2012 Contract Census Report

Recovery? Contractors see growth in 2011 according to FSD's 2012 Contract Census.

FoodService Director’s 2012 Contractor Census is a snapshot of the contract market, based on information from the 2010-2011 fiscal year, supplied by 38 firms.

Contract Census Highlights

  • The 38 companies in our survey manage 22,911 accounts in various markets. The largest number of contracted accounts among the core non-commercial markets was B&I, with 7,362, followed by schools, 4,368; hospitals, 3,702; colleges, 3,223; and long-term care, 1,262.
  • Revenue increased in 2011 versus 2010 for these companies by an average of 6.7%. Tier 3 companies—those with revenue less than $100 million—saw slower growth, 4.5%, than those companies with higher revenues.
  • Among the top three contractors, Compass Group saw the largest increase in revenue, with 11.1%, compared to Aramark’s 4.8% and Sodexo’s 3%. The Tier 1 companies saw the largest shift in revenues, increasing from a -0.4% revenue change in 2010 versus 2009 to a 6.8% revenue change in 2011 versus 2010.
  • The three companies that registered the largest percentage revenue growth in 2011 versus 2010 were Trusthouse Services Corp., Cura Hospitality and Unidine Corp. Trusthouse saw a 62.8% revenue increase, in large part due to acquiring Minnesota-based A’viands Food & Service Management. Cura’s 34.9% revenue growth is attributable to a 100% client retention from 2010 and adding two regional hospital and two large long-term care accounts with higher volumes. Unidine’s 23.3% growth came even though the company had only two more accounts in 2011 than it did in 2010. The company shed some of its smaller accounts, mostly in B&I, and added healthcare accounts, which tend to be larger, making the per-facility revenue higher than in 2010.  

B&I’s Shrinking Customer Base
In the past couple of years there has been a decline in the number of B&I locations that offer foodservice programs. The main causes for that decline, by percentage, as cited by our survey respondents:  

 

 

Local Produce Remains on Top
Ninety-seven percent of the companies in this year’s survey say they purchase locally sourced products. Produce, once again, was cited as the most often purchased local item. The percentages, by product type: 

Download: 
PDF icon 2012_Contract_Census_Report.pdf

More From FoodService Director

Managing Your Business
Starbucks college campus

Noncommercial dining centers are often filled with their own Starbucks, Burger Kings, Panera Breads and dozens of other nationally recognized brands. Branded concepts, whether corporate brands or self-operated, offer diners familiar names, menu items, and a sense of place. This translates into more money spent and more diner loyalty for foodservice operators.

However, the success of branded concepts vary greatly. There can be significantly different results depending on whether noncommercial operators decide to franchise, lease or develop their own branded concepts. There’s no one-...

Menu Development
pizza oven

Wood-fired ovens take the biggest slice of the pie when it comes to pizza-cooking preference for consumers. Just fewer than half (45%) of consumers say they prefer a pizza cooked in a wood-fired oven compared to other oven cooking methods. Here are the styles of ovens pizza consumers prefer most.

Wood-fired oven 45% Gas oven 13% Electric oven 11% Grilled 4% Coal oven 4% No preference 23%

Source: Technomic 2018 Pizza Consumer Trend Report , powered by Ignite

Photo courtesy of Thinkstock

Industry News & Opinion
polystyrene takeout

New York City will immediately start phasing out foodservice operations’ use of polystyrene takeout containers after a judge ruled on Friday against an operator coalition that had sued to overturn such a regulation, Mayor Bill de Blasio said over the weekend.

Unless the measure is blocked again on appeal, the city will commence a public education campaign to smooth the way for the change to other sorts of containers. Operators will be given a six-month grace period to find alternatives before they’ll be subject to sanctions.

The measure was scheduled to take effect last...

Managing Your Business
uber driver

The freelance, independent-contractor labor market known as the gig economy is distinguished by working short-term contracts, or gigs, such as driving for Uber, Lyft or Instacart.

The majority of the U.S. workforce will be freelancers by 2027, according to a study called “Freelancing in America: 2017,” conducted by Edelman Intelligence. The annual study, commissioned in partnership by the Freelancers Union and Upwork Global, estimates that 36% of the U.S. workforce consists of freelancers who contribute approximately $1.4 trillion annually—an increase of almost 30% over the...

FSD Resources

Code for Asynchronous jQuery Munchkin Tracking Code