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QualServ Consolidates
June 16, 2008
The concept of consolidation is one that’s been sweeping the foodservice equipment and supplies industry of late. For the most part, this trend has taken a rather standard format with one company buying or merging with another. In the dealer community, the most obvious example that comes to mind is TriMark’s shopping spree that saw it acquire S.S. Kemp, The Gill Group and, most recently, Economy Restaurant Fixtures in roughly one year’s time. Late last week, though, the concept of consolidation took a slightly different turn when QualServ began scaling back its operations.
In a letter circulated to the foodservice manufacturing community, QualServ CEO Rick Heller announced "an aggressive project to streamline our operations by consolidating our Columbia, S.C., and Kansas City, Mo., manufacturing capabilities into our facility in Ft. Smith, Ark." He went on to add: "We are confident that the consolidation of operations will allow us to continue to provide exceptional quality and service – while significantly improving our overall operating efficiency."
When contacted by phone earlier today, QualServ declined comment.
QualServ reported 2007 revenues of $145.5 million as part of FE&S’ 2008 Distribution Giants Study. Despite the reported $22 million decline in annual sales from the previous year, QualServ still checked in as the eighth largest dealer in the study.
In the study, QualServ indicated that 80 percent of its business came from chain operators. Given that the current economic climate has prompted many chains to scale back their expansion efforts, it comes as little surprise, then, that a dealership that derives a significant portion of its business from chains would choose to do the same.
Posted by Joseph Carbonara on June 16, 2008 | Comments (0)