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Contract Food Service Companies

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The food service industry includes cafeterias, restaurants, catering operations and others. Companies manufacture products for both foodservice and consumer versions. Consumer versions usually present themselves in an individual-sized package with label designs for retail sales. Food service versions are packed in a more large industrial size. Thus, food service distributors are companies that supply foodservice operators.



Major foodservice distributors include:

- US Foodservice

The US Foodservice is the second largest food service distributor based in Rosemont, Illinois. The company markets and distributes food and related products from healthcare facilities, restaurants, cafeterias, schools, lodging establishments and colleges to over 250,000 customers and has 43,000 private, national and signature brand items. It is a private company that employs more than 29,500 foodservice professionals and it is owned by Clayton, Dubilier & Rice and Kohlberg Kravis Roberts.

The US Foodservice was acquired by Royal Ahold for a $26 per capital share or a whopping $3.6 billion. It is followed by PYA/Monarch at $1.57 billion and Alliant Exchange Inc. for about $2.2 billion.

Specialty divisions and companies were acquired by US Foodservice Inc.

North Star Foodservice – May 2006 was the start of the operation which employed approximately 2,100 associates in eleven locations in the US. As a system distributor company, it accessed global network management, capital and technology in order to deliver effective and efficient systems to foodservice operators. Segment expertise also includes fast casual, family dining and quick service.

Next Day Gourmet – it offers online purchasing of S&E equipment and direct orders. This company provides equipment orders in restaurant startups through a local distribution facility or representative.

Monarch Foods – works on marketing and chain supply efforts in foodservice.

Alliant Logistics – designed to permit US Foodservice to get a full advantage of the logistic network.

Stock Yards – packing was sold to US foodservice in February 2000. Excellent customer service and reputation certified Angus beef distributor, Dan Pollack to standardize meat cutting operations.

- Sysco (System Services Company)

Sysco was founded in 1969 and became the largest foodservice distributor in North America. The company distributes frozen foods such as fresh meats and specialties. It also supplies non-food items that include plates, napkins, tableware, cups, cookware, cleaning supplies and kitchen /restaurant equipments. Their headquarters are in Houston, Texas, and it has 47,500 employees that service over 400,000 customers.

The company renders services to different hospitals, homes, colleges, schools, restaurants, summer camps, motels and hotels and other industrial caterers. Sysco was founded by John F. Baugh. It competes with Performance Food group, U.S. Foodservice, Ben E. Keith, Sunspun Food Service and Gordon Food Service.

SYSCO Brand Products are:

• BakerSource Classic Gourmet Cinnamon Rolls

• Imperial Gourmet Banana Foster Pie

• Casa Solana Stockpot Soups

Major foodservice providers include:

Compass Group

Founded in the year 1941 in North Carolina by Roy Gardner, Compass Group is the market leader in food and provides support services for colleges, schools, hospitals and leisure environments. With about 360,000 employees, Compass delivers superior global service standards.

Compass Group owns the following brands and businesses:

Caffè Ritazza, Chartwells, Bon Appétit Management Company, Creative Host Services, Eurest, Eurest Support Services, Everson Hewett, Canteen Vending, FLIK, Keith Prowse, Levy Restaurants, Mitropa, Selecta, Milburns, Wolfgang Puck, Patina Group, Morrison, Upper Crust, Restaurant Associates and Scolarest.

Highlights

• Employs over 400,000 people in more than 70 countries.

• Ranks at 260 on the Global 500 of Fortune, ahead of McDonald's and Sodexho Alliance (one of its main competitors).

• Ranks number 12 on the list of the world's largest employers

• Net revenue for the year ended 30 September 2006 was £10,815 million.

• Directly involved in a 2005/2006 scandal for corrupting United Nations officials for winning contracts.

• Adopted hardball labor tactics, in 2006.

Dot Foods

Dot Foods is the largest re-distribution company in the United States that offers over 70,000 products from the 500 manufacturers of food industry. Dot distributes in 50 states about 5,000 pounds of truckload. It is a family-owned company founded in 1960 in Mount Sterling, Illinois with about 3,000 employees.

The company was originally named Associated Dairy Products. Robert Tracy founded it and began selling dairy products on a station wagon.
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