Welcome to the Food Service Industry!
An introduction from
UNITE HERE’s Stir It Up Campaign
and the Real Food Challenge
Operating cafeterias ourselves is
kind of a pain.
generic CEO or university president
They’re
huge.
Campus dining is big business
In 2008 the university food service industry generated
$18 billion in sales in the US alone.
70% of that revenue went to private companies.
Contracted vs. Self-Op
Self-Op:
$5.75 billion
Private
Contractor:
$12.9 billion
2008 revenue for higher education food service
operations (USA)
These companies
provide a variety of
services all over, not
just on campuses.
It is the biggest contracted food service
segment in North America
32% of the $41 billion generated by the private institutional
food service industry in the USA in 2008 was in campus dining.
They’re
huge.
So the companies are huge
2009 Revenue: $20.3 billion
2009 Revenue: $19.8 billion
2009 Revenue: $22.7 billion
2009 Revenue: $12.3 billion
Based in London
386,000 employees worldwide
Based in Philadelphia
255,000 employees worldwide
Based in Paris
380,000 employees worldwide
Quick Exercise:
How does it break down in your city?
What schools are self-operated? What
company is at each school?
Helpful hint: Compass Group owns Bon Appetit, Chartwell’s and Eurest, the company
names you may be more familiar with on campus.
A lot of work needs to be done to bring justice to this industry. What’s wrong?
Working Full Time to Live in Poverty
(Overall Food Service Industry)
The Bureau of Labor Statistics shows that food service workers across the industry
face very low wages. Here are some of the mean annual incomes for common
classifications in the industry:
$23,870:
$22,050
$20,420:
$18,990:
mean annual income for “Cooks, Institution and Cafeteria”
: the 2009 federal poverty line for a family of four.
mean annual income for “Food Preparation Workers”
mean annual income for “Counter Attendants, Cafeteria,
Food Concession, and Coffee Shop”
$18,330:
mean annual income for “Dishwashers”
A Troublesome Supply Chain
Money
Food
Food Service
Company
Food
Distributor
To the casual student observer, the supply
chain may look like this picture.
Food Service
Company
(Corporate
office)
Weekly
Compliance
Numbers
Bonuses,
Promotions
Food Service
Company
(Local
Manager)
Preferred / Exclusive
Vendor Status
$ - Volume
discounts or
“kickbacks”
Money!
Food
Distributor
Food
Instead, the more complicated supply
chain may incentivize food that
doesn’t meet “real food” standards.
Meanwhile, a BIG SQUEEZE impacts food
and workers across the supply chain.
John Deere
Monsanto
Food Company
/
Farmer
Bank Loans
COSTS
SODEXO
Aramark
Compass
Labor
Environment
Quality
PRICES
Meanwhile, a BIG SQUEEZE impacts food
and workers across the supply chain.
Capital
Investment
Food Service
Company
Bank Loans
COSTS
Labor
Environment
Quality
University
demands
Commodity
prices
PRICES
And Universities on the Hook
University food service contracts often
contain capital investment clauses. This
means that the food service company
invests money—sometimes millions of
dollars—into the infrastructure of the
campus.
The university then has to pay back the
company over a number of years. Until
the money is paid back, the university is
in debt to the company.
Universities are the perfect place to start to make the change we seek. Why?
Universities are vital
to the companies’
profits because…
1.) High volume
sales and
2.) Guaranteed
revenue!!
$ $ $ $
$ $ $ $
Meal plan swipe
So, how do we influence the situation?
We may look at our campus food relationship like this:
Food!
Food Service
Company
Us Students
Our Money,
Our Suggestions
The School
Contract
~~~~
~~~~
~~~~
$$
$$
Food!
Food Service
Company
Us Students
Suggestions
But a closer look reveals that our
Universities have the power.
University Contract Process Explained
REQUEST
FOR
PROPOSALS
“RFP”
The university will draft a
RFP, which describes in
detail what a company
would be required to do.
They issue the RFP to
potential bidders –
companies who could do
the job.
Companies put together
their proposals and
submit them to the
University. Their
proposals describe in
detail how they would
run the operation, as
well as financial plans.
The University makes a
decision based on the
proposals. There may be
a committee of
administrators that
makes the final choice.
The good news: we can have a lot of
influence over our universities!
So, we have a lot of power. And, we’re not dealing with Wal
Mart here. The big food service companies have actually
shown an ability to cooperate in some campaigns. Students
have had a real impact in making these changes happen.
The Coalition of Immokalee Workers reached an agreement
with Compass Group, Aramark and Sodexo through the
Student-Farmworker Alliance’s campus-based Dine with
Dignity campaign. At least with Compass the agreement
didn’t just apply to campus cafeterias – it applied to all of
Compass Group’s divisions!
Our power has huge potential.
Workers Unionize with UNITE HERE
Joining a union is one way campus dining workers change their
working conditions. Standing together workers have won real
improvements, including better wages, benefits and job security.
Wesleyan University:
• $21.65 starting wage (first cook)
• Free family healthcare benefits
Trinity College:
• $21.50 starting wage (head baker)
• Free family healthcare benefits
Connecticut campus dining workers and active
members of UNITE HERE
Students and Workers Stand Together!
UNITE HERE has been involved in many campaigns where
students and campus dining workers stood together to fight
for economic justice.
Hunter College: Students rallied with workers
and threatened a boycott of the cafeteria in a
campaign to protect full family health benefits.
Loyola University Chicago: Hundred of
students supported workers in a successful
struggle to win union recognition
UNITE HERE Local 100 members at Hunter College
during a lunchtime work stoppage, 2009.
Student Success winning Real Food
Making just and sustainable food a purchasing priority means
millions of university food dollars moving away from corporate
giants and toward local, fair and sustainable farms and food
suppliers.
University of California—Irvine
• Aramark agrees to 20% Real
Food by 2015 (apx $850K)
Brown University
• Students audit food purchasing
and win commitment to move
from 15% to 35% Real Food by
2014 (apx $2 million)
Students rally outside at UNC Chapel Hill during the 2010
Southeast Youth Food Activist Summit.
Students Stand with Farmers
Student solidarity and a university commitment can make a huge
difference in the lives of small farmers and grower cooperatives.
University of North Carolina—Chapel Hill:
Persistent lobbying by students forced
Aramark to buck usual corporate policy and
purchase local, grass-feed beef from Cane
Creek Farm.
With more lobbying, purchases increased
from 100lbs of beef/week to 400lbs. Now
Eliza and Can Creek supply 5 colleges in the
area.
Join a campaign near you!
www.stiritupcampaign.org
www.unitehere.org
www.realfoodchallenge.org