Profitability Analysis

$500M Food Distributor


  • The company is a broadline foodservice distributor
  • They offer equipment installation, service, and preventative maintenance as a service offering to customers that purchase their chemical and beverage (chem/bev) products
  • The expenses to provide these services are to be recuperated through pricing adjustments on products that are dispensed through the equipment being serviced such as dishwashers, coffee and tea brewers


  • Provided a detailed value-stream map of process to support chem/bev services new and existing customers
  • Identified all costs to provide equipment services to qualified customers and quantified the revenue
  • Created a monthly P&L statement outlining the year-to-date financial performance of the chem/bev service organization and provided end of year forecast
  • Recommended modifications to Go-To-Market strategy for future service offerings to increase profitability


  • Increased forecasted revenue by $100K by adjusting prices on dispensed chemicals and beverage products to align with service organization cost structure
  • Identified $12K cost reduction through increased service technician utilization
  • Increased margin on leased equipment by 10%
  • Implemented process control to ensure all Equipment Sales and Installation projects yield 24% margin