Sysco’s proposed acquisition of Jetro Restaurant Depot has sparked mixed reactions within the foodservice industry, with some expressing confidence in the deal and others voicing skepticism based on past experiences with major distributors.
Stanley Fleishman, executive chairman of Jetro Restaurant Depot, conveyed strong optimism about the acquisition, stating he was “superconfident” that Sysco would maintain the company’s existing product offerings and pricing model. Fleishman emphasized that it would be counterproductive for Sysco to disrupt a business model that has proven successful, noting, “There’s no way they would pay this full price if they were going to destroy the business.”
Despite this reassurance, market reaction was initially negative. On the announcement day, Sysco’s shares dropped $12 to $69.30, though the stock has since partially recovered to around $74 per share. Industry operators remain divided, citing previous acquisitions as cautionary examples. Some pointed to US Foods’ purchase of Smart Foodservice Warehouse Stores in 2020, which was later renamed Chef’Store. US Foods has since indicated that the cash-and-carry business is not a fit for its long-term strategy and is exploring options to sell the unit, although the company said it intends to continue operations and growth for the foreseeable future.
Concerns also stem from restaurateurs’ direct experiences with Sysco. Rebecca Masson, founder and chef of Fluff Bake Bar in Houston, reported repeated delays during the pandemic when Sysco deliveries would arrive hours late without apology. Thomas Costa, owner of North Plank Road Tavern in Newburgh, New York, recalled a sales representative suggesting limited interest in his small account compared to larger clients like hotels. Many small operators cited Sysco’s minimum order requirements as a barrier, making it difficult for mom-and-pop restaurants with limited storage or customer volume to place manageable orders. Costa summarized a common sentiment among independents, asserting, “They do not care about the little guy.”
Sysco leadership has acknowledged these challenges and expressed intentions to better serve Restaurant Depot’s customer base. The company plans to leverage purchasing efficiencies to reduce costs and develop loyalty programs aimed at frequent warehouse users. An executive involved in the acquisition stated, “It’s bringing more affordability to more consumers, to more restaurants, and growing our business profitably as a result of doing those things.”
Meanwhile, some longtime Restaurant Depot customers remain wary. Daniel, a chef and owner at Fava Pot in Alexandria, Virginia, recently observed a drop in the price of fresh tomatoes but noted the cost was still higher than a year ago. Approaching retirement, Daniel plans to transition the business to her partners and doubts Sysco will preserve the current business model if the acquisition receives regulatory approval. “They are not a charity,” she remarked, highlighting a persistent concern that profit motives may override customer loyalty.
As regulatory reviews continue, industry stakeholders await clearer indications of how Sysco’s ownership might reshape the landscape for Restaurant Depot and its diverse customer base.