Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
May 21, 2009

Economic Report:
Sponsored by:
Heard In The Aisles At NRA Show: Is -30% Or Flat The New ‘Up'?1
Public E&S Companies Fare Better Than Expected In Q1
Traffic Falls 1.5% In Winter Quarter, But Trend Improving
Economists See Some Light Beginning To Shine

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
ASTM Looking For Input On New Test Standards
Maryland, D.C. Compare Notes On Carryout-Bag Tax
Massachusetts Tells Chains To Count Calories; Connecticut May Follow. ...
... While Congress Debates Best Acronym

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In This Section:
Manitowoc Completes Sale Of Enodis Ice
NRA Taps EPA For Water, Energy Savings Program
ASHFSA, HFM Approve Formation Of AHF
McCafe Openings Continue Apace
Asbury Foodservice Adds Industry Veteran Hodge

This issue's Economic ReportSponsor: FETCO Corp.
Regulatory ReportSponsor: Manitowoc Foodservice

Industry Report Server Products

Manitowoc Completes Sale Of Enodis Ice
Warburg Pincus has completed its acquisition of Enodis' global ice machine business from Manitowoc Co. Now that the deal, first reported in FER Fortnightly in April, is done, Scotsman Industries Inc. will become the official name of the new holding company for all of the assets, including six factories in the United States, Italy and China. All of the company's brands, including Barline, Ice-O-Matic, Icematic, Oref, Scotsman, Simag and Tecnomac, will continue to operate as they have in the past, with no change to sales, distribution or service. Scotsman joins the portfolio of more than 100 companies owned by Warburg Pincus, a leading global private equity firm.

"This is an important day in the history of our company," said David McCulloch, Scotsman Industries chairman and CEO. "We are excited about the purchase of the company by Warburg Pincus, and we look forward to partnering with their highly experienced team to take our company to the next level."

Manitowoc Co., parent of Manitowoc Foodservice, 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.


Section sponsored by Server Products

NRA Taps EPA For Water, Energy Savings Program
The National Restaurant Association has joined forces with the Environmental Protection Agency's Energy Star program to launch a water- and energy-conservation program in foodservice.

The NRA Conserve/EPA Energy Star Challenge is designed to encourage operators to reduce their use of both water and energy, ultimately saving them money while lowering the impact restaurants have on the environment.

"The average restaurant uses 2.5 times more energy per square foot than other commercial buildings," Energy Star Commercial Program Manager Anna Stark noted. The opportunity for savings from lower water and energy use can help operators improve margins and yield a 30% return on investment over time, according to Energy Star data.

Tips on how to participate in the challenge, as well as a list of simple low- or no-cost ways to cut water and energy use, are available at the program website

Section sponsored by Server Products

ASHFSA, HFM Approve Formation Of AHF
The memberships of The American Society for Healthcare Food Service Administrators and The National Society for Healthcare Foodservice Management have moved ahead and officially consolidated the two professional societies as the Association for Healthcare Foodservice.

The new AHF will work toward its mission of advancing healthcare-foodservice professionals by assuring food and nutrition is a core competency, with a vision for self-operated healthcare-foodservice operations to be recognized as industry best practice.

More than 94% of ASHFSA respondents and 100% of HFM respondents were in favor of the consolidation. "The leadership and membership of both ASHFSA and HFM are very excited about the formation of this new organization and are energized by the enhanced, unprecedented and unparalleled opportunities it will provide for our industry," said Kris Schroeder, newly appointed president of AHF. Schroeder, administrative director of support services for the Swedish Medical Center in Seattle, added "AHF will provide self-operating healthcare food and nutrition professionals with the industry's absolute best practices, tools and resources."

AHF has been incorporated in Delaware and will be led through its inaugural year by a board of directors, consisting of equal representation from both the ASHFSA and HFM boards of directors, plus members of the ASHFSA-HFM Consolidation Task Force. ASHFSA president-elect Denisa Cate, director of food and nutrition services at Henry County Medical Center in Paris, Tenn., has been appointed president-elect. Marty Rothschild, v.p., sales and marketing at Aladdin Temp-Rite, will serve as chair of the Industry Advisory Board. The board of directors will be guided by legal counsel throughout the year to ensure an efficient and effective transition. The new AHF board held its first meeting in Chicago during the NRA Show.

Section sponsored by Server Products

McCafe Openings Continue Apace
McDonald's goal to become a beverage destination comes closer each day with the nationwide rollout of its McCafe specialty-coffee line. Now more than halfway to completion, the rollout already numbers nearly 8,000 U.S. stores selling the espresso-based drinks. The chain expects to meet its mid-2009 deadline for retrofitting all domestic units, according to Danya Proud, senior manager, U.S. communications.

Equipment for the McCafe products--including hot mochas, cappuccinos and lattes as well as iced coffees--is integrated into one package for build-out at the counter. Different equipment packages are available; space is included for frappe/smoothie machines, the next phase in the chain's specialty beverage rollout. While these beverages are in testing around the United States, there is no specific rollout date nor has a particular piece of equipment been selected, Proud told FER Fortnightly.

McCafe borrowed its name from the chain's foreign McCafe's, which have a separate ordering point as a coffeehouse and specialty bakery. Since their founding in 1993, McCafe's coffee bars have continued to grow in countries like Australia and Germany. A few years of testing here led the company in '07 to determine that drive-through convenience, rather than the coffeehouse experience, drove coffee traffic in the United States, so drive-throughs will be key in future development. About 30 early U.S. locations still operate a coffee bar in their stores, but Proud said McDonald's has no plans to revisit that concept in the United States.

In January '08, after determining needed drive-through improvements, McDonald's began rolling out its domestic McCafes. Drive-through and build-out costs vary according to the package selected, said Proud, but average about $75,000 per store; McDonald's pays 40% of the lease-hold costs. The specialty beverage equipment, which includes equipment for the specialty coffees and upcoming smoothie and frappe rollouts, costs about $25,000 per store.

Section sponsored by Server Products

Asbury Foodservice Adds Industry Veteran Hodge
Asbury Foodservice, Ft. Lauderdale, Fla., has announced the appointment of industry veteran John Hodge to the position of Director of Sales and Marketing.

Hodge most recently served as director of sales for Electrolux Professional and as national sales manager with Electrolux Dito. "Hodge brings a wealth of industry management experience to the Asbury team," Asbury announced in a statement, citing a broad range of product knowledge from food preparation with General Slicing, to refrigeration, ware washing and cooking with Electrolux and Wolf Range products.

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