FM'S 2004 Management Company TOP 50

Mike Buzalka

Here's a sign of the times: 2004 is the first year since FOODMANAGEMENT began publishing its annual Top 50 listings that not a single company on the previous year's list was acquired in the interim. (The 2003 Top 50 did include Fine Host Corp., but that company had been acquired by Aramark in late 2002 and appeared only because it had operated independently for most of the previous year).

Does this mean the consolidation that has characterized the contract management segment since the 1990s is over?

Maybe. Maybe not. But it has clearly changed the face of the industry. In the process, the broadsegment managed services providers have stratified into a "Big Three" (Aramark, Compass Group North America and Sodexho, Inc.) and "all the rest."

It has also fostered a perception that the "Big Three" are "where the growth is" relative to onsite segments generally. But the natural question is: how much of that growth was simply due to acquisition?

To explore this issue, Food Management has analyzed its annual Top 50 listing over the past six years to examine the overall growth of these companies, the role their many acquisitions had in it and how much organic growth they've been able to achieve in the same period. We've also looked at the implications this consolidation will likely have for the contracted sector generally over the next few years.

The Big Three: 1997-2004
Our 1998 Top 50 was the last time Sodexho USA and Marriott Management Corp. were considered separately. When Sodexho Marriott (now simply Sodexho) merged in early 1998 it climaxed what can be seen as the middle stage of an industry consolidation that began in the 1970s, as regional contract providers began to merge in search of geographic reach and economies of scale. The middle stage was characterized by large acquisition deals for companies like Saga, Gardner Merchant, Canteen, Service America and Daka.

The Sodexho/Marriott deal set the stage for the contract services environment you see today, one characterized by an aggressive jockeying for position and market share among the top three service providers. Their competition, which extends around the globe, has produced even more sector consolidation as each has executed additional acquisitions to enhance its position in key markets.

The result? Of the 50 companies listed in FM's 1998 Top 50, only 27 remain in 2004. Five were dropped for technical reasons, but the rest no longer exist as independent companies. They were acquired in the interim.

Almost all of these acquisitions were by the Big Three, either directly or indirectly, through "food chain" logic as acquiring companies were themselves acquired.

For example, Culinary Service Network (#24) and Drake Management Services (#48) were bought out by Morrison Management Services (#7) before it was acquired by Compass (#3). Design Food Management (#38), Century Management Systems (#41) and PMG Services (#49) were taken over by Wood Co. (#8), which later was purchased by Sodexho (#6).

Buying Business
Sodexho's North American division, which reported $820 million in 1997 volume, reports $5.8 billion today. A good portion of that increase was due to the merger with Marriott's Management Services division, which added about $3.2 billion in volume to its total in 1999. Wood Co. added almost $600 million more in 2001. Those two acquisitions account for close to $4 billion of Sodexho's $5 billion in volume gain between 1997 and 2004..

Aramark reported sales of $4.130 billion for 1997 and $6.5 billion for 2003 for its Food and Support Services division.

Of that almost $2.4 billion gain, about $1.72 billion is directly attributable to the sales volumes of companies it has acquired since then. These include $750 million from ServiceMaster, $325 million from Ogden, $300 million from Fine Host, $150 million from Restaura and $70 million from Corrections Corp. (the numbers reflect annual sales at the time of acquisition, including the significant volume represented by more than 1,500 healthcare facility management contracts purchased in the ServiceMaster deal; that volume was not reflected in ServiceMaster's Top 50 listing at the time, which focused on food service business only).

Another $125 million in annual revenue came through Aramark's 2002 acquisition of healthcare technology management/equipment maintenance firm Clinical Technology Services from Premier, Inc. If the acquired volumes of these companies are taken out, Aramark has achieved about $650 million of its reported sales through organic growth over the period.

Compass's $1.8 billion volume in 1997 already represented its initial entry into North America with the acquisition of Canteen and, soon after, of Flik International, Service America, Daka and Professional Foodservice Management. Since then, the company has added about $4 billion in volume. About $840 million of that increase can be attributed directly to acquisitions of Morrison ($450 million),-Bon Appetit ($280 million) and Restaurant Associates ($110 million).

Other deals account for a portion of the rest. Healthcare managed services company Crothall Service Group, acquired in 2001, had revenues of around $275 million while retail restaurant chain Au Bon Pain had annual revenues in excess of $200 million. The Canadian foodservice management company Beaver Foods was realizing annual sales of around $200 million (U.S.). Motorola Corp.'s in-house dining services provider Food Works, acquired in 2001, and upscale caterer/restaurant operator Patina Group, acquired in 1999, each represented an estimated $50 million in annual revenue, while Compass's 49% stake in Levy Restaurants added over $100 million more when the two formed their strategic partnership in 2000.

Total annual revenues of Compass' predecessor companies add up to about $3.5 billion. That means more than $2 billion of the North American division's 2003 sales represents organic growth achieved by the company since those acquisitions were made.

A New Era
Clearly, acquisition played an important part in the emergence of the Big Three. The series of deals that fed the growth of Aramark, Sodexho and Compass also changed the contract services sector as a whole. Today, there is a clearly defined stratification between the top companies and the rest of the industry.

In 1998, Aramark, Compass and Sodexho (without Marriott) accounted for about 44% of the Top 50's total volume (using updated figures). This year, these three companies account for 78% of the Top 50's approximate $23.2 billion in sales volume. The few companies left in the "middle tier" are specialists, and the smaller players are mostly regional.

Some other observations:

The era of growth by acquisition is largely over. Barring a merger among the Big Three themselves or deals for the few remaining middle-tier companies, acquisition is unlikely to make a significant impact on the relative sizes of the top companies. That means organic growth will become the paramount market driver.

Worth considering: the source of "new business" each of the Big Three claims. Will it come from underbidding the others on major account RFPs, or from the more ardous "missionary work" it takes to convert formerly self-operated accounts to "net new business." Another factor: how effectively they will be able to leverage so-called "global contracts" to generate revenue increases.

Both question point to the observation that the intense bidding wars among the Big Three for key accounts will grow more heated, a prospect likely to depress margins and profits even as it spurs the need for operational efficiency and growing incremental sales at the account level.

Reported sales volumes are an imperfect measure of growth at best, because details about contract terms (fee and P&L accounts with equal sales are counted quite differently). Also, the proportion of non-food-related managed services in a company's total sales are typically not made public.

For instance, while the Big Three have grown substantially in volume over the past six years relative to the rest of the Top 50 or of the industry as a whole, an unknown but significant proportion of that volume came from outside the foodservice arena. For example, much of Aramark's $900 million in sales volume growth between 2001 and 2002 came from facility management business it picked up in the ServiceMaster acquisition. And clearly, both Sodexho and Aramark have indicated that facilities services will likely play a larger role in future growth than has Compass.

The "bottom tier" is not disappearing. Indeed, the same number of companies—23—have volumes of at least $50 million in both the 1998 and 2004 listings. It's just that more of these are now in the$50-$100 million range than in the over-$100 million range. Regionals and specialists in these lower ranks remain significant factors in their markets, and mergers within this tier could well characterize any new phase of acquisition activity.

Lower down, modest barriers to entry into this sector will likely mean a continuing influx of small startups, and will keep the sector energized with entrepreneurial spirit in coming years.

1. Aramark Corp.
PHILADELPHIA, PA
www.aramark.com
SALES VOLUME (in millions)
2003: $6,545
2002: $5,716
NO. OF CONTRACTS
2003: 6,149
2002: 5,689

MAJOR SEGMENTS SERVED(e):
B&I (20%), Sports/Entertainment (18%), College/University (14%), Healthcare (13%), Corrections (13%), Vending/OCS (10%), K-12 (8%).

The sales volume shown is for Aramark's domestic Food & Support Services business, which includes sales of both foodservice and the many nonfoodrelated support services the company offers, including facility management, maintenance and housekeeping. International Food & Support Services sales added another $1.424 billion while the company's Uniform & Career Apparel business generated $1.479 billion. Total company sales were $9.45 billion in fiscal 2003, ending October 3. The segment percentages listed above reflect only foodservice volume.

Aramark ended 2003 with a significant reorganization of its senior management team. That closely followed the elevation of veteran executive Bill Leonard to CEO, succeeding Joseph Neubauer. The new structure splits reponsibility for the company's food and support services operations— formerly consolidated in a single Food & Support Services Division—among three executives reporting to Leonard. Another 2003 highlight was the announcement early in the year that Aramark had been selected to provide food service for the 2004 Olympic Games in Athens, Greece. Other significant contract wins and extensions during the course of 2003 included clients like AstraZeneca, the Los Angeles Staples Center, Empire Health Services of Spokane, WA, the Kansas City Convention/Entertainment Center, Citigroup, the University of Pennsylvania, New York City's Mount Sinai Hospital and Philadelphia's new Citizens Bank Baseball Park.

Currently, the company manages dining and food services for more than 1,300 business dining locations, almost 500 correctional facilities, some 400 colleges and 400 school districts, 350 hospitals and long-term care facilities and more than 200 recreation and convention venues. It also manages services at 50 conference centers through its Harrison Lodging division and provides vending services to 2,900 clients and office coffee at 46,000 locations, the latter not included in the number of contracts listed above. (For more on Aramark, see the profile in the March 2001 FM.)

2. Compass Group North America
CHARLOTTE, NC
www.cgnad.com
SALES VOLUME (in millions)
2003: $5,810
2002: $5,100
NO. OF UNITS
2003: 6,904
2002: 6,102

MAJOR SEGMENTS SERVED(e):
B&I (38%), K-12 (12%), Recreation (11%), College/University (11%), Healthcare (16%), Vending (9%), Corrections (3%)

Compass North America is a division of London-based Compass Group PLC, which operates in more than 90 countries. The North American division (about 6% of the volume is from Canadian operations) posted strong growth across most of its business segments in 2003, especially Education ( including both Colleges and K-12) and Healthcare. Both posted double-digit increases. Impressively, B&I sales grew 8% despite a difficult economic environment. Concessions grew 7%.

Major account wins in 2003 included a 10-year contract with Best Buy, worth some $4 million annually, as well as contract extensions with ExxonMobil, Pfizer and Suncor worth over $28 million annually for the Eurest division; catering contracts with Citigroup, ABN AMRO, Revlon, AOL/Time Warner and Morgan Stanley, worth a combined $20 million annually for the Restaurant Associates and Flik divisions; a $10 million contract with the University of Texas Medical Center for the Morrison division; a contract worth $10 million in annual sales with the University of North Carolina-Charlotte for the Chartwells division; a five-year, $300 million contract with Corrections Corp. of America for Canteen Correctional Services, and Houston's new Toyota Center and Memphis's new FedEx Arena for Levy Restaurants.

The Canteen Vending unit continued to expand its brand portfolio to include offerings like Au Bon Pain soups, Ritazza coffee and Sbarro and Tony Roma products. It also launched an electronic data collection platform called iVend.

Key personnel changes included the elevation of Mike Kiser to Canteen CEO, succeeding Tony Gagliardi; the naming of Andy Lansing to CEO of Levy Restaurants, succeeding Larry Levy; and the promotion of CFO Richard Stockinger to president of Restaurant Associates.

Compass also established partnerships with restaurant concept developer Phil Romano (Eatzi's, Fuddruckers, etc.) and Johnson & Wales university over the course of 2003. (For more on Compass, see the profile in the August 2001 FM.)

3. Sodexho, Inc.
GAITHERSBURG, MD
www.sodexhousa.com
SALES VOLUME (in millions)
2003: $5,800
2002: $5,500
NO. OF CONTRACTS
2003: 6,200
2002: 6,000

MAJOR SEGMENTS SERVED:
B&I (36%), Hospitals (24%), College/University (15%), K-12 (11%), Eldercare (8%)

Sodexho is the North American division of Paris-based Sodexho Alliance, which operates food and management services in almost 24,000 outlets in more than 70 countries. The company manages an array of outsource services for clients, from maintenance and facility management to dining and food services. In 2003, Sodexho USA CEO Michel Landel was named to the additional post of co-COO of the parent company while former Health Care Services Division president Dick Macedonia was promoted to president/COO of North American operations. Macedonia was succeeded at Health Care Services by George Chavel.

Contract wins over the year included Tiffin University, Consorta, Inc., the University of South Carolina-Spartanburg and a four-year, $100 million managed volume contract with Atlanta Public Schools. The company's School Services Division had a banner sales year, adding 32 new accounts valued at over $391 million in managed volume revenue over the life of the contracts.

Also in 2003, Sodexho signed an exclusive deal with the Herb 'n Farm natural/organic foods brand and opened its first Herb 'n Farm unit at Colorado College. It also signed a distribution agreement with United Natural Foods and initiated "Your Health Your Way," a program featuring a series of meals that can be customized to fit any dietary lifestyle. Also, the company inked a national brand agreement with the popular Southeastern burger concept Krystal. The first Sodexho-run Krystal location opened at Georgia's Gordon College.

Sodexho's Retail Brand Group topped the 300-location mark, with Jazzman's Cafe alone hitting 100.

Note: An estimated 3% of the volume figure above was generated in Canada. (For more on Sodexho, see the profile in the January 2001 FM.)

4. Delaware North Companies
BUFFALO, NY
www.delawarenorth.com
SALES VOLUME (in millions)
2003: $1,600
2002: $1,600
NO. OF CONTRACTS
2003: 180

MAJOR SEGMENTS SERVED(e):
Recreation/hospitality (85%), Airports (15%)

During the past year, Delaware North launched a guest services program with LRA Worldwide, a provider of integrated customer loyalty solutions. It also put more emphasis on culinary expertise, introducing initiatives such as an annual chefs summit and a Culinary Council and forming partnerships with celebrity chefs/restaurateurs Don Mesches (Star Restaurant Corp.) and Rich Melman ( Lettuce Entertain You). It also continued to implement its GreenPath environmental program and completed a $68 million expansion of its Wheeling Island (WV) Racetrack & Gaming Center in June.

The company's clients include Boston's FleetCenter arena, Cleveland Browns Municipal Stadium, the Kennedy Space Center, George Bush International Airport in Houston and the Encounter Restaurant at Los Angeles International Airport. DNC also owns the Wheeling Island Racetrack and Gaming Center in Wheeling, WV, among other gaming holdings. (For more on DNC, see the profile in the June 2002 FM.)

5. Centerplate
SPARTANBURG, SC
www.centerplate.com
SALES VOLUME (in millions)
2003: $616.1
2002: $577.2

NO. OF CONTRACTS
2003: 129(e)
2002: 128

MAJOR SEGMENTS SERVED:
Sports/Recreation/Convention (100%)

The former Volume Services America, which became Centerplate early last year, is a leading provider of food and management services to the sports, entertainment and convention center segments. Clients include six Major League Baseball parks, 10 NFL stadiums and more than 40 civic and convention centers.

In December, it successfully completed an initial public offering (IPO) using a novel investment vehicle called an Income Deposit Security (IDS) that is a combined equity/debt investment. It is now listed on the American Stock Exchange.

6. HDS Services
FARMINGTON HILLS, MI
www.hdsservices.com
MANAGED VOLUME (in millions)
2003: $296
2002: $297.2

NO. OF CONTRACTS
2003: 235
2002: 230

MAJOR SEGMENTS SERVED:
Eldercare (43%), Hospitals (40%), B&I (12%)

HDS now operates in 36 states across the country from a dozen regional offices. Recent initiatives include the Grand Class room service program for acute care settings, continued expansion of the Golden Service concept for senior care units, more training emphasis through the company's Triplett University program, technology advancements, a new program launch protocol and the addition of more program delivery specialists. During 2003, HDS received the Michigan Quality Leadership Award/Top 100 Best & Brightest Places to Work award. It also launched new menu concepts: Trendoli strombolis and Panini sandwich bars. (For more on HDS, see the profile in the March 2002 FM.)

7. Guckenheimer Enterprises, Inc.
REDWOOD SHORES, CA
www.guckenheimer.com
SALES VOLUME (in millions)
2003: $221
2002: $209

NO. OF CONTRACTS
2003: 175
2002: 168

MAJOR SEGMENTS SERVED:
B&I (98%)

Guckenheimer continues to focus on its core B&I market. A significant business initiative in 2003 was the introduction of an interactive Food Service Website and electronic catering ordering system. The company focuses on expanding and updating its recipe encyclopedia to reflect a more "restaurant-style" menu approach, including the promotion of natural and organic products. It has also expanded nutritional information and is now developing a line of "authentic" world food selections, especially Indian and Middle Eastern. (For more on Guckenheimer, see the profile in the January 2003 FM.)

8. Guest Services, Inc.
FAIRFAX, VA
www.guestservices.com
SALES VOLUME (in millions)
2003: $210
2002: $190

NO. OF CONTRACTS
2003: 80
2002: 80

MAJOR SEGMENTS SERVED:
B&I (40%), Military (10%), Recreation (8%)

A public benefit corporation with no stockholders (after-tax income is either plowed back into the business or given out as loans and grants to tax-exempt organizations), Guest Services added a new vp-business development in 2003 to oversee sales, marketing and promotions. It also concentrated on building its business in the B&I and government segments and implemented additional concepts to its Choice Cuisine brand line, including Asian Noodle Bowl, Basmati Express, Wild Wild Wings, Mediterranian Terrace and Caesar's Corner. A subsidiary, Lancaster Foods, wholesales fresh produce and flowers and accounts for about 40% of company revenues.

9. All Seasons Services, Inc.
BROCKTON, MA
www.allseasonsservices.com
SALES VOLUME (in millions)
2003: $188
2002: $210

NO. OF CONTRACTS
2003: 92
2002: 101

MAJOR SEGMENTS SERVED:
B&I (77%), K-12 (14%), College/University (7%)

Though vending remains its primary business with 81% of sales (office coffee services accounts for another 5%), All Seasons is included on the Top 50 because of its substantial manual foodservice business (about 14% of sales or $26 million). The company experienced a transitional period in 2003 as CEO James Gladney resigned in mid-year to pursue other interests. Last month, All Seasons added Mike Nugent, founder and most recently vice chairman of major Southern vending contractor Five Star Food Service, to its senior management team as executive vp, reporting to president/COO Mark Bruno.

10. Gourmet Services, Inc.
ATLANTA, GA
MANAGED VOLUME (in millions)
2003: $169
2002: $169

NO. OF CONTRACTS
2003: 11(e)
2002: n/a

MAJOR SEGMENTS SERVED(e):
K-12 (60%), College/University (35%)

Gourmet Services provides dining services management to a number of public school systems as well as some of the country's most prominent black colleges, including Central State University (OH), Texas Southern University, Benedict College (SC), Huston-Tillotson College (TX) and Hampton (VA)

University. In 2003 it named a new president/COO, William Sims, who introduced-some new menu concepts like Plnet Smoothie, Zero Subs and Dietz & Watson Sandwich Factory. The company also expanded its healthful recipe program for elementary and higher education clients.

11. Valley Services, Inc.
JACKSON, MS
www.valleyservicesi.com
SALES VOLUME (in millions)
2003: $168
2002: $175

NO. OF CONTRACTS
2003: 284
2002: 275

MAJOR SEGMENTS SERVED:
Senior Nutrition/Home Meal Delivery (30%), Hospitals (25%), B&I (15%), College/ University (10%), Corrections (10%), K-12 (10%)

Valley reintroduced full vending services in conjunction with onsite foodservices to current and prospective clients in 2003. It also added a room service program in its healthcare division and a personalized GPS system in senior services that lets the company establish routes and track and monitor deliveries of daily meals to homebound seniors.

In other moves, the company began a three-year culinary program to update its signature concepts and incorporate new purchasing and decor specs, training and standards. It's also stengthened its position with manufacturer brands, initiating new agreements with Starbucks and Tyson Foods. (For more on Valley, see the profile in the July 2003 FM.)

12. Boston Concessions Group, Inc.
CAMBRIDGE, MA
www.bostonconcessionsgroup.com
SALES VOLUME (in millions)
2003: $161
2002: 125

NO. OF CONTRACTS
2003: 132
2002: 122

MAJOR SEGMENTS SERVED:
Recreation (100%)

Boston Concessions operates nationally, providing concessions, merchandise sales and upscale catering and luxury suite service (the latter through its expanding Distinctive Gourmet division) for the recreation, leisure and sports markets. In 2003, the company beefed up its senior management with a number of executives formerly associated with Fine Host Corp., including former Fine Host Recreation/Leisure Division Group President Chris Verros, who is now president of BC's premium services division, Distinctive Gourmet.

In 2003, the company also became a franchisee of Papa Johns Pizza and now serves the products in many of its sites. It has also been experimenting with low-carb menu alternatives in concessions, suites, catering and restaurant settings. Recent contracts include the Charleston (WV) Civic Center, Sioux City (IA) Convention Center, Miami's Orange Bowl stadium, the North Shore Music Theater near Boston and Pennsylvania's Bear Creek Ski Resort.

13. Thompson Hospitality Services
HERNDON, VA
www.thompsonhospitality.com
SALES VOLUME (in millions)
2003: $112
2002: $89

NO. OF CONTRACTS
2003: n/a
2002: n/a

MAJOR SEGMENTS SERVED:
B&I, College/University

Thompson is a division of Thompson Hospitality Corp., a commercial restaurant franchise company that is one of the country's largest minority-owned businesses. The contract foodservice division partnered with Compass Group in 1997 and together they operate contracts for a number of prominent corporate clients, including American Express, Prudential, Raytheon, Boeing and Herman Miller. In addition, Thompson Hospitality also holds foodservice contracts with 17 historically black colleges and universities such as Morgan State in Baltimore, Savannah (GA) State and Virginia Union. In 2003, Thompson acquired Campus Chefs in Mississippi, strengthening operational support in that state.

14. CulinArt, Inc.
LAKE SUCCESS, NY
www.culinartinc.com
SALES VOLUME (in millions)
2003: $88
2002: $86

NO. OF CONTRACTS
2003: 98
2002: 100

MAJOR SEGMENTS SERVED:
B&I (60%), College/University (20%), Recreation (9%), K-12 (8%)

CulinArt operates in the heavily populated Mid-Atlantic market encompassing Massachusetts, Connecticut, New York, New Jersey, Pennsylvania and some business in West Virginia. It operates primarily P&L-type corporate dining and higher education accounts, and recently expanded its menu concepts with brands such as Quesadilla Griddle, Wicked Wings & Tenders, Great Caesars and Noodle Bowl. (For more on Culinart, see the profile in the September 2003 FM.)

15. Lackmann Culinary Services
WOODBURY, NY
www.lackmann.com
SALES VOLUME (in millions)
2003: $73.6
2002: $75.4

NO. OF CONTRACTS
2003: 68
2002: 68

MAJOR SEGMENTS SERVED:
B&I (60.5%), College/University (32.9%)

Lackmann continued developing its proprietary management information system to include back-and front-ofthe-house catering. It also restructured its leadership to encompass a triad of vice presidents to head its operations departments. Among concepts introduced over the past year were two proprietary brands: Wild Onion Cafe, proferring organic and vegan options, and Peking Fries, which offers fresh french fries with assorted dipping sauces. (For more on Lackmann, see the profile in the December 2001 FM.)

16. Taher, Inc.
MINNETONKA, MN
www.taher.com
SALES VOLUME (in millions)
2003: $71
2002: $66

NO. OF CONTRACTS
2003: 196
2002: 205

MAJOR SEGMENTS SERVED:
K-12 (65%), B&I (30%), College/University (10%)

Taher operates in multiple segments, primarily in the Upper Midwest. Last year, it implemented a total web-based accounting and reporting system in all its units, updated deli stations with higher-quality breads and selections and added panini sandwich and noodle bowl concepts.

17. Southern Foodservice Management, Inc.
BIRMINGHAM, AL
www.southernfood.net
SALES VOLUME (in millions)
2003: $68.775
2002: $68.875

NO. OF CONTRACTS
2003: 90
2002: 90

MAJOR SEGMENTS SERVED:
B&I (83%)

About four-fifths of Southern's volume comes from manual foodservice and the rest from vending, retail shop management and other non-food-related services like building maintenance and environmental services. It continues to upgrade its culinary offerings with its Signature Concepts initiative, supplementing its existing Signature Series approach to menu presentation.

18. Crystal Food Services
INDIANAPOLIS, IN
www.crystalfs.com
SALES VOLUME (in millions)
2003: $62
2002: $54

NO. OF CONTRACTS
2003: 39
2002: 36

MAJOR SEGMENTS SERVED: B&I (64%), Recreation (14%), Military (10%)

A division of Marsh Supermarkets, Crystal provides special event catering and banquet facilities, as well as corporate cafeteria management, vending, and concessions operations in a variety of recreational segments, including parks, fairgrounds, museums and special events around Indiana. Last year, the company expanded into horse racing tracks and OTB facilities, added a sales director charged with soliciting new business in other Midwestern markets and incorporated the entree, side, soup and dessert products of its Butterfield Foods manufacturing facility into its corporate dining menus. It also began replacing its internally branded pizza concept with Noble Roman's Express in select locations and acquired coffee roaster/distributor Southern Heritage Co.

19. Healthcare Services Group, Inc.
HUNTINGDON VALLEY, PA
www.hcsgcorp.com
SALES VOLUME (in millions)
2003: $61.6
2002: $51

NO. OF CONTRACTS
2003: 1,500
2002: 1,300

MAJOR SEGMENTS SERVED(e):
Eldercare (100%)

The volume listed is foodservice only, a business Healthcare Services Group entered in 1997. HSG derives the bulk of its $380 million in annual revenues from providing housekeeping, laundry, linen and facility maintenance services to nursing homes, retirement complexes, rehab centers and hospitals in 43 states and Canada. Clients include the 375-facility Beverly Enterprises nursing home chain, which accounts for almost a quarter of company revenues, including foodservice revenues.

20. Nutrition, Inc.
WEST NEWTON, PA
www.nutritionent.com
SALES VOLUME (in millions)
2003: $61
2002: $50

NO. OF CONTRACTS
2003: 150
2002: 140

MAJOR SEGMENTS SERVED:
K-12 (70%), Eldery Feeding (13%)

Over the last couple of years, Nutrition, Inc., sought to diversify into more segments and outsource services to sustain economic balance in the marketplace. Currently, it operates in its core K-12 niche and also in senior feeding, B&I and corrections. Most of its business is manual foodservice but also some vending and custodial and maintenance services. In 2003, the company purchased a small vending company with less than $1 milllion in sales.

21. Sanese Services, Inc.
COLUMBUS, OH
www.sanese.com
SALES VOLUME (in millions)
2003: $58
2002: $59

NO. OF CONTRACTS
2003: 57
2002: 56

MAJOR SEGMENTS SERVED:
B&I (71%)

Vending accounts for about half of Sanese's volume, while manual foodservice represents about a third. Sanese also offers Lunches Kids Love, a program delivering pre-plated, chilled lunches (made in the company's commissary kitchens) to elementary schools in the company's refrigerated trucks, as well as office coffee services. The operating territory is Ohio and surrounding states.

22. MMI Dining Systems
FLOWOOD, MS
www.mmihotelgroup.com/diningsystems.html
SALES VOLUME (in millions)
2003: $53.4
2002: $50.9

NO. OF CONTRACTS
2003: 110
2002: 96

MAJOR SEGMENTS SERVED:
Eldercare (48%), Hotels (25%), Clubs (10%)

A division of the MMI Hotel Group for which it manages foodservice operations, MMI Dining also services adult and child-care, corporate dining and healthcare facilities, private clubs, schools and colleges. In 2003, it expanded its purchasing to include everything from food and beverage to guest supplies, smallwares and even furniture/fixtures and heavy equipment. On the food front, it continues to test sous vide products for banquet and limited-service hotel applications, offering a full menu even for small groups.

23. Metz & Associates, Ltd.
DALLAS, PA
www.metzltd.com
SALES VOLUME (in millions)
2003: $52.5
2002: $51.5

NO. OF CONTRACTS
2003: 92
2002: 92

MAJOR SEGMENTS SERVED:
K-12 (46%), B&I (26%), College/University (18%)

Metz's major initiative in 2003 was a new management structure in which operations are organized by three segment-specific divisions—Healthcare, Schools and Higher Education/

Corporate Dining—rather than by region. The revamping included promotion of several key managers to divisional vice presidents, a combination of sales support services and addition of another regional sales director. On the menu front, Metz has added the Tyson Sunset Strips concept and worked with Rich's and General Mills/Pillsbury on baking programs. It is also offering continuing education with the CIA to keep associates abreast of menu trends. (For more on Metz, see the profile in the July 2001 FM.)

24. Whitsons Food Services Corp.
HUNTINGTON STATION, NY
www.whitsons.com
SALES VOLUME (in millions)
2003: $52
2002: $48

NO. OF CONTRACTS
2003: 82
2002: 76

MAJOR SEGMENTS SERVED:
K-12 (51%), B&I (18%), Delivered Meals (17%), College/University (11%)

Whitsons offers an array of services, from traditional manual foodservice management, executive dining and vending to high-end catering, emergency dining and pre-prepared delivered meals made in its own production center for homeless shelters, elderly feeding programs, schools and even a corrections facility. The company also markets proprietary branded concepts under its Signature Series program, which range from exhibition ethnic cuisine to a deli and gourmet Italian. (For more on Whitsons, see the profile in the March 2003 FM.)

25. CL Swanson Corp.
MADISON, WI
www.swansons.net
SALES VOLUME (in millions)
2003: $49.6
2002: $51

NO. OF CONTRACTS
2003: 595
2002: 660

MAJOR SEGMENTS SERVED:
B&I (88%)

Swanson operates a network of commissaries that provide more than 100,000 fresh food selections weekly to its vending customers. It also manages manual foodservice operations in selected B&I, healthcare, college and corrections locations. In 2003, the company increased its Hispanic food options with an entire line of Hispanic entrees, snacks and beverages. Lowcarb specialty products and an expanded its Trim & Tasty diet food line were also introduced.

26. Ovations Food Services
TAMPA, FL
www.ovationsfoodservices.com
SALES VOLUME (in millions)
2003: $47
2002: $29

NO. OF CONTRACTS
2003: 35
2002: 27

MAJOR SEGMENTS SERVED:
Recreation (100%)

Ovations, the former Leisure & Recreation Consultants firm acquired by the Comcast-Spectacor entertainment conglomerate in 2000, operates in sports, recreation, convention and performing arts facilities as well as fairgrounds and expo centers. The parent company also owns several major and minor-league sports teams—including the NBA's 76ers and NHL's Flyers—Philadelphia's First Union Center and First Union Spectrum arenas and Global Spectrum, a facility management firm that operates more than 30 arenas, stadiums, ice rinks and convention centers in the U.S. and Canada. Ovations's clients include AutoZone Baseball Park in Memphis, Zephyrs Stadium in New Orleans, the Patriot Center on the campus of George Mason University, Clark County Amphitheater in Vancouver, WA, and the Pueblo (CO) Convention Center.

27. Parkhurst Dining Services
PITTSBURGH, PA
www.parkhurstdining.com
MANAGED VOLUME (in millions)
2003: $46
2002: $39

NO. OF CONTRACTS
2003: 27
2002: 22

MAJOR SEGMENTS SERVED:
College/ University (50%), B&I (42%)

One of two onsite foodservice divisions of Eat'n Park Hospitality (see #28 Cura Hospitality below), Parkhurst operates in the Mid-Atlantic region, including Pennsylvania, West Virginia and Ohio. In the past year it has added a local farm products purchasing program, refined its purchasing standards and added more exhibition cooking and grab-and-go components to its offerings. New concepts include hot sub and Mongolian grill offerings. (For more on Parkhurst, see the profile in the December 2003 FM.)

28. Cura Hospitality
OREFIELD, PA
www.curahospitality.com
MANAGED VOLUME (in millions)
2003: $43
2002: $37.2

NO. OF CONTRACTS
2003: 58
2002: 55

MAJOR SEGMENTS SERVED:
Eldercare (100%)

A division of Eat n' Park Hospitality Group since 1999, along with Parkhurst Dining Services (see #26 above), Cura provides dining and contract management services to residential facilities for independent living, assisted living and skilled nursing care, as well as retirement communities in Pennsylvania, New Jersey and Maryland. Last year, Cura developed a Culinary College to refine staffers' knowledge of food-related arts and skills, and continued rolling out its Enriched Foods nutrition-enhanced food products for skilled nursing residents and its Whole Body Cuisine heart-healthy selections. (For more on Cura, see the profile in the December 2003 FM.)

29. Swanson Corp.
OMAHA, NE
SALES VOLUME (in millions)
2003: $40
2002: $39

NO. OF CONTRACTS
2003: 1,550
2002: n/a

MAJOR SEGMENTS SERVED:
B&I (86%), Recreation (14%)

Of the contracts listed above, 600 are vending, 500 dining and concessions, 400 office coffee and 50 contract feeding. The company derives about 53% of the volume listed from manual foodservice. In the past year, Swanson has been rolling out its Right Course healthy eating/nutrition program to its vending and foodservice locations. It's also making a major push into the higher education feeding market.

30. Fitz, Vogt & Associates, Ltd.
WALPOLE, NH
www.fitzvogt.com
SALES VOLUME (in millions)
2003: $38.1
2002: $30.6

NO. OF CONTRACTS
2003: 126
2002: 118

MAJOR SEGMENTS SERVED:
Eldercare (63%), College/University (12%), K-12 (11%)

Fitz Vogt completed a major strategic planning initiative in 2003, clarifying the company's core values, mission statement and three-year strategic plan. It also continues to develop its East Creek Cookie line of from-scratch cookies and pre-portioned dough produced at the company's Rutland, VT, commissary and shipped to accounts across the Northeast. It's also installed a bread/dessert baking facility at its Keene, NH, commissary kitchen for supplying its growing senior nutrition (Meals on Wheels) account business.

31. Aladdin Food Management Services, Inc.
WHEELING, WV
www.aladdinfood.com
MANAGED VOLUME (in millions)
2003: $38.1
2002: $35

NO. OF CONTRACTS
2003: 62
2002: 57

MAJOR SEGMENTS SERVED:
College/ University (41.5%), Eldercare (33%), K-12 (19%)

Aladdin manages foodservice, retail shops, environmental services and some vending services for clients in the Mid-Atlantic, Southeast and Midwestern metropolitan areas like Pittsburgh, Columbus, Cincinnati and Indianapolis. In 2003, it concentrated on promoting child nutrition and on expanding its sales territory. It published a position paper on its role in promoting healthier eating among kids and added a registered dietitian to its corporate staff who reviews and approves all the company's K-12 menus. It also opened new sales offices in Philadelphia and Chicago and rolled out a new Dining Diversity menu concept for higher education accounts, along with a new retail sandwich/bakery concept. In January 2004, it acquired a higher education dining specialist, Collegiate Catering Dining Services of Springfield, MO.

32. Creative Dining Services, Inc.
ZEELAND, MI
www.creativedining.com
SALES VOLUME (in millions)
2003: $38
2002: $34

NO. OF CONTRACTS
2003: 46
2002: 42

MAJOR SEGMENTS SERVED:
College/ University (54%), Recreation (20%), B&I (10%)

CDS was launched in 1990 in partnership with two Michigan colleges and has since extended its reach to several other states in the Midwest, South and as far west as Nevada. In 2003, the company expanded operational, culinary and leadership training and development programs with the aid of a county training grant, added company-sponsored benchmarking "field trips" to its training program and upgraded its IT infrastructure. The company expanded its Asian Cuisine offerings to include noodle and rice bowls and cold noodle salads. The coffee program now includes some new Starbucks offerings such as Zone, Pura Vida Free Trade and Intellegensia. Other beverage programs now include Naked Juice, Numi teas and smoothie machines.

33. Corporate Chefs
HAVERHILL, MA
www.corporatechefs.com
SALES VOLUME (in millions)
2003: $35
2002: $34

NO. OF CONTRACTS
2003: 71
2002: 69

MAJOR SEGMENTS SERVED:
B&I (90%), College/University (10%)

Corporate Chefs manages dining rooms and cafeterias, catering services, vending, onsite retail stores, coffee kiosks and ice cream kiosks in white collar business dining environments in New England, New York, New Jersey and Virginia. Clients include the Kenneth P. Olsen Auditorium & Conference Center in Maynard, MA, and Middlesex County (MA) College.

34. Epicurean Feast
MAYNARD, MA
www.epicureanfeast.com
SALES VOLUME (in millions)
2003: $34
2002: $34

NO. OF CONTRACTS
2003: 75
2002: 94

MAJOR SEGMENTS SERVED:
B&I (98%)

Epicurean Feast operates in New England and Pennsylvania, providing primarily manual foodservice management to corporate clients. It also operates some vending and a few onsite retail stores. In 2003, it expanded its geographical reach and added some new concepts like Bonici Pizza and New England Coffee.

35. Brock & Co., Inc.
MALVERN, PA
www.brockco.com
SALES VOLUME (in millions)
2003: $30
2002: $30

NO. OF CONTRACTS
2003: 67
2002: 68

MAJOR SEGMENTS SERVED:
B&I (94%)

Brock services banks, law firms, corporate offices and industrial plants in the Mid-Atlantic, as well as catering special events and offering vending and office coffee. The client base is scattered throughout the Tri-State Pennsylvania/New Jersey/Delaware area as well as in Maryland, Virginia, Connecticut and the District of Columbia. In 2003, Brock penetrated the private/ independent school market, changed its operational department leadership and created more specialized operational support teams. It also added low-carb options and diversified order guides.

36. FAME Food Management, Inc.
WAKEFIELD, MA
www.famefoodmanagement.com
SALES VOLUME (in millions)
2003: $27
2002: $27

NO. OF CONTRACTS
2003: 37
2002: 35

MAJOR SEGMENTS SERVED:
B&I (80%), College/University (10%)

FAME (Food & Management Enterprise Corp.) manages vending and manual foodservice for clients in New England, the Mid-Atlantic and Texas. In the past expanded site manager autonomy and upgraded menu programs to include more on-site prep, like a new made-toorder Caesar Salad concept.

37. Nutrition Management Services Co.
KIMBERTON, PA
www.nmsc.com
SALES VOLUME (in millions)
2003: $26.8
2002: $31

NO. OF CONTRACTS
2003: 63
2002: 72

MAJOR SEGMENTS SERVED(e):
Eldercare (70%), Hospitals (30%)

A publicly held entity traded over-thecounter, NMSC manages manual foodservice, snack shops and environmental services in continuing care facilities, hospitals and retirement communities. It also operates the Collegeville (PA) Inn Conference/Training Center, which provides a venue for showcasing its services and functions as an in-house training center and R&D lab.

38. Host America Corp.
HAMDEN, CT
www.hostamericacorp.com
SALES VOLUME (in millions)
2003: $26
2002: $25

NO. OF CONTRACTS
2003: 63
2002: 61

MAJOR SEGMENTS SERVED:
B&I (45%), Senior Feeding (45%)

In 2003, Host America acquired energy conservation products provider Global-Net Energy Investors Corp. and made further inroads into the corporate dining and Meals on Wheels segments in the Northeast. It also developed in-house branded Asian and Southwest food programs, renamed its traveling chef program and introduced smoothie and panini specials. (For more on Host America, see the profile in the September 2002 FM.)

39. Restaurant Marketing Associates
MEDIA, PA
http://restaurantmarketing.us
SALES VOLUME (in millions)
2003: $25
2002: $20

NO. OF CONTRACTS
2003: 24
2002: 18

MAJOR SEGMENTS SERVED:
B&I (58%), Restaurants (30%)

RMA services corporate clients, performing arts centers and private clubs in New York, New Jersey and Pennsylvania, and also operates commercial restaurants. It operates the Theater Square Grille at the New Jersey Performing Arts Center in Newark and the Harborside Club in Jersey City, as well as in-house dining operations for major Manhattan law firms, Scholastic Publishing, John Wiley & Sons Publishing, McGraw Hill Executive Dining Rooms and The American Institute of Certified Public Accountants.

40. Arbor Management, Inc.
ADDISON, IL
www.arbormgt.com
SALES VOLUME (in millions)
2003: $25(e)
2002: n/a

NO. OF CONTRACTS
2003: n/a
2002: n/a

MAJOR SEGMENTS SERVED(e):
K-12 (90%)

Arbor manages manual foodservice operations in Illinois, predominantly for K-12 clients, as well as a few higher education and B&I accounts. Clients include West Chicago Schools and the Illinois Math & Science Academy.

41. 5MGR Food Services
ATLANTA, GA
SALES VOLUME (in millions)
2003: $25(e)
2002: n/a

NO. OF CONTRACTS
2003: 10(e)
2002: n/a

MAJOR SEGMENTS SERVED(e):
Convention Centers (50%), Recreation (45%)

MGR provides foodservice, event management,-retail operations and various support services to a number of sports and entertainment venues, public properties and convention centers in the Southeast, particularly Atlanta. Clients include the Georgia World Congress Center, Atlanta's Centennial Olympic Park, the Georgia Dome, the Carter Presidential Center, the Georgia International Convention Center and the Gwinnett Civic & Cultural Center.

42. Selrico Services, Inc.
SAN ANTONIO
www.selricoservices.com
SALES VOLUME (in millions)
2003: $25(e)
2002: $26

NO. OF CONTRACTS
2003: n/a
2002: 23

MAJOR SEGMENTS SERVED:
Military (90%), B&I (10%)

Selrico services military installations worldwide, providing dining, waste management/recycling, facility support, house management and building cleaning services. Recent contracts included Manas Air Base in Kyrgyzstan and a football field-sized cafeteria in Iraq to provide 15,000 meals a day to soldiers. It recently purchased telecommunications firm USA Interconnect.

43. Pomptonian Food Service
FAIRFIELD, NJ
MANAGED VOLUME (in millions)
2003: $24.7
2002: $21

NO. OF CONTRACTS
2003: 48
2002: 45

MAJOR SEGMENTS SERVED:
K-12 (96%)

Pomptonian manages cafeterias and some vending operations in close to 200 primary and secondary school locations across New Jersey. Like most companies operating in the K-12 segment, it has been working to find healthier meal alternatives to offer clients, as well as nutrition education materials. The company's school menus have a strong branded component in order to encourage consumer confidence in its offerings.

44. Continental Dining & Refreshment Services
BELLEVILLE, MI
www.continentalserv.com
SALES VOLUME (in millions)
2003: $23.3
2002: $22.4

NO. OF CONTRACTS
2003: 91
2002: 80

MAJOR SEGMENTS SERVED:
B&I (63%), Hospitals (14%)

In 2003, Continental completed the implementation of its Aloha POS management software, improved online reporting and signed sigificant new clients like two major automotive supplier headquarters. The company also developed a proprietary pizza program, enhanced its coffee roast and equipment program and added low-carb menus. (For more on Continental, see the profile in the December 2002 FM.)

45. Prince Food Systems, Inc.
HOUSTON, TX
www.princefoodsystems.com
SALES VOLUME (in millions)
2003: $21.2
2002: $16.6

NO. OF CONTRACTS
2003: 34
2002: 32

MAJOR SEGMENTS SERVED:
B&I (50%), Hospitals (35%), Eldercare (15%)

Prince operates exclusively in Texas, focusing on its menu philosophy: daily availability of a wide variety of fromscratch hot and cold foods, made from its own recipes. Recent additions include muffalettas and hand-carved meat sandwiches.

46. Ceres Food Group, Inc.
CHICAGO, IL
www.ceresfood.com
SALES VOLUME (in millions)
2003: $18(e)
2002: n/a

NO. OF CONTRACTS
2003: 30(e)
2002: n/a

MAJOR SEGMENTS SERVED(e):
K-12, Eldercare, B&I

A for-profit venture of the Chicago Catholic Archdiocese, Ceres manages foodservice for some 350 schools, and eldercare and business dining operations. Its Food Service Professionals affiliate prepares and delivers pre-plated meals to clients.

47. Thomas Management Corp.
MERIDIAN, ID
www.tmc3.com
SALES VOLUME (in millions)
2003: $15(e)
2002: n/a

NO. OF CONTRACTS
2003: 25(e)

MAJOR SEGMENTS SERVED(e):
Hospitals (65%), B&I (15%), Recreation (10%), Eldercare (7%)

Thomas operates manual foodservice, catering and vending in various segments. Its Cuisine on Call program offers room service dining options for acute-care hospital clients like Minidoka Memorial Hospital and Treasure Valley Hospital.

48. L.A. Food Services/ The Certo Group LLC
PISCATAWAY, NJ
www.lafoods.com
SALES VOLUME (in millions)
2003: $14
2002: $12

NO. OF CONTRACTS
2003: 51
2002: 42

MAJOR SEGMENTS SERVED:
B&I (80%), College/University (10%), Hospitals (10%)

L.A. created The Certo Group LLC, an internal management company for quality control and merchandising concepts. It also acquired a Tampa-based catering operation realizing about a million in annual volume last year after expaning operations in the Southeast and increasing the size of its Northeast locations. The company's main menu focus is its LA Cafe concept, which offers "Hollywood-style" sandwiches and gourmet entrees with motion picture-related themes.

49. Linton's Managed Services
CONSHOHOCKEN, PA
www.lintonsmanagedservices.com
SALES VOLUME (in millions)
2003: $8.6
2002: $6.7

NO. OF CONTRACTS
2003: 41
2002: 39

MAJOR SEGMENTS SERVED:
Hospitals (42%), Rehab Services (28%), K-12 (13%), Headstart (10%)

In 2003, Linton's added personal care, facility supplies and office product management and introduced customized staged items blended into a menu that conforms to all relevant regulatory and nutritional guidelines.

50. Kosch Foodservice Group
ROCHESTER, MI
www.koschsoundsgood.com
SALES VOLUME (in millions)
2003: $8.5
2002: $8.5

NO. OF CONTRACTS
2003: 37
2002 : 34
2002: n/a

MAJOR SEGMENTS SERVED(e):
B&I (90%)

Kosch offers manual foodservice management services to businesses in Southeast Michigan, along with vending, onsite retailing and office coffee service. It also has a kitchen/ environment interior design division. In 2002, the company upgraded its marketing programs and menu offerings, the latter incorporating more combo lunches.

(e)—FM estimate