Overview

The 2,800 food service contractors in the US provide food and beverage services to institutional, governmental, commercial, or industrial locations on a contract basis. Companies typically serve customers under long term contracts, although some provide catering services for one-time events. Key customer segments include colleges, hospitals, long-term care facilities, schools, business and industrial (B&I), correctional facilities, recreational facilities, and military facilities. The industry is highly concentrated; the top 20 firms account for about 83% of industry sales.

Variable Costs

Food service contractors are vulnerable to variations in costs, particularly food and labor expenses.

Sustainability

Food service providers are embracing environmental responsibility through a variety of methods, including local sourcing and waste reduction programs.