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The Top Dogs: Biggest Players in the Industry Revealed in Top 50 List

Submitted by Ian Mikusko on Mon, 12/20/2010 - 15:58
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Football fans have the Super Bowl.  Political junkies have the State of the Union address.  And film buffs have the Academy Awards.    For food service industry research nerds like myself, the year's big event is Food Management's annual release of the top 50 food service management companies in North America!  It's a festive occasion that involves printing out tons of copies to show off to your friends and bragging about who hit the over/under on Luby's Culinary Services fiscal year 2010 revenue.

While even the most seasoned prognosticators failed to predict Lubys' jump from 48 to 41, the top of the list contained no surprises.  The Big 3 remain the Big 3, as Compass Group, Aramark and Sodexo finished 1, 2, 3 on the list, the same order they finished last year.

The top 50 list is a handy tool for students interested in learning more about the contracted food service industry--which does much of its business at universities.  The list has detailed information on each company including the most recent annual revenue figure, number of contracts and percentage of business done at different types of locations (i.e. food service at hospitals, at universities, at corporate cafeterias, etc.).  

This is a really valuable resource for anyone who is hoping for a greater understanding of the food service industry.  An industry which, as we know, has a huge effect on the livelihood of farmers and food service workers, the environment and public health.  

Photo by mikebaird.

Tools of the Trade III: Industry Consolidation

Submitted by Ian Mikusko on Tue, 12/14/2010 - 18:54
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Three multi-national companies dominate contracted university food service.  The 'Big 3', as they are referred to by industry insiders, are Aramark, Sodexo and Compass (which goes by the brand names Bon Appetit and Chartwells).  Approximately 87% of revenue generated by contracted food service companies in universities is generated by the Big 3. 

87%...three companies.  And these three companies generate billions of dollars annually through their global enterprise.  University food service is big business indeed.  

If your university contracts food service, chances are it's to one of these three companies.  Here's a leaflet (that you can download here) that you can use to educate your classmates about the scope of these companies' operations. 

Other informational leaflets include: Poverty in Food Service and The RFP Process. 

Dining Workers Win Fair Process to Choose Union at Loyola University Chicago

Submitted by Kyle Schafer on Wed, 11/03/2010 - 12:07
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Campus dining workers at the Loyola University Chicago, one of the premier Catholic, Jesuit universities in the country, are celebrating today. Their employer has agreed to a fair process for its employees at Loyola to choose whether to join a union. On October 13, campus dining workers at the school approached their managers asking for exactly that.
 
“We are thrilled that the company has chosen to respect us and listen to our concerns,” said Eva Rangel, a member of the worker organizing committee that has been building support for a union at Loyola. “This fair process will ensure my coworkers are not afraid to choose to support a union here.”
 
On October 20, members of the Loyola community had shown their support and appreciation for the workers’ service at a special blessing of the workers at St. Gertrude’s Church near campus.
 
The campus dining workforce at Loyola comes from all over the world, with 16 different countries of origin. There are over 190 workers total.
 
The worker organizing committee at Loyola has been consulting with UNITE HERE, the leading union of food service workers in the United States.

 

Does your college food service company hurt the local economy?

Submitted by Hannah Caruso on Wed, 09/01/2010 - 15:48
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That is a key part of the class-action lawsuit against campus food service companies in Alabama. At UA every student must pay a $300 fee each semester for Dining Dollars. And it doesn’t matter whether they live on campus.  (Kind of like the University of Louisville).
$300. Not an outrageous sum, to the outside observer.
But the students suing the universities estimate that in the last year alone undergrads paid more than $14 million total in Dining Dollars. Some of that money could have helped local merchants survive. 
When this program began in 1996, it was viewed by many in the community as a “threat to local business” as stated in an article in the Tuscaloosa News. In fact, the “chamber of commerce and Tuscaloosa City Council came out against Dining Dollars,” fearing that it would draw business away from local restaurants.
As a result UA agreed to open Dining Dollars to three off-campus businesses. However, the restaurants have to give 21% of revenue to the campus food service company. Some restaurants say they can’t afford that percentage. (Here’s the contract between the University and the company).
Does your school’s food service company draw income away from local businesses? How do you think this affects the local economy?
 
Photo by Southernpixel. 

Contesting Campus Monopolies in Alabama

Submitted by Ian Mikusko on Thu, 08/19/2010 - 13:18
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One of the issues that regularly raises the ire of university students—whatever their political stripe—is when a company has a monopoly on campus food service operations.

The indignation can be moral: “I shouldn’t have to support a company whose business practices conflict with my values.”
Or ideological: “I support the free market economy.”
Or practical: “I want different food options.” 
Regardless of the underlying reason, this practice is one that strikes many college students as unfair.
At three universities in Alabama, students are using the legal process to do something about monopolies on college campuses:
Students say in a class action [lawsuit] that the University of Alabama at Tuscaloosa has given Aramark Educational Services "unfettered dominion and control over on-campus dining" by awarding it a monopoly on dining services, which "robs the students of the benefits of free choice in the marketplace." Students filed similar class actions against UA Birmingham and Sodexo, and Auburn University and Compass Group USA dba Chartwells.
Interesting that every one of the “Big 3”—Sodexo, Compass and Aramark—are included in the suit. 
I’ll be interested to see where this case goes. If successful, this is an interesting model for students taking action to balance power on their campus—which usually tilts in the direction of administrators and companies and away from students. 

Photo by David Smith via Flickr

The Game’s Called ‘Food Service’: 50 Companies to Keep Your Eye On

Submitted by Ian Mikusko on Fri, 08/13/2010 - 16:17
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University food service is big business. In 2008 contractor-managed university food service in the United States amassed $12.91 billion in sales.

Like any business, university food service attracts for-profit companies looking to make a buck out of customers (in this case, students). And like any business, the closer we scrutinize these companies, the easier it is to hold them accountable. 
With that in mind, here’s a link to an industry publication’s list of the Top 50 Food Service Companies in North America. Not all of these companies do business at universities. But most do. 
And as I always say, it’s important to know the players if you’re going to understand the game. This list is a great reference to put your universities’ food service company into context. 
The list is top-heavy. Most of the new profit was generated by the top three companies — Compass (Chartwells and Bon Appetit), Aramark and Sodexo. In industry lingo, these companies are known as the Big Three. And ‘Big’ is no exaggeration. These three companies dominate the industry, employing 75% of the contractor managed food service workers in North America.
These companies deserve a wary eye. Don't you think?

Photo by Lisa Hill via Flickr.

Cafeteria Workers, Students and Allies Struggle for a Union at Carleton University

Submitted by Kyle Schafer on Wed, 06/30/2010 - 20:55
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Campus cafeteria workers at Carleton University in Ottawa, Ontario are standing up to form a union and improve their lives.  Students, faculty and other unions are standing up in solidarity with them. 
 
Aramark, the campus food service provider, is standing in the way.
 
“The Carleton University Students’ Association has been disappointed to hear repeatedly from many of our members who are employed at Aramark that Aramark has threatened and intimidated them for exercising their rights to speech and association in attempting to form a union outside company time,” said Alex Sirois, President of the Carleton University Students’ Association in a press release after the Association passed a motion in support of the cafeteria workers.
 
UNITE HERE Local 261 has already filed unfair labour practice charges against Aramark alleging targeted layoffs for known union supporters, surveillance, threats and interrogations.  But Aramark’s intimidation against the campaign extends beyond the workforce – student allies have reported being harassed by Aramark managers as well.
 
Marco Zigliotti, a second-year student at Carleton, wrote the University Security about his experience with Aramark managers:
 
I would like to report unusual and what I believe to be inappropriate conduct on the part of Aramark Carleton managers at the Fresh Food Company cafeteria in Residence Commons on Wednesday, May 12, 2010.
 
On that day, I and four other students ate at the Fresh Food Company wearing stickers in support of Aramark worker’s rights. Hundreds of people on campus have been wearing these stickers in response to what many Aramark workers have described as intimidating and threatening letters to scare people away from joining a union. 
 
The other students and I eating were made to feel like unwelcome visitors in our own university. After entering the Fresh Food Company, we were each watched and followed very closely by Aramark managers, who numbered eight, and who stood close by as we were served by employees. 
 
When we sat down, all the managers followed us and sat on either side of our table, watching us closely the whole time. This made myself and the other students feel extremely uncomfortable. Ensuring that campus is safe for all is the job of University Security, and we could not understand why Aramark managers were effectively policing us and treating us as a threat, or how that could be appropriate on our campus.
 
Locals of the Canadian Union of Public Employees (CUPE) on Carelton’s campus have added their voice as well, creating a united voice on campus representing over 8000 unionized employees and 20000 undergraduate and graduate students.  The coalition of unions and students, called Campus United, sent a letter to University President Roseann Runte, available here.
 
Meanwhile, Olivia Chow, Member of Parliament for Trinity-Spadina, Toronto, and Citizenship and Immigration critic for the New Democratic Party, came to campus to meet with students and workers about the conditions and has pledged her support.
 
The campaign on the ground is unfolding quickly, but we’ll do our best to keep this site updated with the latest news.
 
 

 

Aramark, Sodexo, Compass Post Financial Results

Submitted by Kyle Schafer on Tue, 12/01/2009 - 16:23
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In the past few weeks, Aramark, Sodexo and Compass have released their Fiscal Year 2009 financial results. We thought you all might be interested to see some of the numbers behind these businesses, so here’s a set of links to check out:
 
Compass:
 
 
Sodexo:
 
Aramark:
 
As financial results and other major announcements come out from major food service companies, we’ll do our best here at Stir It Up to keep you posted, so make sure you keep checking back. Another good way to stay on top of the news is to set up Google Alerts for your company of choice to get the rundown sent to you via email as often as you’d like. 

 

(Photo by Alan Cleaver, used here under Create Commons Attribution 2.0 Generic license.)

Coalition of Immokalee Workers Update: Farmworkers Fight On

Submitted by Ian Mikusko on Mon, 11/09/2009 - 13:44
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Stir It Up Editor's Note: The article below was written by freelance journalist Ethan Genauer.  It addresses Sodexo and the Coalition of Immokalee Workers (CIW) and Student/Farmworker Alliance's Dine with Dignity campaign.  While SFA reports that Compass has reached an agreement with the CIW, Aramark and Sodexo still have not.  The positions taken in the article are the author's.

So now what, Sodexo? Farmworkers fight on
Farmworkers take on Sodexo at 2009 national CFSC conference in Des Moines

by Ethan Genauer

At the 2009 national conference of the Community Food Security Coalition (CFSC), food service provider Sodexo publicly announced the corporation's willingness to support a wage increase for tomato farmworkers in Florida and to adopt a code of conduct that would protect the farmworkers from human rights abuses.

But farmworkers insist that "the campaign against Sodexo is going to continue" until the corporation follows these words with a meaningful commitment that includes a signed agreement and concrete action to implement it.

"The communication [from Sodexo] does not mean anything if there are no concrete steps toward something that is real. We hope that what they are saying is sincere, and we are open to discussions, but only if they are ready to do the right thing," said Gerardo Reyes Chávez, a spokesperson for Florida's coalition of tomato farmworkers.

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