As the U.S. restaurant industry prepares for the winter months and a growing coronavirus outbreak, the grocer is in Sysco has taken steps to help its customers weather an uncertain future.
The Houston-based company announced Thursday that it is canceling restaurant minimum delivery sizes starting Monday. The news comes as some state and local governments put new food restrictions in place to mitigate the worrying spread of Covid-19.
Kevin Hourican, CEO of Sysco, told CNBC’s Jim Cramer that the relaxed ordering requirements will be available for small, medium and large customers.
“Sysco is doing more than anyone in our industry to help these small business customers thrive,” he said in an article.Bad money“Interview.”[We are] Eliminating these minimum order quantities for our small, medium and large customers, but especially for these small businesses. “
Sysco, whose partners include restaurants, hospitals, schools and hotels, announced the move as part of its “Restaurants Rising” campaign. The program undertakes to acquire new customers within a day and to offer its partners discounts on mobile ordering and menu services as well as marketing strategies.
With the new no minimum delivery requirement, Hourican aims to help restaurants maintain their sustainability as alfresco dining becomes more difficult, especially in the northern states.
“We’re not doing this as an opt-in program,” he said. “We have the largest sales force in the business and we will literally go customer after customer to make sure they know about this news.”
Despite lockdown orders that crippled local restaurants earlier this year and the threat of new restrictions across the country, Hourican said he didn’t see the discouraging bankruptcy rate some experts forecast would overtake the industry. 40% of restaurants were predicted to go bankrupt, but Sysco didn’t buy the dire forecast and the result was “stronger than we thought,” Hourican said.
“We recently reported that currently less than 10% of our customers are closed. Our job over the coming winter months is to help everyone thrive through the services, food product and expertise we offer them “, he said .
Sysco stock fell 0.7% to $ 68.01 on Thursday, falling alongside major stock averages. The company’s stock is down more than 20% since the start of the year.
However, investors who got into the stock in late October could have earned more than 20% profit after a three-month low. The stock saw an uptrend in last week’s election and positive vaccine news that sparked buying the reopened shares.