Business Breakdowns Compass: Meals for the Masses - [Business Breakdowns, EP.211]
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Apr 2, 2025 
In this conversation, Asif Jeevanjee, Chief Executive of Oakmont Capital, dives into the world of Compass Group, a titan in the food service industry. He explores the intricate dynamics of the food service market, detailing contract structures and retention strategies that fuel growth. Asif addresses why Compass, double the size of Aramark, remains less known. The discussion also highlights how Compass adapts to post-pandemic changes and the importance of strategic acquisitions in maintaining a competitive edge. It’s a fascinating look at a vital yet often overlooked sector.
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Compass Group Overview
- Compass Group, a UK-based food service company, is the market leader in contract catering.
- They operate primarily in North America, serving corporate cafeterias, sports venues, and hospitals.
Food Service Market Size
- The global food service market is estimated at $320 billion, with Compass holding a significant share.
- While fragmented, Compass, Sodexo, and Aramark are major players, alongside in-house operations.
Compass Group Revenue Model
- Compass Group's revenue model involves procuring food from suppliers, transporting it through distributors, preparing it with chefs, and serving it to consumers.
- Money flows from consumers to Compass, then to distributors and suppliers, with some adjustments with clients based on contracts.