Full-Service Restaurants NAICS 722511

Dec 14, 2025 - Merger Plan Terminated

• A merger that would have created the nation’s largest broadline distributor for restaurants and other foodservice providers has been called off, Supermarket News reports. US Foods and Performance Food Group (PFG), the US’s second and third largest distributors by revenue (behind Sysco) ended an information-sharing process begun earlier this year in anticipation of merging. The two companies, in consultation with independent financial and legal advisors, said they mutually decided to end merger talks after a review of the benefits of a combination along with regulatory concerns, according to a statement. Winning the approval of regulators was a major issue looming over the deal. A decade ago, federal antitrust regulators blocked a planned merger of Sysco and US Foods. Restaurants, especially independent and smaller operators, tend to be wary of such consolidation because it can reduce competition, limit supplier choice, and put upward pressure on prices.
• While food safety breaches that trigger recalls don’t typically originate at the restaurant-level, recalls can affect businesses throughout the supply chain, from the farm that grew the food to the restaurants that serve it, FSR reports. According to government data, food recalls increased by 15% between 2020 and 2024. With recalls on the rise, restaurants can reduce disruption by building strong preparation, communication, and traceability systems. The biggest challenge during a recall is obtaining accurate, complete information quickly, so operators should establish clear protocols with suppliers for how recall details will be shared. Restaurants should define the problem precisely, identifying affected products, locations, and risks, before communicating publicly. Each location needs designated decision‑makers who can pull a product even before an official recall is issued. Traceability and recall‑management tools help track product movement, speed retrieval, and reduce confusion. Lastly, restaurants should document every step and conduct post-recall reviews to strengthen future responses.

• Restaurant operators increasingly are turning to social media channels to evaluate and purchase technology, according to Belle Communication’s 2026 Evolving State of Foodservice report. The report, which gathered input from a panel of industry experts, Food Network chefs, and award-winning operators, found that rather than relying solely on distributor recommendations or sales reps, busy restaurant operators are increasingly researching tools via Instagram posts, chef endorsements, peer reviews, and online content first. Moreover, food service buyers now consult 8-9 sources before engaging a vendor, nearly twice what they did just a few years ago. Decision-making is becoming more fragmented, faster and self-led, so independent operators and chains alike must be proactive in sourcing tech, vetting solutions via digital channels, and prioritizing brands that demonstrate peer-based validation and ease-of-integration. Like other consumers, restaurant operators are researching products online before consulting vendors and relying on fellow chefs and peers for product advice.
• A coalition led by the Restaurant Law Center, along with the National Fisheries Institute and various seafood suppliers, is suing the National Oceanic and Atmospheric Administration (NOAA) over a new import ban tied to the Marine Mammal Protection Act (MMPA). The rule, slated to begin January 1, 2026, would ban imports from certain fisheries critical to the US restaurant supply chain. The coalition argues NOAA implemented the ban hastily, without adequately assessing the economic consequences to more than one million restaurants, especially seafood-focused ones. Because US fisheries can’t match the volume or variety of imports, restaurants risk menu cuts, price hikes, contract disputes, and even closures. The suit, filed in the US Court of International Trade, asks the court to void the ban and force NOAA to reconsider in a way that balances conservation goals with industry realities.