One of the challenges of a revitalized restaurant and foodservice marketplace is keeping up with trends that have impacted both in-restaurant dining and the growth of takeout & delivery. With that mission, FoodServiceDirect.com works as a marketplace for the producer and manufacturer.
The sales and marketing channel in foodservice featured a traditional model of a food manufactures then being represented by broker partner. The broker would then call on a broadline distributor whose sales force would then go and offer the product to their restaurant customer. With the advent of technology and then the pandemic that approach need what many call today: disruption. Finding a solution for that new approach required both an understanding of the needs of the manufacturer and restaurateur. With a goal of providing products to operators online, FoodServiceDirect.com was born.
Originally a Virginia-based company, the company was founded in the late 1990s and became the first food service-focused online distributor. What started as paper products and some high disposable items, quickly turned into food items due to the convenient white space of this niche. “I came to FSD in 2018 when a Fortune 500 company and one of biggest private food service distributors in the US invested in the company. As a managing director, I helped grow the company in its marketing and customer service procedures. In the last 8 years we have grown the business eight times,” shared Mete Gumus.
FSD’s focus is to solve the accessibility problem in food products, as well as supplies. The company’s constant communication with operators helps them solve problems within the industry. “Through surveys and discussions with operators and chefs, we identify the latest problems and strategize how we can solve them,” Gumus explained. “We classify those problems into either small restaurant operators or alternative food service operators, such as food trucks or catering businesses. We then solve problems that the broadliners simply cannot solve for these types of operations. Since we are an online distributor with a central warehouse, we are able to offer those niche products to small restaurant operators.”
In addressing minimum order requirements, FSD considers the lack of variety issues that restaurants may struggle with. “Consider food trucks. I think about 85% of food truck operators operate from their homes,” Gumus said. “They can’t buy anything from the broadliners because they can’t deliver today. This means they are the main sources of cash and carry which makes it inconvenient to find that product variety. It’s also very challenging to have a lean and efficient staff that you need spending their time in front to of your customers to ask them to go to a cash and carry.”
Gumus comments on how we observed takeout and delivery trends to have started prior to the pandemic: “Before Covid there were already structural changes coming into takeout because of the workforce and aging population. The newer generations love working from home and enjoy the convenience of being home a bit more. Covid definitely helped to accelerate takeout and delivery sales which helped operators such as ourselves increase our supply sales.”
Gumus and his team have watched carefully as they respond to the changes of the last two years. “With takeout and delivery options becoming more of a staple, outdoor dining also became a popular dining experience. The alternative guest experience helps bring more revenue to operators through increased capacity. My suggestion for operators regarding outdoor dining is to make it an experience entirely different from indoor dining, such as completely different menu options. Foodservicedirect.com can help to accomplish that.”
Restaurants and businesses in the food industry have quickly adapted to new technology and social media trends. Gumus considers how restaurants can really take advantage of their social media and share with their customers behind the scenes content: “The majority of the time restaurants are posting that final dish visual. I think what would work even better is showcasing how that dish was created; maybe show a short clip of the chef preparing the ingredients. Guests are curious as to what is happening at the back of the house and this is a great way to advertise that.”
Food Service Direct’s research and trend analysis helps them stay up to date with the growing needs of consumers. A large trend they have observed is a growth in diet-specific health products. “There are many vegan-specific operators popping up that are in need of niche products. I have also observed that this specific type of operator that focuses on healthier plant-based products orders the most environmentally friendly supply items. Advertising their compostable containers in addition to their wholesome ingredients is a win-win for their niche audience.
For next steps, visit the FoodServiceDirect website and speak with an operator. If local distributors or manufacturers are looking to become a vendor, submit an application and inquire about how your products can be available locally or nationally.
