5 things to know about how Sysco delivery cancellations are impacting Arizona restaurants
In October, metro Phoenix restaurant owners began reporting that their orders from Sysco, a food service distributor, were being dropped. The cancellations, which extend beyond Arizona, have frustrated restaurant owners who are still trying to recover from pandemic-related losses and appease customers with pre-pandemic expectations.
Ross Simon, owner of several bars in Phoenix including Bitter & Twisted, said he was able to pick up his Sysco order in-person when his delivery was canceled earlier this month. But he later learned that pickup might no longer be an option.
"I don’t think the public knows and they're expecting the same level of service and everything to be fine and dandy. ... They're asking, 'Why is my food taking so long? Why isn't this in stock?'" Simon said. "This is the tip of the iceberg in regards of where this is all going to go."
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What is Sysco?
Sysco Corp. is among the largest, if not the largest, distributor in the country for the food service industry. The wholesale company distributes food products, kitchen equipment and supplies, such as napkins and cleaning detergents. Competitors include US Foods and locally, Shamrock Foods Company based in Phoenix.
Sysco has one operating site in Arizona, located in Tolleson.
Why is Sysco canceling orders?
A spokesperson for Sysco told The Arizona Republic that labor shortages have caused Sysco to delay or pause service for some customers in various locations, but the company expects this to be a temporary situation. A few Arizona restaurant owners said their sales representatives informed them that their orders couldn't be delivered because there was a lack of truck drivers.
Earlier this year Sysco Arizona advertised a September hiring event for warehouse selectors, who can make up to $70,000 a year and up to a $3,000 signing bonus. Delivery truck drivers can make up to $90,000 a year and up to a $12,000 signing bonus, according to Sysco's online job search.The website also shows other job openings in Tolleson, from produce inspector to supervisors.
Is Sysco the only wholesale company with shortages?
No. Bloomberg reported labor shortages at other major distributors, including United Natural Foods. Finding truck drivers is "next to impossible," said Benjamin Walker, senior vice president of sales, marketing and merchandising at Baldor Specialty Foods, Bloomberg reported.
Simon said he was also frustrated by supply shortages at other companies. One week he might have trouble sourcing liquor, another week it could be straws. Even Coca-Cola has run out of Coke, he said.
Julia Chugerman, owner of Verdura, said she also ran in trouble getting certain ingredients from local distributor Grand Avenue Produce Co. Brussels sprouts are almost impossible for her to source now, she said.
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How do delivery cancellations impact restaurants?
Mike Baum, the owner of Dilla Libre restaurants in Phoenix and Scottsdale, waited about 10 hours altogether on two separate days, Oct. 8 and Oct. 14, to pick up one order, he said. While waiting to fill his order, he temporarily took items off the menu and went grocery shopping to hunt down supplies.
"Needless to say, it’s very frustrating. It’s very hard to have a food business when there’s no food to sell," he told The Republic.
Sasha Raj, owner of 24 Carrots restaurant in Tempe, said a Sysco representative informed her on Oct. 19 that the company was dropping small-business accounts like hers. While living in a place like metro Phoenix means she can shop elsewhere, Raj questioned what options businesses in smaller cities have.
The Republic reached out to Sysco for confirmation, but did not receive a response at the time of writing.
Can't restaurants get their supplies somewhere else?
Restaurant Depot is a members-only wholesale warehouse, similar to Costco, that supplies the food service industry. It has locations in Phoenix and Mesa.
The warehouse has gotten "way busier" starting about two weeks ago, said Joel Lopez, a manager at the Mesa location. Lopez said he's heard several customers tell him they were shopping at Restaurant Depot because Sysco dropped them.
But Restaurant Depot is running into its own challenges. Supply shipments have been delayed yearlong because the supplies are backed up in California ports, Lopez said.
The Republic reported in April that a bottleneck at West Coast ports was causing delays in tapioca shipments to Arizona boba shops. But boba shop owners said it wasn't just boba shipments that were delayed, it was also cups — and prices on cups were going up.
"It's a pretty scary time. The thing is, all year we’ve had to adapt because of COVID," said an employee from Bing's Boba Tea in Tucson. "This is a little bit different. It's hard to imagine being a boba shop without boba."
'This is the tip of the iceberg': Canceled Sysco orders impact Phoenix restaurants
Reach the reporter at Priscilla.Totiya@azcentral.com. Follow @priscillatotiya on Twitter and Instagram.
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This article originally appeared on Arizona Republic: How Sysco cancellations are impacting restaurants around Arizona
