HF Foods Group Inc. (‘HF Foods’), through its subsidiaries, markets and distributes fresh produce, frozen and dry food, and non-food products to Asian restaurants, as well as other foodservice customers, throughout the United States.
With sixteen distribution centers and three cross-docks, and a fleet of over 400 vehicles, the company's distribution network now spans 46 states, covering approximately 95% of the contiguous United States. Capitalizing on the company's deep understanding of Asian...
HF Foods Group Inc. (‘HF Foods’), through its subsidiaries, markets and distributes fresh produce, frozen and dry food, and non-food products to Asian restaurants, as well as other foodservice customers, throughout the United States.
With sixteen distribution centers and three cross-docks, and a fleet of over 400 vehicles, the company's distribution network now spans 46 states, covering approximately 95% of the contiguous United States. Capitalizing on the company's deep understanding of Asian cultures, strong relationships with growers and suppliers of food products primarily in North America, South America, and Asia, with over 1,000 employees, and supported by two outsourced call centers in China, the company has become a trusted partner serving approximately 15,000 customer locations throughout the United States.
The company is committed to providing excellent customer service by delivering a distinctive product portfolio built from an indelible partnership with both foreign and domestic suppliers. These relationships ensure that the company delivers an outstanding array of products at competitive prices. The company’s relationships with suppliers and knowledge of the market are the cornerstones of its negotiating power with suppliers and enable it to better manage potential supply chain disruptions and stockouts, gain price concessions, and increase delivery schedules.
Business and Products
The company’s business features sixteen distribution centers and three cross-docks, with a total of approximately 1.3 million square feet of warehouse space and a fleet of over 400 vehicles to provide a wide variety of products, with a strong focus on specialty food ingredients essential for Asian cuisine.
The company offers over 2,000 different products to its customers, which include virtually all items needed to operate their restaurant business. Product offerings range from meat and poultry, perishable fresh produce, frozen seafood, general commodities, and takeout food packaging materials to meet its customers’ demands. The majority of the company’s procurement currently consists of goods purchased domestically, such as meat, poultry, produce, and certain key commodities. It also purchases a significant amount of goods through the import channel, such as frozen seafood, Asian specialty products, packaging, and other commodities.
The company’s extensive supplier network and long-standing relationships with key suppliers strengthen its negotiating power, allowing it to procure large quantities efficiently through its centralized inventory system. This strategic approach enhances inventory turnover, optimizes accounts payable, and lowers operating costs. This gives customers the ability to shift away from fragmented direct stores and turn to the company as their full-service, one-stop solution for the majority of their purchasing needs.
This initiative is made possible from order placement to delivery due to the company’s warehouse operations, optimized fleet management, material handling equipment and techniques, and efficient administrative and operating staff. This is further complemented by the company’s two outsourced sales call centers located in China, which take customers’ inbound calls during non-office hours in the U.S. for order taking, customer relationship management, and after-sales service, offering customers a warm and friendly human interaction channel who speak and understand their language and needs.
The company has an extensive reach to its customers through localized, high-frequency deliveries, which allows them to reduce their inventory through higher inventory turnover and just-in-time inventory, and to reduce waste, especially in fresh products. The company’s temperature-controlled trucks deliver both short and medium distance routes daily to ensure on-time delivery and to achieve high fill rates to its customers.
Strategy
The company is differentiated from mainstream food distribution companies, such as Sysco Corporation, US Foods Holding Corp., and Performance Food Group Company, through its strong understanding of Asian culture and cooking essentials, distinctive product portfolio, and resourceful supply chains.
The company continues to invest in technological advancements to develop state-of-the-art management information and operating systems to further improve its efficiency, accuracy, and customer satisfaction, and to cement its foothold as a leading foodservice distributor to Asian restaurants in the U.S.
Customer Service
The company employs a two-pronged approach for complete and cohesive support to both existing and prospective customers; namely, the two outsourced call centers located in Fuzhou, China, and the domestic sales team in the U.S. Utilizing these outsourced call centers in China, customers embrace and appreciate the personal customer service conducted in their primary language.
Full sales support from the beginning of a sales order to post-sales service is offered through these call centers. These services are complemented by the company’s domestic sales teams who make regular on-site visits to customers’ restaurants. With cultural understanding coupled with distinct and diverse cultural bonding, the entire sales team has been successful in forging better customer rapport and retention, and is better able to understand customers’ needs and operations compared to the mainstream foodservice distributors attempting to serve this channel. Utilizing the company’s customized information system to share valuable and pertinent information with its customers is important to help them grow their business. This information includes, but is not limited to, purchasing history, order tracking, item availability, items on promotion, and best-selling or trending items.
The company formulates strategies and implements action plans to ensure cohesive sales and marketing efforts to its existing and prospective customers. The domestic sales team works closely with the sales staff in China to ensure its strategies are implemented effectively and its action plans are carried out swiftly. Distribution centers are empowered to cater to local and regional customers’ needs by customizing their specific product portfolio. With respect to customer care and satisfaction, the company offers a refund policy without penalty, which many of its small competitors in the market segment and the direct store distributors are unable to provide. The company’s 100% satisfaction guarantee permits its customers to reject part of the order or the entire order within twenty-four hours of receipt without any penalty.
Trademarks
Except for the trademarks for HF black and white/color logos, Rong, Rong GREEN LEAF, Great Wall logos, <333>, SEA333, and SEA888, the company does not own or have the right to use any patent, trademark, trade name, license, franchise, or concession, the loss of which would have a material adverse effect on its business, financial condition, or results of operations.
Credit Facility Amended
On February 12, 2025, the company and certain of its subsidiaries (collectively with the company, the ‘Borrowers’) entered into that certain Joinder and Amendment No. 4 to Third Amended and Restated Credit Agreement (the ‘Amendment’) with the lenders party thereto (the ‘Lenders’) and JPMorgan Chase Bank, N.A., a national banking association, as administrative agent for the Lenders (in such capacity, the ‘Administrative Agent’).
Government Regulation
As a marketer and distributor of food products in the U.S., the company is subject to the Federal Food, Drug and Cosmetic Act and regulations promulgated thereunder by the U.S. Food and Drug Administration (the ‘FDA’).
For certain product lines, the company is also subject to the Federal Meat Inspection Act, the Poultry Products Inspection Act, the Perishable Agricultural Commodities Act, the Packers and Stockyard Act, and regulations promulgated by the USDA to interpret and implement these statutory provisions.
The company is also subject to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, which imposes certain registration and record-keeping requirements on facilities that manufacture, process, pack, or hold food for human or animal consumption.
The company’s facilities are subject to regulations issued pursuant to the U.S. Occupational Safety and Health Act by the U.S. Department of Labor.
The company’s distribution facilities must be registered with the U.S. Food and Drug Administration (the ‘FDA’) biennially and are subject to periodic government agency inspections by the FDA and USDA.
The company’s business and employment practices are also subject to regulation by numerous federal, state, and local regulatory agencies, including, but not limited to, the U.S. Department of Labor, which sets employment practice standards for workers, and the U.S. Department of Transportation, as well as its agencies, the Surface Transportation Board, the Federal Highway Administration, the Federal Motor Carrier Safety Administration, and the National Highway Traffic Safety Administration, which collectively regulate its trucking business through the regulation of operations, safety, insurance, and hazardous materials. The company must comply with the safety and fitness regulations promulgated by the Federal Motor Carrier Safety Administration, including those relating to drug and alcohol testing and hours of service.
In addition, the company is subject to the U.S. False Claims Act, and similar state statutes, which prohibit the submission of claims for payment to the government that are false, and the knowing retention of overpayments.
The U.S. Foreign Corrupt Practices Act (‘FCPA’) prohibits bribery of public officials to obtain or retain business in foreign jurisdictions. The FCPA also requires the company to keep accurate books and records and to maintain internal accounting controls to detect and prevent bribery, and to ensure that transactions are properly authorized.
History
HF Foods Group Inc., a Delaware corporation, was founded in 1997.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
