Foodservice operators are working diligently to continue supporting the industry in the wake of recent challenges. US Foods recently announced its own $1 billion strategy as it prepares to pivot to grocery retail.
“As the COVID-19 situation continues to evolve, our priority is the health and safety of our associates, customers, and communities,” said Pietro Satriano, Chairman and CEO. “While the full business impact of COVID-19 is not yet known, we are taking immediate action to reduce our costs to match the slowdown we’re seeing in restaurant, hospitality, and education case volume. We are also leveraging our supply chain resources to support the retail industry as they experience unprecedented increases in consumer demand. Finally, I would like to thank our associates for their outstanding efforts in continuing to serve our customers during this difficult time.”
US Foods has secured new opportunities to support and sell to retail outlets like grocery stores, and to contract some of its workforce to companies experiencing increased demand.
According to a press release, US Foods also noted that it has no debt maturing until fiscal 2022 and is actively working to explore additional financing opportunities if needed. The distributor noted that it has drawn $1 billion under its existing revolving credit facilities to retain as cash on hand.
Furthermore, the company is taking aggressive steps to reduce operating costs and strengthen its liquidity position by preserving cash, including:
To read the entirety of the release, click here.
Keep checking in with Deli Market News as we cover the latest in foodservice and retail.