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Largest Compass division dispenses high returns as nation's leading vendor
Canteen Corp. may operate these days as a vending division under the umbrella of Compass Group USA, but that doesn't mean the Canteen name has lost any clout.
In the foodservice industry the nearly 70year-old Canteen is still synonymous with machinedispensed foods and beverages. At $900 million in annual revenue, Canteen is the largest Compass Group division, $50 million larger than Eurest Dining Services.
It has a staggering 17,000 clients and 6,000 employees and controls more than 80 percent of Compass Group's fleet of 5,000 vehicles.
For all that, Canteen still has a bit of a split personality, according to division president Anthony Gagliardi.
"Usually, vending is that last thing people think about in the contract environment when it comes to operations and planning," Gagliardi says. "But it's the first thing they think about when it comes to financial returns. A well-run vending service can drive the profitability of the entire foodservice program."
Gagliardi's charge, then, is to educate clients and potential clients about the changes that have taken place within Canteen and in the industry over the last five to 10 years.
On that front Gagliardi has plenty of ammunition. Through acquisitions and consolidation Canteen has emerged as the predominant player in the vending industry. With the purchase of Service America's vending accounts in 1996, Canteen has become three times larger than its closest competitor and virtually the only national player.
The other major contract companies -- Aramark, Marriott and Sodexho -- handle some vending as part of their in-house dining programs, but none has a division dedicated to vending.
Not that Canteen is only a vending concern these days. Although 85 percent of its business comes from machines, the division slowly is making inroads into several other areas.
After spending more than 20 years in the foodservice industry, this erstwhile scientist -- Gagliardi has a degree in biology with a minor in chemistry from the University of Nevada at Reno - has acquired the experience to make those inroads successful. His term of service has included eight years with Saga Corp., another couple...