This Merger Could Change What You Eat—and How Much You Pay For It
5/4/202635 min
There’s an impending food supply merger that could have a huge impact on the restaurant industry, so Adrienne and Joe break down what that means for business owners, consumers, and the food that ends up on your plate. In this episode, we discuss: The Sysco–Restaurant Depot merger and why a food supply monopoly is bad for you Why customers are ultimately going to foot the bill with rising prices The difference between wholesale delivery (Sysco) and cash-and-carry (Restaurant Depot) A chef’s perspective on how wholesale purchasing actually works Rising food costs, and the hidden impact of eliminating competition Will this spell doom for small restaurants? Why a merger wouldn’t just impact costs, but also the selection of brands, ingredients, and supplies you have access to What we can all do to keep this from happening Follow the show: @chefscutpod Follow Adrienne: @chefadriennecheatham Follow Joe: @insta.flamm
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First 90 secondsAdrienne Cheatham· Host0:00
[gentle music] Today on The Chef's Cut, Joe and I are talking about something that you're not gonna see on the restaurant menus, but you're gonna feel it when you get the check. We're breaking down the potential merger between Sysco, which is the largest food distributor in the country, with Restaurant Depot, which is the most important, and often only, alternative restaurants have for purchasing, and how this monopoly could reshape the price of eating out. But first, Chef's Cut Nation, we need 10 seconds of your time. Please rate and review the show wherever you get your pods. It really helps. [gentle music] Joe, there is a story in the news right now that somehow is, like, kind of flying under the radar, but it's a huge deal, and it's gonna have a massive impact on restaurant prices and what you end up paying for food.
Joe Flamm· Co-host1:06
Yeah. This is one of those, like, super mergers that you just see a blurb about, and I think it flies under the radar. It's not the, you know, there was a big one the other week of, like, United saying they wanted to merge with American, and people are like, "No way. We can't do that."
Adrienne Cheatham· Host1:18
Right.
Joe Flamm· Co-host1:18
Like, it's too obvious, right? But this is one where it's a really big deal.
Adrienne Cheatham· Host1:23
Yeah.
Joe Flamm· Co-host1:23
'Cause Sysco, for people who don't know, Sysco's what we refer to as a broadliner, and a broadliner purveyor is a purveyor that can give you anything