Sysco Rolls Out Foodie Solutions to Aid Foodservice Demand
Zacks Equity Research
September 11, 2020
While the coronavirus-led increased stay-at-home trend is boosting the retail business for several food companies, the same is marring their foodservice operations. As social distancing is the key to curb the spread of COVID-19 people are avoiding dining out. Sysco Corporation (SYY - Free Report) launched Foodie Solutions in an attempt to aid foodservice operators.
Foodie Solutions’ toolkits are aimed at helping foodservice operators in driving traffic and enhancing sales to stay afloat amid the coronavirus crisis. Apart from this, Foodie Solutions is also designed to help Sysco’s customers by providing them with long-term operational strategies.
The toolkit consists of various features like Virtual Kitchens which lists recommendations for serving customers via online platforms and phone calls. Also, Foodie Solutions offers a manual for pre-made meals as well as signature dishes of foodservice operators. Moreover, Family Style Meal Kits and Patio Dining solutions are also available in the toolkit. Apart from these, content related to takeout and delivery, meal prep kits as well as bar services among others is available.
Efforts to Enhance Growth Amid COVID-19
Sysco is bearing the brunt of coronavirus-related hurdles. This was also witnessed in fourth-quarter fiscal 2020, with the top and the bottom line deteriorating year over year. Sales declined in the U.S. Foodservice and International Foodservice segments on account of temporary closures amid the pandemic. Lower volumes in the food-away-from-home channel have been a deterrent. Increased social distancing had a considerable adverse impact on the company’s restaurant, education and hospitality customer segments.
Nevertheless, the company is making robust efforts to manage its business amid the pandemic. To this end, it is utilizing its sales team to boost additional businesses and also prepare for the return of demand in the food-away-from-home channel. Further, the company is helping its restaurant partners to reshape business, per the current environment, by offering solutions related to contactless menus, curbside/takeout, along with safety and sanitation. Encouragingly, management expects...
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