A $29 Billion Headache for Restaurants

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Dear Pros,

Erika here. Restaurant operators around the country were thrown a curveball this week when mega-restaurant supplier Sysco announced that it was snapping up cash-and-carry chain Restaurant Depot for $29.1 billion.

The news prompted outcry from independent operators. The two restaurant suppliers operate on different models; Sysco doesn't sell to the public, while anyone can walk into a Restaurant Depot and buy goods in bulk. Independent operators compare prices between the two to make sure they're getting the best deal, according to Erika Polmar, the executive director of the Independent Restaurant Coalition (IRC), a trade organization that represents independent restaurant and bar operators across the country. The competition is necessary to keep prices in check, she argues.

In a press release, Sysco claimed that the deal won't impact the price of goods, but rather that prices might go down as they identify "purchasing efficiencies." Polmar and the IRC aren't buying that.

The IRC is calling on the Federal Trade Commission (FTC) to block this deal. It's also encouraging concerned operators to contact their local members of Congress and advocate for the FTC to do a full review of the deal.

In other news, we received word on Thursday afternoon that acclaimed chef, restaurateur, and cookbook author Tom Valenti — a 1990 F&W Best New Chef — had died at 67. My colleague Kat Kinsman wrote a thoughtful tribute chronicling his impact on the industry, both in and outside of the kitchen. He will be deeply missed.

Take care,
Erika Adams

Erika Adams

Restaurant Editor

IG: @erika.lea.adams

erika.adams@foodandwine.com

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