Commercial Equipment Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,225 commercial equipment wholesalers in the US sell and distribute equipment and supplies used in restaurants, hotels, and retail stores, except for computers and office equipment and refrigeration units. In addition to selling equipment and supplies, firms may also provide installation and maintenance services.
Dependence on Health of Foodservice Sector
About two-thirds of the commercial equipment wholesaler industry’s revenue comes from foodservice equipment and supplies, so they are highly dependent on the health of the foodservice industry, and restaurants in particular.
Smaller Equipment Footprints
Foodservice equipment manufacturers are developing new smaller models that combine multiple functions and take up less space.
Industry size & Structure
The average commercial equipment wholesaler has 14 employees and generates $8.1 million in annual revenue.
- The commercial equipment wholesalers industry in the US consists of over 3,200 firms with 46,000 employees and $26 billion in annual revenue.
- About 87% of firms operate a single location.
- The industry is fragmented, as the largest 50 firms represent about 48% of industry revenue.
- Large foodservice equipment wholesalers include TriMark USA, Edward Don & Co., Wasserstrom Co., Clark Associates, and Singer Equipment.
Industry Forecast
Commercial Equipment Wholesalers Industry Growth
Recent Developments
Jul 20, 2024 - Prices and Payrolls Rising
- According to the latest US Bureau of Labor Statistics data, producer prices for professional and commercial equipment and supplies wholesalers rose 1.7% in May compared to a year ago after rising 7.8% in the previous annual comparison. The rise in industry producer prices followed a 4.4% decline in year-over-year sales in March but a 12.1% jump from February, Census Bureau data shows. Meanwhile, employment by commercial equipment wholesalers grew 1.1% in May YoY, while average industry wages increased 2.7% over the same period to $37.09 per hour, per the BLS.
- Fast-food restaurants and coffee shops are experimenting with smaller, take-out-focused stores, The New York Times reports. The trend in smaller, pick-up-and-delivery-only outlets started during the pandemic as a way to reduce contact and has persisted aided by online ordering apps. Seatless, take-out-only businesses reduce rental costs for operators because they can be much smaller. According to NYT, from 2019 to 2023, the average size of a retail lease in Manhattan shrank 17% to 2,585 square feet, citing data from commercial real estate data firm CoStar Group. On New York’s Upper East Side, Chick-fil-A debuted its first location in March to serve pickup and delivery orders only. Foodservice consulting firm Technomic found that 73% of all orders at limited-service restaurants were either carryout or delivery in the first half of 2022. Commercial equipment wholesalers that can help businesses set up smaller commercial kitchens can capitalize on the seatless trend.
- The latest in food service equipment aims to leverage synergies in AI, automation, and robotics, according to Foodservice, Equipment & Supplies (FE&S). Commercial kitchen products recognized by this year’s Kitchen Innovation Awards program feature technology designed to reduce labor – a pain point for food service providers amid steeply rising wages and staffing challenges. New products use sensors, movement monitors, kitchen management software, and AI to enable employees to push a button to start cooking a preprogrammed recipe and produce a high-quality product with enhanced speed of service. “AI and recognition technologies are simplifying training by automating tasks,” explains Brian Ward with the KI Award program, adding, “If an oven recognizes the food, it doesn’t even have to wait for a human to push the correct button.” Enhancements to robotic fryers include a system that seasons and packages fries for serving or holding, FE&S noted.
- Store openings by major US retailers are expected to be nearly flat in 2024 compared to a year ago, Chain Store Age reports. However, the number of store closures is expected to decline this year. US retailers will open approximately 5,500 stores this year, a slight decrease from the 5,645 opened in 2023, according to Coresight Research’s latest US and UK Store Tracker Extra report. Discount stores will continue to lead store openings, with Dollar General planning to open 800 stores this year. The number of store closures is predicted to drop to 4,000 (down from 4,913 in 2023), per the report. Inflation is impacting retail footprints, with expansion favoring discounters and off-price grocers such as Aldi and Lidl. Aldi plans to invest more than $90 billion to add 800 stores nationwide by the end of 2028.
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