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Us Foods Business Analysis

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Assessment #1:

US Foods was founded in the 19th century by several entities and five generations of employees. Monarch Food is one such entity and is linked to a Dubuque, Iowa company that sold provisions for wagon trains heading west in the 1850’s. John Sexton and Company is another entity whose success began as a merchant for tea and coffee in Chicago in 1883 (http://www.usfoods.com).

Today, US Foods is one of America’s leading food distributors, servicing every area of the industry, from small restaurants to healthcare, employing about 25,000 people working in over 60 locations nationwide. Their success is based upon their dedication to their customers, through integrity, innovation and teamwork.

With a mission to …show more content…

There are a number of factors that impact food distribution, such as level of income, wealth and the distribution of equity, the rise of fuel costs, international relations, government subsidies, regulations and policies, to name a few.

The formation of jobs, rise in taxes, and levels of minimum wage, is a few of the causes affecting the level of income in the average household. These culprits greatly determine consumer demand for food and the amount of funds allocated to certain types of foods and prices. A two-earner household for example, is likely to spend more money on food than a one-earner household; understandably, households spend more money on food when income rises.

Fuel prices and food prices most often go hand in hand. In today’s “agribusiness”, fuel is a major source of production and distribution, from farm machinery, delivering operating supplies and necessities, to the end point, transporting to the consumer. During periods of high fuel costs, many companies add a fuel surcharge to their customer’s bills, thereby affecting the cost of the product to their customer and the price of the product to the consumer. Much of the local food movement is driven by the abundance of fuel necessary to feed the population, and is therefore becoming more prevalent in the food system.

The current demand for organic foods has greatly influenced

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