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.

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