Sysco buys Restaurant Depot for $29.1B — a jolt for Long Island indie restaurants

One of Long Island’s most-relied-on restaurant suppliers just got a new owner — Sysco, the country’s largest food distributor.

Sysco announced Monday it has reached a deal to buy Jetro Restaurant Depot for $29.1 billion in cash and stock, according to Restaurant Business Online.

Restaurant Depot is a members-only warehouse chain that functions like a Costco for the food industry — stocking bulk quantities of proteins, produce, dry goods, paper products, and kitchen supplies at wholesale prices.

The chain counts four Long Island locations, in Riverhead, Bohemia, Garden City, and Farmingdale, catering almost exclusively to independent restaurants, catering companies, and other foodservice operators.

For Long Island’s independent restaurant owners — many of whom rely on Restaurant Depot as their primary supplier — the acquisition could reshape how and where they source everything from chicken cutlets to paper towels.

Restaurant Depot built its loyal following by offering a no-frills alternative to corporate distributors — and Sysco is the country’s biggest corporate distributor. It’s unclear if the acquisition will change pricing, membership terms, or the warehouse model.

Nationally, Restaurant Depot operates 166 large-format warehouse stores in 35 states, generating $16 billion in annual revenue and $2.1 billion in EBITDA, Restaurant Business Online reported. The chain serves roughly 725,000 independent restaurant operators each year.

Sysco CEO Kevin Hourican called the acquisition a game-changer for the company’s reach, describing Restaurant Depot as “a gem of a company” on a Monday morning investor call. The combined companies generated nearly $100 billion in revenue last year and $6.4 billion in adjusted EBITDA, Restaurant Business Online reported.

Hourican said Sysco intends to keep expanding the Restaurant Depot brand, with plans to open more than 125 new warehouse locations nationwide.

Stanley Fleishman, executive chairman of Jetro Restaurant Depot, called the deal “a clear recognition of the strength of our business model,” citing Sysco’s national and international logistics capabilities as a key factor in the company’s ability to grow into new markets.

_{Top: Restaurant Depot in Bohemia (Nicholas Esposito photo).}