One of the biggest concerns facing restaurants today is the minimum delivery requirements forced upon them by large food distributors such as Sysco. Now, in an effort to support small businesses, Sysco has launched Restaurants Rising, a program that removes these requirements and helps small business owners better compete with larger rivals. By doing so, Sysco hopes to help restaurateurs reduce their costs while still offering their customers high-quality products that they can’t get anywhere else.
What are the minimum delivery requirements?
One of Sysco’s core offerings is a service that many restaurants rely on: minimum order guarantees. It may seem like an attractive deal at first—getting your product delivered to you free of charge—but in fact, minimum order requirements can be financially burdensome. Many restaurants report that Sysco’s minimum delivery requirements caused them to go out of business! With its new Restaurants Rising program, which eliminates these minimum order guarantees in most cases and replaces them with a flat delivery fee, Sysco hopes to become more competitive and offer relief to struggling restaurateurs. The company has always been driven by its mission to satisfy our customers as fully as possible.
Why should you eliminate minimum delivery requirements?
Businesses waste a lot of time and money trying to meet arbitrary delivery quotas set by distributors like Sysco. Unfortunately, minimum delivery requirements are usually unrealistic and a poor fit for most foodservice operations. These requirements are at odds with both your bottom line and your business objectives, so eliminating them is an easy way to free up resources that you can invest in growing your business. As an added bonus, making deliveries when it’s convenient makes customers happier—and happy customers tend to spend more money over time! In short: By freeing yourself from Sysco’s rigid rules, you’ll be able to improve profitability while making dining experiences better. Sounds like a win-win situation if we’ve ever heard one!
How did they do it?
Sysco is eliminating its minimum-delivery requirements for clients of its foodservice management program Restaurants Rising. According to a statement from Sysco Corp., the action comes after surveys showed that many restaurants are struggling to meet those requirements in terms of quality and service. By reducing these barriers, we believe we can help more restaurateurs thrive, said Cynthia Howes, president of Sysco’s Restaurant & Institution Services division. We want to make sure that our partners have what they need to serve high-quality meals in a way that works best for them.
How can you get more bang for your buck?
The restaurant industry has been plagued by decreasing sales in recent years. In order to revitalize their business and keep up with changing consumer tastes, a number of restaurants have begun outsourcing parts of their operation such as delivery service. To help foodservice operators get more bang for their buck, food distributor Sysco Corp. recently launched its Restaurants Rising program. The company recently announced that it would be eliminating minimum delivery requirements across all product categories effective immediately.
How can this benefit your business?
While there may be more foodservice companies out there, none have deep relationships with restaurant operators like Sysco. In fact, they sell half of all restaurant meals in North America. So when they do something like remove minimum order requirements (MOQs), you can be sure it’s a big deal. Customers love it because it makes ordering easier and less expensive. Sysco saves on unnecessary costs by having a streamlined supply chain while still being able to offer competitive pricing options to its clients. This move is just another way that Sysco works hard every day to help its customers succeed and build their businesses. And why wouldn’t it?