Food Service Contractors
- ID: 1052453
- June 2015
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry contract to provide food services at commercial, institutional, and governmental locations. Major companies include ARAMARK, Centerplate, and Delaware North (all based in the US), as well as Autogrill (Italy), Compass Group (UK), Sodexo (France), and SSP Group (UK).
The US food service contracting industry includes about 3,000 companies with combined annual revenue of about $35 billion.
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 US industry is highly concentrated: the 50 largest companies account for about 90 percent of revenue.
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 soft drinks, tea, coffee, bottled water, and juice.
Food service contractors prepare and serve meals cafeteria-style; in bulk quantity to students, hospital patients, and prisoners; and in fast-casual or quick-service restaurants (QSR). Stand-alone QSRs tend to be less than 4,000 square feet. Cafeteria and public dining settings can be up to 40,000 square...
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