FM 50: Aramark

The sales volume shown is for Aramark’s domestic Food & Support Services business for fiscal year 2012. It includes revenues from both foodservice and the many non-food-related support services the company offers. In addition, the international Food & Support Services unit generated another $2.729 billion and the Uniforms unit added $1.363 billion. Almost three quarters of the contracts operated by the Food & Support Services unit are P&L arrangements of one kind or another.

Aramark changed its top management last spring as longtime CEO Joseph Neubauer passed the reins to Eric Foss (Neubauer remains chairman). Food & Support Services head Andrew Kerin left in March.
 
North America segment sales for fiscal 2012 increased 4% over the prior year primarily due to growth in the Higher Education, Sports/Entertainment and B&I segments. The B&I business had high single-digit sales growth primarily due to base business growth in Refreshment Services and facilities services along with the acquisition of the Filterfresh OCS business in August 2011. This more than offset sales declines in business dining operations from lost business.

The Education sector had mid-single digit sales growth for fiscal 2012 due to base and net new business growth in the Higher Education food and facilities services businesses. These more than offset the sales decline in K-12 due to the impact of lost business. Recent contract wins include concessions operations at the University of Washington and at the University of Tennessee.

In response to USDA’s revised nutrition standards for school meal programs, Aramark launched Healthy for Life recipes that reduce added fats, sugar and salt, and feature low/non-fat dairy options, lean protein choices, a wide variety of fruits and vegetables, assorted whole grain products and 100 percent fruit juice with no added sugar. This is complemented by an online parent resource portal.  

The Healthcare unit had low-single digit sales growth for fiscal 2012. That reflected base business growth and the full year effect of the 2011 acquisition of the Masterplan clinical technology management/medical equipment maintenance company.

The Sports & Entertainment sector had low-single digit sales growth for fiscal 2012 primarily related to growth at National Hockey League and Major League Baseball venues.

Aramark recently committed to sourcing all shell eggs within the United States from cage-free hens by the end of 2014.

Last August, Aramark launched CampusDish Mobile App, which allows college students to check out dining hall menus, find nutrition information and provide feedback from their smartphones and other mobile electronic devices. Meanwhile, iPad ordering debuted in the 92 luxury suites at Quicken Loans Arena in Cleveland, allowing fans to order wirelessly.

Last November, a majority share in the SeamlessWeb online/mobile ordering unit was spun off to Aramark shareholders.

Currently, Aramark manages dining and food services for 1,174 B&I locations, 277 healthcare facilities, 372 colleges/universities, 2,700 schools, 362 corrections facilities, 196 sports/recreation/convention facilities, 39 parks/destinations and nine military facilities.