Jonathan Noori admits to being a bit of a disrupter in the paper business and a highly competitive guy who does not like to lose (he is a scratch golfer with multiple club championships). He plans to put that drive and determination to work for OCS and foodservice operators. As founder and CEO of Royalty Distribution in Los Angeles, he has been focused on providing paper products and other supplies for the foodservice industry for over a decade, but his company is currently gearing up to connect with and serve the convenience services operators.
Many are unaware – prices are down
“OCS operators in particular need to reduce their product costs more than ever before – they have been through several tough years,” said Noori. “Amazingly, many are unaware that current market conditions are so favorable, they should be paying less for kitchen towels, bathroom tissue, paper cups, plastic cups, napkins and cutlery – all the key products that operators need.”
Noori noted that the paper industry is experiencing deflation, driven by a number of factors. It’s a term we don’t hear too often, but in the paper products channel, lower ocean freight costs and a drop in the cost of raw materials are all contributing to falling prices. “It is happening big time, and just as operators are generally unaware of this deflation going on, their customers are also unaware,” Noori said. “As a result, this is a great opportunity for OCS operators to generate some tremendous profit, but only if you are buying right. Most operators are not being approached by their suppliers to tell them they are lowering their paper cup and paper towels pricing.”
“Everyone becomes accustomed to paying too much when prices get locked into an all-time high for years, as they have been,” he explained. “Like any other commodity, prices fluctuate. Finally, pulp is at an all-time low, and now is the time for operators to take advantage of that condition. This is an opportunity to increase the bottom-line without having to add new business. As a manufacturer and distributer of paper products – Royalty is capable of serving the largest operators, but we are also a perfect fit for small- and medium-sized operators.”
Level the playing field
“My goal is to level the playing field for the smaller operators to better compete. Because I am a manufacturer, I can pass on tremendous savings to all OCS and foodservice operators,” Noori said. On the products that Royalty does not manufacture, Noori added that his company is importing those in such high volume, they are still positioned to pass on meaningful savings.”
As part of the company’s plan to serve customers of all sizes, nationwide, Royalty is opening facilities in Houston, Savannah and Philadelphia in early 2024, to supplement its Los Angeles location. “Not everyone orders by truckload, so we need to focus on lowering freight costs by stocking a wide variety of products at regional facilities,” he said.
Benefits beyond pricing
“It makes good business sense for operators to work with Royalty, because my company offers everything an operator could want,” Noori explained. “We’re focused on providing the best pricing. That’s a good start to any relationship, but we understand that to succeed in this business, to gain the reputation we seek in the convenience services industry, it must go beyond that.”
Noori outlined what operators can expect when they choose Royalty Distribution – in addition to cost savings.
Variety – “We offer everything an operator needs and continue to develop our product lines, adding more items, more eco-friendly products in particular, as the demand for environmentally friendly products is huge. We are staying ahead of the curve in that area.”
Quality – “When you manufacture as much product as we do, you have complete control over the level of quality. Because we were manufacturing domestically during the pandemic, we were highly profitable, and we took those profits and pumped up the manufacturing side of the business. Not only will operators save money when they choose Royalty, but they also will see equal or better-quality products.”
Consistency – “One of the biggest supply chain issues is product consistency, and that is not a problem when an operator is buying from us. Since we control the manufacturing, the operator is buying direct. There aren’t multiple hands on the products to disrupt the chain. Your customer who wants the same high-quality cups, paper towels, bathroom tissues, napkins and utensils are going to get them every month.”
Service – “We are not so small these days, but at our core, we started out as a small family operation, and that is still ingrained in our approach. Our level of customer service, our response time, getting back to customers, getting samples sent out and the availability of our team – it is a top priority. Just text or call any time if there's a question that needs to be answered. We are a very fluid operation, and I am very proud of how quickly we can get things done for our customers.”
Connect with Noori
Noori invites operators to connect with him for a conversation about how Royalty Distribution can improve their bottom-line in 2024 and beyond. “I can save operators money at a level that will exceed their expectations,” he said. “I would hope that OCS operators, who have worked so hard to survive and thrive over the past few years, will take advantage of what my company can offer to make them stronger. For any operator who wants to visit our facility in Los Angeles for a chat – I am more than happy to host them for that conversation and a nice round of golf, lunch or both.”
ABOUT THE AUTHOR
Bob Tullio is a content specialist, speaker, sales trainer, consultant and contributing editor of Automatic Merchandiser/VendingMarketWatch.com. He advises entrepreneurs on how to build a successful business from the ground up and specializes in helping suppliers connect with operators in the convenience services industry – coffee service, vending, micro markets and pantry service specifically.
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