GCG President and Managing Director Andrew Dickow, who leads the firm’s Food and Beverage and Consumer and Retail practice, recently shared his insights with Mergers & Acquisitions Magazine in an article titled “Margin Squeeze Spurs Food Distribution M&A Wave,” examining how inflation and rising labor costs are pressuring restaurant operators to seek lower-cost suppliers, and how Sysco’s acquisition of Restaurant Depot is setting the stage for broader mid-market M&A activity in foodservice distribution.

Andrew offered his perspective on what the deal signals for mid-market players navigating this shift:

“Restaurant Depot has built a strong position with independent operators by leaning into price, simplicity, and a no-frills model. If Sysco leans further into price competition in certain channels, mid-market players will need to double down on differentiated service, specialty products, or local relationships rather than trying to compete purely on price. The bigger takeaway is that the distribution model itself is evolving. Scale still matters, but so does clarity of value proposition. The winners in the mid-market will be those that pick a lane and execute consistently rather than trying to be everything to everyone.”

Read the full article on Mergers & Acquisitions Magazine website. 

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