Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
January 20, 2010

Economic Report:
Sponsored by:
Henny Penny
Are Things Starting To Look Up A Bit?
U.S. Foodservice Traffic Declines Steepest Of Wide Group
NRA To Release 2010 Industry Forecast This Week
FER To Present Revised E&S Forecast At MUFES

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
Philadelphia's Menu Boards Fill Up
NYC Sets Voluntary Targets For Reducing Sodium
City May Trade Parking For Better Sidewalk Seating
Cleveland Code Compliance Goes Online
Shades Of Footloose: City Bars Dancing In Restaurant

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In This Section:
McDonald's Taps Thompson As New President
NakedPizza Announces 50-Unit Deal For South Florida
Wendy's Debuts First Of 35 Singapore Units
Brinker Opens In Saudi Arabia, Sets Global Expansion Goal
Applebee's Hits 2,000-Unit Milestone

This issue's Economic ReportSponsor: Henny Penny
Regulatory ReportSponsor: Manitowoc Foodservice

Industry Report A.J. Antunes & Co.

McDonald's Taps Thompson As New President
Don Thompson, who began his foodservice career in 1990 as an engineer in McDonald's Restaurant Systems Group, has been elected president and COO of McDonald's Corp. He'll oversee the Oak Brook, Ill., company's 32,000 restaurants. The announcement was made by McDonald's Corp. CEO Jim Skinner.

Thompson takes over from Ralph Alvarez, who retired unexpectedly last month citing chronic pain. Alvarez had been with McDonald's since '94 and had served as COO since August 2006. Expected one day to succeed CEO Jim Skinner, Alvarez was also president of McDonald's North American and U.S. businesses, where he spearheaded the introduction of products including the snack-size chicken wrap and an Asian salad.

Thompson, his successor as president, has led the company's U.S. division for the past three years, during which he oversaw new products including last year's Angus Burger. Thompson also led the introduction of McCafe coffee drinks, which have lifted coffee sales to 5% of revenue at the company's 14,000 U.S. stores.

McDonald's also announced the promotions of Jan Fields, currently executive v.p. and COO for McDonald's USA, to succeed Thompson as president of McDonald's USA. Jim Johannesen, currently U.S. division president-central division, will succeed Fields in her former posts.

'Don Thompson has done an outstanding job leading our U.S. business, and I am confident he will bring the same energy and innovative thinking to his new global role as president and COO," Skinner said. 'I also know he will hit the ground running, having worked collaboratively for many years with our Area of the World leadership teams to share strategic solutions and execute our successful Plan to Win."


Section sponsored by A.J. Antunes & Co.

NakedPizza Announces 50-Unit Deal For South Florida
Fueled by investments from the sports world, NakedPizza is making some waves in the franchising world with plans to enter into area development contracts for most major U.S. markets by the end of the first quarter. The takeout and delivery concept kicked off its push by awarding Florida NKP the development rights for south Florida, including Miami. The first of 50 units is planned for early summer in Miami Beach.

The three-yeaR-old New Orleans operator launched its franchise company last year after securing funding from Mark Cuban, owner of the Dallas Mavericks, and The Kraft Group, owners of the New England Patriots. NakedPizza spokespeople say the company won't be selling units or territories, but awarding regional developers based on criteria that include their cultural fit and commitment to the company's health-driven mission to making pizzas fortified by pre- and probiotics and all-natural ingredients.

Section sponsored by A.J. Antunes & Co.

Wendy's Debuts First Of 35 Singapore Units
Wendy's has set up shop in Singapore, opening the first of 35 Wendy's slated to be built by franchisee Kopitiam Group throughout the country during the next 10 years. The store is located in Lau Pa Sat Festival Market, or Old Market, a site that dates to the country's founding more than 150 years ago. The building, now home to more than 100 food stalls, has been a national monument since 1973.

Wendy's/Arby's Int'l. announced the signing of the franchise agreement last May. Led by managing director Alden Tan, Kopitiam Group is the largest foodservice management group in Singapore, with annual sales of more than $200 million.

"This opening marks an important milestone in our efforts to grow in key international markets," said Andy Skehan, sr. v.p., Wendy's/Arby's Int'l. "Based on comprehensive analysis, we believe we have the long-term growth potential for more than 8,000 restaurants outside of North America, including a much stronger presence in the Asia/Pacific region." That analysis, if it comes to fruition, would more than double the chain's size; there are currently more than 6,600 Wendy's outlets in the United States and 21 countries and territories.

Since 2007, the Atlanta company has operated a regional office in Hong Kong to serve franchisees, suppliers and staff throughout the Asia/Pacific region and prepare for expansion into new markets.

Section sponsored by A.J. Antunes & Co.

Brinker Opens In Saudi Arabia, Sets Global Expansion Goal
Dubai might have the world's tallest building, but Saudi Arabia is now home to the only franchised Maggiano's outside of the United States. The new Maggiano's is operated by Jawad Business Group. Jawad, a Brinker Int'l. business partner for five years, opened the first Chili's Grill & Bar location in India this year and also franchises 10 other Chili's locations in Bahrain.

According to John Reale, president of Brinker's global business development, the Maggiano's opening in Jeddah brings the company closer to its target of 500 restaurants outside the United States by 2014. Brinker's has 201 international stores in 29 countries and two territories.

The Saudi unit was one of the 77 domestic and overseas outlets Brinker opened in fiscal 2009. Its Chili's, Maggiano's and On The Border Mexican Grill & Cantina brands also opened debut stores in El Salvador, Guam, Portugal, Singapore and Turkey last year. About 40% of Brinker's 1,700 restaurants are operated by domestic and international franchisees.

In other news, Brinker has sold 21 existing Chili's units in Kansas, Missouri and Nebraska to franchisee Muy Mucho Group. The franchisee will also develop five to 10 new Chili's locations in the same region. Muy Mucho is led by Mark Menking, former president of la Madeline Bakery & Café, and Jeff Jones, a 24-year Chili's and Brinker veteran who will serve as the Dallas company's chief operating officer.

Section sponsored by A.J. Antunes & Co.

Applebee's Hits 2,000-Unit Milestone
It's the big 2K for Applebee's Neighborhood Grill and Bar. The chain opened store No. 2,000 in December, making it the first casual-dining concept to reach this milestone store count. The new unit is in Harlem, located on the New York neighborhood's famed 125th Street.

The landmark unit is being opened by Apple-Metro, which owns and operates Applebee's in Manhattan and surrounding boroughs, including three of the highest-grossing Applebee's in the system. The company was 2009 Applebee's Franchisee of the Year.

Applebee's has units in 49 states and 16 countries. The original Applebee's was launched in 1980 by husband-and-wife team Bill and T.J. Palmer. They sold the Applebee's concept to W.R. Grace and Co. In less than a decade there were 54 units, and in '88 the company sold rights to the concept to franchisees Abe Gustin and John Hamra, who formed Applebee's International. It was acquired by DineEquity Corp., formerly known as IHOP Corp., in Nov. '07.

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