Who controls your supply costs may be about to change

Right now, restaurants are facing pressure from all sides—with fewer ways to push back. This week, we look at what happens when operators lose leverage: from a major distributor merger that could reshape supply costs to how rising gas prices are forcing restaurants to make impossible decisions. The theme is control—and how much of it restaurants can realistically hold onto right now, given the ever-changing climate.

But first, here are the 2026 James Beard Awards finalists.

Pie in the sky. Move over, Detroit, Tokyo-style pizza is about to explode all over the U.S.

Pump and dump. Why rising gas prices are hitting restaurants at the worst possible moment.

Bottle service. As alcohol sales tank, restaurants turn to high-end water programs to make up margins. 

Wheels down. Why one California city is pumping the brakes on delivery robots.

Closing time. A once wildly popular restaurant chain closes its final location in NYC.

The potential Sysco/Restaurant Depot merger could hurt small restaurants 

Independent restaurants are pushing back against Sysco’s proposed $29 billion acquisition of Restaurant Depot, arguing it would eliminate a key low-cost purchasing alternative. Restaurant Depot’s cash-and-carry model has long helped keep distributor pricing competitive, and operators fear consolidation will reduce options and increase supply costs.

Why it matters: For independent operators, Restaurant Depot has functioned as a crucial pricing check on large distributors. If that leverage disappears, restaurants could face higher food and supply costs with fewer alternatives. The deal underscores a broader trend: consolidation is shifting power toward suppliers, leaving small operators more dependent—and potentially more vulnerable—than ever. (Food & Wine)

How one New Jersey restaurant tackles the pay gap between front- and back-of-house workers

One NJ restaurant is experimenting with narrowing the pay gap between front- and back-of-house staff by rotating employees into kitchen roles and standardizing hourly wages. Workers temporarily earn higher, more equitable pay while gaining cross-functional experience, aiming to address long-standing disparities and improve team cohesion.

Why it matters: The front/back pay divide remains one of the industry’s toughest cultural and operational challenges. Models like this suggest a path toward equity without eliminating tipping entirely—but require buy-in, training and flexibility. For operators, the lesson isn't that you need to rotate staff or eliminate tipping. It's that pay structure and team cohesion are connected, and the gap between front and back of house has real operational costs worth measuring.(Restaurant Business) 

Avoid the last-minute scramble when it comes to food safety in your restaurant 

Too often, some restaurants treat food safety like a test, ramping up compliance only during inspections, rather than embedding it into daily operations. A former health inspector explains that true success comes from building systems and habits that ensure safe practices consistently, not just when scrutiny is expected. 

Why it matters: Reactive food safety creates risk, inconsistency and potential violations. Operators who treat safety like core metrics—similar to labor or food cost—can prevent issues before they arise. Building a daily culture of accountability not only improves inspection outcomes but protects guests, staff and long-term brand reputation. (Modern Restaurant Management)

178,000

The number of restaurant jobs that were added in March, recovering most of February's losses, though quarterly gains are running well below last year's pace. (Nation’s Restaurant News)

Why L.A. is the choice for so many international chains

New program helps people with autism find restaurant jobs

D.C.'s most powerful and mysterious restaurant family

High gas prices are affecting Texas restaurant supply costs

New drought rules limit how customers order water in parts of Florida

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The Prep is written by Kelly Dobkin and edited by Bianca Prieto.