Felix Lin is the President and CEO of HF Foods Group (NASDAQ: HFFG), a leading distributor of international and specialty foodservice solutions to restaurants, wholesalers and other customers in the food supply chain in the United States. Before taking on the role of CEO, Mr. Lin served as President and Chief Operating Officer of HF Foods Group and has been a key part of developing, implementing and executing on the company’s comprehensive transformation plan.
Prior to HF Foods Group, Mr. Lin was Vice President and a Senior Strategy Officer for Blue Bird Corporation, overseeing human resources, corporate and operations training, government relations, compliance, and strategy. During his time at Blue Bird Corporation, Mr. Lin also held leadership positions in Manufacturing Operations, Supply Chain, Finance, and Accounting. Earlier in his career, Mr. Lin also worked as a key member of the China and Middle East business development team for Blue Bird Corporation under Cerberus Capital Management, LLP.
You recently became CEO of HF Foods Group in January 2025. How has your time been since taking on this new role?
Taking on this new role has been really exciting. We have an excellent leadership team now in place at HF Foods, and we’re firing on all cylinders as we continue to grow, enhance our service offerings, and strengthen our customer experience.
Truth be told, I’ve been part of HF Foods’ leadership team for some time, playing a key role in guiding our growth strategy and the execution of our transformational plan. Prior to becoming CEO, I served HF Foods as President and Chief Operating Officer. I know the ins and outs of this business, from our suppliers to our customers to theirs and the broader industry.
There is enormous potential for us to continue growing and capture more market share as we partner with more restaurants, develop stronger supply chains and continue to diversify our supplier networks.
As a leading specialty and international foods distributor of fresh produce, frozen and dry food and non-food products to restaurants and other foodservice customers throughout the United States, our customers rely on us to supply them with best-in-class options. Our ability to deliver exceptional goods with exceptional service enables our customers to craft such delicious meals, recipes and dishes from cuisines all over the globe. This trust in us, combined with our deeply ingrained relationships with our global supplier network and nationwide distribution centers – as well as the vast improvements we’ve been making to better position our business for growth – have all been very rewarding. We are a leading force in this industry, and as CEO, I am very much looking forward to continuing this journey and fortifying our position as a preferred choice for specialty and international foodservice solutions.
HF Foods is primarily known for supplying Asian restaurants throughout the US, but you say you’re broadening your approach to ‘specialty’ and international foods and supplies. What does ‘specialty’ mean?
That is correct. Traditionally, we have primarily served Asian restaurants in the United States, and this effort is one of our core strengths. We’re partnered with a growing list of over 15,000 restaurants throughout the country.
But we do so much more that the broader restaurant category may not be familiar with. We’re working with an expanding list of restaurants that want to add specialty cuisines to their menus whether as their own dishes, styles or potential value-adds to existing concepts.
HF Foods brings these international and specialty foods from an assortment of multicultural backgrounds, cultures and values all over the world to neighborhoods across the United States every day.
I would also add that this effort is something personal to me. I believe that food, and eating in general, is something that brings everyone together. Representation is key, but many international styles and options are not readily available in the United States, either from vendors or grocery stores. Providing our customers access to these cuisines is something we take enormous pride in. Our customers can count on HF Foods for high-quality, affordable, fresh, and authentic specialty foods that they cannot get anywhere else. Almost every town in America has at least one restaurant that offers international styles, but that is growing, and our best-in-class service will be integral to seeing this demand met.
You recently released earnings which has led to a surge in your share price. How do you view HF Foods’ latest results?
I, and the rest of our leadership team, are laser-focused on the long-term health and strength of our business as we continue to execute on our operational transformation plan.
We made significant strides in executing this plan toward the end of last year. In doing so, we have positioned the company to capitalize on the substantial growth opportunities within the Asian foodservice sector and beyond, and I believe the markets are taking note – and rightfully so. With that, we believe the fundamentals of our business and opportunities ahead are still greater than how the market views us. Our business is strong and continues to grow – we believe HF Foods has immense whitespace opportunity ahead with a long runway of growth.
Investment is key and we are now actively deploying capital where needed to add capacity and capability in order to capture the growth opportunities that we have outlined.
Can you elaborate on the key drivers behind the increases in net revenue for the fourth quarter and the full year 2024?
Absolutely. We’re very proud of our team’s improvements across the board when it comes to servicing our customers. Our relationships with these businesses are the bedrock of our success, and we’ve continued to develop new wholesale accounts that have garnered more sales.
Further, case count growth, product cost inflation and improved pricing in certain categories have all been important aspects of driving revenue while still ensuring we’re able to meet the increased needs and dynamic preferences of our customers and theirs. We have to leverage our scale, and as we continue to drive consolidation of smaller players in the industry and improve efficiencies, our advantage will be unmatched versus local and regional competitors.
Aside from our business growth, we’re also continuing to see the results of our ongoing transformation plan to streamline our operations and better position the company for the long term. We’ve been able to cut costs, digitize our operations, bolster our distribution centers and fortify our capabilities which have all helped us deliver better service to our customers and ensure our business runs as smoothly as possible.
Focusing more on customers, they can have very dynamic preferences when it comes to dining out. How does HF Foods cater to these varying preferences?
Yes, as is the case in many industries, customers are a driving force behind many industry tailwinds. Right now, we believe that international and specialty cuisines continue to rise in popularity and demand. In addition to value and affordability, customers want experience. They want to try new creations, dishes and flavors that they typically wouldn’t be able to experience on a regular basis.
As I have said, we bring communities across the country access to international staples and specialty foods not readily available in the United States. Our diverse global supplier and exceptional distribution networks enable access to our high-quality, affordable, specialty foods and ingredients, so that restaurants big and small can have delicious ingredients, delicacies, and recipes that meet these dynamic preferences of their customers.
All that being said, customers continue to watch their spending, and they not only want food that is good for them but tastes good and provides delicious experiences. Our foodservice solutions do just that and more. Our restaurant customers are providing high-quality meals to their customers who recognize that they are getting what they paid for. That will keep them coming back time and time again.
Fusion cuisine, which combines different elements of various international, specialty staples is also a rising trend that we anticipate will continue to grow in 2025. We’re strategically aligned and capable of offering services that allow restaurants to cater to this demand as well.
Given the uncertainties in the market due to new tariff policies and potential higher inflation, how is HF Foods adapting its strategies to mitigate these challenges?
I believe that HF Foods is well positioned to handle potential tariffs, their potential market impacts and our customers to navigate these uncertain times. When it comes to tariffs, we’re taking a measured, fact-based approach. While we can’t predict exactly how this will unfold, we remain agile and focused on controlling what we can. We’ve done a good job diversifying our supplier base over the years, shifting what we formerly sourced only from China to other Southeast Asian countries. For the specialty products we still source from China, we’ve had experience managing tariff impacts before, so this isn’t new territory for us. We view tariffs much like inflation – it potentially increases costs, but we’re largely a pass-through organization.
We’ll continue to adapt as the situation evolves, while staying nimble and maintaining focus on delivering value to our customers. This is an industry-wide challenge, not specific to us, and we’re well-prepared to navigate it.
Now, of course these efforts are all in addition to our ongoing transformation plan which – as I outlined – focuses on strategic investments to improve our facilities, upgrade our operations, revolutionize our digital infrastructure and enhance how our customers work with us. These improvements are another element that contribute to these core strengths.
What opportunities do you see in expanding into the broader wholesale channel in specialty foods?
The specialty foods wholesale and e-commerce markets are largely underserved by larger chains and retailers even though the market has immense growth potential. For HF Foods, as a leading international and specialty foodservice provider, we can take full advantage to supply our customers with affordable access to international cuisines.
Our expertise and legacy enable us to bridge this gap in larger retail markets looking for reliable solutions to demands for international cuisine. As I have said, these meals, ingredients, recipes and styles are not readily accessible in the United States; however, we will leverage our scale and distribution network to drive growth in this market as we provide an expanded customer base with high-quality, customized solutions and fresh food options.
Looking ahead to 2025, what are the key growth initiatives HF Foods is focusing on, and how do you plan to achieve sustainable long-term growth?
In 2025 and beyond, we are committed to continuing to execute on the comprehensive transformation initiatives that we have been implementing to better position the company going forward in our new chapter under new management with myself, our Chief Financial Officer, Cindy Yao, and others at the helm.
We will continue to make investments in our facilities, digital infrastructure and operations as we establish a strong foundation for our next growth phase. Recent macroeconomic trends may invite some near-term uncertainty, but we are absolutely focused on our long-term vision – investing in capacity and capability to capture cross-selling related organic growth, complemented by exploring opportunities for strategic M&A.
The fundamental drivers of our business – the growing demand for authentic Asian cuisine and our unique position as a nationwide specialty distributor – are very strong. We will continue to explore ways to add further efficiency measures while maintaining our commitment to service excellence and sustainable growth.
