FM's 2010 Top 50 Management Companies

Mike Buzalka

A unprecedented 15 companies in the Top 50 — including four of the top seven — reported revenue drops in their most recently completed fiscal years, starkly highlighting the difficult period the entire industry has experienced. On the other hand, there were also a number of companies that posted impressive gains, indicating that growth niches can be found in even the most challenging times.

The toll this has taken is reflected in the largest as well as regional contract operations. Even market-leading Compass Group North America reported only a marginal sales increase for FY 2009 while #2 Aramark experienced a $530 million decline. (The fiscal years reported here in most cases reflect a period that includes the deepest part of the U.S recession.)

FM's Top 50 is limited to firms that operate significant manual foodservice operations, whatever else they may do. For this reason, companies that are, for example, exclusively vending specialists or caterers are not included.

Because of this and other quirks in the contract services market, caution should be exercised before drawing larger conclusions about a company's market position simply from its nominal standing on the list.

Onsite foodservice is a remarkably varied industry encompassing operations in a wide variety of environments, from school lunchrooms to football stadium skyboxes. Given this diversity, one should review the business summaries for each company to get a more accurate picture of its market activity.

Another complicating factor: contract terms that affect the revenue a contractor derives from a particular operation may obscure the scope of what is being managed. For instance, a contractor may get more top-line revenue from a modest-sized P&L operation than from a straight fee arrangement that actually feeds many more customers.

In the Top 50, we use the gross revenue number that reflects the dollars companies put on their top line rather than a managed volume number because, in the end, a company's size is most accurately indicated by its gross revenues.

Click and read about the Top 50 Management Companies

1. Compass GroupNorth America

CHARLOTTE, NC
www.cgnad.com

SALES VOL. 2009: $9,100
2008: $9,000

CONTRACTS 2009: 8,686
2008: 9,110

SEGMENTS SERVED: B&I (37%), Education (22%), Healthcare (26%), Recreation (12%), Other (3%)

Compass North America is a division of London-based Compass Group PLC. It accounted for 44% of the parent company's revenues in fiscal 2009, a four percent increase from 2008 as the company's European operations faltered while the North American unit benefited from a strong focus on driving efficiencies and winning new business. It grew 3.6% in constant currency terms while Europe (0.1%) and UK/Ireland (-5%) stagnated. In the first half of fiscal 2010, revenues and profit margin were both on pace to surpass 2009.

The growth is led by the Education, Healthcare and Recreation segments while B&I has been challenged by headcount drops and reductions in catering expenditures. The gap is illustrated by the fact that B&I dropped from 37% of unit revenues in fiscal 2009 to 29% in the first half of 2010.

Nevertheless, a strong focus on value and grab-and-go offerings, combined with aggressive promotion and tight cost management boosted B&I margin growth, while contract wins like the World Bank Group, Wells Fargo, Visa, Citizens Bank and Pfizer Conference Solutions have added needed volume. Also making an impact was the acquisition deal in early 2009 for B&I support services specialist Kimco, which allows the company to offer corporate clients a wider range of support services.

Expanded service offerings, thanks to the integration of recent acquisitions Professional Services and Medi-Dyn into the Crothall division, have also boosted healthcare revenues. Recent contract additions in this sector include Mount Sinai Hospital in New York, Staten Island University Hospital, the Kaiser Foundation Hospitals in California and the Miami Jewish Health System, where the services will include senior dining.

The Education segment is benefitting from increases in board plan participation and in enrollment as well as strong retention rates. New clients include the University of North Carolina-Greensboro, Duval County (FL) Public Schools, the University of Pennsylvania and Bowling Green (OH) State University.

In the Sports & Recreation area, Compass continues to add accounts, especially through its Levy Restaurants unit. Additions over the past year include the Palace of Auburn Hills near Detroit, the United Center in Chicago, Philips Arena in Atlanta, Arco Arena in Sacramento and the 2010 U.S. Open Golf Championship.

A year ago, Compass acquired Lackmann Culinary Services, an East Coast regional contractor (#17 on the 2009 Top 50) with a strong concentration in the B&I and college segments. Earlier this year it added SSC (Southeast Service Corp.), a provider of cleaning and maintenance services to the K-12, college and B&I segments with annual sales of $150 million.

</>2. Aramark Corp.

PHILADELPHIA
www.aramark.com

SALES VOL. 2009: $8,394
2008: $8,925

CONTRACTS 2009: 3,524
2008: 3,385

SEGMENTS SERVED (e): B&I (25%), Sports/Entertainment (19%), College/University (23%), Healthcare (19%), Corrections (5%), K-12 (5%), Vending/OCS (4%)

The sales volume shown is for Aramark's domestic Food & Support Services business for fiscal year 2009. It includes revenues from both foodservice and the many non-food-related support services the company offers. The international Food & Support Services unit generated an additional $2.3 billion while the Uniforms unit added $1.58 billion. Three quarters of the contracts operated by the Food & Support Services unit are P&L deals of one kind or another.

Highlights of the past year include operating the foodservice at this year's Major League Baseball All-Star Game in Anaheim, CA, Operationally, Aramark realized a big hit with baseball fans with its gluten-free menus at select big league ballparks.

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Aramark recently expanded its partnership with the CIA's Pro Chef Certification program from its sports/entertainment unit to 40 of its higher education sector chefs. The company also broadened its higher education portfolio of facilities service capabilities to include various “green” specialties and expended its Jam Rewards loyalty program targeted at the college market. Also new for this sector is a pizza concept called Topio's that specializes in old-world pies customized with modern flavors and spices, and Burger Studio, which lets students enter their own customized orders at touch screen-based ordering kiosks.

In the K-12 sector, the major initiative was the launch of the Cool Caf dining environment in more than 500 elementary schools last fall after a pilot the previous year proved successful in boosting participation services and fruit/vegetable consumption.

The healthcare and corrections units named new presidents, Tim Campbell and Scott Parrill, respectively

An exclusive multi-year agreement with Cooking Light magazine will expand health and wellness offerings and the magazine's reach into 25 of Aramark's North American B&I locations.

New client deals in the past year include Camden (NJ) Schools, Lawrence Technological University, a seven-year agreement with Provena Health System for clinical technology services and a 10-year contract with the National Park Service to operate Lake Crescent Lodge, located in Olympic National Park. Aramark also extended its existing deal with Houston ISD.

Currently, Aramark manages dining and food services for 1,508 B&I locations, 385 hospitals and long-term care facilities, 484 colleges/universities, 361 K-12 school districts, 500 corrections facilities, 210 recreation/convention facilities, 37 conference centers and 39 university stadiums.

3. Sodexo, Inc.

GAITHERSBURG, MD
www.sodexousa.com

SALES VOL. 2009: $7,700
2008: $7,700

CONTRACTS 2009: 6,000
2008: 6,000

SEGMENTS SERVED(e): B&I (30%), Healthcare (27%), College/University (19%), K-12 (6%), Other (18%)

Sodexo, Inc., is the North American division of a Paris-based world-wide contract management company that offers a variety of support services to businesses, institutions and public entities in 80 countries, realizing $19.8 billion in revenues in its most recent completed fiscal year. The North American division generated around 39% of that total after posting an organic growth rate of 1.8% in FY2009.

The unit posted a revenue drop of 2.4% in the first nine months of the 2010 fiscal year, which ends August 31. Organic growth and acquisitions contributed to a 1.9% increase, but currency impact due to the strength of the Euro (which the parent company uses as its base currency) relative to the U.S. dollar dragged the overall number into negative territory.

In FY2009, Healthcare (4% organic growth) and Education (4.5% organic growth) were the growth drivers while B&I (5.9% decline) lagged due to reductions in corporate discretionary spending, staff cuts and shortened hours at many client sites. Nevertheless, the company did pick up some significant B&I clients including the Federal Reserve in New York/New Jersey and three Invesys Systems sites.

The Healthcare segment growth was mainly driven by increased revenue from existing sites, thanks to new service offerings, while the company says Education benefitted from rising college enrollments, higher school meal participation levels and strong client retention. Major new clients included Memorial Hospital Central of Colorado, North Shore Medical Ctr. in Miami, Kaiser Permanente in Los Angeles, Paterson (NJ) Public School District, Brigham Young University-Idaho and the University of Wisconsin-Parkside.

Meanwhile, the Sports & Leisure unit landed deals with the Indianapolis Museum of Art, Chicago Botanical Garden and the University of Michigan athletic venues.

In other news, Sodexo completed a master license agreement with the Bruegger's restaurant chain that gives it the right to open Bruegger's Bakery Cafes in their managed locations over the next 10 years. It also apppointed Lorna Donatone as company COO and president of its Education Market unit and named new Corporate Service Solutions, School Services and Hospitals Division presidents: Mark Bickford, Stephen Dunmore and Calvin Johnson, respectively.

4. Delaware North Companies

BUFFALO
www.delawarenorth.com

SALES VOL. 2009: $1,900
2008: $2,200

CONTRACTS 2009: 135
2008: 133

SEGMENTS SERVED(e): Stadiums/Arenas (32%), Parks/Recreation (18%), Airports (14%), Other (36%)

DNC operates in several travel and recreation segments, most prominently in stadiums/arenas under its Sportservice unit, in state and national parks and resorts under its Parks/Recreation unit and in 18 major U.S. airports under its Travel Hospitality Services unit.

Recent highlights have included a partnership with the Food Network to develop new menu, restaurant and retail concepts for DNC locations across North America, and a supplier deal with the Pro*Act fresh produce distribution network for a more effective local product sourcing channel.

Meanwhile, Sportservice began operating dining and catering at Target Field in Minneapolis, the new home of Major League Baseball's Minnesota Twins, its tenth Major League client. This fall, it will begin operating at the New Meadowlands Stadium, the brand new joint home of the NFL's New York Giants and New York Jets. This past January Sportservice secured a concessions deal with the NFL's Carolina Panthers for food and merchandise sales, its sixth NFL client.

Travel Hospitality Services debuted a Pink's Hot Dogs stand at Los Angeles International Airport this summer, a first for the iconic local brand, and last fall, it inked a partnership with “Iron Chef” Masaharu Morimoto to develop fast-casual eateries (“Skewers”) serving Japanese bar food in airports across the country.

The Parks/Recreation unit extended its deal with NASA to operate the Kennedy Space Center Visitor Complex for another 10 years, won a contract to manage the iconic Queen Mary luxury liner in Long Beach, CA, and augmented its operations at Yellowstone National Park with the purchase of Yellowstone Park Hotel and Gray Wolf Inns & Suites this past spring.

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5. Centerplate

STAMFORD, CT
www.centerplate.com

SALES VOL. 2009: $740.7
2008: $793

CONTRACTS 2009: 250
2008: 130

SEGMENTS SERVED: Stadiums/Arenas (57%), Convention/Conference Ctrs. (25%), Parks/Recreation (10%), Museums/Perf. Art Ctrs. (2%), Transportation (1%)

Centerplate's biggest recent move was its merger late last year with Boston Culinary Group (#10 on the 2009 FM Top 50), which added more than a hundred clients in the sports/entertainment segment, including venues like Dolphin Stadium, home of the NFL's Miami Dolphins and Major League Baseball's Florida Marlins; the Bank Atlantic Center, home of the NHL's Florida Panthers; the Virginia Beach Convention Center; 16 marquee ski resorts; and arenas and stadiums at a dozen colleges. Veteran Boston Culinary CEO Joseph O'Donnell joined Centerplate as chairman of its board.

In addition, the company announced deals in the past year with the Baltimore Convention Center, the Cobo Convention Center in Detroit, the Niagara Convention and Civic Centre in Ontario, Canada, and the home stadiums of the Newark Bears and Lake County (IL) Fielders.

It also recently named Steve Trotter vice president of new business development and last year added hospitality veteran George Wooten (Safeway, Quizno's, Arby's) as EVP of operations.

Operationally, Centerplate launched a new strategic design initiative called Centerplate Stir to create custom hospitality solutions for clients, and Centers of Excellence, a company-wide platform to leverage in-house expertise to enahnce operations at individual client sites.

6. Guckenheimer Enterprises, Inc.

REDWOOD SHORES, CA
www.guckenheimer.com

SALES VOL. 2009: $345(e)
2008: n/a

CONTRACTS 2008: 200(e)
2006: n/a

SEGMENTS SERVED(e): B&I (97%), Other (3%)

Guckenheimer has grown from a West Coast regional player to being a national company that is the largest provider of dining services to the corporate dining segment outside of the “Big Three” of Aramark, Compass and Sodexo. It currently operates in over two dozen states, though Northern California remains its strongest territory.

Company founder Dr. Stewart Ritchie passed away earlier this year, and his wife Jeanie, formerly the company's CAO, succeeded him as CEO. Earlier, Executive VP Frank Latpetina had been named president/COO.

The company continues to focus on health/nutrition and sustainability, customizing menus and promotional programs to meet specific client needs, says Lapetina.

7. Guest Services, Inc.

FAIRFAX, VA
www.guestservices.com

SALES VOL. 2009: $330
2008: $334

CONTRACTS 2009: 105
2008: 106

SEGMENTS SERVED: Government (45%), B&I (30%), Parks/Recreation Centers (10%), Military (8%), Museums/Perf. Art Ctrs. (5%), Senior Dining (1%), College/University (1%)

Originally founded 93 years ago to provide government facilities in Washington with foodservices, Guest Services today operates in multiple segments. It manages cafes in public institutions (National Gallery of Art Sculpture Garden, Holocaust Museum National Museum of the Marine Corps), operates concessions in public spaces (National Park Service on the National Mall), at state and National Park accounts (Big Sur State Park, Bear Mountain Inn, Mt. Rainier National Park), government accounts (HUD, Bethesda Naval Hospital, GSA's Regional Office Building, Defense Intelligence Agency) and at private businesses (Northrup Grumman, General Dynamics, numerous prestigious Washington law firms).

New menu concepts include The Wedge, a sandwich concept with a sustainable ingredient/packaging focus, and Nature's Table, a salad bar concept that features locally grown and organic produce when possible.

8. Thompson Hospitality

HERNDON, VA
www.thompsonhospitality.com

SALES VOL. 2009: $321
2008: $270

CONTRACTS 2009: 140
2008: 120

SEGMENTS SERVED: B&I (39%), College/University (30%). K-12 (15%), Hospitals (7%), Museums/Perf. Art Ctrs. (6%), Arenas/Stadiums (3%)

Thompson is one of the country's largest minority-owned businesses. It operates both franchised commercial restaurants and onsite dining sites. Earlier this year it was named Black Enterprise magazine's 2010 Industrial/Service Company of the Year for its impressive performance in the face of a tough economy.

Thompson operates campus dining at almost two dozen higher education accounts, many of them historically black colleges and community colleges, as well dining as catering at high-profile corporate clients like Procter & Gamble and Verizon and at Walter Reed Army Hospital. It also partners with various business units of Compass Group on corporate dining and K-12 school contracts, including Chicago City Schools, where the company has recently ramped up efforts to secure more locally grown fruits and vegetables for the district dining program.

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9. AVI Food Systems, Inc.

WARREN, OH
www.avifoodsystems.com

SALES VOL. 2009: $200(e)
2008: n/a

CONTRACTS 2009: 70(e)
2008: n/a

SEGMENTS SERVED(e): College/University (60%), B&I (25%), Healthcare (15%)

Privately held AVI is one of the nation's largest vending and office coffee services providers. Recently, it has been concentrating on building its manual foodservice business. This now generates an estimated $50 million in annual revenues.

The manual foodservice operations are divided between two divisions. One serves institutional clients like colleges and hospitals. The other operates in B&I in conjunction with the much larger vending group.

Onsite dining clients include Kenyon College, Hiram College, Tiffin University, Slippery Rock University, the Cleveland Clinic retail operations and Shaker Heights (OH) Schools.

In the past year, AVI purchased the routes and assets of Kentuckiana Food Service Co. of Louisville, KY.

10. Ovations Food Services

TAMPA, FLwww.ovationsfoodservices.com

SALES VOL. 2009: $188
2008: $208

CONTRACTS 2009: 110
2008: 103

SEGMENTS SERVED: Stadiums/Arenas (49%), Convention/Conference Ctrs. (18%), Fairgrounds (13%), Museums/Perf. Art Ctrs. (6.3%), Ampphitheaters (5.5%), Casinos (3.6%), Racetracks (3.6%), Parks/Rec. Ctrs. (1%)

Ovations is part of the Comcast-Spectacor entertainment conglomerate. The parent company also owns several major and minor-league sports teams and arenas, a 24-hour sports programming network and a facility management firm. Ovations operates in convention and exposition centers, fairgrounds, parks, amphitheaters and 41 sports stadiums and arenas.

These include EverBank Field, home of the NFL's Jacksonville Jaguars, as well as minor league and spring training ballparks and sports venues at Wright State, San Jose State, Fresno State, Temple and George Mason Universities.

At its ballparks, Ovations has been busy augmenting its menus with locally themed specialties like the Maryland Crab Pretzel for the Frederick (MD) Keys, Salmon Tacos for the Sacramento River Cats and the Topes Fajita Dog (a footlong all-beef hot dog in a grilled tortilla) for the Albuquerque Isotopes.

11. Valley Services, Inc.

JACKSON, MS
www.valleyinc.com

SALES VOL. 2009: $185
2008: $181

CONTRACTS 2009: 300
2008: 350

SEGMENTS SERVED: Senior Nutrition/Frozen Meals (50%), Hospitals (24%), Corrections (9%), College/University (8%), B&I (7%), K-12 (2%)

Valley realizes half of its revenues from manufacturing and distributing meals for senior nutrition programs. Traditions, the frozen meal division, recently completed an expansion that doubled its capacity, and is in the final stages of implementing a manufacturing system that will allow each meal to be tracked from ingredients to the customer. It also introduced two new menus: Right Course diabetic meals and Latin frozen meals.

On the dining management side, the corrections segment has been a significant growth area, especially in county jail operations where budget constraints make outsourcing more attractive for sheriffs. Operationally, Valley has fully integrated its back-office system and continues to expand POS capabilities in education accounts with online payment and biometric options.

Valley continues to emphasize health and wellness, re-engineering its Choice Matters program and enhancing its Outtakes grab and go program with new premium salads, sandwiches, parfaits and other similar on-the-go selections.

12. Gourmet Services, Inc.

ATLANTA
gourmetservicesinc.com

SALES VOL. 2009: $184
2008: $182.5

CONTRACTS 2009: 20
2008: 25

SEGMENTS SERVED(e): College/University (75%), B&I (15%), Hotels/Concessions (8%), K-12 (2%)

Gourmet Services began in 1975 as a campus dining services provider to half a dozen historically black colleges. It expanded rapidly in that segment and into other segments, especially B&I. To serve customers better, it also secured branding alliances with a number of notable street restaurant chains, including McDonald's, Cinnabon, Chick-fil-A and Subway.

Late last year, Gourmet Services added a new COO for its College & University unit, Gil Jones, who has helped the firm expand its supplier diversity initiative with the addition of a number of minority/women owned vendors. It has also developed a number of concepts for retail food court operations in its college accounts, as well as implementing vegan, vegetarian, gluten-free and pescatarian menus to help clients keep up with current menu trends.

13. Xanterra Parks & Resorts

GREENWOOD VILLAGE, CO
www.xanterra.com

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SALES VOL. 2009: $175(e)
2008: n/a

CONTRACTS 2009: 25(e)
2008: n/a

SEGMENTS SERVED: Parks/Recreation (100%)

Xanterra (known as Amfac until 2002) was formed in 1995 through the acquisition of TW Recreational Services, a business that traced its history back to 1905. Then, as the Fred Harvey Co., it began managing concessions operations in national parks like the Grand Canyon. Today, it operates in national parks like Yellowstone, the Grand Canyon and Crater Lake, as well as several resorts and eight Ohio state parks. Xanterra was acquired by the Anschutz Corp. in 2008. Earlier this year it acquired the Kingsmill Resort in Williamsburg, VA.

14. Healthcare Services Group, Inc.

HUNTINGDON VALLEY, PA
www.hcsgcorp.com

SALES VOL. 2009: $159.8
2008: $115

CONTRACTS 2009: 350
2008: 275

SEGMENTS SERVED(e): Senior Dining (90%), Other (10%)

The volume listed is foodservice only. Healthcare Services Group derives the bulk of its $692.7 million in annual revenues from the provision of housekeeping, laundry, linen and facility maintenance services. It operates in 2,300 nursing homes, rehabilitation facilities, retirement centers and hospitals in 47 states and Canada.

Clients include the Golden Horizons nursing home chain, which accounts for about 12% of total company revenues, and 11% of foodservice revenues. In 2009, HSG acquired Contract Environmental Services, Inc., a company in the same market as HSG with annual revenues of around $40 million.

15. CulinArt, Inc.

PLAINVIEW, NY
www.culinartinc.com

SALES VOL. 2010: $146
2009: $142

CONTRACTS 2010: 122
2009: 117

SEGMENTS SERVED: B&I (51%), College/University (28%), K-12 (10%), Parks/Rec. Ctrs. (5%), Senior Dining (3%), Convention/Conference Ctrs. (2%), Corrections (1%)

CulinArt, which had entered the West Coast market with an acquisition in Southern California in 2006, expanded to Northern California in the past year with a high-profile existing client. It also entered the Pittsburgh market with a deal with Carnegie Mellon University and saw significant growth in the independent school segment.

In order to increase “same-store sales” in its existing B&I client base, CulinArt put great emphasis in the past year on its “Refresh” programs. In the Catering Refresh program, in-house catering menus were updated and standardized, while in the Cafe Refresh program, a “fresh eye approach” was brought to long-time accounts to evaluate presentation, menuing, merchandising, signage and other aspects of the operation.

On the food front, wellness was a major focus, with CulinArt's Whole Grain Goodness program, gluten-free menu options and the Eat Well customer education program. An innovative new concept was retail creperie at the Waterside Plaza unit on the East River in New York City.

16. Next Generation Vending & Food Service, Inc.

CANTON, MA
www.nextgenerationone.com

SALES VOL. 2010: $120
2009: $100

CONTRACTS 2010: 78 (dining only)
2009: 67 (dining only)

SEGMENTS SERVED: B&I (87.1%), Government (6.5%), College/University (6.4%)

Next Generation was formed in 2007 by the acquisition of the assets of All Seasons Services, a major vending and manual foodservice management company that had run into financial difficulties and been seized by a creditor after defaulting on a major loan. The company has added to its business since then but remains primarily a vending concern. However, the 17% of its revenues that are derived from dining operations (about $20 million) are sufficient to qualify the company for the Top 50.

Like many companies, Next Generation is marketing healthy food choices, promoting its Vitalities brand, and introducing an all-organic and natural vending machine program through its GreenVend brand. It has also deployed remote monitoring technology in select vending markets with a plan to roll out company wide. Meanwhile, the manual dining end has focused on growing check averages and participation rates through an increase in marketing and promotions.

17. Trusthouse Services Group

CHARLOTTE, NC
www.trusthouseservices.com

SALES VOL. 2010: $118
2009: $104

CONTRACTS 2010: 210
2009: 205

SEGMENTS SERVED: Senior Dining (45%), College/University (31%), K-12 (19%), B&I (2%), Facility Mgt. (2%), Corrections (1%)

Trusthouse was formed in 2008 through the acquisitions of three formerly independent foodservice management companies and is headed by former Compass Group CEO Michael Bailey. The firm prides itself on low management turnover and strong organic growth. The greatest area of expansion has been in the long term care market, for which Trusthouse has expanded its Altered Consistency (pureed food) and Community Dining programs. The latter involves closing tray lines in favor of taking hot food directly to resident dining rooms, where it can be served in a more personalized way.

Trusthouse has also expanded its exhibition cooking concepts for its K-12 business, put increased focus on sustainability initiatives (local produce, organics, etc.) and developed ways to serve traditional favorites with new flair, such as its Mashed Potato Bar with different toppings.

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18. Whitsons Culinary Group

HUNTINGTON STATION, NY
www.whitsons.com

SALES VOL. 2010: $110.3
2009: $101.3

CONTRACTS 2010: 209
2009: 183

SEGMENTS SERVED: K-12 (65%), Food Manufacturing (24%), B&I (10%), Senior Dining (1%)

About a quarter of Whitsons' revenues come from the production of meals for the company's various dining operations as well as for independent senior dining programs and, most recently, for the consumer market. Most of the rest is generated by the management of onsite dining operations, mostly in K-12 schools.

A major recent initiative has been the development of a line of allergen-free foods under the NuLife Foods brand, which is available both to the consumer market and to Whitsons' K-12 clients. Also new for the K-12 market are SmartCalc, a web-based meal nutrition calculator, and Safari Cafe, a virtual online serving line where students can build a meal tray and see the nutrition information for the choices.

19. Treat America Food Services

OVERLAND PARK, KS
www.treatamerica.com

SALES VOL. 2009: $105.2
2008: $78.6

CONTRACTS 2009: 2,400
2008: 2,400

SEGMENTS SERVED: B&I (73%), College/University (12%), K-12 (6%), Government (6%), Convention/Conference Ctrs. (3%)

Treat America's revenues come almost equally from vending and dining operations except for a small amount (about six percent of the total) derived from office coffee, catering and concessions. The dining operations are conducted in more than a hundred facilities in various segments including B&I, schools, colleges, healthcare providers and government agencies across the Midwest.

Recent initiatives include a growing emphasis on nutrition, including the rollout of a nutritional website and the deployment of nutritionally analyzed menus. The vending division introduced new rice and pasta bowls as part of its offering upgrades.

20. Taher, Inc.

MINNETONKA, MN
www.taher.com

SALES VOL. 2010: $102
2009: $105

CONTRACTS 2010: 229
2009: 243

SEGMENTS SERVED: K-12 (59%), B&I (12%), College/University (12%), Commercial Restaurants (10%), Senior Dining (7%)

Taher operates primarily in the Upper Midwest, where it is a major player in the K-12 market. In all, it operates at more than 400 locations. Taher's foray into commercial restaurants, initiatied several years ago with the opening of four single-location units and augmented by the acquisition in 2008 of the Timber Lodge Steakhouse chain, continues to contribute a small part of overall company revenues.

In its onsite operations, Taher is focused on retaining existing clients and customers. It has introduced more lower-priced entrees and food-to-go choices and continues to emphasize healthy food and farm-to-table options.

21. Metz & Associates, Ltd.

DALLAS, PA
www.metzltd.com

SALES VOL. 2009: $97
2008: $92

CONTRACTS 2009: 125
2008: 120

SEGMENTS SERVED: K-12 (36.6%), B&I (21.6%), College/University (16.9%), Senior Dining (16%), Hospitals (8.9%)

Metz made a number of high-level management changes in the past year, naming Jeffrey Metz president/COO of the Metz Group, the parent company of Metz & Associates that also runs some franchise restaurant units. Maureen Gallagher was named VP-marketing for Metz Group while Ryan McNulty, Jimmy Blicharz and Chris Motyka were named director-culinary development, VP-K-12 school dining and VP-support services for Metz & Associates.

McNulty's culinary leadership has produced a number of menu concepts, including Bowl Cuisine, featuring Asian rice or noodle dishes, and the Chopping Block, which specializes in salads with different toppings and dressings.

22. Unidine Corp.

NEWTON, MA
www.unidine.com

SALES VOL. 2009: $95.8
2008: $92

CONTRACTS 2009: 140
2008: 100

SEGMENTS SERVED: Senior Dining (50%), Hospitals (30%), B&I (20%)

Unidine has decided to make a strong commitment to stick to its core food and dining management services, preferring to offer bundled non-food related services like housekeeping to healthcare clients through a partnership with environmental services specialty firm Xanitos, LLC, which was finalized this past summer.

In its dining operations, the company continues to expand its fresh food offerings and menus to take advantage of seasonal availability of fresh ingredients through relationships with networks of local producers and procurment practices that maximize efficiency and minimize waste.

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The company says it has also refined its approach to decentralized dining in the senior services area to offer more flexibility and choice better suited to modern senior expectations, and in its room service offerings for its hospital clients.

23. Nutrition, Inc. dba The Nutrition Group

WEST NEWTON, PA
www.thenutritiongroup.biz

SALES VOL. 2009: $95
2008: $102

CONTRACTS 2009: 350
2008: 340

SEGMENTS SERVED: K-12 (85%), Senior Dining (12%), Corrections (2%), B&I (1%)

Nutrition, Inc., offers clients an integrated package of foodservice, catering, custodial/maintenance and vending management services, as well as dining facility design and consulting services. It currently operates at more than 1,200 individual locations.

Quality assurance, employee training — through its successful Nutrition University program — and sustainability are the primary in-house initiatives the company has focused on in the past year.

24. Parkhurst Dining Services

PITTSBURGH
www.parkhurstdining.com

SALES VOL. 2009: $94
2008: $105

CONTRACTS 2009: 45
2008: 45

SEGMENTS SERVED: College/University (63%), B&I (32%), Museums/Perf. Art Ctrs. (5%)

Parkhurst is one of two onsite foodservice divisions (the other is #30 Cura Hospitality) of the Eat'n Park Hospitality Group's Onsite Brands Division. The company expanded its marketing efforts into New England, looking to add clients in the private college/university segment. Meanwhile, it has also continued to grow its clientele in existing markets, primarily Pennsylvania, where it picked up

CONTRACTS with Rosemont College, Mercyhurst College, Rite Aid and Google's downtown Pittsburgh office.

The company's menu focus on healthful and sustainable dining continues to develop. At the Maryland Institute College of Art, Parkhurst chefs presented Menu Planting, a menu concept that focuses on plant-based main entrees with protein “sides.” Also new is Street Foods, an array of international dishes ranging from bowls and food on sticks to sandwiches, sweets, breads and stuffed items.

25. A'viands Food & Services Management

ROSEVILLE, MN
www.aviands.com

SALES VOL. 2009: $76.5
2008: $64.9

CONTRACTS 2009: 200
2008: 175

SEGMENTS SERVED: Corrections (32%), Senior Dining (25%), K-12 (16%), College/University (12%), Hospitals (10%), B&I (5%)

A'viands operates in the Midwest and Southwest, the latter through its Summit Food Service Management unit based in Albuquerque. Clients include the Metropoint business complex in St. Louis Park, MN, the University of Wisconsin-Green Bay and Augsburg College.

In the past year A'viands has further aligned its business by segment, adding a vice president over each business group. On the menu front, the company continues to develop and implement proprietary concepts like Chilaca (burritos, tacos, nachos, quesadillas and other Mexican specialties), Green Leaf (exhibition style salads) and Bwings (barbecued chicken wings).

26. Southern Foodservice Management, Inc.

BIRMINGHAM, AL
southernfoodservice.com

SALES VOL. 2009: $73.15
2008: $72.25

CONTRACTS 2009: 80
2008: 105

SEGMENTS SERVED: B&I (64%), Government (20%), Military (4%), Convention/Conference Ctrs. (4%), Parks/Rec. Ctrs. (3%), K-12 (3%), Arenas/Stadiums (2%)

In the past year, Southern has pursued a rebranding effort centered around “Something Extra in Onsite Dining. It also forged a partnership with the Danish integrated facilities services management firm ISS for pursuit of global facilities services contracts as a way of positioning itself as an alternative to the industry's so-called “Big Three” management companies.

On the menu front, Southern has put greater focus on grab-n-go, Premium (restaurant style) Meals using display cooking, sushi (under its own Pacific Rim brand), vegetarian selections, individual pasta bakes and premium deli offerings utilizing Boar's Head branded products. It also has put more emphasis on nutritional analysis and introduced its Farmers Market concept, featuring locally grown produce and organic offerings.

27. Thomas Cuisine Management

MERIDIAN, ID
www.thomascuisine.com

SALES VOL. 2009: $73
2008: $65

CONTRACTS 2009: 45
2008: 52

SEGMENTS SERVED: Hospitals (74%), B&I (20%), Arenas/Stadiums (3%), Vending (2%), College/University (1%)

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Thomas has been increasing the proportion of its business generated in hospitals relative to business dining over the past year, to the point where hospitals now generate about three quarters of company revenue (last year the split was nearly even between the segments). Recent contract wins include Skagit Valley Hospital in Mount Vernon, WA, IM Flash Technologies in Lehi, UT, and State Farm Insurance in Dupont, WA.

New concepts implemented in the past year include Fusions (international cuisine) and Metropolitan Wraps. Thomas has also been pushing toward menuing more local products, has continued to streamline its purchasing arrangements and implemented a new online learning management system.

28. MMI Dining Systems

FLOWOOD, MS
mmihospitality.com/dining

SALES VOL. 2009: $62
2008: $65

CONTRACTS 2009: 125
2008: 140

SEGMENTS SERVED: College/University (30%), Senior Dining (20%), K-12 (20%), B&I (10%), Arenas/Stadiums (10%), Corrections (5%), Hotels (5%)

MMI Dining is one of two divisions of MMI, which started as a hotel management firm in Meridien, MS, in 1956 (the original name was Mississippi Management, Inc.). The dining division was launched in 1993 to provide F&B management services to the parent company's properties but has since branched into a variety of other segments.

Recently, its expansion has been in the higher education market, especially among small private colleges in the Southeast, which remains MMI's core territory.

29. Creative Dining Services

ZEELAND, MI
www.creativedining.com

SALES VOL. 2010: $54
2009: $53

CONTRACTS 2010: 58
2009: 56

SEGMENTS SERVED: College/University (39%), B&I (17%), Senior Dining (14%), Parks/Recreation (10%), Convention/Conference Ctrs. (10%), K-12 (10%)

CDS, which recently celebrated its 20th anniversary, launched a completely redesigned web page last fall along with a corporate Facebook account. It also introduced four new proprietary concepts this spring: Mug Coffee Co., Decker's Sandwiches, Emma & Charlie's Pizza and Globe International Fare. Also new is the position of director of finance & administration, intended to expand and strengthen the corporation's infrastructure.

30. Cura Hospitality

OREFIELD, PA
www.curahospitality.com

SALES VOL. 2009: $54
2008: $64

CONTRACTS 2009: 29
2008: 33

SEGMENTS SERVED: Senior Dining (91%), Hospitals (8%), College/University (1%)

Cura is one of two onsite foodservice divisions of the Eat'n Park Hospitality Group's Onsite Brands Division (the other is #24 Parkhurst Dining Services). Originally operating exclusively in the senior dining segment, the company branched into the hospital segment several years ago and has seen its business in that segment grow. In the past year it picked up another major client in Indiana Regional Medical Center.

Cura's major recent initiative for its core segment is Culture Change, which is designed to change the dining experience at senior residential facilities into a more socially uplifting experience reminiscent of being at home by decentralizing meal service. Also rolled out recently was the Living Life wellness program, which places dining into a broader context designed to elevate seniors' overall well being.

31. LPM Holding Co. & Affiliates dba Epicurean Feast

MAYNARD, MA
www.epicureanfeast.com

SALES VOL. 2009: $51
2008: $43.5

CONTRACTS 2009: 96
2008: 98

SEGMENTS SERVED: B&I (95%), College/University (2%), Transportation (2%), K-12 (1%)

Epicurean Feast operates at over a hundred unit locations and gets almost 80% of its revenues from managing B&I dining operations. Most of the rest is from corporate catering and event management/rental services, with large/high-end functions assisted by the company's Currier & Chives unit. It also offers vending, office refreshment, c-store and kiosk management and even foodservice design services.

This summer, LPM Holdings acquired Sebastian's Cafes & Catering, a retail foodservice operator with five locations in Boston and Cambridge, MA. It also operates the Five & Diner, a 50s themed diner in Worcester, MA.

32. CL Swanson Corp.

COTTAGE GROVE. WI
www.swansons.net

SALES VOL. 2009: $48
2008: $52

CONTRACTS 2009: 836
2008: 850

SEGMENTS SERVED: B&I (84%), Government (5%), Hospitals (3%), College/University (3%), Corrections (2%), K-12 (1%)

CL Swanson is primarily a vending firm that gets about a quarter of its revenues from dining, catering, office coffee and convenience retailing services. It is currently looking to expand in the government and education segments, has developed a proprietary branded program called Bistro Box Lunches and added Laura Kalt, MBA, RD, to head its Food Service Group.

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In addition, the company has been continuing to emphasize its Better-4-You healthy lifestyle program and moved to more by-the-ounce self-service salad and sandwich bars, which reduce labor needs while gratifying customer demands for more control over portion size and ingredients.

33. Lakeview Center, Inc., dba Gulf Coast Enterprises

PENSACOLA, FL
www.gulfcoastenterprises.org

SALES VOL. 2010: $47.8
2009: n/a

CONTRACTS 2010: 8
2009: n/a

SEGMENTS SERVED: Military (100%)

The foodservice division of Gulf Coast, which generates about 45% of the company's revenues, serves more than 13,000 meals daily to military clients like the Naval Air Station in Pensacola, the U.S. Coast Guard Air Station in Clearwater, FL, and the Armed Forces Retirement Home in Washington, DC. The company has also operated units that won four Air Force Hennessey Awards and two Coast Guard Best Large Foodservice Operation awards.

The quality of those foodservices was validated recently with an Edward F. Ney Memorial Award for foodservice excellence won by the Pensacola Naval Air Station operation. In its operations, Gulf Coast continues to add healthy choices to its menus. Its “Go Green Program” puts green, yellow and red tags on the serving line to guide customeers on the healthfulness of different dishes.

34. Pomptonian Food Service

FAIRFIELD, NJ
www.pomptonian.com

SALES VOL. 2009: $47
2008: $51

CONTRACTS 2009: 74
2008: 70

SEGMENTS SERVED: K-12 (98%), B&I (2%)

Pomptonian manages cafeterias and vending operations in over 300 primary and secondary school locations. It has been busy expanding the array of healthful and appealing dining choices it can offer students, including the use of locally grown produce when in season. This past year's menus were enhanced with a new, colorful marketing theme coordinated with a new decor package available in elementary schools with colorful messages about healthy dining alternatives. Meanwhile, the middle and high schools received upgrades in cafeteria decor and ambience to produce environments that encourage participation.

35. Prince Food Systems, Inc.

HOUSTON
www.princefoodsystems.com

SALES VOL. 2010: $42.2
2009: $31.7

CONTRACTS 2010: 48
2009: 47

SEGMENTS SERVED: Hospitals (69%), B&I (29%), K-12 (2%)

Prince operates primarily in Texas except for five locations of the Regency Hospital chain, four of which are in Ohio and one in Louisiana. Its B&I clients include Boeing, Fujitsu, Lockheed-Martin, Samsung Semiconductor and Texas Petrochemicals, while in healthcare, the client list encompasses Columbus Community Hospital, Kindred Hospital in San Antonio, St. Mark's Hospital in LaGrange and four locations of the Triumph hospital chain.

36. Sanese Services, Inc.

COLUMBUS, OH
www.sanese.com

SALES VOL. 2009: $41.5
2008: n/a

CONTRACTS 2009: 40(e)
2008: n/a

SEGMENTS SERVED(e): B&I (75%), K-12 (15%), College/University (10%

Vending accounts for about half of Sanese's volume. In addition to operating cafeterias in its managed locations, the company also delivers pre-plated, chilled lunches (made in its Columbus production center) to schools through its Lunches Kids Love program, and also has a dedicated catering division, Catering By Design, which has its own conference center in Columbus. In the past year, it opened up a new branch operation in Lexington, KY.

37. HHA Services

ST. CLAIR SHORES, MI
www.hhaservices.com

SALES VOL. 2009: $38.8
2008: $34

CONTRACTS 2009: 15
2008: n/a

SEGMENTS SERVED: Hospitals (87%), Senior Dining (13%)

The listed volume number reflects only revenues generated by dining services, which HHA only began offering in 2005. The rest of HHA's revenue stream is derived from various non-food-related support services to healthcare institutions (reflected in the firm's original name and the source of its acronym — Hospital Housekeepers of America).

Among its food-related services, HHA offers retail and patient dining and foodservice consulting to both hospitals and senior care centers. The company has developed a portfolio of both patient and resident dining concepts as well as retail brands.

It has recently focused on maximizing retail flexibility to deliver better value and convenience to customers. Meanwhile, the company's Well Being nutrition information program spearheads HHA's wellness initiative.

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38. Continental Dining & Refreshment Services

STERLING HEIGHTS, MI
www.continentalserv.com

SALES VOL. 2009: $38.2
2008: $36.5

CONTRACTS 2009: 157
2008: 142

SEGMENTS SERVED: B&I (52%), Convention/Conference Ctrs. (16%), College/University (10%), Hospitals (9%), Corrections (5%), Museums/Perf. Art. Ctrs. (3%), K-12 (2%)

Continental realizes about half of its revenues from vending. Cafe operations, catering, office refreshment services and onsite c-stores make up the rest. The catering arm is highlighted by two cruise ships the company owns and uses to host events.

Green initiatives, local procurement, healthy and organic menu choices, nutrition labeling and recyling are some of the initiatives emphasized over the past year. Continental has also introduced new signature concepts to its cafes, added interactive online catering menus and introduced value meals — including dollar items — to its menus to accommodate value-conscious customers..

39. Corporate Chefs, Inc.

HAVERHILL, MA
www.corporatechefs.com

SALES VOL. 2009: $37.1
2008: $36.5

CONTRACTS 2009: 71
2008: 83

SEGMENTS SERVED: B&I (93%), College/University (7%)

Corporate Chefs primarily operates in white collar business dining environments and colleges in New England, New York, New Jersey and Virginia. About two-thirds of revenues come from operating onsite cafés and most of the rest from catering.

40. Brock & Co., Inc.

MALVERN, PA
www.brockco.com

SALES VOL. 2009: $33.4
2008: $35.2

CONTRACTS 2009: 55
2008: 53

SEGMENTS SERVED: B&I (68%), K-12 (23%), Government (8%), Museums/Perf. Art Ctrs. (1%)

A longstanding family business that has been around for more than 80 years, Brock has weathered the recent difficulties in its core B&I business by expanding in the private/independent school segment. Consequently, the portion of Brock's revenues derived from K-12 has jumped from 13% to 23% in the past three years, though B&I continues to contribute the bulk of the company's business.

41. Luby's Culinary Services

HOUSTON
www.lubyscs.com

MGD. VOL. 2010: $22
2009: $20

CONTRACTS 2010: 18
2009: 16

SEGMENTS SERVED: Hospitals (85%), B&I (10%), College/University (5%)

The onsite foodservice arm of the famous Luby's commercial cafeteria chain, LCS operates mostly in Texas and Louisiana, managing cafe operations for clients like Baylor College of Medicine, St. Joseph's Medical Center in Houston and the Baylor Medical Center in Carrollton, TX. Early this year it signed a multi-year agreement with Lone Star College System to manage the foodservice operations for the system's newest location at University Park.

LCS, which mostly menus its parent's traditional offerings, recently partnered with Seattle' Best Coffee on a new concept called What's Brewing, with the first unit opening at 1301 Fannin, a major office tower in downtown Houston, this past spring.

42. Quest Food Management Services, Inc.

LOMBARD, IL
www.questfms.com

SALES VOL. 2010: $21.8
2009: $20

CONTRACTS 2010: 41
2009: 37

SEGMENTS SERVED: K-12 (92%), B&I (4%), Scout Camps (4%)

A K-12 specialist operating primarily in the Chicago metro area, Quest introduced new organic menus along with a sustainable fresh-from-the-farm concept. Besides these, it deploys a series of its own station concepts designed specifically for the school market, including Deli Depot, Fiesta Junction, Mama Ping's Italian and the Lighter Side.

43. FAME Food Management, Inc.

WAKEFIELD, MA
www.famefoodmanagement.com

SALES VOL. 2010: $21.5
2009: $21

CONTRACTS 2010: 28
2009: 26

SEGMENTS SERVED: Government (40%), B&I (33%), College/University (15%), Hospitals (10%), Corrections (2%)

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FAME (Food & Management Enterprise Corp.) generates most of its revenues from managing dining operations. In the past year, the company added an account executive to its management team to oversee operations in the Washington, DC/Virginia/Maryland market. On the menu side, FAME has been successful with a by-the-ounce service platform in its government facility operations.

44. Restaurant Marketing Associates

MEDIA, PA
restaurantmarketing.us

SALES VOL. 2009: $21.5
2008: $22

CONTRACTS 2009: 19
2008: 16

SEGMENTS SERVED: B&I (80%), Museums/Performing Arts Centers (15%), Private Clubs (5%)

RMA, traditionally a manager of in-house dining services for law firms, publishing companies, financial institutions and brokerage firms in New York, New Jersey and Pennsylvania, has recently branched into social catering, as a way to supplement its commercial operations. Catering accounted for about 15% of the business in 2009, while managing dining operations accounted for 80% (the rest came from vending and office coffee operations). RMA also operates several public restaurants, including the Theater Square Grill at the New Jersey Center Performing Arts Center in Newark.

45. Nutrition Management Services Co.

KIMBERTON, PA
www.nmsc.com

SALES VOL. 2009: $20.0
2008: $20.9

CONTRACTS 2009: 38
2008: 44

SEGMENTS(e): Senior Dining (70%), Hospitals (30%)

Nutrition Management Services was a publicly held entity traded over-the-counter until early this year, when it went private. It manages manual foodservice, vending, snack shops and environmental services in continuing care facilities, hospitals and retirement communities and also operates the Collegeville (PA) Inn Conference/Training Center. This provides NMS a venue for showcasing its services and functions as an in-house training center and R&D lab.

46. Food Services, Inc.

MILWAUKEE
www.fsifoodservices.com

SALES VOL. 2009: $17
2008: n/a

CONTRACTS 2009: 35
2008: n/a

SEGMENTS: College/University (77%), B&I (23%)

FSI operates in the college and corporate dining segments, deriving about two-thirds of its revenues from managing dining operations, with the bulk of the rest from catering and vending. It has recently rolled out in-house branding of all of its concepts, with the array for the college segment encompassing pizza (Arrezzio), grill (Daily Grill), deli (Block & Barrel Deli Station), salad bar (The Garden) and entree (Comfort Food Alternatives) station alternatives. The company over the past year has also improved the uality of its marketing materials and website and focused on sustainability, nutrition and recycling in its operations.

47. Linton's Managed Services

EAST NORRITON, PA
www.lintonsmanagedservices.com

SALES VOL. 2010: $16.2
2009: $16

CONTRACTS 2010: 52
2009: 52

SEGMENTS SERVED: Community Service Programs (27%), K-12 (24%), Hospitals (23%), Corrections (12%), Military (8%), Non-Foods Distribution (6%)

Linton's is a manager of onsite dining and supplier of preprepared meals for clients in Pennsylvania, New Jersey, Maryland, Delaware and Florida. It also distributes nonfood items like disposables, cleaning supplies, office products and medical supplies. Providing nutritional information through cafe signage and displays was an emphasis over the past year. It also updated its online ordering platform for its community service clients, a recent growth sector for the company, and continued to focus on personalized service for clients across the segments in which Linton's operates.

48. Kosch Hospitality

ROCHESTER, MI
www.koschcatering.com

SALES VOL. 2010: $11
2009: $11

CONTRACTS 2010: 40
2009: n/a

SEGMENTS SERVED: B&I (40%), Convention/Conference Centers (20%), Government Facilities (15%), Parks/Recreation (15%), Hospitals (5%), College/University (5%)

Kosch, which began in 1981 as a commercial deli operator, now gets about 55% of its revenues from managing onsite dining operations, and another 25% from catering. The company has recently moved into the parks/recreation segment, giving it opportunities in the catering and concessions areas. In June, it landed a contract to manage the cafeteria and dining room for the Oakland County (MI) Courthouse.

49. Metropolitan Food Service, Inc.

MASSAPEQUA, NY
www.metropolitanfoodservice.com

SALES VOL. 2010: $11
2009: n/a

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CONTRACTS 2010: 4
2009: n/a

SEGMENTS SERVED: College/University (100%)

Metropolitan's clients include various branches of the CUNY (City University of New York) system as well as Vaughn College, Essex County (NJ) College and Queensborough CC. It recently launched its newest branded concept, Bare Planet Cafe, at City College of New York, developed around sustainable dining with local, sustainable foods and environmental packaging. Other proprietary concepts include Mexi-Cali Fresh Baja Grill, City Slices Authentic NY Pizzaria, Uptown Express Urban Grill and Yo-Tango frozen yogurt.

50. Food For Thought

LINCOLNWOOD, IL
www.fftchicago.com

SALES VOL. 2009: $10.5
2008: $14.5(e)

CONTRACTS 2009: 15
2008: 20

SEGMENTS SERVED: B&I (66%), Legal Firms (16%), Museums/Perf. Art Ctrs. (10%), College/University (8%)

Food For Thought recently added an experienced business development individual and a vice president of finance. It has also focused on being more environmentally conscious in matters like serving sustainably harvested goods and local/pesticide-free produce and using compostable packaging. It has also expanded the global/ethnic influences, pairing common Midwestern ingredients with world cuisine flavors and cooking techniques.

(e): FM estimate

The number that determines each company's place in the Top 50 is its domestic top-line revenues for the most recently completed fiscal year (indicated in each entry in millions of dollars). Because most companies in the Top 50 operate on calendar years, they show a 2009 figure. In the few cases where a company completed and compiled 2010 fiscal numbers, we've used that figure. Where revenue or other numbers were not available, FM estimates are based on known accounts and other information (indicated by a red “e”).