Foodservice Equipment Reports Fortnightly
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Welcome to FER Fortnightly Online Newsletter
June 1, 2010








Economic Report:
Sponsored by:
Henny Penny
NRA Performance Index Remains In Expansion Territory
Technomic Revises 2010 Operator Forecast Upwards
Heard In The Aisles At NRA: The Mood Was Upbeat
Two Key Foodservice Drivers Also Appear Positive

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
Energy Star Seeks Input—NOW
NRA Launches Healthcare Alliance
Update: Scottsdale Not Ready To Ban Disposers—Yet
NSF To Verify Energy Star Claims For Refrigeration



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In This Section:
Update: McCormick Place Revamp A Go
Sagittarius Sells Captain D's, Reboots As Del Taco
Moddelmog Returns to Arby's As New President
Quiznos Shoots For 600 New Stores
Dave & Buster's Has New Owners
Military Foodservice Operations Earn Honors At NRA

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

Industry Report Server Products

Update: McCormick Place Revamp A Go
Just days after the National Restaurant Association Hotel-Motel Show ended, the Illinois General Assembly has passed sweeping legislation aimed at halting the exodus of trade shows from McCormick Place by making it friendlier to exhibitors and more competitive in the convention world. Chicago had lost a number of major conventions in recent years; the NRA show was committed to Chicago only through 2012. Trade-show organizers and exhibitors had wrangled for years with union restrictions and expenses. Gov. Pat Quinn opposed the changes, but was overridden by a bipartisan veto. An interim trustee will oversee changes under the new law, which will give exhibitors the right to do much of their own booth work, and slash markups on food and electrical services, among other details. A legal challenge by one or two of the five unions that work the show floor might occur as early as this week.

Last month's NRA show attracted more than 58,000 registrants, a 6% increase over 2009—from 120 countries, up from 107 countries a year prior.

 

Section sponsored by Server Products

Sagittarius Sells Captain D's, Reboots As Del Taco
Captain D's Seafood Kitchen is sailing under the flag of a new corporate parent. Sagittarius Brands has sold the 539-unit chain to Sun Capital Partners, a private-equity firm which also owns Smokey Bones Bar & Fire Grill. Captain D's will continue operating as a stand-alone brand with current management intact, according to press reports. The reports also cited the new owner's plans to add Captain D's franchise- and company-owned stores in existing markets.

The sale was a major step in Sagittarius' recapitalization of and tightened focus on its 518-unit QSR chain, Del Taco. The company is now known as Del Taco Holdings. Management said a new cash equity infusion, along with refinanced existing debt, has improved cash flow and will allow investment in the business. Del Taco currently operates 287 company-owned units and 231 franchised locations in 16 states. Most of the Lake Forest, Calif., company's units are in Las Vegas, Phoenix, Salt Lake City and Southern California. It has half a dozen stores in the Midwest, and recently opened a second location in Florida.


Section sponsored by Server Products

Moddelmog Returns to Arby's As New President
Hala Moddelmog, who started her business career at Arby's, has returned to the company as its president. Last month, Wendy's/Arby's Group named her president of Arby's Restaurant Group. In 1981, Moddelmog was a market research manager for AFA Service Corp., Arby's franchise marketing association, and later worked in the division as v.p. of product development and strategic planning. From 1995 to 2004, she was president of Church's Chicken, where she oversaw a complete re-imaging of the brand. She spent three years as president and CEO of the Susan G. Komen for the Cure, and has most recently been CEO of Catalytic Ventures, a consulting firm.

Moddelmog began her new role as president at Arby's May 20, reporting to Wendy's/Arby's CEO Roland Smith. Atlanta-based Arby's has more than 3,700 stores systemwide.


Section sponsored by Server Products

Quiznos Shoots For 600 New Stores
Quiznos has announced plans to develop up to 600 new stores nationwide by the end of the year, and they won't all be franchised units. The 4,000-unit Denver chain, which has followed a traditional franchise-focused model, said the new locations will include "both corporate-owned stores as well as Quiznos-funded joint-venture ownership opportunities for qualified entrepreneurs." Quiznos founder and CEO Rick Schaden cited the strength of their business model as spurring the investment in corporate-owned stores. Last fall, Quiznos unveiled a capital-loan program for its franchisees, followed by a pilot program offering franchises with a greatly reduced down payment.

In addition to new-store development, Quiznos has been renovating existing units. More than 1,100 locations have expanded their menus and refreshed the brand's look; company plans call for another 2,000 sites to be renovated in the next 12 months.


Section sponsored by Server Products

Dave & Buster's Has New Owners
No game here: The restaurant/videogame arcade chain Dave & Buster's is changing hands. Oak Hill Capital Partners is acquiring the chain from Wellspring Capital Management. Under the definitive agreement, Oak Hill Capital is investing in partnership with Dave & Buster's current management team, led by CEO Steve King. Dallas-based Dave & Buster's operates 56 restaurant and video- and arcade-game entertainment venues in 24 states and Canada. Wellspring took Dave & Buster's private in 2006 and expanded the chain.


Section sponsored by Server Products

Military Foodservice Operations Earn Honors At NRA
Amidst the color and noise, cooking demos and new product unveilings at last month's National Restaurant Association Restaurant Hotel-Motel Show, there was a celebration of the achievements of the nation's military foodservice facilities.

The third annual Joint Armed Services breakfast hosted by the NRA's Educational Foundation toasted the winners of the U.S. Air Force's John L. Hennessy and the U.S. Marine Corps.' Major Gen. W.P.T. Hill awards. The Hennessy and Hill awards recognize top achievements in Air Force and Marine Corps foodservice facilities worldwide. The 2010 Hennessy award winners covered six categories.

  • Multiple Facility Base: Keesler AFP, Miss.
  • Single Unit Base: Incirlik AB, Turkey
  • Air National Guard: 120th Fighter Wing, Great Falls, Mont.
  • Air Force Reserve Command: 914th Airlift Wing, Niagara Falls ARS, N.Y.
  • AFGSC Best in Missile Feeding Operations: 91st Missile Wing, Minot AFB, N.D.
  • USAFE Food Service Small Site: 701st Munitions Support Squadron, Kleine Brogel, Belgium.
There were four winners of the 2010 Hill awards:
  • Best Military/Contractor Garrison Mess Hall: Mess Hall #4417, Camp Courtney, MCB Japan, Okinawa
  • Best Reserve Field Mess: HQSVCo, 6th ESB, 4th MLG, Portland, Ore.
  • Best Full Foodservice Contracted Garrison Mess Hall: Mess Hall #590 1st Recruit Training Battalion, MCRD Parris Island, S.C.
  • Best Active Field Mess: CLR-27, 2nd MLG, Camp Lejeune, N.C.
Four individual servicemen and women were honored as well. Honorees were selected by teams representing both military and private sectors, and which included an NRA board member. Each Air Force team included a representative from either the Society for Foodservice Management board or the International Food Service Executives Association. Foodservice units for the Air Force Reserves, the Air National Guard, and small sites in Europe (USAFE) were evaluated separately through their headquarters but were also honored for their achievements during the program


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