Beautifully written by DSR Live Co-Hosts Dave Miesse and Bill Hornung in their newsletter:

Has anybody noticed that the foodservice market is sucking wind?

“No” is the answer you’ll get from the innovative distributors out there. In fact, their business has been growing pretty much on target. Their secret can be found in the 42% of the independent operator market largely ignored by most brands.

First, here is what most brands tell us that they are focusing on:

Chains which provide lots of volume and little margin. Large Local Operators. Two thumbs up for whoever coined the LLO term… nearly every brand spits out this segment as a “core strategy.” Which leads us to wonder if it’s everybody’s strategy, how is it unique and differentiated (ah, but that’s another topic for later)?

Everything else which means let’s advertise, promote and pray that some of the other operators hear about us. Oh, and do it with fewer brokers! Brokers and corporate sales reps are fighting tooth-and-nail for chain and LLO business (in between pleading with distributor buyers to take on the latest product). Meanwhile, the unwashed masses of other operators plod along without fanfare.

Let’s call this the SOB market… Smaller Operators Begging (for attention). Hey, we can come up with nifty terms, too! These operators generally offer high-margin, high-loyalty opportunities…

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