Steaking a claim - Quantum Foods Inc - Cover Story - Company Profile

Prepared Foods, Oct, 1996 by Nancy McCue

"I was raised in the restaurant business-my father owned an Italian restaurant," says Rick Cortopassi, president and CEO of Quantum Foods Inc., a Chicago-based manufacturer of portion-cut steak products.

This may help explain why Quantum has grown from a five-person "start-up" company in 1990 into a firm that employs more than 350 persons and garnered $76 million in sales last year. It will break $100 million in revenues in 1996.

The company's main focus is the food-service industry, primarily chain restaurants in the U.S., but also in Canada, Mexico, Japan, South Korea, and the Philippines. It also does some private label manufacturing for retail and has created some products for home delivery systems.

Beef is still what's for dinner in most restaurants and institutions, and America's love affair with meat hasn't faded. According to Restaurants & Institutions 1995 Menu Census, steaks in one form or another account for four of the top six good sellers. The most popular steak was beef sirloin, which is valued by chefs for its a comparatively low food costs and full flavor. Both commercial restaurants and business and industry establishments and selling steaks.

Quantum Foods is making the most of this popularity.

"We're a contract manufacturer of portion-cut steaks," says Cortopassi. "We develop custom recipes and steak specifications, such as size, cut, shape, and packaging for restaurants," he adds.

The company also offers seasoned, tenderized, and/or natural flavored products. Some of the seasoned varieties include teriyaki, ethnic (e.g., Tex-Mex), churrasco, bacon wrapped, and prime flavor. Meat cuts include filets, sirloin strips, rib-eyes, and T-bones.

Approximately 80% of its products are steaks; the remainder is hamburger. Of the 80%, half is graded (choice, select) and half ungraded (such as commercial tenderized steak).

So what does the company attribute its success to?

"We're a relatively new player in a market that was very old," says Rita Wargowski, vice president of marketing. "We provide the best customer service available," she adds.

"Consistency is the key" says Edward Bleka, Quantum's COO. "We can deliver the same type of custom-made product from store to store," he adds.

All beef comes in fresh or frozen, is processed and packaged, then blast frozen.

Different steaks require different processing methods. Quantum's Butcher's Finest steaks are graded and come in natural and marinated versions. Butcher's Preferred are ungraded products that come in natural and/or marinated versions. Both varieties are sold for retail stores.

"Packaging is very important in our business," says Bleka. "Products are 100% sleeve-packed, individually vacuum-sealed or sealed in packages containing two portions."

All orders and package sizes are custom made. The company also can design a box to suit customer specifications, such as a 12-lb. box for retail or a 50-lb. box for foodservice.

The company signs one-year contracts with packing houses, which is said to be unusual with portion-control meat businesses. This allows better leverages with the packer to keep a hold on prices.

"There is no price list for our customers--it's all based on their needs and specifications," Bleka says.

To meet its growing business demands, the company broke ground on a 120,000-sq.-ft. manufacturing plant in Bolingbrook, Ill., and expects it to be running by next spring.

"Our mission is to deliver great portion-controlled steak products, great service and great pricing," states Bleka.

Quantum Foods Chicago, Ill. FY 1996 sales: $100 million (projected) Employees: 350 Distinction: With a larger plant in the works, the company is hoping to triple its capacity in the next two years and to increase its sales to $250 million within the next five years.