Operating a foodservice supplier for the likes of McDonald’s and Starbucks in ordinary times is no small task; doing so amid a global pandemic is on another level.
But that’s what Irvine-based Golden State Foods is doing. The $5 billion operation—which produces hamburger patties, offers logistics services, supplies produce and also delivers sauces, ice cream and other liquid products to its customer base of nearly 125,000 restaurants—is now helping its customers navigate unprecedented territory with COVID-19.
“The coronavirus pandemic has certainly turned our world upside down in many ways,” Chief Executive and Chairman Mark Wetterau told the Business Journal.
“It’s slowed down our industry substantially. It’s caused our customers to close many of their stores and challenged them to become more innovative in how they serve their customers.”
Distancing, Temperature Checks
Golden State Foods, which employs a workforce of some 6,000 globally and is Orange County’s third-largest private company by revenue, is working with its existing employee base to continue operations and hasn’t had to alter hiring amid any changes to the business. Some associates are working from home, Wetterau said.
Others, who have to be in the office or at food production and other facilities, are practicing social distancing, temperature screening and following other CDC guidelines.
The company formed a Crisis Management Team, aimed at keeping the Golden State Foods team updated on COVID-19 policies, procedures and other related matters. There’s also a hotline for employees to call and ask questions or state concerns.
Distribution Moves
On the business side, the company has business continuity and contingency plans, addressing supply chain disruptions, with Wetterau saying the company has been working with suppliers and the end customer to avoid disruptions.
The company’s distribution arm, for example, used its tractor-trailers and other equipment to move surplus product to food banks nationally. Golden State Foods had also been helping move personal protective equipment (PPE) to customers and its worker base since January, Wetterau said.
“While volume has softened for some of our customers, most remain open for takeaway food services as part of the critical infrastructure, food supply,” he said.
He pointed to a number of customers changing up their service offerings in response to the pandemic.
That includes Starbucks, which works with GSF for distribution services, now operating on a drive-thru and delivery basis.
Chick-fil-A, the CEO said as another example, has offset in-restaurant dining with catering services nationally.
Wetterau appears to be optimistic about the business moving forward.
“While we are tightening our belts and cutting costs to meet the current challenges, our company is solid financially and culturally,” he said. “Not only will we weather this storm, we will emerge better and stronger as individuals and as an organization.”
Hopes for Recovery
Wetterau said stemming the spread of the virus and the company’s role in that is the main challenge posed moving forward. He cited the GSF Foundation, the company’s nonprofit arm, which he said has fast tracked some $200,000 in grants to food banks throughout the U.S., in addition to a number of regional actions such as PPE donations in Alabama and meal preparation in Chicago for local Ronald McDonald Houses and healthcare workers.
“We can certainly hope for a quick recovery, while accepting that it will take time for the world to fully return to business as usual,” Wetterau said.
