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Supply Chain Optimization Key to Future Foodservice Industry Profits

November 18, 2009

Analysis of:Restaurateurs Optimistic, but Mantra Remains “Operate with Caution” | www.businesswire.com

New economic realities in the foodservice industry are forcing greater attention on improvements in supply chain efficiencies between trading partners, driven by an emerging group of redistribution, logistics, technology, and transportation specialists that leverage supply chain information, optimize freight movement, and improve product visibility to drive cost savings for restaurant, distributor, and manufacturer partners in the system.

Restaurant Trends Suggest Protracted Challenges for Foodservice Industry

November 5, 2009

Analysis of:Foodservice Traffic Declines for Fourth Consecutive Quarter | www.npd.com

Improvement in restaurant company profits are currently being driven by an intense focus on operational efficiency and cost reductions, as well as a more favorable food cost inflation environment compared to the prior year. However, continued weakness in restaurant industry traffic, driven by weakness in consumer spending and lower grocery prices in supermarkets, will continue to hamper a foodservice industry recovery in 2010.

Sysco Results Reflect Challenging Conditions in Foodservice

August 25, 2009

Analysis of:Sysco Reports Fourth Quarter Diluted EPS of $0.53; Fiscal Year 2009 Diluted EPS of $1.77 | syy.client.shareholder.com

Foodservice distributor Sysco’s (NYSE: SYY) fourth quarter earnings results for its fiscal 2009 reflect the current challenging environment in the foodservice industry, as distributors battle negative bad debt trends and lower case volumes, forcing companies to focus intensively on improved productivity and strict control of operating expenses.

Foodservice Distributors Strive to Keep Restaurant Customers Viable

June 19, 2009

Analysis of:Sysco's Hands-On Way of Keeping Restaurants Going | www.businessweek.com

In light of the challenging economic environment, foodservice distributors find themselves competing for what is becoming a shrinking base of higher margin sales with independent restaurant customers, who are struggling to compete with the vast scale, procurement clout, and national advertising resources of larger restaurant chain competitors. To keep this profitable segment of customers viable, distributors are increasingly focused on delivering value-added services to support independent restaurant profitability and long term customer loyalty.  

Operational Efficiency Key to Survival in Foodservice Distribution

June 16, 2009

Analysis of:Veggie Tales: Think Food Distribution is a Low-Tech Enterprise? | money.cnn.com

While overall restaurant sales and related foodservice industry product case movement remain under considerable pressure, foodservice distributors that continue to leverage new technology to drive operational efficiencies to reduce warehouse costs, minimize fleet miles, and improve inventory management systems, are better positioned to survive the challenges to profitability in the current economic environment.

Sentiment Versus Reality in The Foodservice Market

May 13, 2009

Analysis of:Sysco Reports Third Quarter Diluted EPS of $0.38 | syy.client.shareholder.com

While current market sentiment resulting from lower wholesale food inflation and stability in fuel prices may suggest the potential for improved near term trends in the restaurant/foodservice market, recent industry reports provide a more realistic view of continued pressure throughout the foodservice industry.

Sentiment Versus Reality In The Foodservice Market

May 4, 2009

Analysis of:Sysco Reports Third Quarter Diluted EPS of $0.38 | syy.client.shareholder.com

While current market sentiment resulting from lower wholesale food inflation and stability in fuel prices may suggest the potential for improved near term trends in the restaurant/foodservice market, recent industry reports provide a more realistic view of continued pressure throughout the foodservice industry.

The Trade Spend Dilemma For Foodservice Distributors

April 22, 2009

Analysis of:What Americans Are Willing To Give Up | www.forbes.com

In light of the challenging economic environment and its negative impact on consumer dining trends in restaurants, foodservice distributors are supplying reduced levels of product to restaurant customers, and now find themselves facing the additional dilemma of greater scrutiny by product manufacturers on trade spending, which can often comprise as much as 100% of a typical foodservice distributor’s bottom line.

Where the Foodservice Industry Goes From Here: Operators, Distributors and Manufacturers

March 25, 2009

Analysis of:Hard Times Are on the Menu at Restaurants | www.usatoday.com

Restaurant supply exceeds demand as operators struggle with price-conscious consumers, overall traffic declines, and unit rationalization. Continued consolidation in the foodservice distribution segment will likely spur new mergers and acquisitions as regional independent distributors, lacking the scale and efficiency to compete with industry giants including Sysco and U.S. Foodservice, will be forced to capitulate, while manufacturers in the foodservice sector rationalize product line offerings and apply more stringent controls on trade spending.  

Balancing Variable Costs as Sales Decline in Foodservice Distribution

February 6, 2009

Analysis of:Sysco Reports Third Quarter Diluted EPS of $0.38 | syy.client.shareholder.com

As economic pressures negatively impact consumer spending in the restaurant industry, foodservice distributors such as Sysco (NYSE: SYY) are challenged to balance their operating costs in light of slower sales to restaurant customers and an overall reduction in product case movement through their distribution centers.

Restaurant Slowdown's Supply Chain Implications

January 6, 2009

Analysis of:Sysco Corporation Comments on Current Sales Environment | syy.client.shareholder.com

    The continued slowdown in the restaurant industry is negatively impacting the supply chain dynamics of foodservice distributors including market leader Sysco (NYSE: SYY) and others, as well as food manufacturing companies who produce product for restaurant and institutional consumption. The negative trend in overall restaurant sales has a direct impact on the number of cases shipped between manufacturers and distributors within the foodservice supply chain, creating additional systemic challenges in an industry facing slower growth and excess capacity. Industry trade spending by manufacturers will be under significant pressure in 2009, while distributors will be forced to improve internal efficiencies and focus resources to enhance service-based relationships with restaurant customers and product marketing initiatives with manufacturers.

SYSCO Gains Despite Challenging Market for Restaurant Customers

August 18, 2008

Analysis of:SYSCO Reports Fourth Quarter Diluted EPS of $0.55, Fiscal Year 2008 Diluted EPS of $1.81 | phx.corporate-ir.net

Despite a challenging economic environment for its restaurant customers, foodservice distributor Sysco (NYSE: SYY) reported sales gains of 7.1% and operating income improvement of 10.0% for its fiscal 2008. Sysco achieved notable operating leverage for fiscal 2008 through market share gains and improvements in cost controls, as gross profit increased 6.5% while operating expenses increased 5.3%.

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