Finding Food and Beverage Distributors | How-to Guides for running your business from Business.com

Americans eat out — a lot. According to the U.S. government's last census of such things, more than a half-million eateries and bars posted more than $321.40 billion in sales, a bit more than $1,000 a year per man, woman and child in the country. How all of these small businesses get the food and drinks they need to keep those tables turning is an industry unto itself, and a fragmented one at that, considering it involves timely delivery of perishables. Figuring out where you'll get the best and freshest foods at the lowest price is a matter of understanding the market, in particular, understanding how the wholesale beverage and food distributors work. This primer on selecting a wholesale food distributors for your own restaurant covers:

The different types of food and beverage distributors available for any restaurant.
Your options for food distributor alternatives.
How to make the most of purchased wholesale foods, by combining the buying power of multiple restaurants.
Advice for ensuring you are getting the best price for your wholesale foods.

Action Steps
The best contacts and resources to help you get it done

Most of the business is done by food wholesalers

Whether its tins of tomatoes or piles of pork ribs, chances are you will start with a major supplier of wholesale foods, where prices are driven down because of the high volumes they handle.

I recommend: The largest food wholesalers include Sysco, US Foodservice, Performance Food Group and Gordon Food Service.

Buy direct from the manufacturer

Many food and beverage producers maintain their own delivery systems if your account is large enough. Going this route allows you to cut out the middle man, and avoid markups added on by the food distributor.

I recommend: Go to the International Foodservice Manufacturers Association site and search the membership directory for free. Search by "industry category" to quickly turn up food or beverage distributors near you. The American Beverage Association has a list of its (non-alcoholic) beverage maker members and Bevnet lists both manufacturers and distributors. The International Beverage Network covers alcohol beverage distributors worldwide.

Find a local independent broker

A good portion of the food distributed in the United States goes through an agent or broker.

I recommend: Search thousands of food and equipment suppliers through the Thomas Food and Beverage Market Place guide. Free if you register, although full company data is pricier.

Lots of tables? Join an alliance and get volume discounts

Joining a cooperative could save you money if you buy enough food regularly to qualify. This is usually true for institutional dining operations like hospitals and schools, but a regional chain restaurant could easily muster the same volumes.

I recommend: Some cooperatives include UniPro and Progressive Group Alliance. Premier focuses on healthcare institutions.

Check specialty suppliers for deals

Over the years, regional suppliers have sprung up to serve smaller, mom-and-pop eateries in second-tier markets. There are also specialty gourmet food distributors.

I recommend: Smart & Final operates in six western U.S. states and northern Mexico. McClane serves 18 cities across the country. Cheney Brothers trucks are a common sight in the southern United States.

Shopping clubs are an alternative

Most warehouse shopping clubs offer wholesaler discounts and special ordering rules that get you in and out in a jiffy. If you have the time and inclination to go get the food, these can save you money.

I recommend: Check prices for membership against potential savings at Costco, Sam's Club and BJ's Wholesale Club. Similarly, retailers Target and Wal-Mart (type ZIP code and choose "supercenter") both have opened gigantic grocery stores which can cut pretty close the warehouse prices without annual membership fees.

Tips & Tactics
Helpful advice for making the most of this Guide

To get the best price on your wholesale foods, always run the numbers on your wholesale food distributors, the more often the better. Some will low-ball early on at a loss then try to raise prices later.
If you don't do gigantic volumes, consider forming your own coop with other local restaurant owners. Deliver to your door then break the packages for savings.
Never count out your local grocery store. Their loss leader might be your best margin of the week. If there's not enough on the shelf, talk to a manager about buying up the back stock, especially on non-perishables like wine and canned foods.
Negotiate with your food distributor, always. The food is doing them no good on the warehouse floor, and they could easily have overbought in anticipation of demand. If you are a regular customer or a bigger customer, demand discounts.

The official source of Finding Wholesale Beverage and Food Distributors is
the Food Distributors page at Business.com

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