In addition to family, John Sexton relied on recruiting high-quality employees by offering attractive wages, sales commissions and fair dealing.
In 1890, Sexton established an institutional department to call on hospitals, colleges, schools, railroad dining cars and religious organizations around the country.
A side note in Chicago real estate history, in 1885, J.B. Clow & Sons, a cast-iron pipe manufacturer entered into a 99-year ground lease with landowner John Peacock at a rate of $3,000 per year with 4% annual increases.
[7] After his death, the ownership of the company was divided between John Sexton's wife Annie Louise (33%) and their children Thomas (13.3%), Franklin (13.3%), Sherman (13.3%), Helen (13.3%) and Ethel (13.3%).
In 1933, Sexton Foods opened its first distribution center outside Chicago by renting a warehouse in Brooklyn and buying a delivery fleet of five Diamond T trucks dedicated to the New York market.
In addition, Sexton Quality Foods had a sales booth at all major trade conference for hospital administrators, college dietitians and restaurant associations.
In January 1941, the company expanded by opening a branch warehouse and truck fleet in Dallas, at 411 Elm Street, the later Texas School Book Depository.
In November 1961, Sexton left the building for a modern single-story facility in the Brook Hollow Industrial District located at 650 Regal Row, Dallas, Texas.
In August 1943, John Sexton & C.o purchased the J.C. Stewart Company, an institutional wholesaler, coffee roaster and spice blender located in Pittsburgh.
Stewart Company had annual sales of $2 million, had extensive coffee roasting facilities, and was a leading processor of maraschino cherries and spices.
[9] By 1943, Sexton had the ability to supply, manufacture and distribute large amounts of institutional groceries from its warehouses in Chicago, Brooklyn, Dallas and Pittsburgh.
By 1949, John Sexton & Co. was operating branch warehouses in Atlanta, Chicago, Dallas, Detroit, Long Island City, Philadelphia and Pittsburgh.
In 1950, Sexton Quality Foods leased a 130,000-square-foot (12,000 m2) warehouse in San Francisco to support the established west coast sales force and to expand into California, Oregon and Washington.
[12] In early 1955, Sexton announced plans to sell the Illinois and Orleans building and construct a new 175,000-square-foot (16,300 m2) warehouse on 7 acres (28,000 m2) at 47th Street and Kilbourne Avenue on the south side.
By 1958, the company's 75th anniversary, Sexton had a coast-to-coast distribution network with warehouses, sales operations and truck fleets located in Atlanta, Boston, Chicago, Dallas, Detroit, New York, Philadelphia, Pittsburgh and San Francisco to service over 50,000 customers.
Sexton's management saw the opportunity to expand product lines and distribution networks, but its capital structure as a private company limited its borrowing capacity.
10 Sexton distribution warehouses were located in Atlanta; Chicago; Dallas; Detroit; Englewood, New Jersey; Indianapolis; Newton, Massachusetts; Pittsburgh; Philadelphia; and San Francisco.
He had begun his career on State Street store in 1909 working for his father, John Sexton, as a Teamster making grocery deliveries in Chicago by horse and wagon.
[25] In 1961, Sexton announced a major capital plan to add product lines, expand into new territories and modernize its distribution system.
[30] In 1967, John Sexton & Co. operated 12 branch warehouses, which served over 79,000 customers throughout the continental United States, in the West Indies and Hawaii.
Sexton branch warehouses were located in Atlanta, Boston (Newton, Massachusetts), Chicago, Cincinnati, Dallas, Detroit, Los Angeles, New York (Englewood, New Jersey), Orlando, Philadelphia, Pittsburgh and San Francisco.
Sexton's quality products, national distribution network and sales force allowed it to provide the service that the varied customers demanded.
Although frozen and refrigerated food products were explored by Sexton, the majority of the foodservice customers in 1967 had yet to invest in cold storage in their kitchens.
Over the next 4 years, six of the eight planned additional Sexton branch warehouses were opened in Hawaii, Indianapolis, Houston, Saint Louis, Seattle and Minneapolis.
In January 1978, Thomas G. Sexton, son of the founder, retired president and chairman of the company died at the age of 88 at his home in Buffalo Grove, Illinois.
In 1983, Beatrice Foods announce that it was divesting 50 business of which, John Sexton & Co. was generating $380 million in sales which represented a 10% annual revenue growth since its purchase in 1967.
Rykoff & Co. ($346 million in sales) was a broad line grocer and restaurant equipment provider that operated in California, Nevada, Oregon, Washington and Hawaii.
The Sexton Quality Foods west coast branches in Seattle, Los Angeles, San Francisco and Hawaii were absorbed into the Rykoff operations.
Prior to the purchase, Kohlberg & Company required US Foodservice to enter into a six-year supply contract with U.S. Foods LLC that increased 6% over the term.
For instance, US Foodservice still markets Alamo Zestful Seasonings, Jamaica Relish (developed by Sexton Food Chef Tony Bartolotta), Chunky Blue Cheese Dressing, and Kettle Rich soups.