Foodservice Equipment & Supplies

JUN 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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Page 43 of 107

42 • FOODSERVICE EQUIPMENT & SUPPLIES • JUNE 2018 When it comes to purchasing foodservice equipment, generally three people on the op- erator side of the transaction have a say in the process. This number increases to four or more people for design/build projects and declines to less than three people for replacement purchases. Ninety one percent of operators say test- ing equipment positively impacts their decision to make a purchase. Doing so helps operators evaluate equipment in a variety of ways. It helps them determine how equipment works in the actual operation, allows them to measure real-world performance, lets them verify if the equipment can handle the operation's work- load and allows them to better analyze product performance regarding durability, cleaning and employee productivity. Along those lines, 52 percent of operators report actually testing equipment before making a pur- chase. This includes 17 percent of operators who say they always test equipment and 35 percent who say whether they test equipment depends on the type of item they intend to purchase. Examples of the types of equipment these operators would like to test generally focus on primary cooking equipment such as ovens, brands that are new to the operator, new technologies and the like. One area where the supply chain has an op- portunity to better serve operators is in the area of equipment training. Operators turn to a variety of sources for training, including manufactur- ers' reps (57 percent), followed by service agents (32 percent), foodservice equipment and supplies dealers (23 percent), chefs (12 percent) and the in-house training team (7 percent). Only 42 percent of operators rate equipment training as good; 38 percent say the training is good sometimes and 20 percent say training is never adequate enough, per FE&S' 2018 Opera- tor Purchasing Study. Along those lines, opera- tors participating in the study offered a variety of ways to improve equipment training, including: training all staff at once instead of only a few at a time, allow more time on-site for training, spend hands-on time with staff, follow-up after train- ing, review material more slowly to make sure everyone understands what's being presented and go over details such as how and when to clean the equipment. SUPPLIES PURCHASES BY CHANNEL More commercial operators report purchasing supplies from online foodservice equipment and supplies distributors in FE&S' 2018 Operator Purchasing Study than in 2016: 12.33 percent vs. 2.79 percent, respectively. Broadline distributor orders lost share, declining to 36.67 percent in 2018 vs. 47.10 percent in 2016. The non-commercial operator trend line follows a similar story, with online orders increasing share to 10.37 percent in 2018 vs. 5.23 percent in 2016 and orders through broadline distributors dropping to 35.22 percent in 2018 vs. 40.05 percent in 2016. Commercial Operators Non-Commercial Operators Broadline Distributor – 36.67% Broadline Distributor – 35.22% Traditional Foodservice Equipment and Supplies Dealers – 25% Traditional Foodservice Equipment and Supplies Dealers – 28.27% Online Foodservice Equipment and Supplies Store – 12.33% Specialty Distributor – 15.67% Buying Group/Group Purchasing Organization/ Co-Op – 12.07% Online Foodservice Equipment and Supplies Store – 10.37% Specialty Distributor – 6.17% Foodservice Cash and Carry Stores – 2.33% Direct from Manufacturer – 1.44% Club Store – 1.13% Other – 3% Direct from Manufacturer – 6.49% Club Stores – 1.48% Foodservice Cash and Carry Stores – 1.18% Buying Group/Group Purchasing Organization/ Co-Op – 1.08% Other – 0.10% 2018 OPERATOR PURCHASING STUDY

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