Restaurants are worried about the Sysco-Restaurant Depot deal. Should they be?
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Sysco's $29 billion deal to buy Jetro Restaurant Depot has sparked concerns among independent restaurants about potential price increases and reduced competition. The Independent Restaurant Coalition is urging the FTC to block the acquisition.
Sysco, the largest broadline distributor in the US, is acquiring Jetro Restaurant Depot for $29 billion, mostly using debt and stock. The deal has raised concerns among independent restaurants, who rely on Restaurant Depot for cost savings on dry goods, produce, and other essentials. The Independent Restaurant Coalition is calling for the FTC to block the acquisition, citing potential price increases and reduced competition. Some industry groups, like IFMA, argue that the deal will benefit independent restaurants by increasing product availability and negotiating power with suppliers. Restaurant Depot has 166 locations, mostly in urban areas, and generates $16 billion in annual revenue. The outcome of the deal remains uncertain as the FTC considers the acquisition.
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