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    Food Service Contractors Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 5/17/2021
    SIC Codes: 5812
    NAICS Codes: 722310
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Food Service Contractors Industry Profile

    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), Elior Group and Sodexo (both based in France).

    The global market for catering services and food contractors is about $250 billion in 2021 and is forecast to reach about $330 billion in 2025 at a 7% compound annual growth rate (CAGR), according to Globe Newswire.

    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 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 ...

     
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