Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
December 2, 2008

Economic Report:
Sponsored by:
NRA Forecasts 1% Real Sales Decline In 2009
NRA Index Hits Another Record Low
Consumer Confidence, Expectations Remain Very Low
FER Still Forecasts 3.8% Real Decline For E&S

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
Bay Area Charbroilers Can Register Online
Grease, The Sequel, Plays Out In Milwaukie
Charlotte, Ogden Limit Vendor Trucks, Carts
San Jose Sets Stronger Green-Building Standards

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In This Section:
Krispy Kreme Unveils Smaller Prototype
Culver's New Proto Cuts Construction Costs
New Tool Helps Budget Landscape Water Needs
Toronto Preps For CRFA Show

This issue's Economic ReportSponsor: Food&HotelVietnam2009
Regulatory ReportSponsor: Manitowoc Foodservice

Industry Report The NAFEM Show '09

Krispy Kreme Unveils Smaller Prototype
Krispy Kreme starts construction this month of a new, smaller store concept, breaking ground in Smyrna, Tenn., and Winston-Salem, N.C. The company said franchisees in New York and Phoenix also are opening the smaller stores, and more are expected to follow.

"The economics of these small retail shops are attractive as they are less expensive to open, run and staff," company president James Morgan said in a conference call to analysts in mid-December.

"Supplying (smaller stores) from (a) Krispy Kreme factory store improves the utilization of the factory store and significantly enhances the return on those stores as well," he said.

Other benefits of the smaller stores, he noted, include the ability to put more of them into a market, making it easier for consumers to find and visit them and providing more cost-efficient marketing for store owners. The non-factory stores are called Fresh Shop, Hot Shop or Kiosks depending on size. The most desirable configuration, according to executive vp Douglas Muir, are "multi-tenant end-cap locations with drive-throughs."

The company opened 37 locations in the third quarter, bringing its total stores to 509 in December.


Section sponsored by The NAFEM Show '09

Culver's New Proto Cuts Construction Costs
Culver's, meanwhile, has rolled out its own new prototype, trimming nearly 12% off building costs compared to its classic stores, the company said.

The new proto, which recently opened in Louisville, Ky., features a contemporary flat-roof design accented by blue awnings. The roofline and awning treatment replaces the restaurant's signature (and pricey) blue metal roof and saves about $100,000 in construction costs.

Inside, the prototype's reconfigured, updated dining room can now hold more tables despite a smaller building footprint—32 tables in 3,954 sq. ft. of space, compared to traditional stores, which fit about 28 tables in a 4,292-sq.-ft. footprint. The seating increase comes in part from using more two-tops, which itself creates more intimate spaces.

The 390-unit, Prairie du Sac, Wis., quick-service chain opened 22 stores in 2008 and expects to open 28 this year, 20 of which will be based on the prototype design.

Section sponsored by The NAFEM Show '09
New Tool Helps Budget Landscape Water Needs
WaterSense, the Environmental Protection Agency's water-conservation program, recently introduced a new tool that can help builders, developers and landscape architects budget the amount of water a given landscape design will require.

The tool can help you determine the amount of water the designed landscape is allowed based on EPA criteria; how much water the landscape design requires based on climate, plant type, and irrigation system efficiency; and whether the design meets the budgeted amount.

Originally designed for single-family residences, the tool also can be used by commercial businesses like restaurants. You can download the tool at the Alliance for Water Efficiency website at

Section sponsored by The NAFEM Show '09

Toronto Preps For CRFA Show
Time to dust off the show shoes. The Canadian Restaurant and Foodservices Association is gearing up for its annual show, taking place March 8-10 at the Direct Energy Centre, Toronto. Organizers of Canada's largest hospitality event expect to host about 1,000 exhibitors and 12,000 attendees.

Products displays will cover everything from equipment, smallwares and technology to food and services. Top chefs taking part at the CRFA Show will include Bob Blumer, the Food Network; Mark McEwan, chef/owner of North 44, Bymark and One, Toronto; Alex Rolland of Globe Restaurant, Montreal; and Giovanna Alonzi of Terroni, Toronto.

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