Consumer Discretionary
Considering the fixed costs of food and facilities management, many schools, stadiums, and more are re-thinking their decision to operate this business in-house vs. outsourcing. Meanwhile, for the 50% of the market that is already outsourced, the vast majority is owned by “mom-and-pop” providers. Many struggled to navigate the pandemic and there is an opportunity for larger players, like ARMK, to take significant share. The market isn’t recognising how ARMK’s large footprint has enabled it to improve offerings, including customised food and superior payment solutions. This helps it win premium contracts, leading to higher revenues and margins.
Edition: 152
- 20 January, 2023