Protect Independent Restaurants From Supply Chain Consolidation

Written by Thomas Barr, the Vice President of Strategic Initiatives for Local First Arizona, a statewide nonprofit organization advocating for and representing 6,000+ locally-owned businesses.

Since 2003, Local First Arizona has been dedicated to driving inclusive community and economic development throughout our great state. We believe that every individual and community deserves the opportunity to thrive, and that entrepreneurship is at the core of economic opportunity for all. 

Local First recognizes the pressure Arizona’s locally owned restaurants are under right now. Independent restaurants do more than serve meals — they create jobs, purchase from local suppliers, support Arizona farmers and contribute to the unique character of our communities. 

The federal government has a responsibility to uphold anti-trust laws put in place to ensure small businesses can compete in the marketplace. These laws should be enforced to limit proposed mergers and trade practices that would significantly reduce competition through the economy, especially for independent restaurants. 

As our partner Ron Knox from Small Business Rising puts it: “It’s one reason why our economy is now just five corporations in a trench coat: Conglomerates buy up everything around them and the antitrust cops just shrug.” 

That is why independent restaurant voices matter in the fight against Sysco’s proposed acquisition of Jetro Restaurant Depot. 

At a time when independent restaurants need fair competition and diverse purchasing options, this merger would further consolidate power within the restaurant supply industry. That increased market control could allow Sysco to hike prices and increase profits on the backs of local restaurant owners. When fewer companies control more of the supply chain, independent businesses have fewer choices, less negotiating power and greater vulnerability to price increases. 

In 2015, the Federal Trade Commission successfully blocked a similar Sysco merger over concerns about market concentration. Independent restaurant voices helped shape that outcome, and they are needed again now. 

In partnership with the Independent Restaurant Coalition, we urge Arizona restaurant owners and food businesses to take action: 

● Sign this petition urging the Federal Trade Commission to oppose the merger

● Complete the anonymous survey regarding your direct experience with food and supply costs. Survey responses will be shared directly with the FTC 

Decisions on issues like this directly affect the long-term viability of locally owned food businesses across the state — businesses that are essential to Arizona’s local economy, culture and community identity. When independent restaurants lose access to fair competition and affordable purchasing options, the impacts extend beyond individual businesses to the workers, suppliers, farmers and neighborhoods that depend on them. 

Want to stay informed about policies Local First Arizona is following in the economy and how they impact small businesses and your community? 

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