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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. 

Breaking News at DePaul: Dining Workers Win Improved Health Benefits and Wages!

Submitted by Ian Mikusko on Fri, 10/22/2010 - 12:08
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"Even with all the obstacles that we went through...we stood together....and we got a great contract."            -Chanteen Hardaway, Campus Dining Worker, DePaul University
 
After several difficult months of organizing and negotiating, the campus dining workers at DePaul, members of UNITE HERE Local 1, won an agreement with their employer Chartwells (Compass Group) that gives them vast improvements in wages, health benefits and immigration protection language.  The contract was ratified last night by a 68 to 0 vote! 
 
DePaul is the largest Catholic University in the United States.  The DePaul students' insistence that the DePaul administration uphold Catholic values of social justice was instrumental in the campaign's success.  [To hold all Catholic Universities accountable to this standard, sign our national letter to Catholic administrators.]
 
The DePaul student body supported the workers with a campus Living Wage Campaign throughout the entire process.  Last semester, in addition to putting on a student-worker concert to build support for a Living Wage, students addressed their concerns to the DePaul Board of Trustees and, in a powerful show of solidarity, personally delivered a 1,500-signature-strong petition to the President of DePaul.
 
The result of the student-worker solidarity:  
  • Fully provided single-coverage health plan for 80 full-time workers by the end of the contract; and only $85 per month for full family coverage.
  • Minimum wages of between $11.80 and $14.30 per hour (depending on job classification) for presently employed workers by the end of the contract.  Right now workers make as little as $9.25 per hour. 
  • Contract language that protects immigrants from employer abuse, including clauses ensuring that the employees will not be disciplined for Social Security no-match letters, that the employer will limit immigration status checks to what I-9 forms require, and that employees have a 2-year window to return to their job in the case of immigration problems.
A great contract, and a great campaign.  The DePaul Living Wage Campaign of 2010 had a huge impact on both the students and the workers who were involved.  
 
At last week's celebratory BBQ, students and workers had an opportunity to reflect on their experience.  Check out the video and then find out how you can get involved on your campus! 
 

With this huge victory under its belt the DePaul Living Wage Campaign will continue to work with the university administration to improve the university's campus-wide living wage policy.

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.

Pink Slime

Submitted by Kyle Schafer on Mon, 01/25/2010 - 13:44
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Just a quick thought: if Compass really wants to kick-start its new flexitiarian initiative, it might want to share this recent article about a filler (referred to by one USDA microbiologist as “pink slime”) that its producer, Beef Products, Inc., reports is used in a majority of the hamburgers sold nationwide. Check it out:

 
 
 

Flexitarian??

Submitted by Kyle Schafer on Thu, 01/14/2010 - 13:12
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A few months ago, I was sitting in my office with coworkers joking about the term “flexitarian,” which apparently is a term for people who are vegetarian… part-time. In other words, it is for people who eat meat, just not at every single meal. As the resident vegan in the office, it seemed especially hard to take the concept seriously. I figured if any term was necessary, standards like “omnivore” or “healthy” might suffice.

 
But I guess the term caught on. Compass Group this week announced a new “Be a Flexitarian” initiative. The plan is to provide more meat-free options in its cafeterias (on campuses and elsewhere). Whatever you think of the term flexitarian, Compass’s program is not such a bad idea.
 
Compass worked with the Humane Society of the United States (HSUS) on the program. The HSUS president said in a press release, “It doesn’t take an all-or-nothing approach to make a major impact, and giving customers more meat-free meal choices will improve health, reduce the impact of global warming and help animals.” 
 
It makes sense. Though I choose to take the step of removing all animal products from my diet, I know not everyone will do the same. If the program truly reduces the meat consumption in the cafeterias of one of the world’s largest food service providers, I’m all for it.
 
Of course, we have to see what it means on the ground.  If all it means are posters about “flexitarianism” plastered around dining halls, I suspect we won’t see a big drop in hamburger consumption on campus.  And as someone who has struggled to eat vegan meals in far too many college cafeterias across the country, even ones that claim to be friendly to restricted diets, I know that “expanded options” may not translate into satisfactory meals.  Compass has the right intentions, but they have their work cut out for them.
 
 

 

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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