Sales among the top 100 foodservice equipment and supplies dealers totaled $16.49 billion in 2025, which is up 4.72% from 2024, according to the FE&S 2026 Distribution Giants study. This growth came despite a business environment that most dealers feel was defined by volatility and uncertainty, which made growth in real terms more challenging than normal.

“This industry can handle downturns. It can handle growth. What this industry struggles with most is uncertainty. And 2025 was nothing but uncertainty,” says Eric Ellingson, executive vice president for Bargreen Ellingson, a Washington-based foodservice equipment dealer. “At the beginning of 2025 there was some real optimism, but that uncertainty lingered far too long for this industry to react and plan accordingly. It was a real uncertain year, and it did not take too long before it became evident it was going to be a hard year, and that was around the second quarter.”

Adds Marc Israel, president of Great Lakes Ventures, which is the parent company of Great Lakes Hotel Supply Co., a Michigan-based dealer. “I would argue that last year was more volatile than during COVID. During COVID you knew what was happening, maybe you did not like it, but you knew. There’s a constant motion or rhythm to our industry that was missing last year. And because there was no consistency that made it hard to plan.”

One factor contributing mightily to that volatility: tariffs. In the second quarter of 2025, President Trump’s administration unveiled a long and winding list of tariffs. “Our suppliers got caught in a really hard spot with tariffs and had to be transparent,” Ellingson says. “As the year went on, though, they realized we are not the core focus of these tariffs and would not be as adversely affected by them as other industries. So, they were able to adapt to reflect the changing emphasis of the administration.”

The industry seemingly applied lessons learned about the value of communication during the supply chain challenges that followed the COVID-19 pandemic, too. “Just to be able to have frank conversations with our vendors about the status of products really helped us when serving the customer,” says Brian Lynn, president of Victor Products Corp., a Virginia-based dealer. “A lot of the domestic manufacturers seemed not as concerned about it because a lot of firms had prepared in advance. When meeting with our local reps, they kept us updated with respect to price increases and more. That would help us stay focused on specking product and keep us from conveying turbulence to the end user.”

Indeed, that uncertainty and volatility forced dealers to make some quick updates to their plans for the year that seem poised to have a positive impact on 2026. “We were prepared for growth, and we should have been prepared for a hard-fought year,” Ellingson notes. “We are a better company for it. We were able to pick our partners and steel ourselves for a tougher year. And we ended the year better than we started. And our pipeline is stronger than last year. It might be as strong as it has been since 2023.”

Indeed, the challenges of 2025 did create some opportunities for dealers poised to take advantage of them. “There’s so much churn in this environment that you are able to hire really good people from other industry players, more so than you have been able to in a while,” Ellingson says. “It’s well established talent and that’s the cheapest acquisition you can make. And I think you will see more of that in 2026.”

Like so many other dealers, acquiring and developing talent remains top of mind at Great Lakes, too. “From a labor perspective, as a company, we are in a good position. We are working with trade schools to get involved with people at the start of their careers by exposing them to our world,” Israel notes. “Nobody in those trade schools went there thinking they want to install kitchen equipment. So, we are trying to get in on the ground floor.”

Israel also sees some early indications that 2026 may be a little less volatile than 2025. “There’s still a solid demand for our services. Bid activity is up. Design activity is up,” he says. “People are still willing to take risk. I don’t think 2026 will be quite as volatile.”

That does not mean, however, the industry no longer has to deal with any macroeconomic headwinds such as tariffs and inflation. “Maybe we are more immune to it, but it seems more manageable,” Israel says. “And the manufacturers are managing their businesses a little better because they are used to it a little more.”

The lingering uncertainty and confusion will help create other opportunities for some dealers, provided they are positioned to take advantage of them.

2026 Opportunities

Some of the dealers FE&S spoke with while compiling the 2026 Distribution Giants study identified opportunities in two operator segments: chains and government. “Some of the fast-food chains see opportunity to take share from other chains,” Ellingson says. “If an operator does one thing and does it well, there’s a lot of opportunity out there for them.”

The country club segment kept Lynn and the Victor team busy, too. “One club renovates, and another one sees it and wants to do it,” he says.

For operators looking to increase check averages, beverages represent a great opportunity, too. “Beverage is really high margin It’s easy to integrate into an existing solution,” Ellingson adds. “Plus, you are not changing the hot side, which is what gets people to come to your restaurant. Beverage innovation will be key for this industry.”

In contrast, independent restaurants represent one segment where some dealers see business slowing. “That business is slowing down quite a bit,” Lynn says. “So, we pivoted to try to have more of a presence with the noncommercial facilities around town, including country clubs, hospitals and schools; basically, any other place where they might serve food.”

And for Victor Products, word-of-mouth marketing helps the dealer get its foot in the door before it showcases its capabilities. “A few customers have had employees go from one job to the next and they take us with them. A lot of it also has to do with our doing the job successfully. If you give us a shot to do the job, we are going to impress you.”

For the remainder of 2026, Lynn says some “internal gardening,” so to speak, remains high on Victory’s to do list, as the company plans to expand its office footprint and hire an inside salesperson to support the company’s growth plans.

What would make 2026 a successful year for Victory? “A successful year for our company would include finishing all the jobs we have successfully and profitably. It would also include filling the pipeline,” Lynn notes.

“The goal for every dealer this year will be to take share,” Ellingson says. “When I look at the Pacific Northwest, we have a very stable market. When I look beyond the Rocky Mountain region there’s such opportunity to take share in a market where there’s such uncertainty at the customer and employee level. The goal for every dealer this year will be to take share. Some of that will come at the expense of margin but most of it will come in form of employment.”

“Our workforce excites me. We have a lot of people under 35 years of age and that excites me,” Israel says. “That generation can get a bad rap, but I am really excited about their enthusiasm and willingness to work hard. They really care. And that makes leadership so much easier and more exciting.”

*FE&S estimate   **Revised 2024 sales number   H = Heavy Equipment   L = Light Equipment   SW = Smallwares   T = Tabletop   P/D = Paper and Disposables   J = Jan/San  F = Furnishings