The US food service contracting industry includes about 3,000 companies with combined annual revenue of about $32 billion. Major companies include ARAMARK, Compass Group USA, Delaware North, and Sodexo, Inc. The industry is highly concentrated: the 50 largest companies account for about 90 percent of revenue.
Food Service contracting is notoriously difficult to control for businesses who need to offer customers or employees a food and beverage offer, yet given this is not a core business, they choose to outsource the service to a 3rd party specialist operator.
There are many different types of contracts in this business, all of which have a varying degree of control for Client businesses. However unless Client companies take professional advice on out sourced food service arrangements, they are regularly left with mediocre or even unfavorable arrangements – often weighted in the favor of the Contracted Food Service company.
The Next Idea (TNI) has substantial experience in advising Client companies on Food Service arrangements and contracts, ensuring that the Client optimizes the opportunity while still providing a balanced and profitable agreement for the Food Service Operator.
In previous engagements, TNI has found up to $10m in Client savings (multiple location food service contract), and has helped negotiate improved terms elevating client revenue and the client customer’s overall experience.
1. Contract evaluation
2. Strategic positioning of offer
3. Contract Negotiations
4. Product and Brand Mix Evaluation
5. RFP issues
6. RFP evaluation
7. Process and Systems to monitor compliance