Smart Foodservice Warehouse launches Shipt delivery

Smart & Final Stores Inc.’s Smart Foodservice Warehouse Stores has brought same-day delivery via Shipt to 15 markets across the West.

Delivery from Smart Foodservice Warehouse locations began Thursday in Seattle, the San Francisco Bay Area and Portland, Ore., as well as in selected cities in the Pacific Northwest, Idaho, Montana, Nevada and Utah.

Shipt noted that the rollout extends its service to the $731 billion foodservice industry. Smart Foodservice Warehouse customers such as caterers, restaurateurs, coffee shops and other small businesses — along with households — can now get ingredients and restaurant supplies delivered to their door in as soon as one hour.

“Smart Foodservice is committed to providing our customers with a seamless shopping experience, whether that’s in-store or through convenient delivery via Shipt,” John Mathews, vice president of sales and marketing for Smart Foodservice Warehouse, said in a statement. “We offer more than 8,000 products to our longstanding customers, many of whom are independently owned small businesses who rely on us for convenience without sacrificing quality and consistency of food products and supplies.”

To use the service, Smart Foodservice Warehouse customers place their orders via the retailer’s site on the Shipt online marketplace or the Shipt app. Shipt personal shoppers pick, pack and deliver the items. Customers signing up for a $99 annual membership get access to free, unlimited delivery for orders of more than $35.

Related:Smart & Final becomes private company

Shipt said that it plans to bolsters to its network of personal shoppers in the area to help support the launch at Smart Foodservice Warehouse. In addition, the Birmingham, Ala.-based delivery company is offering first-time users a free two-week trial.

“Many small-business owners across the western United States trust Smart Foodservice for high-quality wholesale goods at a low price,” commented Kelly Caruso, CEO of Shipt, a Target Corp. subsidiary. “By partnering with Smart Foodservice, we are able to provide convenience and ease to an important sector of restaurateurs, caterers, event planners and more who often order in bulk.”

Portland, Ore.-based Smart Foodservice operates 67 warehouse-style retail stores in Washington, Oregon, California, Idaho, Montana, Nevada and Utah.

The launch at Smart Foodservice expands Smart & Final’s relationship with Shipt, whose service made its debut at Smart & Final banner stores in April. Smart & Final also offers same-day delivery via San Francisco-based Instacart, including through more than 90% of its stores in California.

Related:Smart & Final, Instacart expand partnership in California

Overall, Commerce, Calif.-based Smart & Final — which went private in a $1.12 billion buyout last month — operates 324 stores, including 257 Smart & Final Extra! and legacy Smart & Final locations.

Smart Foodservice has been a growth driver for Smart & Final. The format offers a “no-frills” warehouse retail setting that mainly targets business customers, such as restaurants, catering companies and other foodservice businesses. Net sales for Smart Foodservice rose 5.6% to $1.07 billion in fiscal 2018, while comparable-store results were up 3.6%.

During fiscal 2019, Smart & Final plans to open four Smart Foodservice Warehouse stores and one Smart & Final Extra! store.