Foodservice Equipment & Supplies

APR 2017

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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APRIL 2017 • FOODSERVICE EQUIPMENT & SUPPLIES • 27 Annual Sales for the Distribution Giants (in Billions) $6.60 $7.22 $8.01 $9.02 $5.80 $5.34 $5.05 $4.97 $5.54 $4.54 $4.54 $4.76 $4.31 2013 2014 2015 2016 2012 2011 2010 2009 2008 2007 2006 2005 2004 Conversely, dealers with less than $20 million in annual revenues represent just 5 percent of the top 100 and those dealers saw their share of sales among the top 100 decline 8 percent in 2016. In fact, dealers with less than $20 million in annual revenues occupy fewer seats among the top 100 dealers compared to 5 years ago. Today this group accounts for 5 per- cent of the top 100 dealers, compared to 12 percent in 2011. Most notably, though, mid-sized dealers, those with annual revenues between $20 million and $99 million, now account for only 24 percent of the sales that the top 100 dealers gener- ated in 2016. This represents a 7 percentage point dip from the previous year and a 12 percentage point dip from 2011. In other words, as the big get bigger, a large number of small to medium-sized dealers are left to fight over a smaller share of the pie. MARKET SEGMENT ANALYSIS Taking a closer look at sales by market segment, the top 100 dealers report 76 percent of their 2016 sales came from commercial foodservice operators, with the other 24 percent coming from noncommercial operators. This represents a slight change from 2015, when the top 100 reported that 74 percent of sales came from commercial operators. Among sales to commercial operators, the top 100 dealers reported an 8 percent increase in sales to chains. As a result, restaurant chains account for 48 percent of the sales to com- mercial operators among the top 100 dealers and indepen- dents account for 52 percent. In 2015, chains accounted for 40 percent of sales to commercial operators among the top 100 and independents accounted for 60 percent. This development falls in line with other industry studies. For example, the NPD Group's Spring 2016 Restaurant Re- count Census showed that the overall number of restaurants in the U.S. had declined 1 percent. The number of locations run by independent operators declined by 3 percent while the number of chain units remained flat. Here are several other noteworthy developments from this year's study: • Buffalo Hotel Supply is now listed as BHS. • As of Dec. 31, 2016, Instawares officially merged with Supplies on the Fly, which is owned by Sysco. Given that it spent 2016 operating as Instawares, the dealership is listed as such in this year's report. • Penn Jersey Paper, or PJP as the company is known, reported overall revenues of $164.9 million for 2016, a significant chunk of which can be attributed to paper and disposables and janitorial and sanitation products. The company's sales across other categories, including heavy and light equipment, smallwares, tabletop and furnish- ings, totaled $20.59 million, which means PJP remains among the top 100 foodservice equipment and supplies dealers in the country and is represented in the study. PJP also operates 4 Marketplace stores that generated an additional $35.1 million in revenue in 2016. We hope that you find the information useful and if you have any suggestions about how to improve the study do not hesitate to contact us. Biggest Movers by Percent of Sales 2016 Sales Increase from Company Name (in Millions) 2015 (in Millions) Lace Foodservice Corporation $17.88 82.08% Amundsen Food Equipment $25.28 55.06% EVI $39.40 50.24% Clark Associates Inc. $906.00 43.25% KaTom Restaurant Supply Inc. $100.44 41.88% Douglas Equipment $24.60 40.91% Rapids Wholesale Equipment $29.60 40.62% Alack Refrigeration Co. $28.50 37.68% Smith & Greene Co. $78.50 34.88% Culinary Depot $55.00 34.15% Biggest Movers by Increase in Dollar Volume 2016 Sales Increase from Company Name (in Millions) 2015 (in Millions) TriMark USA Inc. $1,513.00 $348.00 Clark Associates Inc., $906.00 $273.55 Edward Don & Company $848.85 $58.85 The Boelter Companies $355.00 $49.00 Bargreen-Ellingson Inc. $255.00 $33.00 KaTom Restaurant Supply Inc. $100.44 $29.65 Singer Equipment Co. $293.92 $27.16 The Sam Tell Companies $90.55 $20.82 Smith & Greene Co. $78.50 $20.30 Mission Restaurant Supply Company $132.47 $20.09

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