Food Distribution in the 1990s

Abstract

The mechanics and finances of food distribution are obscure to many food-service operators. Many operators order their supplies from one or more broad-line vendors. Others have developed a primary-vendor (program) relationship with one supplier (while using others for a small percentage of orders). Some multiunit operators have contracted with systems specialists, firms that purchase and transfer items according to the operators' agreements with manufacturers and vendors. Finally, some firms are "self-distributors" and run an in-house distribution business. Food distributors' profits are now largely dependent on food manufacturers' rebates and other price incentives that are often invisible to restaurant operators.