Keeping It All Mostly in the Family
Private ownership continues to be the norm among the foodservice supply chain industry despite a changing landscape.
A fierce independent streak typifies privately held businesses across the foodservice industry. Equipment dealers, manufacturers’ representatives, design consultants, service agents — so many of these companies are manifestations of the American dream: enterprises conceived and nurtured by members of one generation and passed down as a legacy to the next, whether through direct lineage or an expanded view of “family.”
A brief look at a handful of family businesses helps to sketch in some details about the state of these companies. Interviews with leaders at six companies produced the following takeaways:
There may be as many models of private ownership and operation as there are companies doing business in this segment of the foodservice industry.
C-suite leaders are confident in their independence and secure in their success, insisting they are not tempted by buyout queries and offers, despite a general trend toward consolidation.
The value of succession planning is well understood, but many of those who believe they have a long personal runway ahead don’t find the threat of unexpected life changes sufficient to compel action.
Next-generation leaders embrace the challenge of maintaining a balance between preserving many of the defining characteristics of the original family business and adopting policies, processes and priorities that demonstrate the innovation needed for continued success.
Ready for the Reins?
In a survey of current leaders and next-generation members of family enterprises:
- 28% of current leaders expect the next generation of family members will take charge within 5 years
- 47% of next-generation leaders expect that transfer will take place in the next 6 to 9 years
Source: 2024 Family Enterprise Survey, Deloitte Private
