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Beleaguered Calif. restaurants face yet another hurdle

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08.04.2026

It’s a tale as old as time: A big company acquires another similarly big company, thus creating limited choices for consumers. In today’s go-round, the two companies in question are major food distributors and suppliers, and the consumers who may be facing more limited choices are California restaurants, bakeries and food businesses, as well as those across the country.

Sysco, the country’s largest restaurant supply distributor, announced that it would acquire Jetro Restaurant Depot, more commonly known as Restaurant Depot, for an eye-popping $29.1 billion on March 30. The two businesses, each a relative titan in its lane, offer complementary but not overlapping services, with Sysco operating on a membership- and delivery-only basis. Restaurant Depot, meanwhile, has been an important cash-and-carry retailer for restaurants since its founding in 1976, with 166 storefronts across 35 states, including 24 in California.

Sysco not only requires a contract and minimum orders, but its delivery schedule can be tricky for small restaurants to work around. Restaurant Depot offers a more flexible wholesale experience, akin to a Costco for restaurant businesses only, and all without minimum purchase requirements. The stores are vital places to pick up last-minute ingredients and cooking tools, among other things, without the need to schedule far in advance.

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Concerns over the acquisition from the restaurant industry have been fast and furious. Some worry that the merger is creating a monopoly that could result in, among other things, higher prices for an industry that already operates on paper-thin margins. Others worry about the growing restaurant monoculture, where........

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