Page 68 - Index

PHILADELPHIA MARKET PROFILE
Tom Kovacevich, Mike Watson, John Birch, Steve Ricelli, Cindy Schannauer, Steve Buchanan and Mike Verchio, Jr. of TMK
Rich Rothenstein, Charlie Sammartino, Nelson Gonzalez, John Hickey and Bert Mayer of Coosemans
John Collotti of Collotti & Sons
Dan Vena of John Vena Inc.
Procacci’s Maxwell points out the city as one of the nation’s trendsetters in foodservice. “ e 2019 James Beard Awards just named Philly restaurant Zahav (modern Israeli cuisine) as the best restaurant in the country,” he says.
Philly’s restaurant scene encompasses a wide variety, from high end to street food, explains Vena. “Particularly, ethno-centric restaurants are growing,” he says. “We see dining from a variety of cultures popping up and full of younger customers. We’re also seeing a trend in less-complicated food but still great quality. Mission Taqueria above the Samson Street Oyster House is a good example.”
Procacci Brothers’ Feighery notes Philly’s diversity serves up everything from Indian to Korean to Vietnamese to Lebanese, Italian, seafood and steak. “ ese restaurants are shopping the market and looking for items they need and want,” he says. “ e market vendors have done a good job at meeting the needs of our incredible restaurant scene.”
e market services distributors in the restaurant business including Sysco and US Foods, reports Maxwell. “ ere are four to ve big wholesalers and restaurant providers shopping PWPM and we cater to all of them,” he says. “We provide many di erent and unique items that foodservice demands.”
Even PWPM companies that don’t service restaurants directly bene t from the business. Kovacevich reports a third of its business is with companies who service the restaurant industry. Colonial’s Secamiglio agrees foodservice distributors pull a lot o the market. “ ey recognize our value and exibility,” he says. pb
outlets. Logically, more stores mean more competition, and the best way for a store to distinguish itself is with fresh produce.”
Philly has more options than ever, re ecting its changing demographic, asserts Jessica Kean, marketing and sales for E.W. Kean.“WehavechainssuchasSprouts,Trader Joe’s, Whole Foods and Mom’s Organic, as well as delivery companies such as Fresh Direct and Peapod, plus an increasing number of smaller, specialty markets,” she says. “Many shoppers have shifted from a large weekly haul at one big chain to more frequent stops at a combination of local shops, farmers markets and chains plus delivery.”
Penza notes such diversity from large stores to farm market stands. “We have one customer from New York who owns ve farmers markets,” he says. “ ey shop Hunts Point and Philadelphia.”
ough new stores nd a competitive retail environment, according to Stephen Secamiglio, owner/sales at Colonial Produce, established stores remain strong with a reli- able customer base. “ ere is an expansion of chains such as Whole Foods, Aldi and Lidl (in Ridley Park),” he says. “But strong smaller stores such as Gentile’s Market in Newtown Square, PA, still thrive.”
Leading retailers Acme Markets and Giant Foods control less than 17% of the market each, according to Chain Store Guide’s Market Share Report. Following these retailers are a handful of others posting between 3% and 8% shares, including Walmart, Wegmens, Costco, BJ’s, and ShopRite. A plethora of additional outlets holds less than a 2% share, including Sam’s Club, Whole Foods, Target, Aldi, Trader Joe’s,
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Dollar Tree, Redner’s, Save-A-Lot, small chains, dollar stores and specialty or ethnic retailers.
Small format and specialty stores continue to command their corner of the city, with some larger chains looking to get into this space. For example, the new Giant Heirloom market is a cut-down version of its typical store. “ ey’re looking to t in a di erent retail space to serve the Center City niche,” says Maxwell. “ ey’ve created a store to t in 28,000 square feet.”
But despite all the ruckus over chain business, John Hickey, managing partner at Coosemans, points to the importance of the stable, independent business. “Our customers are mostly independents, mom & pop’s, small restaurants and small jobbers,” he says. “ ose are the bread and butter of the Market.”
EXPANDING FOODSERVICE FABRIC
Philadelphia’s demographics fuel a thriving and varied restaurant sector. “Phila- delphia has a fantastic food scene,” says Kean. “ e demand for distinct dining experiences is higher than ever. It’s exciting to know some of the best dishes and retail displays begin with the highest-quality, most-delicious fresh ingredients from our store.”
Chef Yong Kim, owner of Blue n Restaurant in East Norriton, PA, points to the opportunity presented by six million customers in the greater metro area. “Our customers are more educated about food,” he says. “ e dining culture in Philly is excel- lent, with many new restaurants. And, tech- nology is pushing more high-end foodservice delivery as well.”