Abstract
Managed-services companies that provide their clients with on-site food service represent a large component of the chain-restaurant industry. These companies serve offices, factories, educational institutions, healthcare providers, stadiums, and correctional institutions. The market is a global one, dominated today by four major players: ARAMARK, Compass Group PLC, Marriott Managed Services, and Sodexho. The aggregate revenues of those companies were more than $17 billion in fiscal 1996. The use of branded products is a leading competitive strategy that each of those organizations employs to encourage growth, gain market penetration, and increase sales. However, each firm uses branding in different ways and to varying degrees, so that the balance between national and house brands maintained by the managed-services companies is actually a way to differentiate those firms. Compass and Marriott are concentrating on establishing their house brands (and also using national brands) while ARAMARK and Sodexho use whatever concept or brand best fits a client's preferences or particular situation, provided it can be profitable.
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