HF Foods Group Inc. (HFFG): Business Model Canvas [Dec-2025 Updated]

You're looking for the hard numbers behind HF Foods Group Inc.'s strategy as we head into late 2025, so let's cut right to the chase: this specialty food distributor is running on a massive scale, hitting a trailing twelve-month revenue of approximately $1.23 Billion while posting an Adjusted EBITDA of $11.7 million for Q3 2025, all while navigating a major operational transformation. Honestly, understanding how they connect their deep cultural ties to independent Asian-American restaurants with their nationwide logistics network is key to seeing where the next dollar comes from. Dive into the full Business Model Canvas below to see the nine building blocks driving this complex operation.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Key Partnerships

You're looking at the backbone of HF Foods Group Inc.'s ability to service its customer base of approximately 15,000 customer locations across the United States. These partnerships are critical for maintaining the supply of over 2,000 different products, from fresh produce to specialty frozen and dry goods.

The company's operational scale relies on a dense network of physical infrastructure and external support. As of the 2025 10-K filing, HF Foods Group Inc. operates 16 distribution centers and three cross-docks, with a fleet exceeding 400 vehicles to cover approximately 95% of the contiguous United States.

The supplier base is geographically diverse, with relationships spanning the U.S., South America, and Asia. To be fair, no single supplier accounted for more than 10% of aggregate purchases for the years ended December 31, 2024, and 2023, showing a degree of diversification in sourcing risk. The company's TTM revenue as of September 30, 2025, was $1.23B.

The following table outlines the scale of the distribution and sourcing infrastructure that supports the Key Partnerships block:

The company actively manages its capital structure through external financial partners. In September 2025, HF Foods Group Inc. established an At-The-Market (ATM) equity offering program designed to raise aggregate gross proceeds of up to $100 million.

You'll want to note the specific agents involved in this financial partnership:

• D.A. Davidson & Co. (Sales Agent for ATM program)
• Roth Capital Partners (Sales Agent for ATM program)
• Outsourced call centers in China (for support)

The relationships with growers are specifically important for securing specialty ingredients that are not widely available from mainstream U.S. suppliers, such as bitter melons and vine spinach. The company also has specific, named acquisition partners in the past, such as Great Wall Seafood Supply, Inc., Great Wall Restaurant Supplier, Inc., and First Mart Inc., which were acquired in December 2021. Finance: draft 13-week cash view by Friday.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Key Activities

You're looking at the core engine driving HF Foods Group Inc.'s performance as of late 2025. These are the actions the company must execute flawlessly to maintain its market position, especially given the ongoing macroeconomic pressures like tariffs.

Centralized inventory procurement for negotiating power

HF Foods Group Inc. focuses on leveraging its scale to secure favorable terms with growers and suppliers across the US and Asia. The successful deployment of the new Enterprise Resource Planning (ERP) application on May 1 is key here, as it unlocks the full potential of their centralized purchasing capabilities over time. This centralized approach is designed to improve visibility and control, which directly translates into better cost management.

The company is actively diversifying its supplier base and exploring alternative sourcing strategies to counter tariff-related challenges. This procurement discipline is vital in a low-margin business; for instance, the gross profit margin was 16.4% in Q3 2025, showing the constant pressure on input costs.

Operating a nationwide distribution and logistics network

The physical network is the backbone of HF Foods Group Inc.'s service delivery. The company operates several distribution centers and cross-docks across the nation, totaling over a million square feet of warehouse space, including refrigerated storage. This infrastructure supports a massive customer base, serving over 10,000 foodservice customers.

The logistics network includes a fleet of refrigerated vehicles for last-mile delivery and tractor trailers for long-haul movements. Management is committed to capital investment to grow this capacity, evidenced by the ongoing Atlanta facility expansion, which is expected to double cold-storage capacity in that region. Furthermore, the recent acquisition of a Chicago distribution facility, which they previously leased, is aimed at reducing facility costs and improving operating expenses by allowing an early exit from the lease agreement.

Here's a quick look at the scale of operations based on recent financials:

Specialized distribution of Asian food products and supplies

HF Foods Group Inc. is the only scaled food service provider in the Asian specialty market in the United States, holding an estimated 30% market share in this niche. They aim to supply the increasing demand for Asian American restaurant cuisine. This specialization requires deep understanding of customer language and culture, which helps them provide an efficient one-stop procurement experience.

The customer penetration is significant; the company estimates that 80% of U.S. Asian restaurants source products through their network. Growth in key categories like Meat & Poultry and Seafood has been a driver, contributing to the 4.1% net revenue increase in Q2 2025.

Executing the ongoing transformation plan and facility optimization

The transformation plan is focused on operational discipline to drive efficiency and profitability. A major component is the restructuring of the sales operation, which is planned to kick off in the second half of Q4 2025 and run through the first part of Q1 2026. This involves consolidating two sales operations into one unified structure to gain better control and improve customer service. This is described as the final key piece to their business integration transformation.

Facility optimization is also a priority. The Atlanta expansion is set to significantly increase frozen seafood sales along the Eastern Seaboard. These efforts are showing results in cost control; Distribution, selling, and administrative expenses as a percentage of net revenue dropped to 16.1% in Q3 2025.

• Atlanta facility expansion: Expected to double cold-storage capacity.
• Sales restructuring: Consolidating two operations into one.
• Q3 2025 Net Loss: Improved to ($0.9 million) from ($3.8 million) YoY.
• Q3 2025 Adjusted Net Income: Rose to $4.3 million.

Investing in digital infrastructure for operational efficiency

Digital investment is central to achieving breakthrough levels of efficiency. The successful company-wide deployment of a new modern ERP application on May 1 is a major milestone. This unified platform is expected to enhance visibility and control across all operations.

The immediate impact of digital tools is measurable. For example, the ERP rollout has reportedly reduced order fulfillment times by 18%, which helps lower inventory carrying costs. This focus on technology, alongside facility investments, is intended to drive organic growth through cross-selling opportunities. As of June 30, 2025, the company maintained liquidity with $15.7 million in cash and access to approximately $57.8 million through its line of credit to fund these strategic investments.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Key Resources

You're looking at the core assets HF Foods Group Inc. relies on to serve its niche market. These aren't just assets; they're the physical and systemic backbone that lets them operate where others struggle.

Nationwide network of multiple distribution centers forms a critical part of the infrastructure. As of early 2025 filings, HF Foods Group Inc. operated through 16 distribution centers and three cross-docks across the nation. This network includes over one million square feet of warehouse space, with a recent strategic move in September 2025 to acquire a distribution facility in Chicago, Illinois, which they previously leased.

The physical distribution capability is supported by a dedicated temperature-controlled truck fleet and cold storage capacity. This allows HF Foods Group Inc. to handle the perishable nature of much of its product line, which includes fresh produce and frozen seafood. The company maintains a fleet of over 400 vehicles, including refrigerated trucks, designed to cover approximately 95% of the contiguous United States.

The scale of operations is best understood through the financials. The trailing twelve-month revenue scale as of the third quarter ending September 30, 2025, was approximately $1.23 Billion. This revenue supports a business that serves roughly 15,000 customer locations.

Here's a quick look at the physical network scale as reported in early 2025 filings:

Internally, the company relies on a centralized inventory management system. Management highlighted the successful completion of an ERP implementation across the entire network, which established a unified platform intended to drive efficiency. This system is key to managing the inventory of over 2,000 different products offered by HF Foods Group Inc..

Finally, the human capital asset is the culturally and linguistically aligned sales personnel. The company believes its deep understanding of Asian cooking culture and language is a significant barrier to entry for mainstream distributors, making its sales team a core differentiator in serving its primary customer base of Asian restaurants. This specialized knowledge helps them maintain strong relationships with growers and suppliers in North America, South America, and Asia.

The sales force effectiveness is supported by:

• Deep understanding of Asian cooking culture.
• Ability to navigate language barriers.
• Strong relationships with key suppliers.
• Focus on serving approximately 15,000 customer locations.

Finance: draft 13-week cash view by Friday.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Asian-American restaurants choose HF Foods Group Inc. over other options. It's not just about moving boxes; it's about being the essential partner for a very specific, demanding customer base. Here's the breakdown of what HF Foods Group is offering as of late 2025.

One-stop-shop for specialty and commodity food products

The value proposition here is sheer convenience and breadth of offering, which cuts down on the number of vendors a restaurant needs to manage. HF Foods Group positions itself as the single source for a vast array of necessary items for Asian cuisine operations.

The scale of this offering is significant, providing a deep catalog that supports the day-to-day needs of its core customers:

• Offers over 2,000 different products.
• Distributes fresh produce, frozen and dry food items.
• Includes core Asian specialty items like noodles, rice, and sauces.

Deep cultural understanding of the Asian-American restaurant market

This isn't just a generic food distributor; HF Foods Group is deeply embedded in the niche it serves. This understanding translates directly into the product mix they source and the service they provide.

The company's focus is clearly defined by its customer base, which requires specialized support:

• Customer base consists mainly of Chinese and Asian restaurants.
• Provides sales and service support to customers who mainly converse in Mandarin or Chinese dialects.

Comprehensive product portfolio including food and non-food supplies

To truly be a one-stop-shop, you need more than just ingredients. HF Foods Group integrates the necessary operational supplies alongside the food itself, which is a key differentiator for busy kitchen managers.

The portfolio spans both consumable and operational needs, as seen in their reported product categories:

Reliable, localized distribution at competitive prices

Reliability in food distribution means having the infrastructure to deliver consistently, especially for temperature-sensitive items. Competitive pricing is maintained through operational discipline, which you can see reflected in their expense management.

The physical network supporting this value proposition is substantial:

• Operates through 16 distribution centers and three cross-docks.
• Maintains a fleet of over 400 vehicles.
• Covers approximately 95% of the contiguous United States.

The focus on cost control helps deliver competitive pricing. For instance, Distribution, Selling, and Administrative (DS&A) expenses as a percentage of net revenue decreased to 16.1% in Q3 2025. This is an improvement from 16.6% in the prior year period. Also, the successful completion of the company-wide ERP deployment is intended to drive efficiency and tighter pricing control.

Improved pricing in high-demand Meat & Poultry and Seafood categories

This is a direct financial outcome of their sourcing and pricing strategy in critical, high-demand areas. Management explicitly called out these categories as drivers for recent financial gains.

The impact of improved pricing and volume in these segments is clear in the quarterly results:

• The increase in Q2 2025 gross profit to $55.1 million was attributed to higher volumes and improved pricing in Meat & Poultry and Seafood.
• Q3 2025 revenue growth of 2.9% was primarily attributable to volume increases and improved pricing in Meat & Poultry and Seafood.
• The gross profit margin improved to 17.5% in Q2 2025, up from 17.4% in Q2 2024.

The trailing 12-month revenue as of September 30, 2025, stood at $1.23B. Finance: draft 13-week cash view by Friday.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Customer Relationships

You're looking at how HF Foods Group Inc. keeps its customer base loyal in a specialized niche. The relationship strategy is the bedrock of their business, especially since they operate in a segment where cultural alignment matters as much as logistics.

Dedicated sales personnel offering personalized service is how HF Foods Group Inc. maintains its edge. This isn't a transactional setup; it's about deep integration with the customer's daily needs. The company's national distribution platform is built to serve over 10,000 foodservice customers across the United States. This scale requires a dedicated touch to maintain the personal connection that independent owners expect.

The core of this model is building long-term relationships with independent restaurant owners. This focus supports their market leadership, which currently stands at a 30% market share in Asian foodservice distribution. These relationships are crucial for navigating the supply chain volatility seen in 2025, where proactive pricing actions and inventory management were key to delivering solid net revenue growth. The company's trailing 12-month revenue as of September 30, 2025, was $1.23B, a testament to the value derived from these established ties.

The commitment to high-touch support for customers who mainly converse in Chinese dialects is a significant differentiator. HF Foods Group Inc. explicitly provides sales and service support tailored for customers who primarily speak Mandarin or Chinese dialects. This cultural fluency is operationalized through a specific service structure. Here's how that support is structured:

• Utilizes outsourced call centers located in China.
• Maintains a domestic sales team within the U.S.
• Offers a 24-hour after-sales service call center.

This entire approach solidifies the relationship-based model in a niche, specialized market. HF Foods Group Inc. is positioned as the only scale food service provider in the Asian specialty market in the United States, making their customer service a key barrier to entry for competitors. The operational success underpinning this relationship focus is evident in their Q3 2025 results, where Adjusted EBITDA increased 41.5% year-over-year to $11.7 million. This financial strength allows them to continue investing in infrastructure to better serve this specific customer segment.

You can see the scale of the business these relationships support in the table below, reflecting performance data close to late 2025:

Finance: draft 13-week cash view by Friday.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Channels

You're looking at how HF Foods Group Inc. (HFFG) gets its specialized products from its warehouses to the Asian restaurants that depend on them. This is all about logistics and direct customer contact, which is critical when you're dealing with specialty items.

Multiple strategically located distribution centers across the U.S.

HF Foods Group Inc. relies on a network of physical hubs to manage its inventory and distribution reach. As of its latest filings referencing the 2024 operational footprint, the company operated through 16 distribution centers and three cross-docks. This infrastructure is designed to cover approximately 95% of the contiguous United States. The total physical footprint includes over a million square feet of warehouse space, which incorporates refrigerated storage necessary for their fresh and frozen categories. A key channel development in late 2025 involved solidifying Midwest presence; in September 2025, HF Foods Group Inc. announced the purchase of a distribution facility in Chicago, Illinois, which had been a leased location since 2022. Furthermore, facility upgrades were on track, including Charlotte DC renovations by Q2 and a new Atlanta distribution center planned for completion to enhance cross-selling capabilities.

Here's a look at the scale of their physical network as reported in their 2024 year-end data:

Direct delivery via company-operated truck fleet

The physical movement of goods is managed by a dedicated fleet. As of the end of 2024, HF Foods Group Inc. maintained a fleet of over 400 vehicles. This infrastructure is sophisticated, including refrigerated vehicles specifically for temperature-sensitive product deliveries and tractor trailers for long-haul transport between facilities or to major hubs. This internal control over delivery is a key part of ensuring product quality and timely service to their customer base.

Direct sales team engaging with restaurant owners

The engagement with the customer base is highly personalized, reflecting the niche market. HF Foods Group Inc. supports its customers, who are primarily Chinese and Asian restaurants, by providing sales and service support where personnel can converse in Mandarin or Chinese dialects. The total workforce supporting operations, which includes the sales force, was reported at 1,041 total employees as of December 31, 2024. The company has been actively restructuring sales operations in 2025, aiming for efficiency improvements following the ERP rollout. This direct, culturally-attuned sales approach is a major differentiator from mainstream distributors.

Digital tools for enhanced customer experience (future investment)

HF Foods Group Inc. is actively embedding digital tools to streamline the channel experience, viewing 2025 as a year of strategic investment in digital infrastructure. A significant step was the completion of its new ERP rollout across all locations by May 2025, which helps rationalize operations and inventory. Furthermore, the company launched an e-commerce platform in key regions during the first quarter of 2025. These digital investments are designed to drive organic growth through cross-selling opportunities. The company had cash of $15.7 million as of June 30, 2025, with access to approximately $57.8 million in additional funds via its line of credit, providing capital flexibility for these ongoing technology channel enhancements.

The company is focused on using technology to improve the customer journey from order placement to delivery. Finance: draft 13-week cash view by Friday.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Customer Segments

You're looking at the core of HF Foods Group Inc.'s operation, which is deeply rooted in serving a specific, high-volume niche within the US foodservice sector.

The primary customer segment remains the independent Asian-American restaurants. This base is the foundation of the business, requiring specialized inventory like seafood and Asian specialty items. As of Q2 2025, HF Foods Group held an estimated 30% market share in Asian foodservice distribution. This segment is served alongside other foodservice customers, totaling over 10,000 foodservice customers as of the second quarter of 2025.

The company's distribution network is built to reach this core group, operating through 16 distribution centers and three cross-docks, covering approximately 95% of the contiguous United States as of December 31, 2024. The trailing twelve-month revenue ending September 30, 2025, stood at $1.23B.

For the third quarter of 2025, net revenue specifically reached $307.0 million.

HF Foods Group Inc. also targets other specialty and international foodservice customers, which are grouped with the core restaurants in overall operational reporting. The company markets and distributes fresh produce, frozen and dry food, and non-food products to these customers throughout the United States.

Expansion beyond the traditional restaurant model involves wholesale customers expanding beyond the core restaurant segment. The 2024 annual report noted that net revenue growth was partly due to volume growth associated with new wholesale accounts. While specific numbers for Asian grocery store chains across multiple states are not broken out separately in the latest reports, the overall strategy includes growth in wholesale channels, which would encompass such chains. The company provides sales and service support to customers who mainly converse in Mandarin or Chinese dialects, suggesting a deep cultural alignment with these expanding segments.

Here's a snapshot of the scale of the customer base and recent financial performance:

The product offering is tailored, with over 2,000 different products available, including:

• Seafood
• Asian specialty items
• Meat and poultry
• Fresh produce
• Packaging and general commodities

The company is defintely focused on leveraging its national platform to capture more of the addressable market, which includes these varied foodservice and wholesale customers.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Cost Structure

High cost of goods sold (COGS) due to product procurement remains a primary driver of the overall cost structure for HF Foods Group Inc. For the third quarter ended September 30, 2025, Net Revenue was reported at $307 million, while Gross Profit stood at $50.4 million. This implies a COGS of approximately $256.6 million for the quarter, reflecting the inherent costs of sourcing and acquiring the international foodservice products, including meat, poultry, and seafood categories. The Gross Profit Margin for Q3 2025 was 16.4%, slightly down from 16.8% in the prior year period, attributed to an increased proportion of sales from lower margin products, specifically Seafood.

Distribution, selling and administrative expenses (DS&A) are the next major component. For the three months ended September 30, 2025, DS&A expenses decreased by $0.4 million, or 0.7% year-over-year. As a percentage of net revenue, DS&A was 16.1% in Q3 2025, an improvement from 16.6% in Q3 2024. This efficiency gain was driven by several factors, but the underlying dollar amount for Q3 2025 was approximately $49.4 million (16.1% of $307 million revenue).

Facility and occupancy costs are being actively managed, with a recent strategic move aimed at reduction. HF Foods Group Inc. announced on September 29, 2025, that it entered an agreement to purchase its previously leased distribution facility in Chicago, Illinois. This acquisition is specifically expected to reduce facility costs by allowing the company to exit the lease agreement early, thereby improving operating expenses.

Logistics and fleet maintenance costs are a constant focus, where operational discipline is defintely key to margin control. While specific dollar amounts for logistics and fleet maintenance alone are not explicitly broken out in the top-line summaries, the overall focus on operational efficiency is clear. Adjusted EBITDA for Q3 2025 rose significantly by 41.5% year-over-year to $11.7 million, suggesting successful cost management efforts across operations. The company's nine months ended September 30, 2025, Adjusted EBITDA reached $35.366 million (in thousands).

Payroll and personnel costs for a large distribution and sales team contribute significantly to operating expenses. The drivers of the Q3 2025 DS&A change included lower personnel costs, which helped drive the 0.5 percentage point reduction in DS&A as a percentage of revenue. Conversely, in the second quarter ended June 30, 2025, DS&A expenses increased by 2.4%, primarily due to increased payroll, rental, and other expenses.

Here's a quick look at key cost-related metrics from recent quarters:

The company's liquidity position as of September 30, 2025, included $12.3 million in cash, with access to approximately $49.8 million in additional funds via its $125.0 million line of credit.

The composition of operating expenses as a percentage of revenue for the first quarter of 2025 showed:

• Operating expenses represented 16.7% of net revenue.
• Gross profit margin was 17.1%.
• Adjusted EBITDA was $9.8 million.

HF Foods Group Inc. (HFFG) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how HF Foods Group Inc. (HFFG) brought in its money as of late 2025. The core of the business remains distribution to Asian restaurants across the United States, pulling revenue from several distinct product categories.

The total Net Revenue for the third quarter ended September 30, 2025, was reported at $306,978 thousand, which is $307.0 million, marking a 2.9% increase over the prior year period. This growth was not uniform across all product lines, but the overall top-line performance showed positive momentum.

The increase in net revenue was primarily attributable to volume increases and improved pricing within the Meat & Poultry and Seafood segments during Q3 2025. Gross profit for the quarter was $50,409 thousand, a slight increase of $246 thousand over the prior year period.

HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products. The detailed revenue contribution by segment for the third quarter of 2025 is laid out below:

The sale of fresh produce, meat, and seafood products is clearly a major driver, with Seafood alone contributing over a third of the total revenue for the quarter. The Packaging and Other segment, which includes non-food products like disposable utensils and cleaning supplies, accounted for $13.91 million of the total revenue.

The sale of frozen and dry food products is captured within the Asian Specialty and Commodity sales categories, alongside the Meat and Poultry segment which often includes frozen components. The Asian Specialty segment generated $52.83 million.

For operational efficiency metrics, the company reported that Adjusted EBITDA for Q3 2025 was $11,748 thousand, or $11.7 million. This represented a surge of 41.5% compared to the prior year quarter.

Key financial performance indicators for Q3 2025 include:

• Net Revenue: $307.0 million
• Adjusted EBITDA: $11.7 million
• Adjusted Net Income: $4.345 million
• GAAP Net Loss: Narrowed to $0.9 million
• Adjusted Earnings Per Share: $0.08

Finance: draft 13-week cash view by Friday.