Food Service Contractors
Description
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).
The global market for catering services and food contractors is forecast to reach about $386 billion in 2029 at a 5.5% compound annual growth rate (CAGR), according to The Business Research Company.
The US food service contracting industry includes about 30,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $45 billion.
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 about 97%. 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.
Food service contractors typically prepare and serve meals cafeteria-style at locations such as schools, company offices, hospitals, and prisons, as well as in fast-casual or quick-service restaurants (QSRs). Stand-alone QSRs tend to be less than 4,000 square feet. Cafeteria and public dining settings can be up to 40,000 square feet.
A large food service contractor operates thousands of facilities and serves millions of customers each day. A typical site serves around 500 to 1,500 people daily.
Operations include food preparation, food service, and clean up. Food preparation involves cleaning, cutting, and cooking entrées, salads, soups, side items, and desserts. Major utility inputs include natural gas for cooking and electricity for refrigeration and cooling. Food ingredients are supplied by a food distributor. Increasingly, distributors are providing food service contractors with portion-controlled, pre-washed, and pre-assembled food items, reducing spoilage and limiting the time needed to prepare food on-site.
The global market for catering services and food contractors is forecast to reach about $386 billion in 2029 at a 5.5% compound annual growth rate (CAGR), according to The Business Research Company.
The US food service contracting industry includes about 30,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $45 billion.
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 about 97%. 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.
Food service contractors typically prepare and serve meals cafeteria-style at locations such as schools, company offices, hospitals, and prisons, as well as in fast-casual or quick-service restaurants (QSRs). Stand-alone QSRs tend to be less than 4,000 square feet. Cafeteria and public dining settings can be up to 40,000 square feet.
A large food service contractor operates thousands of facilities and serves millions of customers each day. A typical site serves around 500 to 1,500 people daily.
Operations include food preparation, food service, and clean up. Food preparation involves cleaning, cutting, and cooking entrées, salads, soups, side items, and desserts. Major utility inputs include natural gas for cooking and electricity for refrigeration and cooling. Food ingredients are supplied by a food distributor. Increasingly, distributors are providing food service contractors with portion-controlled, pre-washed, and pre-assembled food items, reducing spoilage and limiting the time needed to prepare food on-site.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
