Food Service Contractors Revenue Benchmarks
The average food service contractors business in the United States generates $12.4M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 3,428 food service contractors businesses in the U.S., employing 513,043 workers with an average profit margin of 5.0%. The average employee in this industry earns $37K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Food Service Business Actually Do?
Businesses that operate cafeterias, dining halls, and food service inside institutional settings — corporate offices, universities, hospitals, prisons. Long-term contracts with the host facility.
Who buys: Corporations, universities, healthcare systems, government agencies.
How this is different: Different from caterers (event-driven) or restaurants (public storefront). Contract-based long-term operations.
Average Revenue
$12.4M
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$83K
per year
Total Businesses
3,428
in the US
Est. Owner Income
$618K
small business avg
Labor Cost
32.0%
of revenue
Avg Employee Wage
$37K
per year (BLS)
Market Saturation
1.0
firms per 100K people
How Much Do Food Service Contractors Charge?
Food service contractors (cafeterias, corporate dining) charge per meal served or per day.
| Service | Typical range |
|---|---|
Corporate lunch program (per meal) | $8–20 per meal |
Institutional (schools, hospitals) | $4–10 per meal |
Cost-plus management fee | 3–8% of food spend |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete food service business plan
A 12-section data-backed business plan for a food service contractors business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the food service contractors industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Food & beverage costs | $35 | $4.3M | Ingredients, food, beverages, disposables — the raw cost of what's served. |
Wages & benefits | $32 | $4.0M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $13 | $1.6M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $390K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $13 | $1.6M | Utilities, cleaning, licenses, credit-card processing, kitchen equipment depreciation, insurance. |
Net profit | $5 | $618K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
13.99%
openings/year
Closure Rate
10.68%
closings/year
Net Job Growth
+9.65%
annual
Businesses Closed
3,454
in 2023
Firm Count Trend
Should You Start a Food Service Business?
Startup Cost
$100K – $500K
Break-Even
6 months
5-Year Survival Rate
40.0%
Related Industries
Frequently Asked Questions
- What does a food service contractors business do?
- Businesses that operate cafeterias, dining halls, and food service inside institutional settings — corporate offices, universities, hospitals, prisons. Long-term contracts with the host facility. Corporations, universities, healthcare systems, government agencies.
- How much do food service contractors charge?
- Food service contractors (cafeterias, corporate dining) charge per meal served or per day. See the pricing table above for typical rates by service type.
- How much does the average food service contractors make per year?
- The average food service contractors business generates $12.4M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $618K per year at a 5.0% profit margin.
- How many food service contractors businesses are there in the US?
- There are 3,428 food service contractors businesses operating in the United States, employing a total of 513,043 workers.
- How much does it cost to start a food service contractors business?
- Startup costs for a food service contractors business typically range from $100K to $500K, with a 5-year survival rate of 40.0%.
- What is the average salary in the food service contractors industry?
- The average employee in the food service contractors industry earns $37K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The food service contractors industry is actively growing — adding jobs at a net rate of 9.7% per year. New establishments are opening faster than existing ones close (14.0% entry vs 10.7% exit), indicating healthy demand.
Approximately 57% of food service contractors businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 3,454 firms in this industry closed permanently.
Employment & Wages
The average employee in the food service contractors industry earns $37,468/year. This is below the national average of ~$65K — typical for retail and service industries. With 25,206 establishments employing 521,524 people, the typical business has about 21 employees.
Industry Trend (2000–2023)
The food service contractors industry has grown 104% since 2000 (from 10,641 to 21,706 firms).
See full historical statistics →Compare Food Service Contractors revenue with other industries: