NY Assemblymember Urges FTC to Examine Sysco’s Restaurant Depot Deal
Assemblymember Michaelle Solages has asked the Federal Trade Commission to examine Sysco’s proposed acquisition of Restaurant Depot, citing concerns over potential price impacts on independent restaurants.
TL;DR
New York Assemblymember Michaelle Solages urged the Federal Trade Commission to block Sysco’s bid to buy Restaurant Depot, citing concerns that the deal could raise costs for independent eateries. She points to Sysco’s failed 2015 attempt to acquire US Foods as evidence of regulatory scrutiny.
The FTC is reviewing Sysco’s proposed acquisition of Restaurant Depot, a wholesale supplier that operates 166 warehouse stores in 35 states and serves more than 725,000 independent restaurants and food service operators. Solages sent a letter to the commission earlier this month asking for a thorough antitrust review focused on effects on small businesses. She argues that even if Sysco promises to keep Restaurant Depot separate, past behavior shows promises may not hold.
Solages noted that Sysco’s earlier bid for US Foods was blocked by regulators, indicating a pattern of antitrust concern. Sysco says Restaurant Depot currently runs 166 locations across 35 states, reaching over 725,000 independent foodservice customers. The company also announced plans to open more than 125 new Restaurant Depot warehouses nationwide over the next two decades, a move it says will generate thousands of jobs.
If the FTC allows the merger, critics warn that reduced competition could lead to higher prices or fewer choices for the thousands of small restaurants that rely on Restaurant Depot’s bulk‑buy model. Supporters, including Sysco, claim the combination will bring greater variety and value without raising costs, and that the expanded warehouse network will improve access in underserved areas. The outcome will shape how independent operators source supplies in the coming years. Watch for the FTC’s decision later this year and any potential conditions it may impose on the deal.
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