Bloomberg Talks Sysco CEO Kevin Houracan Talks Food Inflation
Dec 17, 2024
Kevin Hourican, CEO of Sysco, a global food distribution giant, discusses the challenges of food inflation affecting manufacturers and restaurants. He shares insights on navigating rising supply costs and the innovative strategies his company employs, such as forging supplier partnerships and promoting private label products. Hourican also delves into the complexities of food tariffs and supply chains, particularly regarding imports from Mexico, highlighting the need for adaptability in these turbulent times.
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Restaurant Inflation
- Food away from home inflation peaked at 18% post-COVID, currently at 2%.
- While current inflation is normalized, menu prices are up 30-40% since 2019.
Sysco's Four-Part Plan
- Sysco works with suppliers, offers private label products, and helps reduce labor costs for restaurants.
- They also suggest lower-cost alternatives when certain protein prices spike.
Tariff Impact and Mitigation
- Most food consumed in the US is sourced domestically, minimizing tariff impact on the foodservice industry.
- Sysco prioritizes ensuring supply continuity and affordable costs, adapting to potential tariff changes.