Lunch special: Rising health concerns will cause industry operators to improve their menus

Over the five years to 2017, the Food Service Contractors industry has benefited from an increase in consumer spending on discretionary items, such as tickets to sporting and music events, as well as increased travel spending. Increased business and consumer spending over the past five years has contributed to industry expansion; the industry is also benefiting from the increased propensity of businesses, healthcare facilities and educational institutions to outsource their food services. Over the coming years, consumer spending and corporate profit are both expected to grow, meaning consumers and businesses are likely to increase their spending at food service locations...read more.

Industry Statistics & Market Size
Revenue
$46bn
Annual Growth 12-17
2.4%
Forecast Growth 17-22
Profit
Employment
615,790
Businesses
49,284
What Our Customers Say

Industry Threats & Opportunities

  • Increased business and consumer spending has contributed to industry expansion
  • Major industry players have moved toward offering full services to clients
  • The education segment will likely continue to grow, albeit at a slower rate
  • Industry Report - Industry Key Buyers Chapter

    In 2017, IBISWorld estimates that the top four industry players account for 59.3% of the available market share, providing a medium level of concentration. The top end of the industry is dominated by a small number of large operators that control large contracts for major stadiums, education facilities and events. Only a few companies have the capacity to service these contracts as they require economies of scale, extensive supply chains and the ability to hire large numbers of workers for seasonal events. As a result, the industry has become more consolidated over the past five years. Just prior to the recession, Aramark merged with RMK Acquisition Corporation to form the industry's second largest player. Oth...purchase to read more.

    Additional Insights for the Food Service Contractors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Food Service Contractors Industry are

  • Access to multi-skilled and flexible workforce
  • Ability to quickly adopt new technology
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Corporate profit in the Food Service Contractors industry impact industry performance..

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    What is the Food Service Contractors Industry?

    Industry companies provide foodservices at institutional, governmental, commercial or industrial locations. Examples of facilities where foodservices are provided include airports, food courts, college and university cafeterias and recreation and sports venues.

    Industry Products
  • Cafeteria dining services
  • On-site restaurants
  • Catering and banquet
  • Retail outlets and concessions
  • Food and nutrition services
  • Industry Activities
  • Providing airline foodservices
  • Contracting cafeteria foodservices (e.g. for schools, hospitals and government offices)
  • Contracting food concession (e.g. for sports venues, entertainment facilities and convention centers)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Corporate profit
  • Demand from air transportation
  • Demand from educational services
  • Demand from sports franchises

  • Current Performance
  • Consolidation
  • Growth in full-service contracts
  • Wages and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Varied growth
  • Profit and establishment growth
  • Table: Food Service Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Food Service Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Educational Services
  • Healthcare and Social Assistance
  • Arts, Entertainment and Recreation
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Cafeteria dining services
  • Retail outlets and concessions
  • Food and nutrition services
  • Catering and banquet
  • Other
  • On-site restaurants
  • Chart: Food Service Contractors Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for foodservice
  • Downstream industries

  • Major Markets
  • Business and industry
  • Educational institutions
  • Healthcare
  • Sports and entertainment
  • Other
  • Airlines and airports
  • Chart: Major Market Segmentation for the Food Service Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Food Service Contractors

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Food Service Contractors Industry

  • Industry Globalization
    Compass Group PLCSodexoAramark CorporationDelaware North Companies Inc.
  • Table: Compass Group PLC - financial performance
  • Table: Sodexo - financial performance
  • Table: Aramark Corporation - financial performance
  • Table: Delaware North Companies Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Food Service Contractors Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Food Service Contractors Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Canteen
  • A restaurant or refreshment bar provided by an industrial or commercial entity for employees or general consumers.
  • Cook-Chill
  • A technology that quickly freezes preprepared meals to retain flavor and nutritional benefits.
  • Foodservice
  • The making, transporting, serving and dispensing of prepared foods, either on the client's premises or via the provision of preprepared meals.
  • Full Facilities Management
  • An agreement with a client to supply multiple services, such as catering, security, maintenance and cleaning, in one contract.
  • Why buy this report?

    IBISWorld’s industry research report on Food Service Contractors can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Food Service Contractors:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Food Service Contractors market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Food Service Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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