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Foodservice Offers New Profit Opportunities, Summit Speaker Says
Foodservice is a strategic investment that can help distributors significantly improve profit, according to Doug Eisenhart, Convenience Channel Foodservice Manager, Dot Foods, Inc.
Eisenhart pointed out that convenience store retailers with a larger percentage of foodservice are the most profitable, according to the National Association of Convenience Stores (NACS) State of the Industry report, and noted that convenience distributors have a gross margin of 6.5% compared to foodservice distributor margins of 17%.
If a $200 million distributor could capture all foodservice opportunities and achieve that same 17% gross margin, the result would be an improvement of $22.2 million in profit, he said.
"As you evaluate your opportunities, foodservice offers a quantifiable category for you to consider," Eisenhart said, contending that by increasing foodservice frozen/refrigerated supplied categories along with increasing growth by 10%, an additional $1.4 million in annual profits would be generated, an improvement of nearly 25%.
He urged Summit attendees to participate in the Foodservice Bootcamp next month in Atlanta, where he will be a speaker.
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