The three largest foodservice distributors report strong sales in the first quarter of this year. Foodservice hiring was surprisingly good in June. The Panera Bread Company decides not to go public. These stories and more This Week in Foodservice.
Here are a few financial numbers from the first quarter from the three largest broadline distributors:
- SYSCO: S. sales increased 43.6% vs. the same period in 2021. U.S. broadline volume increased 14.1%, while total U.S. case volume increased 18.8%. Both increases represent organic growth. Gross profit rose 38.9%.
- US FOODS: Net sales increased 23.9%. Total case volume increased 4.1%, while independent restaurant case volume increased 9.2%. Gross profit increased 19.1%.
- Performance Food Group: Net sales increased 82%. Total case volume increased 35%. Net income increased 408%
Economic News This Week
- The U.S. economy added 372,000 new jobs in June, per data from the U.S. Bureau of Labor Statistics. This is significantly greater than the 100,000 jobs most forecasts predicted the economy would add. The U.S. unemployment rate stood at 3.6% for the fourth consecutive month.
- Initial-jobless claims increased by 4,000 for a total of 235,000 during the week ending July 2, per the U.S. Department of Labor. The 4-week moving average increased 750 claims for a total of 232,500.
- New orders for manufactured durable goods increased 1.6% in May, per data from the U.S. Census Bureau. New orders have increased in seven of the last eight months. Shipments, which have increased 24 out of the last 25 months, increased 1.8%. in May. Unfilled orders, up 21 consecutive months, rose 0.4% in May.
- Consumer credit increased at an annual rate of 5.9% in May, per data from the U.S. Federal Reserve. Revolving credit, which consists mostly of credit card debt, increased 8.1%. Non-revolving credit, which includes auto loans, student loans, etc., increased 5.2%.
Foodservice News This Week
- The foodservice industry added 40,800 jobs in June, per data from the U.S. Bureau of Labor Statistics. This is approximately 11% of the total jobs added by the total economy in the month.
- Panera Bread gives up on going public, per published reports. Spearheading the deal was Danny Meyer’s USHG Acquisition Group. The reason given for canceling the public offer was “market conditions.”
- Amazon takes a cautious step into delivering restaurant food. The internet giant bought a 2.0% stake in U.S.-based GrubHub and will put the food delivery firm on its suite of Amazon Prime services in the U.S. Amazon began to set up its own restaurant food delivery system using its Prime brand in 2019 only to back out of the concept. The new arrangement appears to be a decent one for both parties. GrubHub gets access to Amazon’s Prime members and Amazon can now offer another service with little risk or investment.
- YUM! Brands takes another step toward withdrawing from Russia. The multiconcept operators offered to transfer its Pizza Hut assets to a local operator last month. The new operator will rebrand the restaurants to non-YUM entities. YUM! also said the company is in the “advanced stages” of transferring its Russian KFC restaurants, operating system and master franchise rights to a local operator. Once the KFC transaction is complete, YUM! Will officially exit the Russian market.
- DoorDash will shutter its Chowbotics business, which manufactures robotic salad-making machines. The company, which primarily marketed the robot to hospitals and universities, was purchased by DoorDash 18 months ago. DoorDash is expected to continue its focus on robotic delivery options.
- Are restaurants quickly separating into two classes? Some observers say yes. One group of restaurants will be high-efficiency operations geared towards off-premises customers while the second group will provide a unique on-premises dining experience. But the larger question that hangs over the industry is whether full-service restaurants will give up on the takeout and delivery business.
- US Foods plans to open four new retail locations. The broadline distributor will open its US Foods CHEF’STORE units in Merced and Santa Cruz, Calif., Helena, Mont., and Winston-Salem, N.C. These stores offer a warehouse-style retail solution that allows operators and members of the community to replenish their inventories.
- Growth Chains: Bombshells, a military-themed sports bar that is sort of a competitor of Hooters and Twin Peaks has signed an agreement for three units with the right of first refusal for three more. Eggs Up Grill will open three locations in the Atlanta area by the fall of this year.
For Comparable Store Sales Reports of other chains please click here for the Green Sheet.