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 3,400 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.
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 15 employees and generates $7-8 million in annual revenue.
- The commercial equipment wholesalers industry in the US consists of over 3,400 firms with 52,000 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
Mar 20, 2023 - Equipment Sales Growth Eases
- While sales of food service equipment and supplies continue to grow, the pace of growth is slowing, according to the latest Business Barometer from the Manufacturers’ Agents Association for the Foodservice Industry (MAFSI). Sales representatives forecast a 7% sales increase for this year's first quarter, compared to the same period in 2022. Previously, sales increased 8.5% in Q4 2022, down from 9% in Q3 2022. Pent-up operator and consumer demand led to steep increases in food service equipment and supplies sales coming out of the pandemic, with sales growth peaking at a 20.7% growth rate in Q2 2021. Regionally, in Q4 2022 the South led with 11.4% growth, followed by 9.9% in the West, 8.9% in the Midwest and 6.2% in the Northeast. By product type, primary cooking equipment posted a 10.5% increase in Q4, per MAFSI data.
- Pizza is driving sales and opportunity for suppliers of commercial equipment, Foodservice Equipment & Supplies reported in March. According to Euromonitor’s International Pizza Forecast for 2022, the global pizza market, including quick-service, limited-service and full-service restaurants as well as delivery-only/takeout-only operations, was expected to grow by 6.7% last year to $141.4 billion in total sales. North America and Western Europe account for the largest slices of that pie, forecast to hit $56.5 billion in North America (up 5.3%) and $49.3 billion in Western Europe (up 6.4%) last year. Other regions, notably Asia Pacific, show significantly smaller sales but more rapid growth, per Euromonitor. The rise of third-party delivery platforms has broadened takeout options far beyond pizza, with pizza chains adapting to the increased competition by investing heavily in technology and offering more premium pies.
- Occupations that work with food and drink are projected to grow faster than the 5% average for all occupations from 2021 to 2031, according to the Bureau of Labor Statistics (BLS). Of selected occupations that work with food and drink, bartender is the fastest-growing occupation with a projected employment increase of 18%, followed by cooks (16%), chefs and head cooks (15%), drivers and sales workers (12%), and waiters and waitresses (10%). Some of the projected growth for bartenders is due to recovery from the COVID-19 recession of 2020, but demand for this occupation also is expected to coincide with rising demand from consumers dining out, especially in full-service eating and drinking places, the BLS reports.
- Robotics and automation are gaining traction in the food service equipment industry as customers look to streamline operations amid ongoing labor challenges, according to a look ahead at 2023 in Foodservice Equipment & Supplies. Robotic fry stations and coffee and other beverage kiosks are becoming increasingly sophisticated and affordable. A smoothie-making robot debuted in January at an Atlanta hospital, the eighth automated location in the US and the first installed at a healthcare facility, according to Food Service Director. The Jamba Juice kiosk has a robotic arm and can make nine smoothies at once and up to 45 custom blends in an hour. “We've seen rising demand for fresh, customized, contactless food options and are committed to providing innovative dining solutions,” said Dyiesha Kerr of Sodexo, which operates the kiosk at Atlanta’s Grady Memorial Hospital in Atlanta.
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