September 21, 2020

Foodservice Management Firms (FSMs) have been growing in size and share. In many ways, FSMs should be viewed as the chain operators of these beyond-restaurant/noncommercial segments, and the larger players tend to have large footprints that will continue to make them an attractive target for distributors as the industry recovers.
 

Highlights include:

  • Total food, beverage, and nonfood purchases for the segments in which FSMs operate were $58 billion in 2019. In total, these segments accounted for more than 260,000 locations.
  • The report includes current state and outlook for segments in this market, including Business & Industry, Healthcare, College & University, Primary/Secondary Schools, Recreation, and Corrections.
  • It’s expected that the larger FSMs will continue to outperform the overall foodservice industry and will likely see recovery first.
  • Each of the three major FSMs own a procurement arm (which works like a GPO) that also offers procurement services to operators outside of those that are managed by the FSM.
  • Fewer discretionary purchases are being made by the FSMs and more purchases are being made through mandates or approved supplier lists. As a result, distributors may see more of its volume tied up in contracted businesses, which may in turn have an impact on margin and overall profitability.
Technomic developed this white paper exclusively for IFDA and its members to gain better insight into the foodservice management firm market.

Price: Free to all IFDA members as an exclusive member benefit.

Log in to access the white paper
 

Related Articles

August 21, 2020
IFDA Foodservice Distribution Back-to-Work Guide

IFDA Foodservice Distribution Back-to-Work Guide

This guide is intended to highlight the points that are most relevant to foodservice distributors and present them in an at-a-glance format for easy overview. Read more

July 27, 2020
Flexibility and Innovation: Hallmarks of Successful Independent Restaurants

Flexibility and Innovation: Hallmarks of Successful Independent Restaurants

Independent operators that are nimble and quickly evolve to shifting consumer trends find the most success. That flexibility and innovation will be more important than ever for independent restaurants navigating the current foodservice environment. COVID-19 has forced major changes to how, where and why consumers interact with restaurants. Read more

July 15, 2020
Emerging Technology Primer for Foodservice Distributors

Emerging Technology Primer for Foodservice Distributors

The foodservice distribution industry is at a crucial point. Many of its practices, from transportation to supply chain, are decades old. At the same time, new technologies are emerging that will likely transform the industry through automation. These tools have the potential to help foodservice distributors overcome their biggest challenges, from labor shortages to supply chain complexities. Read more