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FROM THE FIELD
February 2010
After The Economic Hangover
"My head hurts, my feet stink, and I don't love Jesus," says a Jimmy Buffet song describing the misery of a hangover. It could just as easily be about the economy today. The buzz of artificially easy credit and inflated asset values is gone, and we're dealing with the hangover.
Foodservice, like everybody else, has taken it on the chops. But from health issues to water, energy and sustainability needs, huge forces out there will drive demand for better ideas and products. Why? Because we cannot afford the old ways any more. And that will revive the economy.
The food side has plenty shoving it toward change. Back in June 2004, in "Obesity Suits And The Next Big Fat Problem," we wrote of the alarming rise of obesity, not just here but around the world, and the role foodservice plays in it.
"Ultimately, though, the real underlying issue isn't about overweight, and it isn't about foodservice," the June column said. "It's about nutrition, and overweight-related illnesses and their costs. ..."
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"Undeniable needs for better solutions are forcing us toward recovery."
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And a couple paragraphs later: "When you consider that overweight is clearly linked to diseases like Type II diabetes, osteoarthritis, heart disease, stroke, respiratory illnesses and more—huge healthcare costs that will become even bigger as the aged population grows—what do you think will happen?
"If you were a politician, or a legislator, or an insurance-industry lobbyist, or a healthcare provider, how would you respond to the costs?"
So lo and behold, here we are. Obesity and calories are addressed in proposed healthcare reform. TV news and talk shows regularly drag out chain-restaurant entrées by name, complete with calorie counts, and show how viewers can make their own alternative versions for half the calories. A recently released report asserts that one out of every five dollars spent in healthcare is spent on diabetes-related expenses.
No wonder the newspapers are full of reports about restaurant chains changing their menus. The first week of January, both the Washington Post and USA Today, among others, noted KFC's 395-calorie grilled chicken meal. Also mentioned were Uno Chicago Grill's 550-calorie roasted veggie/feta wrap and Starbucks' new line of 400-calorie sandwiches.
Recently rolled out, low-cal menu items from Applebee's, Dunkin' Donuts and Taco Bell also were mentioned. Chains such as Austin Grill, California Pizza Kitchen, the Cheesecake Factory, Fuddruckers, Silver Diner and Sizzler were noted for working with menu consultants to get the calories out.
Calorie reduction has sprouted a whole industry-within-an-industry, hiring a bunch of people along the way. Then on the facilities side, you have the many calorie-posting laws, which, according to some reports, are actually driving down calories-per-transaction in some markets.
Not to mention the kinds of things we cover regularly in this magazine. Water shortages all over the place are driving water-efficient programs and equipment. WaterSense, the water version of Energy Star, will be coming to foodservice soon.
On the energy side, Energy Star now has standards for eight equipment categories. Thousands of models have been intro'd and qualified since 2001. And a growing number of utilities throughout the country now are offering incentives for buying Energy Star-rated equipment, everything from rebates to preferential financing added to your utility bill.
All of which gives you ways to lower your costs that you never had before, a whole new realm of reasons to invest in your infrastructure.
All in all, from menu to utilities to sustainability, there's never been so much changing so quickly. This will spark the economy.
Brian Ward
Chief Editor
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