Lead image courtesy of Sysco.

Food service distributor Sysco has launched its first retail storefront in a move to cut costs by eliminating what the company says is the most expensive link in its supply chain.

The first retail outlet, branded as Sysco To Go, is located in Houston, TX, with a second location set to open by late summer. Sysco is leasing the spaces, each spanning over 40,000 square feet. The stores offer bulk-sized food products, containers, paper goods, uniforms and other supplies.

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The new Sysco To Go stores target “smaller businesses who may not meet the minimums required to have a Sysco truck deliver to their business,” Sysco Spokesperson Ramit Plushnick-Masti said in an interview with CoStar News.

Customers must apply for a free membership and verify they are a small business to shop at Sysco To Go.

Plushnick-Masti added that Sysco will assess the performance of these stores before moving forward with further expansion.

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Revenue from the new Sysco To Go stores is expected to have a limited impact on the company’s overall financial performance.

For its fiscal 2024 that ended June 29, 2024, Sysco had 2024 revenue of $79 billion and net profit of $2 billion.

See CoStar’s reporting on the launch for more info, or see the Sysco to Go website here.