Solages Sounds Alarm On Sysco-Restaurant Depot Merger In Letter To FTC

VALLEY STREAM, NY — A proposed $29 billion merger is facing some extra scrutiny from a New York State Assemblywoman this week, after the assemblywoman said it could lead to higher prices and have adverse effects for small businesses.

In a Tuesday letter to FTC Chair Andrew Ferguson, New York State Assemblywoman Michaelle Solages said the proposed merger between Restaurant Depot and Sysco Corporation could affect wholesale prices at the former. The Restaurant Depot prices, she said, are a lifeline for small businesses in her district and across the state.

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In a March announcement of the merger, Sysco said it would be taking over Restaurant Depot’s 166 warehouses across 35 states, serving a total of 725,000 independent restaurants and food service outfits at a total revenue of $16 billion.

From where the assemblywoman sits, that deal could hit those restaurants squarely in the wallet.

“The resulting price-hikes we can expect if this merger goes through would harm the bottom-line of the restaurants that enliven our communities and stimulate our economy,” Solages wrote. “As such, this proposed merger warrants careful examination of long-term effects by the FTC, especially at a time restaurants are already dealing with rising operational costs. The FTC, I believe, must conduct a thorough antitrust review of this proposed acquisition, with particular attention to its impact on independent businesses.”

Meanwhile, the executives at Sysco and Restaurant Depot have touted the merger as a potential benefit to small businesses, saying it will connect Restaurant Depot’s warehouses to a “best-in-class foodservice supply chain.”

Together, Sysco and Jetro Restaurant Depot will enhance value for small independent restaurants and the consumers they serve by expanding access to more affordable, fresh food products and delivering more choice and convenience,” Sysco CEO and Board Chair Kevin Hourican said in an announcement of the merger. “Jetro Restaurant Depot will benefit from access to Sysco’s best-in-class foodservice supply chain and logistics capabilities and Sysco will benefit from new ways to serve local customers. The combined company will have increased purchasing efficiencies, enabling lower prices for more customers.”

Hourican said that the merger could also clear the way for the opening of new restaurant depot warehouses, although he didn’t list exact locations he had in mind.

In the two weeks since the acquisition was announced, Sysco stock price has ticked up by about $5 per share, opening Wednesday at $74.50 per share, down from a 2026 high of $91.16 but up from a Mar. 30 low of $69.30.

Stock prices aside, Solages said the merger could represent a shift in values for a store that has provided exactly that to Long Island's independent restaurants.

"Restaurant Depot has for many years served as an alternative to large-scale distributors, providing affordable purchase options that allows restaurants to continue to operate," Solages said. "Sysco, one of the nation’s largest food distributors, does not subscribe to the same value-based model as Restaurant Depot.