Industry News | December 4, 2002

New World Revises Supply Chain

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New World Restaurant Group. Inc. (Pink Sheets: NWCI) today announced that it has completed arrangements with six regional custom distributors to supply product to approximately 700 locations under its three largest brands. The agreements, which were completed ahead of schedule, cover company-owned, franchised and licensed Einstein Bros, Noah's New York Bagels and Manhattan Bagel restaurants throughout the country.

The six new regional distributors replace the company's former national supplier, Marriott Distribution Services, which previously announced that it would be exiting the distribution business in the U.S. by the end of the year.

"We are very pleased to have completed this process ahead of schedule," said Anthony Wedo, New World chairman and chief executive officer. "The new distribution network was fully in place and operating in November to assure continued product delivery to all our restaurants without any major disruption in service. I'd like to extend my appreciation to all the members of our team who worked so diligently to put these agreements together. This was a true team effort."

Susan E. Daggett, New World's chief supply officer, added: "We are now aligned with strong regional distribution partners in all areas of the country. These are distributors whose focus on customer service and familiarity with the local competitive environment in their areas of operation will prove beneficial to the three New World brands they are serving. The new supply network has the added benefit of decreasing the number of distribution centers from 13 under Marriott to eight facilities, which will reduce our inbound freight costs."

The new regional distributors are:

  • Willow Run Foods, based in Kirkwood, N.Y., for the Northeast and Mid-Atlantic markets
  • Customized Distribution, LLC, based in Jacksonville, Fla., for the Southeast
  • HPR Logistics, based in Chicago, for the Midwest
  • PFG of Texas, based in Temple, Tex., for Texas
  • Southwest Traders, Inc., based in Denver, for the Rocky Mountain states
  • McCabes Quality Foods, based in Portland, Ore., for the West Coast region.