Food Service Contractors

Food Service Contractors

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 and Delaware North (both based in the US), as well as Autogrill (Italy), Compass Group and SSP Group (both based in the UK), and Elior Group and Sodexo (both based in France).

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 US industry is highly concentrated: the 50 largest companies account for about 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Companies in this industry primarily get their revenues from meals, snacks and beverages for immediate consumption, which account for more than 95%. Other products include alcoholic beverages for immediate consumption (less than 5%) and meals, snacks, and beverages prepared for immediate consumption. Food includes pizza, Mexican and Asian cuisine, sandwiches, salad bars, chicken, and hamburgers. Beverages include soft drinks, tea, coffee, bottled water, and juice.