McLane Foodservice is a logistics and supply chain company in the United States that provides solutions to over 110000 locations. The company has grown to be known as one of the leading voices in the industry over the years. McLane Foodservice buys and delivers over 50000 varying products to retail outlets and convenience stores in the country.
One of the subsidiaries of McLane Foodservice, Empire Distributors, is solely into alcoholic beverages distribution within and outside the country. The company was founded in 1894 and is registered as a Public company with specialties in Supply chain solutions, foodservice, category management, and logistics merchandizing. The company is an owned unit of Berkshire Hathaway Incorporation. Currently, McLane Foodservice is headquartered at 4747 McLane Parkway, Temple, Texas, United States.
McLane Foodservice operates one of the largest private distribution fleets in the country’s food distribution industry using one of its subsidiary companies, McLane Groceries.
Leadership and Management
Tony Frankenberger currently leads the company as Chief Executive Officer, who resumed office in the first quarter of 2020. Elochukwu Ozoemena, one of the company’s board secretaries, granted an interview to a leading newspaper in the country, where she discussed some of the company’s values. In this interview, Ozoemena stated that the company is built on exquisite customer relations and relational service deliverables. This is to say that the company prides itself on its attention to customer care and service.
She further discussed the company’s leadership culture, which involves the generation of a system of diverse leaders that solely embrace the vision and mission of the industry. One of the essential factors put in place before the appointment of leaders in the company is the amount of sector-driven ideas and solutions to industry problems that they can provide. This goes to say that the company is committed to the growth of the industry and its members.
Over the years, Walmart, one of the parent companies of McLane Foodservice, has remained one of its longest-serving customers. This partnership in itself has given McLane Foodservice enough visibility and publicity to gather sufficient customer loyalty over the years. Walmart alone accounted for about 25% of the yearly revenue of the company.
Other companies that form a significant bulk of the company’s revenues include Yum and 7-Eleven. The company has considerably increased its annual revenues between 2017 and 2020 and is now listed as a subsidiary on Wall Street. Considerably, this is a remarkable feat for the company and the industry at large.
Specialty Divisions and Companies
Asides from using services from some of the subsidiary companies of McLane Company as a whole, McLane Foodservice operates some specialty divisions. These specialty divisions increase the company’s reach and fine-tune the quality of service they provide to customers.
Additionally, McLane Foodservice has brokered partnerships with trade associations like Texas Food and Fuel Association, North Texas Food Truck Association, and Greater Dallas Restaurant Association. All of these have provided the company with trade support through governmental relations and representation. With specifically tailored programs and platforms, the company provides its staff with opportunities to improve and develop their careers.
Every year, more people eat outside of their homes. This trend has led to a rising potential for food , beverage and seafood businesses to become foodservice industry suppliers. Restaurants, hotels, hospitals, retirement communities, nursing homes, military bases, prisons and leisure facilities are included in the foodservice sector and are often referred to as the HRI Trade (Hospitality, Restaurants and Institutions). Foodservice operators are aggressively pursuing a diverse supply of food and beverage goods and there is a rising appetite for local and unique food selections.
Many foodservice distributors can trace their roots back to the mid-1800s when they started as family owned companies. The trend has continued in the industry as new foodservice distributors have entered the market and some of the original companies have maintained their independent / family owned status.
There are different requirements for the foodservice trade than for grocery retail, especially with respect to packaging and labeling. Pack sizes are usually larger and labels that appeal to customers are not needed. In “me-too” items, foodservice operators have no interest. Your product needs to be distinguished from the competition. There are many ways of identifying a product; only a few concepts are packaging, convenience and a business tale. For example, there are many honey products on the market; by using more compact packaging, innovative recipes and sharing the unique story of how the business started, a new honey may be distinguished from the competition.
The food industry firm, Technomics, estimated that approximately 225 million meals are eaten away from home each day in the United States. This includes both restaurant and non-commercial eating places. Americans can be very busy and at the same time social. Many Americans prefer to have at least one meal outside every day. It could be the lunch during work, or the breakfast at a restaurant opposite the office, or a late dinner with a friend at a nice place; it is a dominant culture in the country.
However, we know the names of these restaurants, we may know the popular chefs but the people who deliver food products the restaurants prepare are hardly known by us because they are always behind the scenes. These people are known as foodservice distributors.
A foodservice distributor works as an intermediary between manufacturers of food products and the foodservice operator. This could be a chef, foodservice director, food and beverage manager, and independent food preparation businesses operator owners. The foodservice distributor procures, stores, sells, and makes deliveries of food products, providing foodservice operators with access to items from a wide variety of manufacturers. Foodservice distributors purchase 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, specialty, and broadline foodservice distributors on a regular basis which could be daily or weekly basis.
It would have been very difficult for restaurants to meet the nutritional needs of about 65% – 70% of Americans who eat outside every day if not for the job of foodservice distributors in the line. There are a lot of things to be concerned with in the running of a restaurant and it would be an enormous burden if restaurants go to manufacturers of food products to keep getting supplies which could be as frequent as daily or weekly. Someone has to be in the line meeting demands and getting the products across to the restaurants.
It should be clarified at this point that foodservice distributors don’t only distribute to restaurants, they also get food products to cafeterias, industrial caterers, and hospital and nursing homes.
Estimates by the International Foodservice Distributors Association reveal that foodservice distributors in the Unites States, as a daily average, deliver approximately 27 million cases of food and other products.
There are several foodservice companies and they may very well range in size from a one-truck operation to larger corporations. There are broadline foodservice distributor offers a wide array of products, while a system distributor stocks a narrow array of products for specific customers, such as restaurant chains. A broadline distributor may carry up to 15,000 different items for purchase and operate topnotch warehouse and transportation operations.
The average American who eats out has the cause to be grateful to foodservice distributors. The industry sector is projected to grow as more eating places are looking at offering their customers more varieties.
Top 10 Foodservice Distributors
- Cheney Brothers
- Sysco Corp.
- US Foods
- McLane Foodservice
- Performance Foodservice
- Cooper-Booth Wholesale Co.
- Gordon Food Service
- DOT Foods
- Reinhart Foodservice
- The Martin-Brower Co.
- Porky Products
- Ben E. Keith Co.
- Shamrock Foods Co.
- KeHE Distributors
- Food Services of America
- Vistar Transportation
- Golden State Foods
- Lipari Foods
- Buffalo Rock Co.
- Merchants Foodservice
- Blue Line Foodservice Distribution
- Labatt Food Service
- Systems Services of America
- DPI Specialty Foods
- Coastal Pacific Food Distributors
- Dutch Valley Foods
- Vendors Supply Inc.
- Orion Food System
- Jake’s Finer Foods