Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
June 28, 2005

Economic Report:
Sponsored by:
Hatco Corp.

NAFEM Indices Show Strong First Quarter
Technomic Calls Climate For Industry Growth 'Positive'
No Sign Of Gas Prices Affecting Restaurant, E&S Sales

Regulatory Report:
Sponsored by:
APW Wyott Innovations

Busting Bulbs Will Get You Busted In California
EU Rolls Out Disposal Ban On Products Containing Hazardous Waste
Pennsylvania Pushes Energy Efficient Equipment
Washington, D.C., Considers Smoking Ban
Federal Obesity-Lawsuit Bill Moves Forward

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In This Section:
A Bit Of Golf In Anaheim Before The NAFEM Show, Anyone?
Starbucks Shifting Torrefazione Italia To Co-Brand
Restaurant Patrons Discover 'Price-less' Menu
Maricopa County Program Earns IAFP Award
Chains Show Solid Growth
If Readers Gave Just $10 To 'Road To Anaheim' Project

This issue's Economic ReportSponsor: Hatco Corp. |  Regulatory ReportSponsor: APW Wyott Innovations

Industry Report Kolpak/Manitowoc Foodservice Group

A Bit Of Golf In Anaheim Before The NAFEM Show, Anyone?
Check your golf spikes, grab the Bandaids and get ready. Industry golfers will be teeing up in Anaheim, Calif., on Thurs., Sept. 22, for the biennial charity golf outing held in conjunction with Foodservice Consultants Society Int'l.'s annual meeting. "2005 Drive to Survive" benefits Children's Miracle Network and the FCSI Educational Foundation.

The tournament, a four-member, best-ball scramble, will be held at the Green River Golf Club. A raffle, 50/50 raffle and silent auction will help build the charity kitty. The outing is hosted by Gill Group, Inc. and SSS Foodservice Consultants.

The NAFEM Show begins the following day at the Anaheim Convention Center and runs through Sept. 25.

For registration materials and further information, contact Brian Maloney at Gill Group at or by phone at 407-798-0210.


Starbucks Shifting Torrefazione Italia To Co-Brand
Starbucks is closing its 17 Terrofazione Italia cafés, and plans to develop the concept as a co-brand in retail groceries and other foodservice operations. Starbucks purchased the upscale Italian coffee bar chain in 2003 along with Seattle's Best Coffee. Stores are currently located in the Northwest, California, Chicago and Boston.

After studying the performance of the concept for the past two years, Starbucks felt the brand would perform better as a co-brand in grocery stores and other foodservice operations. The company already has a deal with Kraft to distribute Torrefazione and Seattle's Best coffees in groceries. It also has a deal with Borders to open Seattle's Best cafes in the bookstore chain's stores.

No word yet on when the Torrefazione cafes will close.

Section sponsored by Kolpak/Manitowoc Foodservice Group

Restaurant Patrons Discover 'Price-less' Menu
Restaurant customers in London and elsewhere are turning up price-less menus. Not rare printed lunch menus from the Titanic, but literally menus with no prices.

Just Around The Corner, a French bistro in London, took prices off its menu nearly a year ago, letting customers pay whatever they think a meal is worth. In business for 17 years, owner Michael Vasos got tired of pricing menu items and hearing customer complaints, so he decided to let customers pay what they think is fair. If people underpay significantly, he simply gives them their money back. They either don't come back or pay a more appropriate amount the next time.

The idea has been around for some time, though few restaurants have the courage to try it. A small restaurant chain in India, Annalakshmi, has been price-less for three years. A New York restaurant, Babu, went priceless while it worked out the kinks the first few weeks after it opened this spring, but the owners said customers were too confused about what to pay. Prices are now listed.

Some think it's a good idea, though. Three other London restaurants recently have copied the pay-what-you-like idea.

Maricopa County Program Earns IAFP Award
The International Association for Food Protection doesn't actually present its awards for excellence in food safety until August, when it will hold its annual meeting in Baltimore.

But it's official: The Maricopa County (Ariz.) Environmental Services Department is picking up IAFP's Food Safety Innovation award, which is given for "creating a new idea, practice or product that has had a positive impact on food safety."

IAFP is awarding the county health department for its program of turning health inspections into a competitive advantage for restaurants that score well. The program awards gold certificates only to the top 25% of restaurants with the highest scores. Silver certificates go only to restaurants in the top 50% of highest scores. Restaurants can promote their performance to customers, which helps drive food safety improvements.

Others receiving IAFP awards include DuPont for corporate excellence in food safety and quality; Dr. Christine M. Bruhn, UC-Davis, for public education; and Steven T. Sims, FDA, for outstanding public service in the field of food sanitation.

Chains Show Solid Growth
The top 500 chain restaurants posted their best performance in a decade last year, according to Chicago-based research and consulting firm Technomic Inc. Sales growth in 2004 was more than 8%, up $14 billion to $187.3 billion. That compares with a growth rate of 7.2% for the industry as a whole.

Despite negative publicity about obesity aimed at the industry, significant growth came from categories like limited-service hamburgers, doughnuts and beverages, the report says. McDonald's posted 10.3% growth, mostly from same-store sales. The doughnut category grew 9.2%, and the bakery café segment was up 22%.

The10 fastest growing chains, Technomic says, were, in order: Smokey Bones BBQ, Cold Stone Creamery, Johnny Carino's Country Italian, Zaxby's, Logan's Roadhouse, Buffalo Wild Wings Grill & Bar, Quiznos, Chipotle, Starbucks and Panera Bread.

Chains with more than $2 billion in sales that experienced double-digit growth include Starbucks, Sonic, Chili's, Dunkin Donuts, Olive Garden, Applebee's, McDonald's and Subway.

If Readers Gave Just $10 To 'Road To Anaheim' Project
Industry motorcyclists report a steady stream of donations coming in for "The Road To Anaheim," the fundraising ride to The NAFEM Show in September to benefit America's Second Harvest. But Alexa Kinney, event coordinator, admitted in late June that the flow of contributions has been "a little slow."

In the inaugural 1999 event, "The Road To Dallas" raised about $40,000. Two years later, "The Road To Orlando" raised roughly $60,000, and in 2001 "The Road To New Orleans" hit close to $80,000.

"If each reader of Foodservice Equipment Reports sent in a check for just $10, we'd have $310,000! Can you imagine what a breakthrough that'd be?" said one of the event riders, FER Chief Editor Brian Ward. "I bet most of them would do it if they realized how every little bit makes a real

If you're interested in more information about the event, please consult and see

To contribute, please make checks payable to America's Second Harvest, and mail to The Road To Anaheim, c/o Alexa Kinney, 2007 N. 87th St., Phoenix, AZ 85257.

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