Staffing at Avoca owner Aramark rebounds after Covid as revenues climb

Aramark, the US food services and facilities group that owns Avoca and operates three direct provision centres, received €13.5 million in Government grants last year and increased staffing to near pre-Covid levels after shedding more than 1,200 jobs at the height of the pandemic in 2021.

Consolidated group accounts filed recently for Aramark Ireland Holdings and Subsidiaries also show that losses at the Campbell Catering owner narrowed from €22.4 million in the year to the end of September 2021 to €12.3 million last year. The losses were recorded despite a 33.9 per surge in revenues to €266.2 million.

Accumulated losses of almost €152 million had built up at the company by the end of September last.

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Aramark Ireland has been the subject of a boycott on some Irish college campuses where it provides catering due to its role in the direct provision accommodation system.

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The company also made headlines in early 2022 after signing a contract to provide catering services in the National Gallery of Ireland. The Irish Times reported at the time that the contract, worth €7.5 million over three years, caused discontent among many gallery staff who wrote to its board warning of potential reputational damage.

Asked by The Irish Times on Thursday what impact, if any, the National Gallery controversy might have had on the group’s result, Aramark declined to comment.

In a report attached to the accounts, group directors said high food and energy inflation last year “presented a significant challenge to our business and we worked hard with customers to mitigate the impacts of these headwinds”.

Meanwhile, the group increased staffing levels from 3,288 in 2021 to 4,325 last year after more than 1,200 employees left the company during the pandemic.

Aramark Ireland’s €13.5 million in Government grants last year was down from €27.4 million in 2021. The company declined to explain the nature of the grants and whether they were related to Covid-19 supports.

The Government reportedly paid Aramark €6.3 million in 2021 alone to operate three direct provision centres at Knockalisheen, Co Clare, Kinsale Road in Cork and Athlone, a contract it has been party to since 2016.

In the accounts, the directors noted “both the organisation’s strategy to drive profitable growth in new business but also the continued recovery from the Covid-19 pandemic which significantly impacted operations during the previous two years”.

They identified “unrealistic increases in wages” as one of the principal risks facing the business.