Keeping employees fed and clothed is one mark of this company. ARAMARK is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The firm also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK became a public company again in 2013.
ARAMARK has operations throughout the US and more than 20 other countries. International markets account for more than a quarter of the company's revenue. The company has a diverse customer base, serving customers in 45 states, Puerto Rico, and one Canadian province from more than 200 service location and distribution centers across the US and one service center in Ontario, Canada.
The company operates through two primary business segments: food and support services, and uniform and career apparel. ARAMARK's foodservices is a large player in the events concessions segment with hospitality contracts serving more than 80 professional and college sports facilities along with more than 30 convention centers. Other units focus on schools, universities, healthcare facilities, and correctional facilities.
Sales and Marketing
ARAMARK serves businesses of all sizes in many different industries. Like its outsourcing rivals, ARAMARK competes primarily through bids to provide services to specific clients. It is generally engaged through long-term contracts that are renewed on a periodic basis. Most of ARAMARK's contracts allow the company to retain all revenue from its operations while paying a commission to the client; it also works under management-fee arrangements under which clients bear some of the financial risk for expenses. In addition, the company's uniform and apparel division also sells products (outerwear, safety gear, work wear) directly to customers.
The company reported $14.3 billion in revenue for fiscal 2014. That was a decrease of more than $500 million compared to the prior fiscal period. However, ARAMARK's net income increased by $88 million during fiscal 2014 compared to fiscal 2013 as the company reported a net income of $237 million.
During fiscal 2015 the company's net cash provided from operating activities increased by 72% compared to fiscal 2014, primarily due to change in receivables and prepayments.
ARAMARK has decided to exit certain operations within its international foodservices segment during fiscal 2016. In the past the company has used partnership agreements to grow its business.