Foodservice Equipment & Supplies

APR 2018

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 2018 • FOODSERVICE EQUIPMENT & SUPPLIES • 49 acquisition pool, though. Also dipping their toes into the consolidation waters were Great Lakes (27), which ac- quired Kessenich's; BHS (28), which acquired H. Weiss; Globe, which acquired E&A; B&G (55), which acquired certain assets of Eastern Baker's Supply and Penn Jersey Paper Co. (60), which earlier this spring bought DePalo & Sons (89). As a result, this year's study list includes six new companies: Tundra Restau- rant Supply (23), Zesco (68), Classic Restaurant Sup- ply (71), Bezac Equipment Company (79), Castino Res- taurant Equipment & Supply Inc. (99) and Richway LLC, which does business as Mar- ket Source (100). This year's list also welcomes back two companies: Associated Food Equipment and Supplies Inc. (76) and F.G. Schaeffer Co. (97). Finally, the list includes merged company BJ Beltram Holdings (26), the result of Trivest Partners merging B&J Food Service Equip- ment and Beltram Foodser- vice Group in June 2017. There's little doubt the dealer community continues to fuel its insatiable appetite for topline growth through acquisitions like the ones described above. But dealers are not alone in this. In terms of dollar growth, TriMark USA led all dealers at $263 million. Tri- Mark's figures do not include Chef's Toys' sales for 2017, which were an estimated $83.1 million in 2017. In ad- dition, Clark Associates grew by $229 million. In sharp contrast to its dealer breth- ren, all of Clark's growth appears to be organic as the company did not report any acquisitions in 2017. Due to all of the con- solidation, dealers with more than $100 million in annual revenues account for 17 per- cent of the top 100, down 2 percent from last year. Mid- sized dealers, those with an- nual revenues of $99 million to $20 million, account for 51 percent of the top 100, up from 24 percent last year. Dealers with less than $20 million in annual revenues account for 32 percent of the top 100 dealers. Taking a closer look at sales by market segment, the top 100 dealers report 77 percent of their 2017 sales came from commercial foodservice operators, with the other 23 percent coming from noncommercial opera- tors. This is relatively consis- tent with last year's results. With respect to commer- cial operators, the top 100 dealers report 36 percent of their sales come from restau- rant chains, down 12 percent from last year. Conversely, sales to independent restau- rants grew to account for 64 percent of dealers' sales to commercial operators. The average revenue per salesperson was $2.2 million in 2017, up from $1.6 million in 2016. The average revenue per employee increased slightly to $578,489 in 2017 from $562,256 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. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $4.76 $4.54 $4.54 $5.54 $4.97 $5.05 $5.34 $5.8 $6.6 $7.2 $7.8 $8.64 $9.63 Annual Sales for the Distribution Giants (in Billions) Biggest Movers by Dollar Volume 2017 Sales Increase from 2016 Company Name (in Millions) (in Millions) TriMark USA Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,776.00 . . . . . . . . . . . . . . $263.00 Clark Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . $1,135.62 . . . . . . . . . . . . . . $229.62 Edward Don & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $988.00 . . . . . . . . . . . . . . $139.15 Wasserstrom Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $697.00 . . . . . . . . . . . . . . . . $45.00 Stafford-Smith Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $201.23 . . . . . . . . . . . . . . . . $40.25 Singer Equipment Co. . . . . . . . . . . . . . . . . . . . . . . . . $325.10 . . . . . . . . . . . . . . . . $31.17 KaTom Restaurant Supply Inc. . . . . . . . . . . . . . $131.55 . . . . . . . . . . . . . . . . $31.11 Supplies on the Fly . . . . . . . . . . . . . . . . . . . . . . . . . . . . $146.00 . . . . . . . . . . . . . . . . $24.00 Johnson-Lancaster & Associates Inc. . . . . . . $133.00 . . . . . . . . . . . . . . . . $17.50 Bargreen Ellingson Inc. . . . . . . . . . . . . . . . . . . . . . . . $272.00 . . . . . . . . . . . . . . . . $17.00 Note: Includes only those companies who reported their sales data. Does not include any companies for which FE&S estimated. Biggest Movers by Percent of Sales 2017 Sales Percent Increase Company Name (in Millions) from 2016 (in Millions) Douglas Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35.17. . . . . . . . . . . . . . . . 42.95% KaTom Restaurant Supply Inc. . . . . . . . . . . . . $131.55. . . . . . . . . . . . . . . . 30.97% Clark Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . $1,135.62. . . . . . . . . . . . . . . . 25.34% Stafford-Smith Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $201.23. . . . . . . . . . . . . . . . 25.00% RichWay LLC dba. Market Source . . . . . . . . . $10.00. . . . . . . . . . . . . . . . 25.00% Horizon Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19.89. . . . . . . . . . . . . . . . 24.16% Great Lakes Hotel Supply Co. . . . . . . . . . . . . . . . $68.00. . . . . . . . . . . . . . . . 24.09% Thompson & Little . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.05. . . . . . . . . . . . . . . . 23.14% Associated Food Equipment and Supplies Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18.80. . . . . . . . . . . . . . . . 22.08% B&G Restaurant Supply Inc. . . . . . . . . . . . . . . . . . $27.65. . . . . . . . . . . . . . . . 21.81% Note: Includes only those companies who reported their sales data. Does not include any companies for which FE&S estimated. Source: FE&S 2018 Distribution Giants Study

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