When FE&S is at its best, the magazine gives operators, consultants, dealers, service agents and reps a forum to discuss some of the most pressing issues the industry faces. FE&S is doing just that this month, but with a twist with top-level analysis in our first state of the industry issue. 

Joe CarbonaraThis issue examines pressing issues impacting the overall foodservice industry. In doing so, the content strives to reflect the current business environment, offer forward-looking insights and even be a little thought-provoking. In other words, FE&S is taking a long look at the industry as only it can.

For example, family-owned businesses have long dominated the supply chain, with companies often transitioning from one generation to the next. While that works for some companies, it does not work for all. In “Keeping It All Mostly in the Family” (page 52), Patricia Fitzgerald takes a closer look at how generational businesses strive to stay true to their past while adapting for future generations.

In some instances, succession planning or other market factors, like the need to scale, may lead company leaders to consider selling the business to private equity investors, who continue to show a keen interest in the foodservice industry, particularly the supply chain side. Yet, for many people, myself included, a lot of mystery and misconceptions often surround private equity. To clear up these misunderstandings, a story beginning on page 44 explores what private equity firms look for in potential investments and what they bring to the foodservice industry.

Consolidation is yet another issue shaping the industry and how different segments work together, and this edition explores that topic in a variety of ways. For example, ongoing merger and acquisition activity continue to make factories and dealers much bigger and more sophisticated trading partners. Nowhere is the impact of consolidation more evident than in the data from FE&S Distribution Giants studies. Contributing editor Dana Tanyeri takes a deeper dive into the data FE&S has collected over the years (page 28). 

Few members of the supply chain feel the impact of dealer and factory consolidation more than independent manufacturers’ reps, who continue to work with both groups. As Toby Weber explores on page 48, reps continue to utilize a variety of tactics to fortify their businesses, including acquiring other firms, aligning with fellow rep groups and diversifying product lines. 

That’s just a taste of what makes this issue unique. The idea here is to explore a broad view of the industry as it impacts dealers, rep groups and other subsets that serve as the backbone of the larger foodservice industry. 

Given the massive size of the foodservice industry, it would be impossible to cover everyone and everything. Hopefully, this thoughtful jumping-off point will provide you with information to facilitate some of the conversations necessary to prepare your business for the future.