Food Service Contractors in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 72231Revenue
$51.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
632k
Businesses
4,104
Wages
$XX.Xbn
Food Service Contractors in the US industry analysis
Food service contractors serve a diverse clientele, including hospitals, universities, ticketed venues and businesses, with demand and performance tied to that of their clients. COVID-19 forced the cancellation of most events, impacting food contractors and causing many companies to bow out of the industry. However, contractors offering 'essential' services to schools, universities and corrections facilities continued to operate amid lockdowns. A renewed desire to eat out stimulated the food contractors industry when the pandemic eased. Despite a significant drop in 2020 and a moderate drop in 2021, the food service contractors saw substantial and rewarding growth in 2022, a level not witnessed in a decade. Nonetheless, the average contractor's revenue is expected to contract at a CAGR of 2.8% through the end of 2024 because of COVID-19's overall impact, while revenue reached $51.3 billion in 2024, with profit at 5.4%.
Trends and Insights
- Food service contractors are making waves. They serve a wide client base, providing a restaurant-level quality along with the ease of fast food and the appeal of entertainment spots.
- The pandemic hit volatile food service markets hard. Services like airports and amusement parks saw plunging revenues as tourism fell, while nonvolatile markets such as schools and hospitals weathered the crisis more proficiently.
- Food service operators target population centers and tourist hotspots. They focus on areas with high foot traffic because these customers are typically less concerned about prices. Tourists, in particular, show less price sensitivity than locals.
- Long-term contracts stifle competition at money-making venues. Incentivized to cut competition using a contract, venues often exclude similar competitors to boost profits. Their approach creates an event-specific, restricted customer base.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated $51.3bn in 2024.
Trends and Insights
The industry was out of the frying pan and into the fire
- In 2020, the pandemic struck, slaying many well-established food service teams. However, the return to a more normal life turned things around, and the environment was a full buffet for starving companies. Each capitalized on massive returns to public life and rescheduling of events. Profit soared, and waitstaff collected large tips.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Food service providers must weather inflation pressures
- While food service providers continue to cook new products, overall growth for site-specific food establishments will depend on the return to work. Since COVID-19 changed workers' habits and preferences, small businesses may prefer to locate in areas with public restaurants than provide a small in-office cafeteria, as workers may be spending more time working remotely or prefer variety.
Biggest companies in the Food Service Contractors in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Compass Group Plc | 1,698.4 | 101.1 | 6.0 | |
ISS A | 1,160.8 | 32.7 | 2.8 | |
Aramark Corp | 768.7 | 19.1 | 2.5 |
To view the market share and analysis for all 9 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cafeteria dining services, On-site restaurants and Catering and banquet. Cafeteria dining services is the largest segment of the Food Service Contractors in the US.
Trends and Insights
Cafeteria dining soldiers on in education and corrections
- The lowest cost method of providing food services to large crowds of pre-selected individuals, cafeteria services are characterized by serving lines, where employees or diners will portion bulk quantities of food into individual serving sizes. Diners are typically part of a captive audience and have few alternative food choices.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Chain Restaurants in the US
- Single Location Full-Service Restaurants in the US
- Caterers in the US
- Street Vendors in the US
- Coffee & Snack Shops in the US
- Fast Food Restaurants in the US
Complementors
- Vending Machine Operators in the US
International industries
- Catering Services in Australia
- Catering Services in New Zealand
- Catering Services in the UK
- Food-Service Contractors in the UK
Table of Contents
About this industry
Industry definition
Operators in the Food Service Contractors provide food services at institutional, governmental, commercial or industrial locations. Examples of facilities providing food services include airports, food courts, college and university cafeterias and recreation and sports venues.
What's included in this industry?
Cafeteria dining servicesOn-site restaurantsCatering and banquetRetail outlets and concessionsFood and nutrition servicesOther servicesCompanies
Compass Group PlcISS AAramark CorpPurchase this report to view all 9 major companies in this industry.
Related Terms
FOODSERVICECANTEENFULL FACILITIES MANAGEMENTCOOK-CHILLIndustry Code
NAICS 72231 - Food Service Contractors in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Food service contractors are making waves. They serve a wide client base, providing a restaurant-level quality along with the ease of fast food and the appeal of entertainmen...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The pandemic hit volatile food service markets hard. Services like airports and amusement parks saw plunging revenues as tourism fell, while nonvolatile markets such as schoo...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Food service operators target population centers and tourist hotspots. They focus on areas with high foot traffic because these customers are typically less concerned about p...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Long-term contracts stifle competition at money-making venues. Incentivized to cut competition using a contract, venues often exclude similar competitors to boost profits. Th...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Top food service contractors are diversifying revenue through building management contracts. Beyond food preparation, these contracts incorporate tasks as diverse as laundry,...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Compass Group Plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of ISS A's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Aramark Corp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 6 additional companies
Detailed analysis
- Description and key data for Compass Group Plc, and factors influencing its performance in the industry
- Description and key data for ISS A, and factors influencing its performance in the industry
- Description and key data for Aramark Corp, and factors influencing its performance in the industry
- Description, key data and performance trends for 6 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Successful food companies handle hiring and law issues early. Resources from OSHA and the National Restaurant Association help these businesses, particularly those in food se...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Margins in food service contracting are often slim. Venue contracts usually claim significant profits, either per sale or seasonally.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Food Service Contractors in the US industry in United States in 2024?
The market size of the Food Service Contractors in the US industry in United States is $51.3bn in 2024.
How many businesses are there in the Food Service Contractors in the US industry in 2024?
There are 4,104 businesses in the Food Service Contractors in the US industry in United States, which has grown at a CAGR of 3.6 % between 2019 and 2024.
Has the Food Service Contractors in the US industry in United States grown or declined over the past 5 years?
The market size of the Food Service Contractors in the US industry in United States has been declining at a CAGR of 2.8 % between 2019 and 2024.
What is the forecast growth of the Food Service Contractors in the US industry in United States over the next 5 years?
Over the next five years, the Food Service Contractors in the US industry in United States is expected to grow.
What are the biggest companies in the Food Service Contractors in the US market in United States?
The biggest companies operating in the Food Service Contractors market in United States are Compass Group Plc, ISS A and Aramark Corp
What does the Food Service Contractors in the US in United States include?
Cafeteria dining services and On-site restaurants are part of the Food Service Contractors in the US industry.
Which companies have the highest market share in the Food Service Contractors in the US in United States?
The company holding the most market share in United States is Compass Group Plc.
How competitive is the Food Service Contractors in the US industry in United States?
The level of competition is moderate and increasing in the Food Service Contractors in the US industry in United States.
