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Food Service Contractors
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US food service contracting industry includes about 3,000 companies with combined annual revenue of about $34 billion. Major companies include ARAMARK, Centerplate, and Delaware North. The industry is highly concentrated: the 50 largest companies account for about 90 percent of revenue.
Most large food service contractors have international locations. The two largest companies, Compass Group and Sodexo, are headquartered in the UK and France, respectively. Companies adjust food options and services to accommodate different cultures.
Food service contractors provide cafeteria and restaurant services to businesses, government agencies, and institutions. Food distributors, which supply food to food service contractors as well as to grocery stores and restaurants, are covered in a separate industry profile, as are catering services.
COMPETITIVE LANDSCAPE
Demand is driven by employment trends and consumer tastes. The profitability of individual companies depends on efficient operations and food quality. Large companies have advantages in economies of scale in food and equipment purchasing, off-site food preparation, and distribution. Small companies can compete effectively by specializing in unique food products or local markets. The industry is labor-intensive: average annual revenue per worker is about $80,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Companies in this industry primarily provide meals and snacks under long-term contract. Other products include alcoholic and non-alcoholic beverages. Meals can vary depending on the setting and client, but typically focus on breakfast, lunch, and dinner standards. Food includes pizza, Mexican and Asian cuisine, sandwiches, salad bars, chicken, and hamburgers. Beverages include...
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