Aramark

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Aramark Corporation
TypePublic
Traded asNYSEARMK
IndustryManaged Services
Founded1959 (as Automatic Retailers of America)
HeadquartersAramark Tower
Philadelphia, Pennsylvania, U.S.
Key peopleDavre Davidson, Founder
Joseph Neubauer, Chairman
Eric J. Foss, CEO
ProductsManaged Services
RevenueIncreaseUS$13.51 billion (FY 2012)[1]
Operating incomeIncrease US$582.23 million (FY 2012)[1]
Net incomeIncreaseUS$141.90 million (FY 2012)[1]
Total assetsDecrease US$10.476 billion (FY 2012) [1]
Total equityIncrease US$1.572 billion (FY 2012)[1]
Owner(s)CCMP Capital, Goldman Sachs Capital Partners, Thomas H. Lee Partners, Warburg Pincus, and management
Employees259,000 (Sept 2012)[1]
Websitewww.aramark.com
 
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Aramark Corporation
TypePublic
Traded asNYSEARMK
IndustryManaged Services
Founded1959 (as Automatic Retailers of America)
HeadquartersAramark Tower
Philadelphia, Pennsylvania, U.S.
Key peopleDavre Davidson, Founder
Joseph Neubauer, Chairman
Eric J. Foss, CEO
ProductsManaged Services
RevenueIncreaseUS$13.51 billion (FY 2012)[1]
Operating incomeIncrease US$582.23 million (FY 2012)[1]
Net incomeIncreaseUS$141.90 million (FY 2012)[1]
Total assetsDecrease US$10.476 billion (FY 2012) [1]
Total equityIncrease US$1.572 billion (FY 2012)[1]
Owner(s)CCMP Capital, Goldman Sachs Capital Partners, Thomas H. Lee Partners, Warburg Pincus, and management
Employees259,000 (Sept 2012)[1]
Websitewww.aramark.com
Aramark headquarters, the Aramark Tower, in Center City, Philadelphia

Aramark Corporation, known commonly as Aramark, is an American foodservice, facilities, and clothing provider supplying businesses, educational institutions, sports facilities, federal and state prisons, and health care institutions. It is headquartered at the Aramark Tower in Center City, Philadelphia, Pennsylvania.[2] Aramark’s revenues reached 13.5 billion USD in 2012 and was listed as the 23rd largest employer on the Fortune 500.[3] Its revenue in 2013 was $13.95 billion.

History[edit]

Previous logo

Aramark was founded as Davidson Brothers in 1936 by Davre and Henry Davidson.[4] Davidson Brothers began by providing vending services to plant employees in the aviation industry in Southern California.

In 1959, Davre Davidson partnered with William Fishman to establish ARA (Automatic Retailers of America), which became publicly traded a year later in 1960.

In 1968, ARA provided services at the Mexico City Olympic Games, the first of 16 Games they have serviced, including Athens in 2004 and Beijing in 2008.[5]

In 1969, ARA officially became ARA Services, to reflect its growing range of businesses.

In 1983, Joseph Neubauer was elected CEO of ARA Services and a year later, in 1984, Neubauer led a group of executives to fend off a hostile takeover bid by coordinating a management buyout.[6]

ARA Services changed its name to Aramark in 1994.[7]

In 2001, Aramark returned to the New York Stock Exchange as a public company under the RMK ticker.[8] In 2006, a group of investors led by Neubauer proposed the acquisition of all outstanding shares of the Aramark Corporation, which was approved by shareholders. The merger was completed in 2007.[9][10]

In 2004, Aramark acquired a 90% stake in the Irish catering company Campbell Catering.

On August 29, 2011 Green Mountain Coffee Roasters sold Van Houtte USA (Filterfresh) to Aramark for $145 million.[11][12]

In May 2012, Aramark announced that its Board of Directors had elected Eric J. Foss as CEO and that Joseph Neubauer would remain the company's Chairman.[13]

Global operations[edit]

Aramark provides food and facility services to thousands of clients in 22 countries, including the United States, Canada, the United Kingdom, Germany, Chile, Ireland and Spain. Those services include:

Aramark uniforms delivery truck

In 2006, Aramark acquired SeamlessWeb, an Internet-based service that allows users to order food from local restaurants.[14][15]

Aramark owns half interest in AIM Services, a leading outsourcing food provider in Japan.[16]

Chilean miners rescue[edit]

Aramark was hired to help feed the 33 miners trapped in the 2010 Copiapó mining accident after a local catering company was unable to meet government requirements. The Chilean Ministry of Health contacted Aramark, which specializes in remote site food preparation and delivery.[17] They arrived in Copiapó on September 6 and developed a method of delivering vacuum-packed meals, at the correct temperature, meeting specialized dietary requirements until the miners were extracted about 45 days later. All told, the company provided five meals each day, about 6,000 meals total.[18][19][20]

Ethical history[edit]

In recent years, Aramark has made several moves to boost its social responsibility image. In 2008, Aramark Building Community, a company-wide volunteer initiative, was created to help neighborhoods rebuild community centers as well as provide support for job readiness programs, nutrition and wellness education, and basic human needs for families and neighborhoods. A spring 2009 survey of over 92,000 students supported the company’s concept of trayless dining, which was developed to reduce the amount of campus waste.[21] In July 2009, Aramark and the Colorado Rockies opened what is believed to be the first gluten-free concession stand in major league baseball.[22] By 2010, Aramark made gluten-free foods available at all 12 of its major league baseball accounts.[23]

In response to First Lady Michelle Obama's childhood obesity "Let's Move!" campaign in February 2010, Aramark, along with other major food service providers, pledged to reduce the amount of fat, sugar and salt in their meals over the next five years.[24]

In April 2010, Aramark and the Coalition of Immokalee Workers reached a resolution that called for a 70−80% increase in wages for tomato pickers.[25]

Aramark has also been the subject of a number of scandals regarding labor practices and business ethics. These include firing workers for reporting unsanitary food conditions, paying fringe wages, not paying for all hours worked, not paying backpay, and firing or eliminating the positions of those who file Equal Employment Opportunity Commission (EEOC) claims.[26][27][28][29][30] Likewise, Aramark has been criticized for skimping portion sizes, food safety issues, and overcharging state governments (Michigan, Kentucky, and Florida) that have used their food in prisons; a Kentucky prison riot is reputed to have been caused by the low quality of food Aramark provided to inmates.[31][32] In 2013, an investigation by Pulitzer-prize winning journalist Chris Hedges discovered that the food provided to inmates at Burlington County Jail in New Jersey was substandard and spoiled, and often made prisoners sick with diarrhea and vomiting.[33]

See also[edit]

References[edit]

  1. ^ a b c d e f "Aramark, Form 10-K, Annual Report, Filing Date Dec 20, 2012". secdatabase.com. Retrieved Jan 12, 2013. 
  2. ^ "Contact Aramark." Aramark. Retrieved on August 24, 2009.
  3. ^ "Fortune 500 2010: Top 1000 American Companies - Aramark - FORTUNE on CNNMoney.com". Money.cnn.com. Archived from the original on 26 July 2010. Retrieved 2010-08-02. 
  4. ^ Profile Davre Davidson & William Fishman
  5. ^ Byrnes, Nanette (2008-08-07). "3.5 Million Meals In 16 Days". Businessweek.com. Retrieved 2010-08-02. 
  6. ^ "BW Online | September 23, 2002 | Joseph Neubauer, Aramark". Businessweek.com. 2002-09-23. Retrieved 2010-08-02. 
  7. ^ "Aramark, Form 10-K, Annual Report, Filing Date Nov 28, 1994". secdatabase.com. Retrieved Jan 12, 2013. 
  8. ^ "Aramark, Form S-1/A, Filing Date Dec 7, 2001". secdatabase.com. Retrieved Jan 12, 2013. 
  9. ^ "Aramark, Form 8-K, Current Report, Filing Date Aug 8, 2006". secdatabase.com. Retrieved Jan 12, 2013. 
  10. ^ "Aramark, Form 8-K, Current Report, Filing Date Feb 1, 2007". secdatabase.com. Retrieved Jan 12, 2013. 
  11. ^ "Aramark, Form 424B3, Filing Date Feb 8, 2012". secdatabase.com. Retrieved Jan 12, 2013. 
  12. ^ http://www.businesswire.com/news/home/20111003006862/en/Green-Mountain-Coffee-Roasters-Completes-Sale-Filterfresh
  13. ^ "Aramark, Form 424B3, Filing Date May 10, 2012". secdatabase.com. Retrieved Jan 12, 2013. 
  14. ^ "Aramark, Form 10-K, Annual Report, Filing Date Nov 22, 2006". secdatabase.com. Retrieved Jan 13, 2013. 
  15. ^ "Aramark Corp. has acquired SeamlessWeb Professional Solutions, Inc.". http://food-management.com. 
  16. ^ "Aramark, Form 10-Q, Quarterly Report, Filing Date Aug 9, 2012". secdatabase.com. Retrieved Jan 13, 2013. 
  17. ^ Levin, Alan (2010-10-14). "U.S. companies had part in Chilean mine rescue". USA Today. 
  18. ^ Bonnefoy, Pascale; Mackey, Robert (15 October 2010). "Miners no longer forced to order in". The New York Times. Retrieved 17 January 2011. 
  19. ^ http://teampa.com/2010/10/pachilean-connection-key-to-miner-rescue/
  20. ^ http://www.smartplanet.com/blog/business-brains/chile-mine-rescue-made-possible-by-innovative-companies-from-across-the-globe/11020
  21. ^ Horovitz, Bruce (2008-07-25). "More college cafeterias dump food trays". Usatoday.Com. Retrieved 2010-08-02. 
  22. ^ "Gluten-Free Concession Stand Now At Coors Field". cbs4denver.com. 2009-07-25. Archived from the original on December 8, 2009. Retrieved 2010-08-02. 
  23. ^ "Concessionaires add gluten-free offerings to ballpark menu". Sportsbusinessjournal.com. Retrieved 2010-08-02. 
  24. ^ "Childhood Obesity Battle Is Taken Up by First Lady". The New York Times. 2010-02-10. 
  25. ^ "Aramark, Coalition of Immokalee Workers agree on wage hike for UF’s food service field workers". Gainesville.com. 2010-04-02. Archived from the original on June 15, 2011. Retrieved 2010-08-02. 
  26. ^ "Aramark". Knowmore.org. Retrieved 2010-08-02. 
  27. ^ Appel, Allan. "Aramark On The Way Out". New Haven Independent. Retrieved 2010-08-02. 
  28. ^ "The Hawk - Scandal surrounds Aramark". Media.www.sjuhawknews.com. Retrieved 2010-08-02. 
  29. ^ jtizzi posted at 10:11 am. (2010-02-18). "The Independent Florida Alligator: News - Students, farmworkers appeal for more money". Alligator.org. Retrieved 2010-08-02. 
  30. ^ "UDS: controversy behind closed doors". Minnesota Daily. Retrieved 2013-04-06. 
  31. ^ Paul Egan (7 May 2013). Michigan's new prison food contractor accused of skimping on size and quality of meals to boost profits. Detroit Free Press. Retrieved 5 July 2013.
  32. ^ Lavender, George (30 January 2014). Private Contractor Accused of Skimping on Prisoner Food. In These Times. Retrieved 31 January 2014.
  33. ^ Chris Hedges (22 December 2013). Food Behind Bars Isn’t Fit for Your Dog. Truthdig. Retrieved 4 January 2014.

External links[edit]