Foodservice distribution giant Sysco announced March 30 that it has reached an agreement to acquire Jetro Holdings — parent company of Restaurant Depot — in a deal valued at approximately $29 billion, marking one of the largest transactions in the history of wholesale distribution.

Upon completion, the deal is expected to push Sysco’s annual revenue to roughly $97 billion, further cementing its position as the largest food distributor in North America.

Houston-based Sysco generated approximately $81 billion in revenue in its most recent fiscal year and serves more than 700,000 customer locations across restaurants, healthcare, education and hospitality. The company operates a vast distribution network spanning hundreds of facilities and a fleet of more than 14,000 delivery vehicles.

Jetro, headquartered in College Point, NY, operates 166 cash-and-carry warehouse stores across 35 states under the Restaurant Depot and Jetro Cash & Carry banners. The company is expected to generate about $16 billion in revenue in 2025. Its model focuses on independent restaurants, caterers and small foodservice operators, offering bulk products, restaurant equipment and supplies in a membership-based, self-service format.

The transaction significantly expands Sysco’s reach into the cash-and-carry segment — a channel the company described as both higher-margin and more resilient than traditional broadline foodservice distribution. Restaurant Depot’s model complements Sysco’s delivery-heavy business by enabling customers to source products directly from warehouse locations, often at lower cost and with greater immediacy.

Sysco indicated that Restaurant Depot will continue to operate under its existing banners, leveraging its established brand and customer base. The deal is subject to regulatory approval and customary closing conditions, with completion expected in 2027.

In addition to its food assortment, Restaurant Depot has built a strong presence in restaurant equipment, supplies and smallwares — categories that have become increasingly competitive as digital-first distributors and marketplaces expand their reach.

MDM Analysis

This deal represents a strategic pivot for Sysco — not just a scale play, but a channel diversification move that addresses both margin pressure and competitive encroachment.

By acquiring Jetro, Sysco gains immediate and meaningful exposure to the cash-and-carry model, which operates with structurally higher margins due to reduced delivery costs, faster inventory turns and a self-service format. That is particularly important as broadline distribution continues to face cost pressures tied to logistics, labor and price volatility.

Equally important is how this strengthens Sysco’s positioning beyond food. Restaurant Depot brings a sizable footprint in equipment, supplies and smallwares — categories where competition has intensified in recent years. Grainger, Amazon Business and eCommerce-native distributors like Parts Town have steadily gained foodservice equipment market share by offering vast assortments, transparent pricing and rapid fulfillment.

Sysco has been investing in its own digital capabilities and non-food assortment, but this acquisition accelerates that effort by adding a scaled, proven platform with strong customer loyalty among independent operators.

The deal also reflects a broader industry trend — large distributors expanding into adjacent models to capture more wallet share and defend against channel disruption. Cash-and-carry offers immediacy and flexibility that traditional delivery cannot always match, particularly for smaller operators navigating volatile demand.

In effect, Sysco is building a more hybrid distribution model — combining its dominant delivery network with a national warehouse footprint that broadens how customers buy.

That dual-channel strategy could prove critical as foodservice distribution continues to evolve under pressure from eCommerce, changing customer expectations and margin compression.