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food peddler

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Reply with quote  #1 
Well the time that most  USF reps have dreaded has arrived. Its the dawn of you not getting your hold back money. The virus has wiped out most of your street sales. You are now losing the last 2 weeks of the qtr. Some of you have a cushion so you will make your money  for 2nd Qtr., most don't. Don't get too comfortable because the situation for qtr. 2 thru year end is about to collapse on you. Many customer may never re open.

USF is so deep in debt and saddled with the Smart foods acquisition it cant afford to even think about helping the sales force. Most likely USF will pay the 50 million dollar fee to get out of the deal. Another loss to a bad year. The stock has collapsed and most likely to stay around $10.00 a share.

Many of the USF food reps just hung in there trying to ride the last 5-10 years out. Now the horrible virus has made the worst place to work even more horrible. Most reps  at USF are cowards or were riding it out and should have gotten out of there 2 years ago when the new pay play started. Now they are stuck at USF , and most other distributors don't want them at this time.

The USF management team has its sales force on conference calls 2x a day. The management knows there is no chance to recover from the virus. They are telling Reps to sell retail, that only last so long. Maybe the conference calls should have management tell the sales force you are screwed.

By the way ,your pay for next year will drop even more to new lows. The bottom has fallen out and wait to you see what USF does with you new pay plan for next year. Its based on your sales this year
so expect a 30% cut next year plus the hold back!


Good luck to all you of you.
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formerdsr

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Reply with quote  #2 
I'm so glad I retired before this crappy pay plan went into effect. 

The way things are going in most markets, there aren't a lot of options if you want to stay in foodservice sales. 
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Dreamer81

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Reply with quote  #3 
Food Peddler: I’m not disagreeing with everything you said but since you know so much about the USFs future; can you tell us what foodservice company isn’t projected to get screwed by the virus? Aren’t they all technically in debt just like every restaurant operator, local & national chain, and every other corporation in America, along with it’s fine citizens?
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broadliner

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Reply with quote  #4 
USF has a history of making bonehead moves going back to the Jim Miller days.

It wouldn't surprise me if they used the coronavirus as an excuse to pare down the sales force, and move more customers to order online. Pietro and the Rosemont brain trust want to protect their bonuses.
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DENFOODIE

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Reply with quote  #5 
Maybe USF can pull out of the Smart foods acquisition. That would be a good move at this point to free up some $970 million in cash flow.

Mass layoffs and furloughs are coming any day for both USF and Sysco. There is no way to support all of the people on staff when sales are down 60-75%. First it will be support staff, cutting hours in the warehouse, cutting driver hours and even the newer/mid tier sales reps. 

I am glad that the comp plan changed because I cant image taking a 75% hit on commission. At least this buys time to find something else. 

Some distributors will be bankrupt because of this. 
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Sidney

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Reply with quote  #6 
Sysco President said in live interview on CNBC this morning that warehouse staff would be working at 1/3 force. with workers who work this week would work again 3 weeks later and rotate. Also said their focus was moving to retail support and sales
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broadliner

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Reply with quote  #7 
Does this mean that Sysco is going after Core-Mark's convenience store and gas station business and Vistar's concession business?

Quote:
Originally Posted by Sidney
Sysco President said in live interview on CNBC this morning that warehouse staff would be working at 1/3 force. with workers who work this week would work again 3 weeks later and rotate. Also said their focus was moving to retail support and sales
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Sidney

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Reply with quote  #8 
He was speaking of traditional grocery store business, helping them resupply and restock.

Here is the link to the actual interview foe Sysco's CEO
https://www.cnbc.com/video/2020/03/20/sysco-ceo-on-food-distribution-we-can-help-grocers-fill-their-shelves.html?&qsearchterm=sysco

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broadliner

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Reply with quote  #9 
It's a good way to move fresh protein and produce, cheese, fluid dairy and cooked meats. That stuff is going to spoil otherwise. Also, frozen vegetables, fries and ice cream.

Will MAs get a piece of this or will it go through chain accounts?

Quote:
Originally Posted by Sidney
He was speaking of traditional grocery store business, helping them resupply and restock.

Here is the link to the actual interview foe Sysco's CEO
https://www.cnbc.com/video/2020/03/20/sysco-ceo-on-food-distribution-we-can-help-grocers-fill-their-shelves.html?&qsearchterm=sysco
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broadliner

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Reply with quote  #10 
And you can't even go out and get a part-time job right now.

Quote:
Originally Posted by retiredtm
Word is the USF reps will only get their 70% salary, zero of the three bonus thresholds.
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Mr Denon

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Reply with quote  #11 
Quote:
Originally Posted by Sidney
Sysco President said in live interview on CNBC this morning that warehouse staff would be working at 1/3 force. with workers who work this week would work again 3 weeks later and rotate. Also said their focus was moving to retail support and sales


As a newbie, seems like quite a few of the posters have some personal baggage with a particular broadliner... Makes it more difficult to parse the informed rumors from the BS....

Anyway, as a dispassionate observer, I say kudos to Mr Hourican. With an exclusively retail-based background, I can't imagine walking into the crazy foodservice world at the CEO level and landing on his feet as he did in this interview, 2 months within taking the role.

I'm sure the adrenaline was going, but I wonder if he misspoke when he said that staff would be working 50% of the time for 100% compensation? This is incredibly generous if true, but something the street would most like likely react poorly to. 

Also, with over 60% of Sysco's business in restaurants (more than their closest competitors) I wonder if they will be seen as the most vulnerable?

Interested to hear others' views...
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tread

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Reply with quote  #12 
Whats the CEO got to lose?
Still will be paid more than 99% of the population.
Life is good.
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IKnowStuff

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Reply with quote  #13 
Mr Denon. Yes. Sysco did 100% pay guaranteed, including any salary, commission and bonus for their sales force. To be more clear, they are averaging everyones pay from before this happened and going with that. No one is taking a hit. They know the soldiers will be needed, all hands in deck when this is over. It will be busy. The CEO did NOT misspeak. It’s all true. I have been around 30+ years and Sysco has always done it’s best to support its employees in tough times. Nothing is perfect, but they always step up when needed.
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Mr Denon

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Reply with quote  #14 
Quote:
Originally Posted by IKnowStuff
Mr Denon. Yes. Sysco did 100% pay guaranteed, including any salary, commission and bonus for their sales force. To be more clear, they are averaging everyones pay from before this happened and going with that. No one is taking a hit. They know the soldiers will be needed, all hands in deck when this is over. It will be busy. The CEO did NOT misspeak. It’s all true. I have been around 30+ years and Sysco has always done it’s best to support its employees in tough times. Nothing is perfect, but they always step up when needed.


Really interesting. I wonder how long they can sustain this with having to write off a large portion of their receivables from customers ceasing operations completely. Their cash reserves will be depleted quickly.

So it is just the sellers working in shifts and receiving 100% pay? Or does this include others as well? Usually the street would expect a publicly traded company to aggressively cut expenses, especially payroll, in situations when cash flow has been so severely impacted...
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lets go home

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Reply with quote  #15 
USF and Chef WAREHOUSE ARE THE TWO IN THE MOST TROUBLE.

USF is in trouble first with the Smart purchase. They will probably walk away from the deal and pay 50 million for that privilege.

Chefs warehouse has a customer base of mostly white table cloth customer , most of which are closed.

The problem for USF is that the Reps will make the pay this qtr when USF  is cash poor. However, next year the reps bases will be much lower than today's base salary. SO this year USF reps enjoy your base , but when the economy recovers you will get paid nothing for that year return of business. Basically you are in the hole for 2 years  of pay.
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DENFOODIE

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Reply with quote  #16 
That's right. It isn't designed to go down but can and will go down because of the crazy losses. Be prepared.
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