Wednesday, Dec. 09, 2009

Company plans to expand

Warehouse supplies more than 500 McDonald's restaurants

Golden State Foods hopes to eventually expand its Garner warehouse, which ships supplies to hundreds of McDonald's restaurants.

An expansion would add jobs, but it's not clear when the California-based distribution company will be ready to grow.

"As far as I'm concerned, the sooner the better for us," CEO Mark Wetterau said Friday. Wetterau was in Garner for an event at the warehouse, which opened four months ago at the Greenfield North business park off U.S. 70.

The $26 million warehouse, which has 133,000 square feet, supplies only McDonald's, though Golden State has numerous other restaurant customers. Golden State employs 220 workers in Garner, where supplies are sent to more than 500 McDonald's restaurants in the Carolinas, Virginia and West Virginia.

Many of those jobs were transferred from Greensboro when the company closed its warehouse there. Wetterau said it's too early to say how many more jobs could come to Garner.

Future growth will depend on the success of McDonald's. "The better McDonald's does, the better we're going to do," Wetterau said.

The fast-food chain has fared well during the economic downturn, said Tom Covelli, senior director of supply chain management at McDonald's. He said customers are drawn to the affordable prices.

Over the past decade, the Southeast has been one of the fastest-growing areas for McDonald's, Covelli said. But he thinks the Garner warehouse could serve their needs for several more years.

Covelli said the rail lines in Garner make it a good spot for the distribution center. Shipping some items by rail instead of by trucks will save McDonald's millions of dollars over the next 20 years, he said.

Golden State's Garner property has room to grow by another 75,000 square feet, said Jim Brooks, general manager of the warehouse. A mezzanine that overlooks the sprawling warehouse, where boxes of cups, dill pickle slices, coffee syrup and other products are stored, will likely house future offices, he said.

"No immediate plans," Brooks said, "but we're obviously here for the long run."