Foodservice Equipment and Supplies - For $10 Billion, Can't We All Get Along?

You'd think that billion was a lot of dough. The equipment and supplies side of the foodservice industry is worth that much in annual U.S. sales. With that kind of bread at stake, why are all the members of the E&S supply chain so out of sync? End-users are subjected daily to our 'dysfunctional family' turf wars. Don't they (and we) deserve better?

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Sure, we're all competing on some level, and will therefore have conflicting interests. "After all we are not Communists." Don Barzini

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Our mandate should be assisting our customers in the specification and procurement of the most appropriate E&S. All too often, though, the following picture of self-interest-run-amuck emerges:

· Factory Sales Manager to Salesperson: "Follow this sales lead, he needs an oven." Translation: "Push our latest Euro-styled, highest margin offering."
· Dealer to Factory Sales Rep: "Call my customer, he needs an oven." Translation: "Lock up the spec on the unit that we have in stock, that's in my buying group; or get me an extra 5% and free freight, too."
· Rep to Operator: "How will you be using your oven?" Translation: "How can I avoid having you buy this from outside of my territory or from a dealer that stocks my competitor?"
· End User to All: "I need an oven." Translation: "Tell me about the least expensive "blaster" that I can Google for the lowest price."

Wouldn't everyone at all levels of the distribution channel be better off if our interests were aligned? Then, the typical sales scenario might be more like this -

[Insert "ideal" scenario, with all above players acting in harmony]

Prior to the internet, end-users called their local dealer or rep for equipment recommendations and pricing. This build trust and partnerships. Prior to the Great Recession, equipment was sold with a profit margin built in. This encouraged suppliers to look after operators' best interests. Prior to food networks and celebrity chefs, professional kitchens were utilitarian workspaces. Every piece of equipment in them was judged on its performance, serviceability and longevity.

What's become lost in all of this, of course, is the end game of producing good, safe, nourishing food economically.

I wish that I could recall an amusing anecdote illustrating honesty and cooperation within the supply chain. Our diverging interests in the equipment & supply industry ill-serve our ultimate end-users. We all say that we want to get along, but it takes more than just humor and good intentions to make good business.

Foodservice Equipment and Supplies - For Billion, Can't We All Get Along?
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