Aug 30, 2006 8:55 AM, from staff and wire reports

Pizza Inn Inc announced a significant change to its supply chain that will reduce costs at its wholly owned distribution division, NORCO Restaurant Services Co.

Until now, the firm distributed products from its headquarters in The Colony TX to its almost 300 domestic franchise operations. The company will now outsource distribution services. It recently signed distribution agreements with The SYGMA Network, a subsidiary of Sysco, and Institutional Jobbers Co (IJ), a privately held Tennessee-based company.

The new agreements provide that SYGMA will be responsible for distributing food and other supplies to Pizza Inn locations in the midwestern and western United States, while IJ will distribute to the eastern part of the nation. SYGMA will also lease the company’s existing warehouse facility.

Franchisees will still be able to use NORCO for all other services, including ordering, billing, support, R&D, and quality assurance. NORCO transportation and warehouse personnel will be provided employment opportunities with SYGMA.