As one of the largest foodservice distribution companies in the country, Illinois-based US Foods helps 250,000 foodservice clients across the country succeed every day.
Over 30,000 employees at more than 70 distribution centers nationwide handle about 400,000 different products. They have been named Refrigerated & Frozen Foods’ 2024 Distributor of the Year.
“On behalf of our more than 30,000 associates, US Foods is thrilled to be honored as Distributor of the Year. The recognition reflects our deep commitment to helping our customers ‘Make It’ and to reaching our ambition to be the safest, fastest growing, most profitable, leading digital and best place to work in our industry,” said CEO Dave Flitman.
Flitman took over as CEO in early 2023, with an aim toward growing market share and expanding though exclusive brand growth and pricing initiatives and improving both produce and center plate offerings. Flitman has an ambition for US Foods to be the undisputed best in the industry - the safest, fastest growing, most profitable, leader in digital and best place to work, setting forth a clear strategy anchored by four strategic pillars:
- Culture: Safe, supportive and responsible.
- Service: Reliable, efficient, easy-to-use.
- Growth: Grow market share among key targets, differentiate via innovative food, team-based selling and value-added service, and be fresh by improving our capabilities in produce and center of the plate.
- Profit: Expand through Exclusive Brand growth, strategic vendor management and pricing initiatives, embrace continuous improvement and enhance indirect spending initiatives.
In fiscal 2023, US Foods recorded $36 billion in revenue, up from $29.5 billion in 2021. The company has grown through the acquisitions of Renzie, Saladino’s and IWC foodservice businesses.
US Foods updated its customer value proposition; called MORE, it is centered around providing more quality products, support, tools and deliveries.
US Foods became the first U.S. broadline distributor to offer a single tool for ordering, delivery and payments through its e-commerce platform, MOXé.
Customers using MOXé have a 5% greater retention rate and buy 10% more, the company said. US Foods expects to secure an extra $1.5 billion in incremental sales through digital as part of its long range plan.
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The application allows foodservice operators to more easily observe and predict operations.
“US Foods is the leader in digital innovation within food distribution. Through the increased utilization of digital solutions, we are building deeper customer relationships and to enhancing operational and customer excellence,” said John “jt” Tonnison, EVP, chief information and digital officer.
The company’s Pronto delivery offers daily and late-order times via smaller fleet vehicles that can better navigate crowded urban areas. US Foods introduced flexible scheduling and first to market seven-day deliver model into key markets to help meet enhanced customer needs.
Products, People & Planet
Through a team approach that includes product specialists, restaurant operations consultants and chefs, US Foods help customers with fresh recipe ideas, profitable menu analysis, portion costing and inventory management, marketing and staff training and more.
The company annually launches over 50 new on-trend and labor-saving products launched annually under US Foods’ Scoop new product launch platform.
“Our product development team takes great pride in creating innovative, high-quality Exclusive Brands products that appeal to today’s diners and can address a variety of operator challenges, which is at the heart of our Scoop product innovation mission,” said Stacey Kinkaid, vice president of product development and innovation at US Foods. “Collectively, our team brings more than 400 years of product development, institutional knowledge and first-hand experience within the restaurant industry to our product development process. They understand the ins and outs of a busy food service kitchen and the evolving trends shaping diner preferences to create the right products at the right time to help our operators ‘Make It.’”
A climate-conscious category was among new releases, with products designed to reduce greenhouse gas emissions and the company’s Serve You brand features products without ingredients on the US Foods “Unpronounceables” List, with clean-label and plant-forward foods taking center stage.
Exclusive Brands accounted for $12 billion in sales last year, about 34% of total company sales.
To identify and attract diverse candidates, the talent acquisition team partners with sources like LinkedIn, Indeed, Orion, DirectEmployers, Women In Trucking, National Black MBA, Disability:IN and others—to help ensure they have access to a diverse talent pipeline, said Alyson Margulies, SVP, chief talent officer.
57% of US Foods associates identify as women or people of color. In FY 23, driver retention by improved by 10% with warehouse retention up by 20%.
The company’s learning and development approach generally follows the 70-20-10 method, in which 70% of learning takes place on the job, 20% is achieved through mentoring and 10% is through formal courses. A suite of development programs—from live workshops to on-demand learning resources featuring courses taught by industry experts—supports associate growth.
“By offering comprehensive training and benefits for our associates and maintaining a safe and inclusive workplace, we strive to engage and empower our associates to meet their career goals,” Margulies said.
US Foods is targeting sustainability in its facilities and fleet operations.
Over the last few years, US Foods has added nearly 100 alternative fuel vehicles to its fleet, including three fully-electric straight trucks in California featuring eTRUs (Electric Transport Refrigeration Unit). The electric straight truck with multi-temp eTRU is innovative, combining all-electric propulsion with versatile, temperature-controlled refrigeration for food delivery, capable of supporting different temperature settings on one delivery route.
“The eTRU market is evolving quickly, and we’re excited to be part of the movement toward greener solutions. As multi-temp eTRU technology advances, it’s opening doors for more sustainable operations across the industry,” said Ken Marko, fleet sustainability senior manager at US Foods.
The company first installed solar in 2013, at its Albuquerque, New Mexico, facility. Today, US Foods has active solar installations at over a dozen distribution facilities is partnering with truCurrent to support the company's energy transition efforts such as fleet electrification, virtual power plant (VPP) design considerations and other solutions to accelerate decarbonization efforts.
