New York, USA: America’s largest foodservice distributor Sysco has changed its business model away from restaurants because of the Covid-19 crisis.
Sysco says it has “reworked supply chains away from restaurants to a business model that works in a post-corona world, such as one that caters directly to consumers and grocery stores”.
As the restaurant industry collapses, the company has prepared to slash nearly half-billion dollars in expenses, including furloughing and laying off 33% of its workforce.
The company says that with many restaurants still closed and with some never reopening, it has reduced “miles driven” of its refrigerated truck fleet.
“We have substantially reduced miles driven by rerouting our transportation fleet and have implemented productivity improvements in our operating companies,” the company said.
Sysco recently reported a fall in turnover of 6.5% to $13.7bn in its third quarter, which ended on March 28.
“Over the last 50 years, Sysco has weathered its share of exogenous shocks and economic crises, and each time Sysco has remained a resolute foodservice industry leader. The extent of the Covid-19 crisis is more substantial than any other throughout the company’s history.”
Sysco president and chief executive Kevin Hourican aid the company’s food supply network makes it an asset during the public health crisis, able to shift food where it is needed.
“Simply put, the food supply chain in this country does not work without Sysco,” Hourican said.
