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PUBLISHER'S VIEWPOINT
August 2002

Think Globally, But Get It Done Locally

G
etting foodservice equipment and supplies out to thousand of units around the world is the toughest job in our business. Providing after-sale service is the most critical job in our business. At the intersection of these two activities lie hundreds of crashes and lots of frustration for all concerned.

This all comes up because I spoke to the European Foodservice Equipment Distributors Association in June in Oslo, Norway. Many, though by no means all, of their partners are American manufacturers. As primary distributors, these firms are usually responsible for after-sale service, and this is where they get involved with the big U.S. chains. This involvement can be difficult.

In preparation for my EFEDA presentation on how the big U.S. chains buy, I called Bill Hallett at McDonald’s, Dave Brewer at Yum! Brands, Mark Finck and Barry Barnett at Burger King, Tony Nieves at Hilton Hotels, Orlando Espinosa at Aramark, Don Fontana and Pete Goodman at Domino’s, Kevin Golden at Allied Domecq, and Bryan Brown at Carlson/T.G.I. Friday’s. While each chain does things it’s own way, the trends are clear. The chains are moving toward:

  1. More central influence (“We don’t like the word control,” said Hallett) over core equipment, particularly cooking and holding items.
     

  2. More locally based suppliers, whether they are an American company with an Asian plant, an established European supplier or a local fabricator. (“The local and regional supply issue is what we’re all working on,” said Brewer.)
     

  3. A strong emphasis on serving unit needs, including after-sale service.

The problem, say our EFEDA friends, is that they often don’t even know certain equipment is in their markets. Since orders are often placed through U.S. headquarters or a chain’s purchasing arm, the in-country distributor has no financial stake in the equipment. And there are liability issues above and beyond the financial ones. “We’re liable for any problem with a piece of equipment from one of our partners,” says Steve Snow, outgoing EFEDA chairman and a distributor in the U.K. “When it gets dropped shipped from wherever, you can see the danger for us.”

No easy solutions exist for these disconnects. Chains have a right to hold the manufacturer responsible for service. Distributors have a right to get paid for keeping stuff running and for their liability insurance. And understanding the other guy’s problems helps, but doesn’t solve every problem.

Cheers,
Robin Ashton
Robin Ashton



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