Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 1

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 1
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ford nor its industry generally has unusual demands or restrictions
on working capital items. During the last fiscal year, we did not enter into any new markets or any significant contractual or other material
relationships.

Product Distribution Methods

Our products are delivered
to customers using several distinct distribution channels. The distribution channel utilized is dependent upon the needs of our customers,
the most efficient proximity to the delivery point, trade customs, and operating segment as well as product type, life, and stability.
Among our customers are many of the country’s largest broadline and specialty food service distributors. These and other large-end
purchasers occasionally go through extensive qualification procedures and our manufacturing capabilities are subjected to thorough review
by the end purchasers prior to our approval as a vendor. Large end purchasers typically select suppliers that can consistently meet increased
volume requirements on a national basis during peak promotional periods. We believe that our manufacturing flexibility, national presence,
and long-standing customer relationships should allow us to compete effectively with other manufacturers seeking to provide similar products
to our current large food service end purchasers, although no assurances can be given.

The factors that contribute
to higher or lower margins generated from each method of distribution depend upon the accepted selling price, level of involvement by
our employees in setting up and maintaining displays, distance traveled, and fuel consumed by our Company-owned fleet as well as freight
and shipping costs depending on the distance the product travels to the delivery point. Management is continually evaluating the profitability
of product delivery methods, analyzing alternate methods, and weighing economic inputs to determine the most efficient and cost-effective
method of delivery to fulfill the needs of our customers.

Major Product Classes

Frozen Food Products

Our frozen food products division
serves both food service and retail customers. We sell approximately 130 unique frozen food products through approximately 820 wholesalers,
cooperatives, and distributors.

Frozen Food Products
– Food Service Customers

The food service industry
is composed of establishments that serve food outside the home and includes restaurants, the food operations of health care providers,
schools, hotels, resorts, corporations, and other traditional and non-traditional food service outlets. Growth in this industry has been
driven by the increase in away-from-home meal preparation, which has accompanied the expanding number of both dual income and single-income
households. Another trend within the food service industry is the growth in the number of non-traditional food service outlets such as
convenience stores, retail stores and supermarkets. These non-traditional locations often lack extensive cooking, storage, or