Rebates from food distributors

Discussion in 'Professional Chefs' started by barbeque, Oct 10, 2010.

  1. barbeque

    barbeque

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    Owner/Operator
    I have recently been reading some articles about U.S. Foodservice and Sodexho where they paid millions of dollars to the government to settle claims against them that they were receiving all sorts of vendor rebates and discounts and then didn't pass them on to their customers as they were supposed to in cost plus contracts. Does anyone know how they did this and if this is just a rogue practice or "everyone is doing it"?
     
  2. chefedb

    chefedb

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    Retired Chef
    US foods was notorious for this. Sodexho is a different type company. Supermarkets do the same thing in a way .They run a sale on x beans . x beans says to them we will give you 1 discount on every case sold. They get lets say 10% and give you 7. They even order enough to last them for a few weeks and when the promotion is over and they have already gotten their discount on it, proceed to sell it at reg. price thereby making profit plus an additional 10%..Soda companies notorious for this.Us foods has also been in trouble with the SEC.