“You can quote a guy in March who is going to take a couple of months to figure out what the package is going to be and by the time you’re ready to roll on the project there has been a price increase.”
— George Tobia President BRESCO
have some top-notch restaurants that can’t open because they can’t staff the facility,” Tobia says. The need to fulfill pre-pandemic sales volumes with a reduced back-of-the-house staff has caused more operators to seek out labor-saving equipment. That has made items such as heated holding cabinets more desirable right now because they can help operators manage the flow and timing of service with fewer employees.
Managing that transition from the slow period during the height of the pandemic to the renewed demand of the recovery is difficult for any business, but finding ways to stay busy during the downturn – like bringing in motivational speakers to enhance employee training – helped Culinary Depot prepare for the eventual uptick. Because it is involved in a wide range of projects – from small cafes to supermarkets, hotels and even military bases – the New York-based dealer maintained a steady workload throughout 2020, experiencing a dip of only about 10 percent during the most difficult months. It ended up reporting $74 million in sales for the year – only $6 million less than in 2019. “Thank God we have not been terribly impacted from the sales perspective,” says CEO Michael Lichter. “Our slowdown wasn’t as terrible as anticipated.”
Because it still had projects coming in, Culinary Depot moved forward with its own expansion plans during the pandemic. In August 2020, the company opened its new corporate headquarters with offices, an expanded retail store and test kitchen in Rockland County, New York. It has since proven to be a vital investment as it allowed the dealer to carry more inventory at a time when customers are willing to purchase whatever they can get their hands on. Additionally, it’s played a key role in changing how Culinary Depot is changing its approach to distribution. “The goal of that distribution center is we’ve been trying to shift our model as much as possible from drop-ship to stock,” Lichter says. “We’re assessing stock opportunities very differently now and stocking various brands.”
Managing Price Increases
The global supply chain issues that are affecting the industry touch nearly every part of a dealer’s business. As Lichter notes, making a sale now takes more steps and more work than it did before the crisis.
16 FEDA News & Views
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