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Sysco has proposed buying Jetro Restaurant Depot, but the deal was not shown as completed in the reviewed record. Senators Cory Booker and Tammy Baldwin and independent-restaurant advocates say the acquisition could weaken a key purchasing alternative for smaller operators. Sysco argues the businesses serve different distribution channels and that combining them could improve affordability and choice. The Federal Trade Commission’s documented second-request review is an ongoing process, not a final decision.

What is the proposed Sysco–Restaurant Depot deal?

On March 30, 2026, Sysco announced an agreement to acquire Jetro Restaurant Depot. In its 2026 SEC filing, Sysco described the proposed consideration as approximately $29.1 billion: $21.6 billion in cash, subject to customary adjustments, plus 91.5 million Sysco Holdings shares. The filing said Jetro Restaurant Depot operated 167 large-format stores in 35 states and served more than 725,000 independent restaurants and foodservice operators. Sysco’s announcement at signing counted 166 locations, so the figures reflect different snapshots. Sysco SEC filing Sysco announcement

Restaurant Depot is a cash-and-carry wholesaler: smaller operators shop at its warehouses rather than relying solely on delivery. Sysco’s traditional business is delivery-led and serves larger accounts, according to the company. Sysco said Restaurant Depot would operate as a standalone segment after a deal closes.

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Why are senators and restaurant advocates opposing it?

On August 26, 2026, Senators Cory Booker and Tammy Baldwin urged FTC Chairman Andrew Ferguson to investigate the acquisition. They argue that Restaurant Depot gives independent restaurants, caterers, farmers and other small businesses a way to compare prices and buy without contracts, delivery fees or minimum orders. In their view, losing an independent alternative could reduce purchasing options and increase costs. Senators’ statement

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The senators said restaurant menu prices had risen at least 34 percent since 2020, citing the National Restaurant Association. They also said independent restaurants often operate on margins of three to five percent even under favorable conditions. Those figures appeared in the senators’ advocacy statement; the reviewed material does not establish a separate original statistical publication for the margin claim. The senators forecast that higher costs could be passed on to diners; that is their prediction, not a measured effect of this proposed deal. Senators’ statement and cited figures

The Independent Restaurant Coalition has also called on the FTC to block the acquisition. On May 6, 2026, it reported that its petition had passed 1,000 signatures and said it was collecting operator accounts about pricing, supplier behavior and Restaurant Depot’s role as a competitive alternative. Those are advocacy efforts and reported operator concerns, not regulatory findings. Independent Restaurant Coalition statement

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How do Sysco and opponents differ on competition and costs?

Question Sysco’s position Opponents’ position What is established
Do the businesses compete directly? Sysco says its delivery-led business and Restaurant Depot’s cash-and-carry model operate in different channels with limited overlap. Senators and restaurant advocates argue that operators use Restaurant Depot as an alternative for checking prices and buying supplies. The channels differ in how customers buy; the extent of competitive overlap is disputed, not resolved by the reviewed sources.
What could customers experience? Sysco forecasts that purchasing efficiencies and access to its supply chain could expand access, choice and affordability. Opponents forecast weaker bargaining leverage, higher costs or fewer purchasing options for independent operators. Neither a price increase nor a price reduction has been independently established as an outcome of the proposed acquisition.
What supports each account? Sysco’s rationale and projected benefits are company statements. Legislators’ and advocacy groups’ warnings are arguments and forecasts. The documented regulatory status is a second-request review, not a final finding on competition or customer effects.

Sysco chief executive Kevin Hourican told The Washington Post, “It would hurt our business if we raised prices.” That is the company’s argument about its incentives, not proof that prices would remain unchanged. The Washington Post In its March announcement, Sysco said the combination would provide “more affordable” products and greater choice and convenience; those benefits are also projections, not results demonstrated after a merger. Sysco announcement

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What is the FTC doing about the Sysco merger?

Sysco’s SEC filing says the FTC issued second requests for additional information and documents to both Sysco and Jetro Restaurant Depot on May 27, 2026, and that the companies were responding. A second request extends the review; it does not itself mean the FTC will challenge or clear the transaction. The filing says the HSR waiting period would run until 30 days after substantial compliance unless the FTC ended it sooner. Sysco SEC filing Sysco SEC filing

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The filing described closing by the third quarter of Sysco’s fiscal 2027 as an expectation, subject to customary conditions including regulatory clearance. That was a company estimate, not a guaranteed date. The reviewed record establishes the second-request process but does not establish a later agency action or a final FTC or DOJ outcome.

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Could the deal raise restaurant food costs?

It is possible in the sense that senators and restaurant groups warn that diminished competition could give suppliers more leverage and reduce operators’ alternatives. Sysco disputes the premise that the businesses substantially overlap and says efficiencies could benefit customers. The available record does not demonstrate that the proposed deal will raise or lower food costs; those remain competing forecasts. Any claim about future prices, restaurant closures or effects on farmers should therefore be attributed to the person or group making it, rather than presented as an established consequence.

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