PHILADELPHIA--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--Mar 30, 2005--ARAMARK (NYSE:RMK), a world leader in managed services, today released key research findings from two national studies that identify attitudes, behaviors, and challenges regarding the outsourcing of dining and facility services. These findings were gathered from executive-level college and university administrators. ARAMARK Education conducted the surveys in an effort to better understand and serve its customers.
All respondents agreed that facility and dining services contribute to the student living and learning experience; the transformation of the campus community; and are vital to an institution`s ability to attract and retain students, faculty and endowments. Most importantly, respondents agreed that facility and dining service programs are most successful when they align with the institution`s mission.
Key Higher Education Outsourcing Findings:
Distinct patterns emerged from the university administrators surveyed, including:
Dining Services:
-- More than half (53 percent) of respondents feel that an outside dining service management company can bring knowledge of best practices to their institution.
-- More than half (53 percent) of respondents define the value of dining service management not in terms of how much they pay, but in terms of what they receive.
-- 80 percent of respondents believe that an excellent dining service program contributes to the enrichment of the student living and learning experience.
-- Only 10 percent of respondents believe that generating increased revenue is the top priority in dining service programs.
-- Respondents that currently manage their own dining services rated cost effectiveness, shared priorities, loss of control, and employee jobs to be the most important barriers to food service outsourcing.
Facility Services:
-- Custodial is the most frequently outsourced facility service, followed closely by maintenance and groundskeeping. Capital management (eight percent) and commissioning (five percent) are the least used, but respondents stated they would consider outsourcing these functions in the future, including energy management (49 percent).
-- Only four percent of respondents do not outsource a single service at their higher education institution.
-- Facility services are less frequently outsourced than food, vending, and bookstore outsourcing. Most universities are more likely to consider outsourcing facility services if it is already outsourcing dining services.
-- Two-thirds of respondents do not have a structured process to evaluate the decision to outsource services.
-- Lowering the cost of facilities is considered important, but not the most pressing issue in facilities management today. Other issues mentioned include expansion plans, renovation/upgrade needs, and demanding faculty and students.
-- Sixty-one percent of respondents indicated they would consider outsourcing. Of those 61 percent:
-- Only nine percent believe that an outside company cannot navigate politics of the institution and seven percent do not believe an outside company can bring best practices to institution.
-- Other things listed as very important by respondents were enhancing living/learning environment (68 percent); employee training & development (67 percent); providing value for investment (63 percent); achieving financial objectives (69 percent); and providing professional responsive service (63 percent).
Higher Education Outsourcing Methodology
Facility Services Research:
The research sample includes ARAMARK Facility Services clients and non-clients. Presidents, Chief Business Officers, and Chief Facility Officers were surveyed. The margin of error for the total sample is +/-6.7% and higher for sub-groups.
Dining Services Research:
The research sample includes ARAMARK Campus Services clients and non-clients. Respondents include Presidents, Chancellors, Chief Business Officers, VPs of Student Affairs, and other Executive VPs. The margin of error for the total sample is +/-6.27 and higher for sub-groups.
About ARAMARK
Through its higher education group, ARAMARK Education provides a wide range of food, facility and other support services to approximately 600 colleges and universities in the U.S. ARAMARK offers higher education institutions a single source for the development of dining and facility management solutions, including: master planning; culinary development and venue design; catering; and residential, quick-serve, and express dining concepts; facilities management; groundskeeping; energy management; building commissioning; and
custodial services. Visit www.aramarkhighered.com for more information.
ARAMARK is a world leader in providing award-winning food and facilities management services to health care institutions, universities and school districts, stadiums and arenas, international and domestic corporations, as well as providing uniform and career apparel. ARAMARK was ranked number one in its industry in the 2004 FORTUNE 500 survey and was also named one of ''America`s Most Admired Companies'' by FORTUNE magazine in 2005, consistently ranking since 1998 as one of the top three most admired companies in its industry as evaluated by peers. Headquartered in Philadelphia, ARAMARK has approximately 242,500 employees serving clients in 19 countries.
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