Doom and Gloom Economy = Opportunity

From VANEEpedia

Stories of foreclosures, tight credit markets, and pessimistic consumers fill the news every day. The statistics can be frightening. For those of us who make our livings in the foodservice industry, the outlook is even worse.

We hear from foodservice operators that customer counts are down, consumer spending is weak, and input costs are skyrocketing. This ‘perfect storm’ is wreaking havoc on the folks that drive our business. Our sales agencies around the country face challenges of their own. Rising costs impact the brokerage business as well, with no real way to pass through a price increase for their services. Even worse, some lines that an agency represents may even reduce their brokerage as a way to mitigate their own cost increases.

It is hard to be optimistic in times like these. On the other hand, this is a great time to make dramatic moves in the market. While many other food companies are struggling just to survive, Vanee Foods continues to invest in its facilities and employees for future growth. Other companies focus on themselves and what they can do to stay afloat, but Vanee stays focused by helping the operator.

And more than ever, the operator needs our help. Because of these difficult times, the foodservice operators need new ways to bring in customers and high gross profit menu items — and they know it. The customer will value the company that provides ideas that drive traffic, improve margins, and are easy to execute.

Driving Traffic

The foodservice operator needs to get bodies through the door. Market research indicates tthat todays consumers are changing where and how much they spend on food prepared away from home. These changes in purchasing patterns will devastate some foodservice operators but will present great opportunities to others. Our sales agencies need to help their operators take advantage of these opportunities and bring in new business. Those that don’t will be left behind.

Improve Margins

Combine rising food costs with decreased consumer spending and you get a recipe for disaster. Operators who raise their prices to make up for increased costs will see their sales take a hit. Our sales agents must help our customers develop menu items that have a high perceived value but still deliver good gross profit. This can be achieved several ways; some examples include smaller portions or ‘sharable’ items.

Easy to execute

New ideas are only valuable if the operator can turn them into real menu items. Foodservice brokers need to do more than just show samples. Sales agents need to help the operator move the idea through the various steps of the menu innovation process; from sourcing ingredients, pricing and promoting the new item to writing food preparation procedures and training the staff. Large national chain restaurants have entire departments that focus on these activities. Our sales agents are often the independent operators’ only resource.

Just as the Vanee Foods Company continues to invest in new production equipment and other plant improvements, we will continue to invest in developing the market knowledge we need to best help our foodservice operators. While other companies are focusing on keeping themselves afloat, Vanee Foods is focusing on the customer. Together - with the hard work and innovation of our sales agents, we can utilize this strategy to guarantee our mutual future growth and profitability.