Sysco equivalent) and Value Added Services.

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Originally Posted by Salamiking
Pfg street is new in my area and has been beating me up.
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Retiredfoodpro

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Reply with quote  #6 
Why would SYSCO want USF now.  The FSA acquisition only drove them deeper in debt.  USF offers SYSCO practically nothing in geographic market share.  The duplication in assets just doesn't make sense. 

It's been said before,  Amazon will acquire USF and scare the living hell out of SYSCO.    
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foodie sales rep

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Reply with quote  #7 
In Western NC, this acquisition means that customers that share business with both PFG and Reinhart could have as many as 3 PFG reps in one account.  PFG already has PFG Hickory and PFG Hale in the same accounts working as competitors.  Now it is entirely possible that a customer in WNC could have  a 3 PFG reps in the same account if Reinhart was already selling to a customer that  is already purchasing from PFG Hickory and PFG Hale.  That's right 3 PFG reps in 1 account!!!! How stupid is that???  How confusing is that for customers??? How fair is that to their sales reps?  Different pricing as well.  Not sure how PFG thinks this is a good idea. Honestly, PFG needs to draw state lines or establish specific territories for reps to work within. 
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IKnowStuff

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Reply with quote  #8 
Foodie sales rep- in that case, I’d assume whoever of the 3 has the largest percentage of the business wins. That’s normally how it works anyway. Usually the person who didn’t get it, I’d paid out for a certain time period and that’s the end of it. There will be a lot of bitterness though. That’s a given. 
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Sidney

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Reply with quote  #9 
hell like no one ever had a buyout?
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FoodSvcDisruptor

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Reply with quote  #10 
Sounds like a big mess that may benefit independents. Speaking of buyouts, what are some typical lengths of payout and amounts or percentages?
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Sidney

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Reply with quote  #11 
typically 100% of average commissions paid in 1st week declining 5% each following week


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foodie sales rep

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Reply with quote  #12 
Quote:
Originally Posted by IKnowStuff
Foodie sales rep- in that case, I’d assume whoever of the 3 has the largest percentage of the business wins. That’s normally how it works anyway. Usually the person who didn’t get it, I’d paid out for a certain time period and that’s the end of it. There will be a lot of bitterness though. That’s a given. 


That's apparently how other companies do it but PFG has a different take on it.  PFG bought IFH 6 years ago...Reps from PFG Hale, PFG Hickory and PFG Milton are still sharing the business and doing business as competitors in shared accounts.


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formerdsr

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Reply with quote  #13 
I'm sorry, but this is the stupidest f***ing thing I've ever heard of! And I've seen and heard a lot of stupid things in 40 years in this business.

Wouldn't make more sense to give the account to the PFG rep with the largest share of business? Pay the other two reps for the lost business for six months to a year. Then they could alll go out and pound Sysco, USF and other competitors instead of screwing each other. I'm sure the competition is having a big laugh watching three reps cut their own throats.

Quote:
Originally Posted by foodie sales rep


That's apparently how other companies do it but PFG has a different take on it.  PFG bought IFH 6 years ago...Reps from PFG Hale, PFG Hickory and PFG Milton are still sharing the business and doing business as competitors in shared accounts.

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Foodservicedriver20

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Reply with quote  #14 
This is 100% true. In N.C. when PFG bought out IFH I saw the 2 reps for the same company fighting over cases haha now add RFS to that mix. I hope PFG enjoys the # 2 spot, because they way they are doing thing, they won’t last long at that spot
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foodie sales rep

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Reply with quote  #15 
Totally Agree formerdsr!!!!  You are 100% Correct!  Makes no sense whatsoever
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ISellLettuce

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Reply with quote  #16 
Before anyone starts speculating about what they think they know or don't know about how the acquisition will play out, please consider taking a deep breath and watch how it unfolds over the next many months. There's obviously a specific plan in place that will provide guidance on how these type of decisions will be evaluated. Shared accounts and geographies are being handled at the local level between the overlapping companies. 

In a handful of markets, the two companies are really tightly overlapped, and those markets will take some time to work through but that work is happening as we speak. The most important things being considered at this moment are making sure customers are being serviced in an extraordinary manner, and that sales reps are being treated fairly on both sides of the equation.

Reps who have specific questions do have avenues to get those questions answered by working through their local President or Vice President.
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