Are Sodexo and Aramark cheaper than a local operator? +
At cafeteria scale (1,000+ daily covers, full kitchen management), the national contractor's overhead amortizes well. Below 500 daily covers, the same overhead becomes a meaningful share of the per-meal cost. For drop-off catering, Smart Fridge programs, or weekly meal-prep, the national contractor model is typically not the cheapest option.
When does a national contractor genuinely fit better? +
Multi-state employers feeding thousands across many locations, sites running full on-premise kitchens, and clients with national GPO contract requirements. The national contract model is built for that scale.
What is the contract length difference? +
National contracts are typically 3-5 years with auto-renewal. Local operators like MHP work month-to-month or on short pilot terms. The contract length difference reflects the underlying business model — high setup cost amortized over years vs. low setup cost paid back monthly.
Can we have both? +
Yes. Larger SoCal employers sometimes layer — a national contractor running the main campus cafeteria, plus a local operator running drop-off catering at satellite offices, a Smart Fridge for night shift, or weekly meal-prep as a benefit. The two models do different jobs.
How do we know which is the right call? +
Three questions. (1) Are you running a full cafeteria or doing drop-off? (2) One region or multi-state? (3) Do you need a 3-5 year commitment or month-to-month flexibility? National contracts answer "cafeteria, multi-state, multi-year." MHP answers "drop-off, SoCal, month-to-month." Different questions, different answers.