About Aramark Uniform & Career Apparel Group, Inc.
Keeping employees fed and clothed is a mark of this company. ARAMARK is one of the leading contract foodservice providers in the world and a high-ranking uniform supplier in the US. The company offers corporate dining services and operates concessions at sports arenas and other entertainment venues. The firm also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. US customers generate about three-quarters of the company's revenue.
ARAMARK operates in three segments: Food and Support Services (FSS) US, FSS International, and Uniform and Career Apparel.
FSS US, which supplies around 60% of total sales, provides food, refreshment, specialized dietary, and support services, including facility maintenance and housekeeping in the US.
FSS International, nearly a quarter of sales, provides food and facility services to customers outside the US.
The Uniform and Career Apparel segment, about 15% of sales, offers personalized uniforms and accessories, work clothing, outerwear, and particulate-free garments, as well as mats, shop towels, and first aid supplies.
The company relies on one food distributor, Sysco Corp., to deliver about half of its food and non-food products in the US and Canada.
Based in Philadelphia, ARAMARK has operations throughout the US and nearly 20 other countries. International markets such as Canada, Chile, Germany, Ireland, and the UK, account for about 25% of the company's revenue. It also has operations in Japan through its 50% ownership of AIM Services Co.
The company has a diverse customer base in North America, serving customers in about 45 states, Puerto Rico, Mexico, and Canada from about 375 service facilities and distribution centers.
Sales and Marketing
ARAMARK serves businesses of all sizes in many 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 periodically. 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 risk for expenses. In addition, the company's uniform and apparel division also sells products (outerwear, safety gear, work wear) directly to customers.
The of increasing sales pushed ARAMARK's top line past its previous revenue high of $15.8 billion reached in 2018, while its net income steadily rose over the years until it declined in 2019.
In 2019 (ended September), ARAMARK had a 13% sales decrease to $14.6 billion from 2018 with higher sales in FSS International and Uniform segment; and the effect of the divestiture of HCT.
ARAMARK's net income went down about 20% to about $448.5 million in 2019 from 2018.
The company had about $246.6 million in cash and equivalents on hand in 2019 compared to $215 million the year before. In 2019, the company's operations generated $984.2 million in cash, investing activities used $209.5 million, and financing activities used $734.8 million.
The company has decreased debt load of $6.6 billion in 2019 from its $7.2 billion in 2018.
ARAMARK is working on its menu and technology tools to drive growth. The company has partnered with the American Heart Association to develop menus that improve the nutrition offered to customers. Through the partnership, called the Healthy by Life 20 by 20 campaign, ARAMARK has reduced calories, saturated fats, and sodium across its menus and increased the presence of grains, fruits, and vegetables.
ARAMARK has installed technology tools, including those that allow for self-ordering, to provide a better customer experience and improve productivity.
Acquisitions continue to be a key part of ARAMARK's strategy. The $1 billion deal for AmeriPride Services Inc. expanded the company's uniform business in the US and established a strong position in Canada.
ARAMARK has been trying to consolidate its operations to become more efficient. The company sold its healthcare technologies business for $295 million in 2019, planning to use the proceeds to pay down debt.
Mergers and Acquisitions
In 2019, ARAMARK acquired privately-held Good Uncle, an app-based on-demand food delivery services that brings freshly prepared, restaurant quality meals to conveniently located pick-up points around college campuses. The addition of this concierge service to the Aramark portfolio furthers the company's commitment to advancing innovation through culinary-and technology-driven solutions that better serve customers and clients.
ARAMARK was founded in 1959 and gone through several transitions over the years. In 1984, management and employees teamed up with investors to buy the company and 17 years later made an IPO. ARAMARK went private again in 2007, bought out by investors that included Goldman Sachs Capital Partners and CCMP Capital Advisors, as well as some 250 senior managers. In 2013, ARAMARK returned to the public markets with an IPO.
1101 Market St Ste 45
Philadelphia, PA 19107-2934
Phone: 1 (215) 238-3000
Employer Type: Privately Owned
Senior Vice President and Associate General Counsel: Harold Dichter
Senior Vice President: Barbara Prutzman
Executive Vice President, General Counsel, Secretary: Steve Reynolds
Employees (This Location): 1,300
Employees (All Locations): 12,000