"Even if you put your personal Sysco gripes aside-late or missing deliveries, rotten or damaged food, hefty minimums, Eric Sze's compelling investigation into Michelin-Sysco ties-the major broadline delivery service's proposed acquisition of Jetro Restaurant Depot deal still raises plenty of concerns as far as monopolies go. In an economy where food costs are already astronomical for most restaurateurs, the existence of competing channels allows operators to compare prices and quality, negotiate, and keep costs down. It's a system of checks and balances that's quickly eliminated when competition dissipates."
"The merger threatens to edge out smaller independent restaurants who don't wish to buy in bulk. "I have bakers who are telling me they can't possibly buy their buttermilk from Sysco because they only sell it in one massive quantity. It would expire before they could make use of it," says Erika Polmar, the executive director of the Independent Restaurant Coalition , the organization that recently put out a petition calling on the FTC to block the merger this past week."
Sysco’s proposed acquisition of Restaurant Depot is presented as a threat to competition in broadline food distribution. Competing channels help restaurants compare prices and quality, negotiate terms, and control costs. When competition disappears, checks and balances weaken. The merger could disadvantage smaller independent restaurants that do not want to buy in bulk. Limited packaging and large minimum quantities can make certain products impractical for small operators, including items that would expire before use. The Independent Restaurant Coalition has called on the FTC to block the merger, arguing that it could harm independent owners, operators, and workers across the United States.
#food-distribution #restaurant-industry #monopoly-and-competition #independent-restaurants #ftc-merger-review
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