The Operational Excellence Tools Series | #28: Growth Beyond Cost Cutting

Aramark Shows How OPEX Can Drive Revenue Expansion.

Welcome to the unique weekend article for the Loyal Fan subscribers-only edition.

This is the #28 article of The Operational Excellence Tools Series.

Outlines and Key Takeaways

Part 1 – Official Announcement

Part 2 – Background and Meaning

Part 3 – Analysis Through the Lens of Operational Excellence

Part 4 – Lessons for Businesses

Part 5 – Conclusion

PART 1: OFFICIAL INFORMATION

Over the past week, Aramark — one of the major U.S. corporations in facility services, food services, and operational management — announced financial results showing that the company achieved a significant increase in new client contracts, with a total value of approximately USD 1.6 billion signed in fiscal year 2025. This figure was reported by Aramark in its investor communications during the fourth-quarter earnings release, presenting a notable picture: the company’s growth is not driven solely by reducing operating costs, but by expanding revenue through a more effective operational foundation.

Key highlights from the announcement include:

• The company recorded growth in its education, healthcare, and sports–entertainment venue service segments.

• New contracts focused on large-scale clients with higher expectations for operational stability than before.

• Aramark continues to prioritize margin improvement through operational management, instead of relying solely on aggressive cost controls.

Amid a global economic environment still affected by volatility in labor, energy, and supply chain costs, Aramark’s ability to secure a substantial volume of new contracts is a critical indicator that the company’s growth strategy is shifting away from cost reduction as the primary method of protecting profitability, and toward strengthening operations to expand revenue.

Why does Aramark’s result attract attention?

Aramark operates in a highly competitive sector with traditionally modest profit margins. Its customers — including hospitals, universities, event organizations, and sports venues — require stable service quality and real-time response capability. This means that growth strategies cannot rely solely on traditional cost-cutting measures.

Instead, Aramark demonstrates a focus on resolving systemic operational challenges, including:

• Complex supply chains with seasonal and regional fluctuations.

• Customer demand variability, especially at events and educational facilities.

• Rising labor cost pressures, requiring more efficient staffing models.

• Strong expectations for consistent and safe service, especially in healthcare environments.

From this, it is clear that Aramark is strengthening operational capabilities not merely to “perform better at what already exists,” but to:

• Increase customer retention through consistent service quality.

• Enhance readiness to serve larger-scale clients.

• Improve forecasting capabilities and resource allocation efficiency.

A critical signal for the business operations community

The results achieved by Aramark send an important message to operations leaders and business strategists:

Sustainable growth no longer comes only from cost reduction, but from the ability to operate efficiently, flexibly, and at scalable levels.

In a context where input costs are difficult to control, and many companies recovering from economic disruptions focus mainly on budget cuts, workforce restructuring, and investment restrictions, Aramark’s financial data illustrates an alternative approach: organizations can grow by upgrading their operational foundation to expand revenue, rather than relying purely on defensive cost-reduction measures.

Market factors that reinforce this context

Market conditions in the United States and several other regions are driving demand for higher-standard operational services, including:

• Customers demanding higher stability in service levels.

• Greater use of technology and data to forecast demand.

• A shift toward longer-term service contracts rather than short-term service delivery.

• Increasing requirements for transparency in cost and operational efficiency.

Aramark holds an advantage in serving large-scale clients, where operational efficiency can directly translate into economic and financial value.