The food industry contributes about $1.3 trillion to the U.S. GDP and the food distribution companies are the spine of the food industry. From supply chain to transportation needs, they play an irreplaceable role in managing every bit.
These companies contribute to your everyday food stops like restaurants, grocery stores, cafes, and help them run smoothly with fresh and timely dispatch. This article will highlight the best food distributors in the U.S. and their general information.
Quicklook: Best Food Distribution Companies
- Sysco
- U.S. Foods
- Performance Foodservice
- McLane Foodservice
- Reinhart Foodservice
- Gordan Foodservice
- Dot Transportation
- Golden State Foods
- The Martin-Brower Co.
- Shamrock Foods Co.
10 Best Food Distribution Companies
Different companies specialize in different types of food distribution like broadline, specialty, redistribution, and cash and carry. Here are the 10 best food distribution companies listed on the basis of the aforementioned factors.
Sysco
Sysco is the leading global food distribution company established in 1969. This food distribution company ranks 60th in the 2021 Fortune 500 list.
Location: Houston, Texas
Distribution Centers: 330
Employees: 70,000+
Revenue: 55.37 billion USD
Special Features:
- Worldwide distribution facilities
- Availability of non-food products distribution
Benefits:
- Competitive cost range
- Specialized supply for specific foods
- Distributes a large variety of food-related items and disposables as well
Disadvantages:
- Delays in overseas distribution
- Less-than-average reviews in its food services segment
U.S. Foods
U.S. Foods or previously known as U.S. Foodservice is an American food distributor operating mostly within the USA. Alongside Sysco, it controls the major half of the foodservice industry in America. U.S. Foods was established in 1989.
Location: Rosemont, Illinois
Distribution Centers: 60
Employees: 26,000+
Revenue: $24.15 billion
Special Features:
- Own exclusive brand of food items
- Second-largest broadline distributor
Benefits:
- Ideal service fees for multi-unit restaurants
- Special distribution unit for healthcare and hospitality sectors
- Distribution throughout the country
Disadvantages:
- No express distribution services
- Lacks distribution centers overseas
Performance Foodservice
Performance Foodservice, an industry expert in food distribution, was founded in 1875. It delivers a wide range of food items as well as kitchen essentials throughout the United States.
Location: Richmond, Virginia
Distribution Centers: 25
Employees: 21,000+
Revenue: $17.5 billion
Special Features:
- Technologically advanced distribution system
- Custom solutions for culinary partners
Benefits:
- Perfect for restaurants requiring quick distribution with less hassle
- Trusty exclusive brands available on a large scale
- Advanced warehouses for special food storage
Disadvantages:
- Doesn’t cover smaller sectors food operators
- Non-food delivery not available
McLane Foodservice
Mclane Company is a leading supply chain service provider specializing in grocery and household supplies distribution all over the US. It was founded in 1894 with a small retail grocery store.
Mclane now has expanded distribution and logistic network.
Location: Temple, Texas
Distribution Centers: 80
Employees: 22,000+
Revenue: 50 billion
Special Features:
- Specialized distribution for grocery stores and mass merchants
- Logistics services are available as well with food distribution
Benefits:
- Ideal for grocery stores with miscellaneous supply needs
- Extended warehouse services
- Effective service fees for both individual and chain stores
Disadvantages:
- Lack of specialized food distribution
- Less proven third-party management
Reinhart Foodservice
Reinhart Foodservice is amongst the largest broadline food distributors founded in 1976. It was acquired by P.F.G in 2019 for $2 billion, further solidifying its stand as one of the best food distribution companies in America.
Location: Chicago, Illinois
Distribution Centers: 9
Employees: 5,600+
Revenue: $6 billion
Special Features:
- Provides custom distribution to independent restaurants
- Sporting packages for occasional distribution
Benefits:
- Nationwide distribution with separate deals for specialized delivery
- Exclusive brands from its parent company
- Wide availability of well-managed warehouses
Disadvantages:
- Lack of non-food distribution (except kitchen items)
- Less tested management with the recent buyout
Gordon Foodservice
Gordon Foodservice is one of the largest family-operated food distributors established in 1987. This company is known for its innovative implementations of modern food supply chain management.
Location: Wyoming, Michigan
Distribution Centers: 12
Employees: 19,000+
Revenue: 13 billion
Special Features:
- Non-food distribution is readily available
- Gordon food service has special offers
Benefits:
- Ideal food distributor for Midwest to Southwest regions of the U.S.
- Service across Canada as well
- Special cost packages for healthcare and educational establishments
Disadvantages:
- Less reliable service fee that differs across the states
- Fewer options for specialized food supply
Dot Transportation
Dot Transportation is a food redistributor operating throughout the USA. It works with the major food distributing companies for quicker delivery in most regions. Dot Transportation also offers LTL delivery services to food operators.
Location: Mount Sterling, Illinois
Distribution Centers: 12
Employees: 2,000+
Revenue: $8 billion
Special Features:
- Food redistribution service
- LTL services for distribution customers
Benefits:
- Quick delivery time in supply
- Better deals for LTL distributions
- Local drivers for effective distribution
Disadvantages:
- Transport-focused services with less quality inspection
- Could be expensive for individual food operators
Golden State Foods
Golden State Foods is one of the largest food distributing companies known for handling supplies in major restaurant chains. It was founded in 1947.
Golden State supplies for popular companies McDonald’s, Starbucks, Taco Bell, KFC, and Chick-fil-A through a joint venture with Taylor Fresh Foods.
Location: Irvine, California
Distribution Centers: 50+ across five continents
Employees: 6,000+
Revenue: $7 billion
Special Features:
- Specialized food distribution working in a large-scale and multiple delivery locations
Benefits:
- Distribution of food from manufacturers throughout the world
- Several joint ventures, offering low cost for special food and drink
Disadvantages:
- Lacks non-food distribution services
The Martin-Brower Co.
Martin-Browner Co. is the largest logistics service provider for different restaurant and fast-food chains around the world. It was established as a food distribution operation wing of Reyes Holdings.
Location: Rosemont, Illinois
Distribution Centers: 28
Employees: 6,600+
Revenue: $ 7.5 billion
Special Features:
- Distributor to large and medium fast-food chains
Benefits:
- Quick delivery time in specialized supply
- Can serve large distribution in several countries
Disadvantages:
- Services are more focused on restaurant chains
Shamrock Foods Co.
Shamrock Foods is a leading company for organic food distribution in America. It was established in 1922 as a dairy company. Now it distributes fresh food and products throughout the nation.
Location: Phoenix, Arizona
Distribution Centers: Two
Employees: 1,000+
Revenue: $500 million
Special Features:
- Technology integration for ordering, managing and tracking your delivery
Benefits:
- Organic food distribution with specialized warehouses
- Active customer service to resolve any problems
Disadvantages:
- Fewer distribution centers
Honorable Mentions
- Ben E. Keith Co.
- Maines Paper and Food Service
- Kehe Distributors
- Food Services of America
- G&J Transportation Services
- PFG customized
- Buffalo Rock Co.
- Vistar Transportation
- Lipari Foods
- Blue Line Foodservice Distribution
- QuikTrip Distribution
How Do Food Distribution Companies Work?
Several divisions of a company are involved in food distribution – each with its own role. The process starts from food production. After the food is produced, it is collected and stored in warehouses.
Once in the warehouses, the food is scheduled to be distributed at a specified time, place, and quantity. Considering all these factors a suitable transportation medium is chosen to carry them. The food is then distributed to other warehouses or service operators like grocery stores, cafeterias, restaurants, and aid programs. Food distributors make a profit from the markup in the selling price after covering the expenses.
What Makes a Good Food Distribution Company?
A good food distribution company generally has a balanced work environment, skilled management, sufficient human resources, and good knowledge about both food production as well as operators involved.
A well-run company needs every sector to compliment the others. Here are other elements defining a good food distributor.
Maintaining Great Customer & Supplier Relationships
A healthy customer-supplier relationship forms a good platform for both parties to do business for the long term. Good communication, fast feedback handling, and reasonable pricing of the products and services are important as well.
A good food distributor regularly connects with the customers easily to expand the brand name.
Keeping Costs Low
When it comes to choosing between two good companies, the cost will play a significant role. Keeping costs low while balancing profit margin will let the customers know that they are getting the best deals.
Every small and big food distributor must know the cost range which they shouldn’t surpass.
Understanding the Agriculture, Restaurant & Food-Retail Industries
When it comes to committing to the food industry, understanding every component is important. Being reasonable in a different part of the food distribution will yield opportunities that your competitors might’ve missed.
Not only an aspiring food distribution company but also an established one should invest in market research to make optimal decisions.
Providing Great Value for Service
The customers must feel valued and the companies should optimize in areas of improvement. Active feedback collection and genuine effort to incorporate the feedback will aid the goodwill that stays with the company forever.
Adapt with the Challenges of an Excellent Food Network
With evolving technology, food distributors should be able to ride the wave and benefit most from it. These food distribution companies are the prime examples of fortune favoring the brave. Shouldering the crucial responsibility of the food industry, food distribution benefits the manufacturers, operators, and end-users alike.
FAQ
Food distribution is the immediate process that follows after food production. It is composed of collecting, storing, and distributing the food to stores, manufacturers, restaurants, and others. In simpler terms, it is a connecting link between producers and food service operators.
For food to get distributed it goes through the collection, storing, and transportation process. At the end of these processes, the food goes from the agricultural lands to the retail stores or any other place the general public can access it.
As of date, the biggest food distributor in the world is Sysco Corp with over 325 distribution centers. They provide their service in about 90 countries.
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