Date of Award

5-2026

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Social Sciences

First Advisor

Khemraj, Tarron

Area of Concentration

Economics

Abstract

This thesis examines the industrial organization and competitive dynamics of Aramark Corporation within the global contract catering and institutional hospitality industry. Using the Structure–Conduct–Performance (SCP) framework alongside transaction cost economics, this study evaluates how market concentration, labor investment, long-term contracting, and pricing strategies influence Aramark’s behavior and performance relative to its primary competitors, Compass Group and Sodexo. Financial data from Statista and company annual reports are used to construct concentration measures, including the three-firm concentration ratio and the Herfindahl– Hirschman Index, in order to assess industry structure. The analysis also incorporates operating profit margins and explores the role of demand elasticity in estimating firm-level market power through the Lerner Index. Contestability theory is applied to evaluate the extent to which entry barriers limit potential competition. The findings suggest that structural barriers, service differentiation, and contractual switching costs contribute to sustained profitability and pricing flexibility, shaping Aramark’s competitive position in institutional outsourcing markets.

Rights

The author has granted New College of Florida the nonexclusive right to archive, make accessible, and distribute for educational purposes this work in whole or in part in all forms of media, now or hereafter known. The copyright of this work remains with the author.

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