Aramark Ireland Holdings, the US-based food services and facilities management group that owns Avoca and manages a contentious direct provision centre in Clare, continued its financial decline last year despite receiving over €10 million in pandemic-related governmental aid. The recent filing of consolidated accounts for Aramark reveals that revenues for the Campbell Catering proprietor rose by 18% last year, reaching €314 million.
However, despite this, Aramark experienced yet another operating deficit in 2023 due to rising administrative expenses – up by 7% to nearly €110.4 million – coupled with a boost in employee numbers. The after-tax losses of the group, which employed approximately 4,889 staff in 2023, were reduced from just over €11 million in 2022 to €7.4 million last year. Increased restructuring and redundancy expenses, which jumped from €1.6 million to almost €5.9 million within a year, predominantly accounted for this reduction.
State subsidies did offer some relief to Aramark’s financial outcome, as the firm received close to €10.6 million in 2023 as part of several wage assistance schemes intended to aid organisations throughout the Covid-19 crisis. According to the filings, Aramark Ireland’s leaders emphasised their ongoing commitment to enhancing growth and efficiency throughout the company.
Aramark, which runs three facilities for international protection applicants, saw its property management business experience a 14% increase in turnover, to €11.8 million. Simultaneously, revenue from facilities management increased by approximately 9%, exceeding €64.1 million. This reflects the firm’s strategic efforts to grow profitability and secure new business, helping reduce their reported loss.
Reports from the Health Information and Quality Authority (Hiqa) earlier this year criticised Aramark’s handling of the Knockalisheen direct provision centre in the outskirts of Limerick City. The scrutiny, which happened after an early January inspection, revealed substantial shortcomings in standards with the accommodation being deemed as “inappropriate” and lack of effective supervision was recorded.
Recruitment procedures in the centre were characterised as neither “safe” nor “efficient”, as a few staff members did not go through the Garda vetting process while others, who had previously lived overseas, weren’t subjected to international police checks. Furthermore, eleven employees had not completed the compulsory ‘Children First’ training as documented in the report. Aramark had presented a plan for compliance and promised to make requisite adjustments by the end of the year, at the time.
Moreover, Aramark manages restaurants within hospitals and university campuses, and also the National Gallery of Ireland’s café. Notably, it is facing a boycott led by the Union of Students in Ireland concerning its involvement in the direct provision system. In 2022, the company’s role with the National Gallery became a national topic of discussion when gallery staff expressed their dissatisfaction with the decision to award the contract to Aramark. Aramark Ireland is yet to respond to the issue.