Sysco’s $29.1 billion agreement to acquire Restaurant Depot highlights a broader shift in foodservice distribution toward hybrid B2B ecommerce models that combine digital ordering, physical locations and traditional delivery.
Executives said the deal will create “a nationwide omnichannel food service provider,” expanding how customers buy based on price, speed and service preferences.
The transaction brings Sysco’s delivery-based model together with Restaurant Depot’s self-service warehouse format, where customers purchase goods directly and transport them on their own. Restaurant Depot’s model typically offers savings of 15% to 20% compared with delivered products, reflecting lower service costs.
“The customer will choose which fulfillment option they prefer,” Sysco CEO Kevin Hourican said.
About the Sysco acquisition of Restaurant Depot
A central element of the strategy is linking customer activity across delivery and in-store purchasing.
Sysco plans to use shared data to understand “what the customers are buying in each of the two channels,” enabling the company to track purchasing behavior across both models.
It expects that visibility to support digital commerce capabilities such as cross-channel promotions, customer-level insights and more targeted product recommendations.
The company also plans to introduce a “buy more, save more loyalty program” spanning both businesses. It seeks to encourage repeat purchasing within the combined platform.
The deal reshapes how Sysco acquires and develops customers across segments.
Restaurant Depot primarily serves smaller, independent restaurants that may not meet delivery minimums. Meanwhile, Sysco’s delivery business focuses on higher-volume accounts requiring more service. Executives said the combined platform allows customers to move between channels as their needs evolve.
For example, smaller operators may begin with in-store purchasing and transitioning to delivery as they grow. But delivery customers may use warehouse locations for urgent or supplemental purchases.
Despite the emphasis on digital capabilities, Sysco said it does not plan to fully integrate technology systems across the two businesses.
Hourican said the company “do[es] not need to do tech integration to achieve procurement synergies” and does not intend to pursue “large tech integration” efforts.
Restaurant Depot will continue to operate as a separate business segment, deploying digital tools selectively where they provide clear returns. The combined company also expects to expand product availability across channels.
Financial impact of acquiring Restaurant Depot
Sysco offers a broad range of premium and specialty products, while Restaurant Depot focuses on value-tier goods. Executives said the businesses will be able to access each other’s assortments, creating opportunities to broaden product selection and improve merchandising.
The merger significantly increases Sysco’s scale and financial capacity.
The company said it expects the transaction to increase:
- Revenue by about 20%.
- Adjusted EBITDA by about 45%.
- Free cash flow by about 55% on a pro forma basis.
Restaurant Depot generated approximately $16 billion in revenue and $2 billion in EBITDA in 2025, with a 13% EBITDA margin, according to Sysco.
Sysco expects that expanded financial base to support continued investment in ecommerce platforms, data infrastructure and digital tools.
The transaction reflects a broader evolution in B2B ecommerce, where distributors are moving beyond single-channel digital ordering toward integrated commerce models that combine online, in-store and delivery capabilities.
By linking physical infrastructure with shared data and digital tools, Sysco is positioning the combined business to operate as a more flexible, multichannel platform.
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