As a former restaurant operator, I am guilty of hating Sysco! In fact, I found that I was annoyed by most vendors who showed up to sell me something, except for liquor distributors when they brought samples to try. I look back on those days and mentally kick myself for not taking advantage of the valuable resources that vendors offer. Read on for insight!
To be honest, salespeople often do not do themselves a favor when they show up to talk with a chef/manager/owner at a busy time with nothing more to present than their desire to just “catch up.” Another irritation is when a salesperson shows up and wants to push their latest spiff (financial reward for the sales person) inducing item. Running a high-end steak house and having to listen to a sales person extol the benefits of deep-fried Twinkies (an actual item btw) is simply a waste of time for all parties. If I am going to sit down and listen to you, I want it to be worth my time. Showing up unprepared or poorly prepared during a lunch or dinner rush is just career suicide and that salesperson needs to reconsider their options.
Aside from the idiot sales people who arrived unprepared, I had to analyze exactly why chefs are so resistant, in general, to Sysco and other broad line distributors. I have come up with the following four scenarios that I know are used against a broad line distributor sales rep.
Sysco sells green beans in #10 cans. Being a chef is hard! Damn hard! And most non-hospitality people do not get that, but that is not really the point of my story. Training in kitchens and listening to old school chefs talk about the beauty of quality ingredients is one of the most important parts of becoming a chef. As is true in so many things, garbage in produces garbage out, so it is critical to use quality ingredients. Many chefs simply do not think that Sysco can offer quality ingredients that are worthy of being used in a quality kitchen. More on this later.
“Sysco reps will get in the door with low ball pricing and then over time when you are not looking, they will raise their prices until they are dragging you over the coals.” I have heard this argument on both sides of the equation, as an operator, and now as a Sysco employee. Certainly, there are devious sales people but, these people are the exception and Sysco sales people are selling products that are being sold by several other distribution companies. In most cases the Sysco rep must be competitive to stay in the game. I will address pricing in a bit.
“I never saw my Sysco rep after our first conversation and the signing of the agreement. He is hard to reach when I need something, and if there is ever a problem with a delivery, forget it, their customer service just stinks!” This is a possibility; however, I would argue that if this is the real case, then yes, it is probably time to move to another distributor or vendor. Sysco has several layers of customer service starting with your direct sales representative, or MA (Marketing Associate). From there his boss, or DSM (District Sales Manager), and then his boss, or TSM (Territory Sales Manager). In addition to those three positions, there is an actual customer service department that can handle many of the calls that are made, and finally, there are executive level managers, who I know from experience are as dedicated to making the customer happy as anyone in the organization.
“Sysco is too big, they do not care about the little guy.” Interestingly, Sysco is a $50B/year company and almost 68% of the revenue comes from independent or small chain restaurant and hospitality operations. If 68% of their revenue comes from independent operators, then it would make sense that as big as Sysco is, the company is geared to serve the independent smaller operator. Just to be clear, 68% of $50B is $34,000,000,000…. dang, that’s a lot of zeroes.
So, let’s go back to the issue of quality ingredients. Sysco has a portfolio of more than 15,000 in stock items at most of their operating companies around the country. The largest selling items are probably not a surprise to most operators; shortening, AP flour, sugar, and PLOT (potatoes, lettuce, onions and tomatoes. Certainly, Sysco has canned goods which are being used by operators at all levels for various reasons. I recently had the privilege (?) of tasting 36 different varieties of canned tomatoes and tomato sauces. Are these right for every operation? Of course not, but some of those 36 different tomato products are relevant to every different type of operation. Beyond the thousands of canned goods, Sysco has a portfolio of high quality, high end gourmet products that are suitable for the most demanding chef. Fresh produce, including incredible micro greens, fresh herbs from local small farmers and other exotic fruits and vegetables are available through FreshPoint. Thousands of different cheeses, oils, spices, olives, chocolates and much more are available through European Imports. Custom cut meats and fresh whole fish are also available through our wholly owned subsidiary, Buckhead Meat. There is no way that a hospitality operation can say that Sysco does not have “quality” ingredients, however, you define “quality.”
Pricing is an issue that many operators get hung up on. Sysco is such a large distributor that they almost own the market in several commodities. My point in relating this information is that with such extreme buying power, Sysco can price their products literally as low as they want to. BUT! Let’s be honest, Sysco is in the business to make a profit. SO ARE YOU! Making a profit in the distribution business is not a crime. Neither is making a profit in the restaurant business. Sysco will price their products to be competitive in their respective markets and those prices will fluctuate according to market conditions. Butter prices will rise and fall depending on dairy production cycles. Chicken prices will fluctuate according to market supply and demand. The prices that Sysco charges will be competitive in each market and are designed to allow an operator to make a profit. If the prices rise too high and are no longer competitive, Sysco generally loses that business. Sysco sales reps understand this dynamic and they are acting as their own business owners in many cases. As you, the operator succeeds, so do the Sysco sales representatives. If you, the operator fails, so does the Sysco sales representative. This ties in with the Sysco corporate vision : To be our customers’ most valued and trusted business partner.
Another misunderstood element of Sysco is their depth of non-food products. Sysco is known for selling food, however, they do so much more. They sell a full line of cleaning supplies that are used in hospitality operations. Dish machine chemicals and front of the house cleaning materials. Paper goods of all types including paper towels, toilet tissue and napkins. In addition, they sell the dispensers, AND, if you want, they can customize the napkins with your logo. How about computer systems for restaurants? Yes, Sysco does that, utilizing a product known as CAKE. Credit card processing? Yup, through a strategic partnership with Heartland credit card processing. How about glassware, china, and silverware? Absolutely! In addition to small wares, Sysco can supply the operator with large equipment through Supplies on the Fly. When opening a new operation, Supplies on the Fly will prepare a competitive bid for all your equipment needs. In short, Sysco can supply the hospitality operator with everything inside the four walls of your restaurant, literally, everything!
So, why do chefs hate Sysco so much? Maybe they do not hate Sysco as much as they used to, but as you can see, they have no reason to hate Sysco at all. Sysco succeeds when YOU do. The Sysco resources are tremendous and it is my hope that you will reconsider the animosity that you might feel toward your broad line distributor. These companies are only successful when you are and they offer tremendous service to you and your operation. Learn to rely on them for what they can do for you, and your operation will benefit greatly.