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Food Service Contractors Report Summary

SIC Codes: 5812
NAICS Codes: 722310

Chapters Include

  • Industry Overview
  • Quarterly Industry Update
  • Business Challenges
  • Trends and Opportunities
  • Call Preparation Questions
  • Financial Information
  • Industry Forecast
  • Website and Media Links
  • Glossary of Acronyms
 

Food Service Contractors Industry Overview

Excerpt from Food Service Contractors Report

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).

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 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.

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