Sysco's proposed US$29.1 billion acquisition of Jetro Restaurant Depot, announced March 30, would bring 166 cash-and-carry warehouses across 35 U.S. states and roughly US$16 billion in calendar 2025 revenue under the Houston-based foodservice distributor's control — and Canada is now on the post-deal expansion list.

Sysco Chair and CEO Kevin Hourican identified Canada as part of the company's longer-term Restaurant Depot roadmap during the fiscal 2026 fourth-quarter earnings call, framing the country as a market without a dominant restaurant-focused cash-and-carry operator at U.S. scale.

"We really believe that going to Canada is a compelling opportunity for the long term," Hourican told analysts.

What is the Canadian opportunity?

Sysco has disclosed no Canadian sites, opening dates or capital figures, and the U.S. acquisition itself has not closed.

The transaction is valued at US$29.1 billion, comprising US$21.6 billion in cash and 91.5 million Sysco shares. Sysco Canada already runs a broadline distribution network across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Atlantic Canada.

Hourican said Sysco could enter Canada by leveraging that infrastructure — purchasing relationships, warehousing and inbound logistics that a conventional international entrant would struggle to replicate.

What does the cash-and-carry model offer?

Restaurant Depot's 166 U.S. warehouses serve more than 725,000 independent restaurants and foodservice operators. Stores stock fresh and frozen protein, produce, dairy, grocery, disposables and kitchen equipment in commercial quantities.

Sysco estimates the U.S. cash-and-carry market at US$60 billion to US$70 billion. The company plans to take Restaurant Depot into more than 125 additional U.S. geographies over time.

Which competitors would Restaurant Depot face?

The Canadian warehouse channel is consolidating. Costco has expanded its Business Centre format into Ontario, Quebec, Alberta, British Columbia and Manitoba.

Costco opened locations in Mississauga and New Westminster in late 2025, added East Gwillimbury in December 2025 and added Winnipeg in March 2026.

Loblaw Companies Ltd. operates Wholesale Club. In Quebec, Mayrand Food Group runs large-format stores in Anjou, Laval, Brossard and Saint-Jérôme; Empire Company Ltd., Sobeys' parent, agreed earlier this year to acquire Mayrand and has since received court and regulatory approvals. Montreal-based Distribution Alimentaire Aubut also runs self-service warehouse locations.

A restaurant-focused specialist would distinguish Restaurant Depot from Costco Business Centre and Wholesale Club, which carry broader assortments.

How does the deal change Sysco's economics?

Management expects about US$250 million in procurement-related cost synergies, with additional sales opportunities not yet in the original transaction model. Restaurant Depot will operate as a standalone segment after closing.

Hourican described a multichannel scenario: a Restaurant Depot store could supplement Sysco delivery when a customer runs out of an essential between scheduled drops. Wholesale still handles bulk predictable orders.

The model targets independent operators managing thin margins. A Restaurants Canada report in July found 86 per cent of surveyed operators facing higher food costs tied to gasoline prices, with the same share reporting supplier fuel surcharges.

More than half of surveyed operators reported reduced customer traffic or lower per-visit spending.

What regulatory questions remain?

The U.S. Federal Trade Commission has issued a second request, signalling a deeper review. The agency blocked Sysco's proposed US Foods acquisition in 2015 — a precedent independent-restaurant advocates have already cited.

Hourican argued cash-and-carry and delivered foodservice serve different needs: warehouse customers self-transport, delivery customers value scheduled drop-offs. He reiterated Sysco has no intention of raising Restaurant Depot prices.

Sysco continues to expect the deal to close during the third quarter of fiscal 2027.

What is still unknown?

Sysco has not disclosed expected Canadian store sizes, capital outlays or hiring levels, nor whether every element of the U.S. format would carry over.

Costco's Business Centre investments, Empire's Mayrand acquisition and Loblaw's Wholesale Club give incumbents established relationships with Canadian foodservice customers.

The shape of the Canadian entry, and whether Sysco can combine the Restaurant Depot warehouse model with the broadline network it already operates in seven provinces, will determine how much of the long-term opportunity actually materializes.