Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
June 15, 2010

Economic Report:
Sponsored by:
Henny Penny
FER Annual E&S Market Forecast Meeting Set For Aug. 4
Operator Traffic Declines In U.S. Eased In First Quarter, Says NPD
Stainless Steel, Other Metals Prices Continue To Surge
Blue Chip Economists Don't See Much Risk Of Double-Dip Recession
McDonald's U.S. Same-Store Sales Up Again In May

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
Salmonella Outbreak Hits Illinois Subway Stores
ASHRAE Conference To Debut New Refrigeration Handbook
Hawaii Bans Shark Fin
CRFA Scores Goal For World Cup
Boston Facilities Go Retro: From Restroom to Restaurants
NRA Offers Healthcare Webinar

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In This Section:
Yum! China Makes No Small Plans
Corner Bakery Will Double In Size By 2014
Vietnam Welcomes First of 25 Planned Carl's Jr. Units
Bar Louie Joins Sun Capital's Lineup
Jamba Juice Focusing On Franchising, Coffee

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

Industry Report FER Market Forecast Meetings

Yum! China Makes No Small Plans
Yum! Brands has promoted the senior executives in its booming China Division, while announcing its future growth plans for the country. Sam Su has been promoted to chairman and CEO for Yum! Brands China Division; Su, previously president of the division, oversaw its growth in operating profit from $20 million in 1998 to $600 million in 2009.

Mark Chu, who was chief development officer, takes over as president and COO of Yum! China. Chu was instrumental in growing Yum!'s restaurant base in China to nearly 3,500 restaurants, including adding a record 509 new units in mainland China last year. Chu will have oversight of all the Yum! Brands teams for the China Division, as well as the franchise-development functions and development and construction operations.

Yum!'s China Division operates in more than 650 cities in mainland China. Its 3,544 restaurants there include 2,950 KFC units; 467 Pizza Hut casual-dining restaurants; and 102 Pizza Hut Home Service units. It also has created and is testing East Dawning, a quick-service Chinese food concept. Last year, it opened nearly one KFC every day, on its way to the record number of openings. Long term, Yum! plans to open at least 20,000 of its brands' units in mainland China.

In a side note, corporate parent Yum! Brands will reportedly open its first Taco Bell in the United Kingdom this month. The chain debuted in India earlier this year.


Section sponsored by FER Market Forecast Meetings

Corner Bakery Will Double In Size By 2014
Let the oven and proofer rollout begin.

With two new franchise partners on board to open 27 locations, CBC Restaurant Corp. now has signed development agreements for more than 150 new Corner Bakery Café franchised locations. Most will open within the next four years, which will more than double the system from its current 115 units.

The chain will enter the Florida market for the first time under an agreement with CB Rest Holdings to open 15 cafes in South Florida over the next eight years. Preferred Hospitality will open 12 locations in Southern California within the next seven years. Preferred, which also operates the five-unit Market Broiler chain, is expected to open its first Corner Bakery Cafe in 2011.

Corner Bakery opened as a small bread bakery in downtown Chicago in 1991. In 2006, CBC launched a franchise-development program to attract potential franchise partners with relevant multi-unit restaurant experience. It now has Corner Bakery locations in nine states and the nation's capital.

Section sponsored by FER Market Forecast Meetings

Vietnam Welcomes First of 25 Planned Carl's Jr. Units
In the first stage of a strategic plan to double its international presence within five years, the first Carl's Jr. in Vietnam opened earlier this month. The unit in Ho Chi Minh City is the first of 25 locations planned for Vietnam in the next six years. It's one of the first Western burger chains to open in the market, according to parent company CKE Restaurants. CKE also plans to enter Indonesia later this year through an agreement with PT Fortune Foods Limited to open 25 Carl's Jr. units in Jakarta. Carl's Jr. franchisees currently operate in American Samoa, China, Malaysia, and Singapore.

CKE operates or franchises 3,147 restaurants Carl's Jr. and Hardee's restaurants; 342 are in international markets. The Carl's Jr. restaurants in Vietnam will be operated by Mesa Asia Pacific Trading Services Co.; its parent company, Mesa Group, is a distribution company that branched out into food and beverage, media and real estate development.

Section sponsored by FER Market Forecast Meetings

Bar Louie Joins Sun Capital's Lineup
Sun Capital Partners has swallowed another chain. The company, which purchased Captain D's just a few weeks ago, has acquired Bar Louie Restaurants, a casual eatery and bar chain launched in Chicago in 1991. Terms of the purchase from Restaurants-America were not disclosed.

There are 36 company-owned Bar Louie locations, including six in Chicago, as well as units in Columbus, Ohio; Foxborough, Mass.; Pittsburgh; Tampa, Fla.; and Washington, D.C.. There are seven franchised stores. In addition to its two recent acquisitions, Florida-based Sun Capital counts among its affiliated companies a number of other restaurant businesses, including Boston Market, Bruegger's, Fazoli's Restaurants, Friendly's, Garden Fresh, Restaurants Unlimited, Smokey Bones Barbeque & Grill, and Souper Salad.

Section sponsored by FER Market Forecast Meetings

Jamba Juice Focusing On Franchising, Coffee
You won't find a fryer at a Jamba Juice outlet, but the company is expecting to buy more than a few blenders, coffee makers and reach-ins. In a first-quarter fiscal report, the Emeryville, Calif., chain said it had gained traction in its market segment by expanding its menu and adding retail items. Jamba Juice upped its systemwide store count to 745 units during the first fiscal quarter by opening seven new franchised stores and one new company-owned store. Of the total store count, 287 of the units are franchised stores and 458 are company-owned units. The chain forecasts growth during the coming year of up to 50 franchised stores. Jamba is also finishing the conversion of some 150 company-owned stores to franchised units, a process which started in 2009. Expanding overseas is also on the horizon, although no details have been made public.

Chairman James D. White attributed the chain's optimism to two key initiatives, an expanded food menu and hot-beverage platform. The company is testing coffee in 47 stores across key markets, including San Diego and Sacramento, and recently launched a value menu promotion.

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