New York City Foodservice, Trucking Challenges Continue

The domino effect of the COVID-19 pandemic on the greater New York City area produce industry has eased a bit, but repercussions continue with foodservice and freight.

By late September, nine of every 10 restaurants and bars in the city couldn’t pay full rent, and there are roughly 25,000 of those establishments, according to a New York City Hospitality Alliance survey released Sept. 21.

About 70% of Coosemans New York customers are purveyors that deal with restaurants, so there’s definitely been a shift in business, said Alfie Badalamenti, vice president and involved in purchasing.

“We have to shift our focus to more retail. We’re trying to find new retail customers and solidify relationships we’ve had in the past,” Badalamenti said. 

“There’s always an opportunity for us to show what we can do with service and to grow.”

Home delivery is a growing trend that they’re looking into, said Ray Hernandez, head of purchasing.

“We’re not there yet, but that’s one of the things you have to consider if you want to survive. You have to figure out a way to get the food to the consumer,” Hernandez said.

New Yorkers have opted to dine outside their favorite restaurants, but with winter coming, outdoor seating doesn’t seem like it will take off.

“That’s one of the challenges. September, October wasn’t too bad, but now with cold weather and a little spike in COVID, we see a decline in our customers’ restaurant business,” Hernandez said.

Nathel & Nathel has also needed to lean into its retail base as purveyors lost so much restaurant business, and the struggle continues.

“We’re trying to work with our purveyor customers to get them the product they need. They were savvy, and a lot of them started to get into home delivery,” said Joshua Gatcke, fruit procurement buyer.

Meanwhile, the company has added some strong retail customers to its portfolio.

Baldor Specialty Foods, primarily a foodservice wholesaler with a retail line of fresh-cut products called Urban Roots, made major changes quickly in order to survive, said Michael Muzyk, president.

The company also sought business from major retail chains, including Northeast banners of Albertsons Cos. and soon, The Fresh Market locations in the Northeast, he said.

Baldor turned to home delivery as well, but he said it’s temporary, for the most part. 

The company is primarily a business-to-business operation, rather than business-to-consumer one.