Foodservice Equipment Reports Fortnightly
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Welcome to FER Fortnightly Online Newsletter
April 7, 2009








Economic Report:
Sponsored by:
Food&HotelVietnam2009
Commodities Prices Continue Decline Even As Stainless Suppliers Try To Raise Prices
NRA Performance Index Mainly Flat In February
Consumer Confidence, Spending Up Slightly
Newly Revised FER E&S Market Forecast Available

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
California, Vermont Limiting Lead In Pipes
National LEAN Law Gaining Momentum
New Bills Mean FEASTing On Safer Food
B.C. First Province To Ban Trans Fat
Utah Relaxes Bar Laws



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In This Section:
Manitowoc Sells Enodis Ice, Elevates Karssiens
Chiliís To Open In Turkey, Brinker Shifts Management
BK New-Unit Growth Up 19%
CRFA Names OíReilly Chairwoman
MAFSI Marks Its 60th Year

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

Industry Report HOFEX 2009

Manitowoc Sells Enodis Ice, Elevates Karssiens
As required by its recent acquisition of Enodis Ltd., Manitowoc Co., the parent of Manitowoc Foodservice, is shedding Enodis ice-machine brands. The Wisconsin-based manufacturer has signed a definitive $160-million agreement to sell the Enodis global ice machine operations to Braveheart Acquisition. The sale includes the Barline, Ice-O-Matic, Scotsman, Simag and other ice machine and related businesses operated by Enodis.

Manitowoc was required to divest its ice business to comply with antitrust guidelines and gain clearance from the U.S. Justice Department and the European Commission for its acquisition of Enodis Ltd., in October 2008. Braveheart is a Delaware corporation formed by Warburg Pincus Private Equity X, L.P.

Manitowoc retains the Manitowoc Ice brand. The sale, subject to government regulatory approval, is expected to be completed in May.

Separately, Manitowoc Foodservice has appointed industry veteran Chris Karssiens to the new role of v.p. general market sales. Karssiens will provide leadership and direction to commercial sales activities across the United States for the full Manitowoc brand portfolio. He reports directly to Steve Beck, executive v.p. of sales, Manitowoc Americas Foodservice. For the past four years, Karssiens served as executive leader for Enodis' Asia-Pacific operations. He joined Enodis in 1998 as v.p. sales for Scotsman and went on to positions including commercial president for Enodis USA, president of Jackson MSC, and president of IOM.

 

Section sponsored by HOFEX 2009

Chili's To Open In Turkey, Brinker Shifts Management
Lots going on at Brinker Int'l. these days, including expansion of Chili's Grill & Bar into Turkey and a realignment of corporate management to optimize momentum.

Chili's has announced plans to open five restaurants over the next five years in Turkey, starting with a 220-seat store located in Etiler, Istanbul, to open later this year. Istanbul Food Restaurants and Tourism, a franchise partner of Chili's parent Brinker Int'l., will oversee restaurant operations.

"Brinker is extremely excited about bringing the Chili's brand into Turkey," said John Reale, president of Global Business Development for Brinker. "By offering a portfolio of brands to choose from and unparalleled franchisee support, Brinker is well-positioned to expand our relationship with franchise partner Istanbul Food Restaurants and Tourism and grow our market presence in Istanbul."

The Dallas-based company currently owns, operates and franchises 194 restaurants outside the United States, with 1,700 locations in 27 countries and one territory. In addition to Chili's, Brinker restaurant brands include On The Border Mexican Grill & Cantina and Maggiano's Little Italy.

And those three brands will see reorganized management as Brinker tries to create additional synergies across its portfolio. Todd Diener, a 27-year Brinker veteran, will serve as president of both the Chili's and On The Border brands. Diener, who will oversee operations for both brands, has served in a number of leadership posts with the company. He was named president of Chili's in 1998.

In addition to continuing to serve as president of Maggiano's Little Italy, Wyman Roberts will now also serve as Brinker's chief marketing officer. Roberts will lead marketing and culinary activities for all three Brinker brands. Prior to joining Brinker in 2005, Roberts served in marketing executive roles for Universal Parks & Resorts and Darden Restaurants.


Section sponsored by HOFEX 2009

BK New-Unit Growth Up 19%
With its best quarterly development rate in eight years, Burger King is on target to meet its fiscal year net new-unit count of 350 to 400 stores. The chain opened 125 net new restaurants in the three-month period ending Dec. 31, compared to 105 in the same quarter in 2007. Round-the-clock service is on an upswing as well: Burger King now has 114 company units in North America operating 24 hours a day; it expects 200 company stores to serve night owls by the end of the '09 fiscal year.

Not surprisingly, most of the expansion came from the international market. Eighty-seven net new restaurants opened in Europe and Asia, 30 in Latin America. A net of eight new units opened in the United States and Canada. In October, the company announced a business venture with its Taiwan franchisee, part of a development initiative of seeding international growth.

One new store looks a bit different from other Burger King units. In early March, the chain officially opened its first Whopper Bar Restaurant at Universal CityWalk at Universal Orlando Resort. The open kitchen design is an enhanced spin-off of the traditional restaurant, using a modern, bar-like design and a customizable menu with 22 Whopper topping choices. Burger King plans to introduce the concept on a global scale over the next six to 12 months, debuting one in Munich in early summer. It is also targeting additional U.S. and international locations, such as Los Angeles, New York and Singapore.


Section sponsored by HOFEX 2009

CRFA Names O'Reilly Chairwoman
Brenda O'Reilly has been elected chairwoman of the 33,000-member Canadian Restaurant and Foodservices Association. O'Reilly is the owner/operator of O'Reilly's Irish Newfoundland Pub in St. John's, Newfoundland. Last year she opened Yellowbelly Brewery and Public House in a restored heritage building on the same street; she also owns a catering business called Food on the Run.

"I'm very proud to be representing such a vibrant industry where the entrepreneurial spirit is alive and well," O'Reilly said. "Restaurants are an important part of every community in Canada, from Newfoundland to British Columbia. They're gathering spots for people of all ages, they attract tourists, they contribute to the local economy, and they create amazing opportunities for both entrepreneurs and employees."

One of Canada's largest business associations, CRFA represents independent and chain restaurants, bars, contract and social caterers, hotels and other foodservice providers. Canada's $60 billion foodservice industry employs more than one million people.

CRFA's top priority is government affairs, representing the interests of foodservice operators at the federal level and in every province. The association also sponsors four hospitality-industry trade shows.


Section sponsored by HOFEX 2009

MAFSI Marks Its 60th Year
The 500 rep and manufacturing-company members of the Manufacturers' Agents Association for the Foodservice Industry will mark the group's 60th anniversary at its annual conference in September.

MAFSI will celebrate its diamond anniversary in Toronto at its "Re-charge, Re-Invent, Re-Emerge" conference, Sept. 22-25. The meeting at the Westin Harbour Castle will include educational sessions focused on turning up profits in a tough economy by incorporating leaner, greener and smarter business processes. Registration opens in June. Conference co-chairs are Danny Collis of Collis Group and Rick Anger of Hatco Corp.


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