Business Breakdowns
Episode 211 Compass: Meals for the Masses
Business Breakdowns

Episode 211: Compass: Meals for the Masses

Business Breakdowns

Episode 211

Compass: Meals for the Masses

Asif Jeevanjee is the Chief Executive of Oakmount Capital. We cover how Compass Group became the largest player in the global food services industry, why consumers becoming more discerning about food is a major tailwind, and the powerful lesson of "shrinking to grow" that investors can apply elsewhere.

Show Notes:

(00:00:00) Welcome to Business Breakdowns

(00:01:22) Understanding the Food Service Market

(00:05:03) Contract Structures and Retention

(00:11:47) The Origin Story of Compass Group

(00:17:33) Expansion into the US Market

(00:21:34) Sectorization and Market Penetration

(00:27:45) Growth Strategies and Pricing

(00:29:07) Financial Dynamics and Margins

(00:30:41) Procurement and Food Buy

(00:35:24) Labor Management and Technology

(00:37:55) Impact of Economic Cycles and Covid

(00:43:27) Capital Allocation and Valuation

(00:51:44) Lessons From Breaking Down Compass

(00:54:02) Key Lessons from Compass

Compass: Meals for the Masses

Introduction

Matt
This is Matt Reustle and today we are breaking down the food catering giant Compass Group. My guest is Asif Jeevanjee, Chief Executive of Oakmount Capital. Now, whether it's your corporate cafeteria, the food stands at a sporting event, or the old hospital food tray, you can see the food services industry all around you. And Compass is the giant in this space with a history that really dates back to the emergence of this outsourced trend.

Asif took me along this journey for both the business and the sector. How does the ecosystem work? What do contracts typically look like? And why had I heard of Aramark, but not Compass, when Compass is nearly double the size? While my business instinct with anything food related is, it's just so hard. You have perishable goods and a lack of visibility on sales. The list goes on.

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