Episode 5

Episode 5

Behind the Numbers: What the Annual Reports of Compass, Sodexo, Aramark & Elior Reveal About the Future of Contract Catering

Behind the Numbers: What the Annual Reports of Compass, Sodexo, Aramark & Elior Reveal About the Future of Contract Catering

Behind the Numbers: What the Annual Reports of Compass, Sodexo, Aramark & Elior Reveal About the Future of Contract Catering

Asger Holst Jensen
Asger Holst Jensen
Asger Holst Jensen
Asger Holst Jensen

16 apr 2025

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The biggest players in the contract catering industry - Compass Group, Sodexo, Aramark, and Elior - are playing a major role in shaping the future of the sector. In this issue, we dive into the key learnings and insights from their latest annual reports.


The market share of the largest caterers continues to grow

All of the largest catering companies experienced strong growth in 2024, with an average growth rate of 9.75%. Looking ahead, each of them is projecting solid growth in the coming years.

These growth rates outpace the overall market, which is growing at 5.3% year-over-year indicating that the biggest players are continuing to increase their market share.

Source: Alix Partners & the annual reports of Compass Group, Sodexo, Aramark & Elior

One of the key drivers behind this growth has been M&A activity, with the most notable deals in 2024 led by Compass Group:

  • CH&CO (UK): Acquired by Compass Group for €547M, CH&CO represents the largest contract catering deal in European history.

  • 4Service (Norway): One of Norway’s leading contract catering and FM providers was acquired by Compass Group for €455M, making Compass the largest operator in the Norwegian market.

  • Dupont Restauration (France): The French contract catering company was acquired by Compass Group for €296M.

This wave of M&A activity by global players has played - and continues to play - a major role in increasing their market share and gradually consolidating the industry.

In addition, the ongoing trend toward outsourcing remains a crucial growth driver for both large players and smaller contract catering companies.


The outsourcing trend shows no sign of slowing down

The shift from in-house catering to outsourced solutions continues to gain momentum. The major players describe this as a “structural growth opportunity,” and the data backs it up. Sodexo’s figures show that 43% of all contracts won in North America came from first-time outsourcing, underscoring the scale of the shift.

According to the annual reports, growing operational complexity across multiple areas is a key driver behind this trend, pushing more organizations to rely on specialized catering providers.

Source: Compass Group Annual Report


Margins are increasing

Despite ongoing challenges related to food and wage inflation, the major catering groups have all reported and are forecasting improved profit margins, highlighting the resilience and adaptability of the industry.

Source: Alix Partners & the annual reports of Compass Group, Sodexo, Aramark & Elior


Digital & sustainability is a right to entry in almost every client proposal and a clear growth enabler

Digital transformation is rapidly becoming a core driver of growth in contract catering, consistently highlighted across the annual reports as essential to achieving long-term visions and scaling operations.

Compass Group emphasized that "digital is a right to entry in almost every client proposal and a clear growth enabler," while Sodexo outlined a dual focus: "firstly, to constantly optimize business processes and applications, and secondly, to strengthen the direct relationship with consumers."

The reports collectively point to three primary areas where digital investments are being made:

  • Consumer-facing technology: Mobile ordering, cashless payments, and digital loyalty programs.

  • Operational efficiency: Automated reporting, AI-driven demand forecasting, and food waste reduction.

  • Client value: Real-time dashboards, actionable insights, and customizable digital experiences.

Sustainability also stands out as a major strategic focus. Compass Group described its Planet Promise as "key to our growth aspirations," while Sodexo continues to align its food offerings, operations, and sourcing strategies with its 2040 net-zero ambition.

The emphasis on sustainability has grown significantly - Compass Group, for example, expanded its sustainability coverage in its annual report from 15 to 30 pages, with similar trends seen across other major players.

Across the board, there is clear consensus: the caterers who can demonstrate real sustainability impact - not just ambition - are the ones winning contracts.


What does this mean for regional caterers?

The playing field is shifting fast. As global players grow through both organic gains and M&A, differentiation has never been more critical.

  • Double down on your local edge - Personal service, community ties, and custom offerings can help you create something the large groups simply can’t replicate.

  • Leverage your ownership - If founders or owners are still involved, looking customers in the eye and saying “We will deliver on this” carries real weight in a world of relationships.

Read more about how regional caterers can stay competitive from three industry experts: https://www.linkedin.com/pulse/behind-bid-what-really-wins-catering-tenders-2025

  • Choose the right partners in digital and sustainability - These are no longer nice-to-haves; they’re increasingly baseline expectations in tenders. The right partners can help you match the big groups in terms of offerings.


Executive Summary

  • The market share of the biggest caterers are continuing to increase shown by an average organic growth of 9.75% compared to 5.3% for the market as a whole.

  • M&A is serving as an important driver of the growth and consolidation of the market for the big groups.

  • The outsourcing trend shows no sign of slowing with inflation & operational complexity increasing the attraction compared to in-house. The large caterers are referring to this as the structural growth opportunity highlighted by the fact that 43% of the new contract wins for Sodexo North America came First-time outsourcing

  • Despite the challenges faced in terms of food & wage inflation, the large groups all reporting & forecasting improved profit margins demonstrating the resilience of the industry. The average profit margin is expected to increase from 6.43% in 2023 to 7.93% in 2026

  • Digital and sustainability have become baseline expectations in client proposals and are seen as key growth enablers by the large groups. From digital engagement apps to net zero roadmaps, the caterers that can clearly prove their impact - both technologically and environmentally - are the ones best positioned for growth.