Payments between restaurants and distributors have long been a source of friction: Checks and ACH are slow and require manual work, credit cards are fast but expensive. The result is high DSO for distributors, unpredictable cash flow for restaurants, and significant manual work for both sides.

Today, Pepper and Tab are partnering to change that by enabling distributors on Pepper to offer their own branded credit card programs built specifically for restaurant purchasing and embedded directly into the distributor–restaurant relationship.

These programs give distributors a faster, more reliable way to get paid while unlocking entirely new tools to influence buyer behavior, increase wallet share, and strengthen customer loyalty.

Why payments and spend management are broken 

Despite restaurants spending more than $1 trillion annually, the systems used to pay distributors haven’t kept up. Traditional ACH and check payments mean that billions of dollars are sitting in processing at any given time, with hundreds of millions in lost interest. At the same time, both distributors and restaurants rely on manual reconciliation, fragmented tools, and limited visibility into outstanding invoices and expenses.

Restaurants are forced to choose between expensive credit cards or slow, unrewarding payment methods. Distributors absorb high AR costs, chase late payments, and struggle to differentiate beyond price and service. These inefficiencies quietly erode margins on both sides.

“Payments aren’t just a back-office function, they’re a powerful engagement surface,” said Ty Wilson, Co-Founder of Tab. “When distributors control how payments, spend, and rewards come together, they can shape purchasing decisions in a much more intentional way.”

Distributor-branded cards that power profitable sales and lowers DSO

Through Tab, distributors on Pepper can launch their own branded credit cards that restaurants use to pay invoices and manage ongoing supplier spend. These cards are designed specifically for foodservice purchasing and are paired with a full expense management and accounting platform.

Beyond faster payments and automation, distributors gain the ability to offer cash-back rewards on select high-margin products, creating a direct financial incentive for restaurants to shift and consolidate spend.

Key benefits delivered through distributor-branded cards powered by Tab:

• Faster, more reliable payments for distributors with reduced DSO and lower AR risk
• A modern card experience for restaurants with cash-back rewards on purchasing from distributors
• The ability for distributors to offer targeted cash back on high-margin or strategic products
• Real-time visibility into spend, budgets, and limits
• Unique, branded cards per distributor with built-in controls
• Dramatically reduced back-office and accounting work for your restaurant operators

“Distributors want to reduce DSO and simplify AR without pushing costs or complexity onto their customers,” said Alvaro Soltero, Head of Finance Hub Products at Pepper. “This partnership with Tab allows distributors to offer a branded financial product that does both - while also creating new opportunities to drive growth.”

How it works inside Pepper

Pepper integrates Tab’s branded card programs directly into the distributor workflow, allowing distributors to present the card as a preferred way for restaurants to pay and manage spend. Because the cards run on existing card networks, Pepper can leverage current payment infrastructure without major changes.

Distributors control how the program is positioned, including how fees are shared, while Pepper’s interface ensures a seamless experience across invoices, payments, and wallet views.

“This gives distributors new levers beyond pricing alone,” said Soltero. “They can get paid faster and influence purchasing behavior at the same time, without adding operational complexity.”

A long-term growth and loyalty engine

As restaurants adopt distributor-branded cards, they gain powerful incentives to consolidate spend, pay on time, and deepen relationships with the distributors they rely on most. Distributors benefit from improved cash flow, better customer retention, and data-driven insight into purchasing behavior.

“When distributors put their brand on the card, they become part of how restaurants manage money every day,” said Wilson. “That’s incredibly powerful for loyalty, growth, and long-term partnership.”

Together, Pepper and Tab are enabling distributors to move beyond transactions and into lasting financial relationships, modernizing payments, expense management, and cash flow across the foodservice supply chain.

‍