Chicago foodservice sales bounce back
As foodservice operators open their doors once again and expand their hours after lengthy COVID-19-related shutdowns and restrictions, many Chicago-area produce distributors say they can begin a return to normalcy.
Foodservice accounts for a large part of the business at The Ruby Co., Buffalo Grove, Ill., said Josh Wolf, director of growth and strategy.
“We certainly felt it when COVID first hit,” he said.
“Lucky for us, we had retail, government and wholesale business that we were still supporting to help offset the falloff of foodservice.”
Foodservice business has bounced back significantly, and sales are approaching pre-COVID-19 levels.
“We’re almost at the 100% level of pre-COVID volume for a lot of the foodservice distributors we service,” he said.
“It’s certainly a sign that things have improved tremendously and continue to improve.”
Foodservice accounts for 60% to 70% of the business at Coosemans Chicago Inc., said Mark Pappas, president.
“When (the pandemic) happened, we got hit the hardest probably of anyone on the terminal market,” he said.
But sales have greatly improved as restaurants beef up their seating capacity, couples plan their previously postponed weddings and in-person sporting events take place again.
Conventions still are not being scheduled, and museum traffic continues to lag, but Pappas is optimistic.
“We’re within striking distance” of getting back to normal, he said.
The company has several high-end customers and services a number of dining rooms at major law offices and accounting firms where employees are returning to their offices after working remotely for an extended time.
Foodservice business also is pretty much back to normal at Chicago-based Strube Celery and Vegetable Co., said TJ Fleming, vice president.
“People are eating out again,” he said. “It’s helpful to get that segment of our industry back into play.”
Foodservice accounts for only about 20% of the company’s sales, but even the loss of a portion of that can be painful, he said.
Even though restaurants have reopened, the industry remains in a bind when it comes to securing labor.
“They’re struggling to get their help back,” said Craig Carlson, president/CEO of Chicago-based Carlson Produce Consulting LLC.
Many restaurants open only the number of tables that the staff can handle at a particular time, he said.
“If you walk into a restaurant, maybe you’ll see empty tables but people standing and waiting in line.”
Foodservice distributors also face the same transportation challenges as other produce suppliers, he said.
“They can only handle so much.”
Some of Coosemans customers are having a hard time procuring help, such as sous chefs, food prep workers, wait staff and kitchen employees, Pappas said.
And costs continue to rise on many food items.
“Some of our customers are back, but they’re paring down their menus,” he said.
“Instead of selling them 15 items, we’re selling them 12.
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