I Tracked Down The Company Ruining Restaurants
298 segments
I've had a sense that
lots of restaurants are starting to
taste the same.
And maybe you, too, have had a sense that
something is amiss.
So I wanted to test a hypothesis
with my coworkers:
that you can be served the same exact food —
[Alec, reporting] Can I just get the jalapeño poppers?
[Alec, hosting] — from totally different restaurants —
The fried pickles....
Can I get the fried pickles?
[Alec, Hosting] — but made in the same factory,
whether you wanted it or not.
Can I get the funnel cake fries?
Here's the question behind this test.
Are we trapped
into eating the same mediocre food
from New York to Alaska?
And if so, why?
And who's behind it?
Alright, moment of truth.
That’s the mystery we're going to unpack today.
To get to the bottom of it,
first I went to Harlan, Iowa.
Woke up at 5 a.m.
to talk to a restaurant owner
about how they get their food.
[Ellen] I'm Ellen Walsh-Rossman,
and I own Milk and Honey.
[Alec] The thing is,
Ellen’s restaurant does it
differently than most restaurants in 2025.
She showed me how she makes something from scratch:
her French toast.
She uses a distributor to get most base ingredients:
the milk from a local dairy,
and the eggs from a local farm —
Ellen’s.
The bread is brioche
that the restaurant makes from scratch.
From there, the brioche gets baked,
cut, dipped in homemade custard,
griddled, and served to you,
the customer,
or, luckily enough, me.
It’s very good.
It's not just the French toast.
Ellen tries to work with
as many local producers as possible.
[Ellen] This is our country skillet.
And this is the local
sourdough bread from
a bakery in Omaha.
But for many restaurants,
sourcing local ingredients like this
is getting harder and harder.
Ellen's distributor is regional
and employee-owned.
But if you're a restaurant owner,
especially in a rural area,
you might just have
one or two distributors to choose from.
There's a good chance
one of them is a company called Sysco.
And they are suspect number one
for my deep fried mystery.
To hash out that suspicion,
I spoke to Austin Frerick,
author of the book Barons,
who explained the profound way
Sysco is shaping the way we eat out.
The innovation of Sysco was that it was
the first national company
to essentially offer everything a restaurant needs.
[Alec] Back in the day, someone like Ellen
might have one distributor for butter
and another for eggs.
But Sysco is what's called a broadliner, supplying
everything from paper products
to meat and produce.
[Claire Kelloway] Sysco was a merger of nine different
wholesale restaurant distributors
with kind of the explicit goal
of making a national player.
[Alec] That was in 1969.
Fast forward to today,
and Sysco has grown so much
that it really only has
two other competitors in the national space.
Among them, Sysco is the largest,
and even a decade ago
controlled an estimated 35% of the market.
And this year,
their gross profit hit $15 billion.
The scary thing about Sysco was
it didn't become this giant through organic growth,
but instead it became a giant
through relentless acquisitions that went unchecked.
[Claire] They've acquired over 150 companies
to become really one of the only
national broadline distributors for restaurants.
[Alec] And this growth I learned,
is deeply changing the way we eat
from farm to table.
Let's start with the farm part.
Ellen tries to work with as many
local producers as possible,
even when it’s more expensive.
Sysco, on the other hand,
operates with the biggest producers
at massive scales to eke out savings —
producers that often have
some of the most exploitative production models.
Sysco gets their berries from companies like Driscoll —
Driscoll basically took the Nike sweatshop model
and applied it to berry production.
[Alec] — and chicken from companies like Tyson.
[Austin] Tyson's applied a sharecropping model
to meat production.
[Alec] If you used a national distributor,
could you get the Omaha sourdough?
No.
- No - No?
And why is that?
So a lot of local distributors
or local producers
are not able to tap into regional distribution.
The volume and production quantities is too high.
[Alec] Sysco scours the globe
for a good deal,
and there's reason to be concerned
about how they're getting some of those deals.
Seafood is the best example of this.
Many providers to Sysco
have been accused of engaging in slave labor.
[Alec] That includes forced Uyghur
and North Korean labor in China.
Basically any dark part of the food system
has moved offshore,
which makes policing it really, really hard to do.
But Sysco doesn't just source shrimp and strawberries.
They have their own line of
mass manufactured frozen foods.
Everything from sourdough and brioche to —
as I learned from researching this —
jalapeño poppers,
other fried appetizers,
and desserts.
Frozen food, it turns out,
isn't just a facet of the Sysco business model.
It drives it.
I don't think Americans appreciate that
frozen food allows these long, exploitative supply chains.
[Alec] In the early 2000s,
Sysco was buying jalapeño poppers
assembled in Mexico
for well below minimum wage
and shipped frozen all over the country.
[Austin] It allows a race to the bottom in terms of
labor standards and pay.
[Alec] So the food we ordered
could have come to a distribution center
like this, frozen,
shipped to restaurants across the country
and then dumped into a fryer.
And now, the truckers driving those shipments?
They're also getting squeezed by Sysco.
Sysco's continuously lobbying year after year
to deregulate the trucking industry.
And what we've seen since the 1980s
is trucking wages are down nearly 40%.
After the food is unloaded off of trucks,
it gets cooked up and put on your plate.
And Sysco's dominance means the food on that plate
is increasingly the same
and increasingly worse.
Do you think regional variety is disappearing?
Yeah, I would say so.
[Alec] You've probably had a Sysco meal without even realizing it.
They offer everything from
these sad bread rolls
to wagyu beef burger patties.
If you've ever spent time in a hospital or a prison,
you might have had a meal off of a Sysco truck.
And if you pay attention,
they're everywhere.
And so it's getting harder and harder to avoid
getting the exact same frozen meal
at your local diner or brewery.
It probably won't taste that great either.
If you were to buy pre-made brioche
from one of the big national distributors...
[Ellen] They probably will try to keep things cheap,
so like, they're probably not going to use butter.
[Alec] So they'll use like a canola oil or shortening —
[Ellen] Yeah, shortening or something like that.
And then, like, their sugar might be like,
processed sugar, like a high-fructose corn syrup kind of thing.
[Alec] Austin found a story of a Pennsylvania diner
whose burgers weren't frying the same on the grill.
when the owner investigated
he realized the patties now contained soy protein filler.
Sysco and their competitors are flooding restaurants
ultra-processed food like this.
Now, you might expect that with a
deep-fried cheddar jalapeño popper,
but maybe less so with something like bread.
The irony is you could be at a diner in a small town in Iowa,
surrounded by some of the world's best farmland,
and yet nothing on the menu is coming from around you.
It's low quality products
produced by people being exploited
outside the national borders.
The system isn't exactly working out
for restaurant owners or local distributors, either.
With the competition bought out, Sysco has more leverage
to arbitrarily raise prices.
During Covid for instance,
they used their market power to pass on inflation to their customers
and increase their earnings by 159%.
Sysco’s CEO even said on an earnings call
that they had no intention of competing on price.
[Claire] Smaller restaurants have
almost no negotiating power with Sysco.
And so if you are in a rural area where
there, you know, aren't any other distributors,
then restaurants really don't have many options at all.
As we've lost some of that regional wholesale infrastructure,
we also see the loss of local businesses,
local farms, and a regional food system.
In general,
restaurant owners have little recourse when Sysco screws them over.
Complaints are rampant about
late deliveries, crushed eggs below stacks of boxes,
even swapping ingredients without informing restaurants.
As the industry continues to consolidate,
these issues will only get worse.
Sysco already tried to buy their largest competitor, US Foods,
but was shut down by the FTC.
Now Sysco's two largest competitors are signaling
they might try to merge.
In an environment where the biggest companies
aggressively push out competition,
it makes sense.
It also means restaurants will have
even less choice than they already do,
and farmers will have less bargaining power
when selling their food.
[Claire] The most aggressive, you know, gold standard
thing that an antitrust enforcer could do would be to
look at some of these deals and say, maybe we went too far.
Like, maybe we let Sysco acquire too many companies,
and we should unwind some of those, and break up Sysco.
That's something that we've seen
antitrust enforcers take on
with past deals like, Ticketmaster.
[Alec] The FTC could also block future acquisitions.
And states and federal regulators
could scrutinize discount programs that people like Claire and Austin
suspect Sysco is using to drive out the competition.
But what about my mission to get the same food
in entirely different states?
We ordered a mix of jalapeño poppers, fried pickles,
and funnel cake fries
in Nebraska, New York, New Jersey, Pennsylvania, and in Alaska.
All right.
Moment of truth.
Jalapeño popper.
Never been to this restaurant.
Never been to this city, but...
It just tastes like something I've had 100 times.
In Omaha,
I'm pretty sure I got the Sysco
brand jalapeño popper,
though to be fair, their main competitor sells
almost the same thing.
The one that I got in Brooklyn was
clearly different than that one,
and was a little bit better.
Here in New Jersey, I ordered funnel cake fries.
They seem...
exactly the same as the ones I got in Omaha.
A fellow producer also ordered them in Philadelphia
and another in Anchorage.
They look pretty similar.
I also ordered some fried pickles,
which is what my fellow producer ordered in Philly.
They're clearly different.
One is chips, one is spears.
But there's a chance that I got these Sysco pickle spears.
Don't get me wrong. You've probably had a frozen
Sysco meal and thought it was totally fine.
But the point is,
in this giant food system, something is being lost.
Regional variety, local jobs, local businesses,
and just having a unique meal.
A meal that's different.
Ask follow-up questions or revisit key timestamps.
The video explores the hypothesis that many restaurants serve the same food, often of mediocre quality, due to the consolidation of the food distribution industry, primarily by a company called Sysco. Sysco, a national broadliner, supplies nearly everything a restaurant needs, from paper products to frozen foods. Its growth has been largely through aggressive acquisitions, leading to a lack of competition. This consolidation impacts food quality by favoring large-scale, often exploitative, producers and mass-manufactured frozen items over local, fresh ingredients. Sysco's dominance also affects truckers, leading to lower wages, and gives them leverage to arbitrarily raise prices, squeezing smaller restaurants and local distributors. While Sysco claims not to compete on price, their market power allows them to pass on inflation. The video concludes that this system leads to a loss of regional variety, local businesses, and unique dining experiences, with consumers increasingly eating the same mass-produced meals without realizing it.
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