Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
August 3, 2004

Economic Report:
Sponsored by:
Atlas Metal Industries Inc.

Dealer Sales Good, Margins Only Fair, FEDA Reports
Big Chain Sales Numbers Hold Up Through July
NRA Reports June Sales and Traffic Up, But Expectations Edge Downward
Consumer Sentiment, Expectations Improve In July Survey
Big QSRs Win By Luring Adults

Regulatory Report:
Sponsored by: ES3

New ADA Guidelines Finally Released
Ohio Restricts POS Printout Data
NSF/ANSI 18 Changes Announced
U.K.’s "Chip and PIN" Program To Shift Fraud Liability
China’s New Franchise Rules Expected By Yearend…Probably

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In This Section:
Restaurant Lobby Kiosks Make Mail-Order Easy
Frisch's To Open 21 Golden Corrals
IHOP And Paradise Ink Deal For Up To 40 New Locations
Panera Rising

This issue's Economic Report
Sponsor: Atlas Metal Industries Inc. |  Regulatory ReportSponsor: ES3

Industry ReportSponsored by Hatco Corp.

Restaurant Lobby Kiosks Make Mail-Order Easy
Chicago deep-dish pizza icon Gino’s East is testing self-serve, touch-screen kiosks as a way to boost sales of its mail-order pizza business. Since the installation of two lobby units in May 2004, the kiosks have generated sales of $400 to $800 a day.

The kiosk operating system, created by Chicago-based Insight 360 Degrees, allows in-store customers to choose a mail-order package and arrange delivery within the United States. A nifty feature in the kiosk program lets customers find any address listed in U.S. phone books and import it directly to the "ship to" field. The kiosk accepts major credit cards, issues a receipt and emails an order confirmation. The entire process takes about four minutes to complete.

In-store kiosk installation costs range from $4,000 on up, depending on the number of units to be deployed, says Insight 360 Marketing V.P. Dave Milazzo. The restaurant provides the mail-order product, order fulfillment and customer service, while Insight 360 provides the touch-screen equipment and customized operating system.

The kiosks’ restaurant presence is just kicking off. Currently, Gino’s East has two kiosks in the lobby of its flagship restaurant on Chicago’s tourist-oriented Wells Street. More locations are under consideration. Portillo’s, a 30-unit hot dog chain based in Oak Brook, Ill., has installed units in five restaurants.

Insight 360 is also launching mail-order gift center kiosks in malls, airports and some hotel lobbies. Yearend 2004 should see about 45 kiosks in operation. By the end of ’05, that number is expected to grow to more than 200 locations.

Section sponsored by Hatco Corp.

Frisch's To Open 21 Golden Corrals
Look for more Golden Corral stores—21, in fact—to open in the upper Midwest over the next few years.

The area development comes as the result of an agreement signed between Frisch's Restaurants and Golden Corral Franchising Systems.

The plan is for Frisch's to open 21 Golden Corral Restaurants in the western Pennsylvania, southern Michigan and Columbus, Ohio, markets by 2011.

This new agreement would bring to 62 the number of Golden Corral restaurants that Frisch's has agreed to own and operate. Earlier plans also call for opening 15 new restaurants in five Ohio markets. The company, GC’s largest franchisee, currently runs 26 of the family buffet restaurants.

"We will maintain our growth plan to open five new Golden Corral restaurants a year for the foreseeable future," said Frisch’s Pres. Craig Maier.

Frisch's Restaurants, of Cincinnati, owns 88 Frisch's Big Boy stores as well the 26 Golden Corral units. Golden Corral, Raleigh, N.C., operates 475 restaurants in 38 states.

Section sponsored by Hatco Corp.

IHOP And Paradise Ink Deal For Up To 40 New Locations
IHOP restaurants are selling like proverbial hotcakes, thanks to an agreement to develop as many as 40 new stores between IHOP Corp. and its newest franchisee, David Paradise.

Terms of the deal call for the opening of five IHOP restaurants over the next 18 months in the Cleveland and Youngstown, Ohio, markets and the purchase of five existing IHOP franchised restaurants. In addition, Paradise has the option of making a second agreement to develop 35 IHOP restaurants over the next eight years in Cleveland, Youngstown, and throughout Kentucky. The option must be exercised by January 2006.

Paradise and partners currently own and operate 56 Taco Bell restaurants in Alabama, Florida, Louisiana and Mississippi, and 13 Applebee's Neighborhood Bar & Grill restaurants in Louisiana.

"We are pleased to establish a new franchise relationship of this size and caliber. I have known David for many years and respect his skills as a restaurant developer and operator," said IHOP CEO Julia Stewart. "He will be opening new IHOP restaurants in two under-penetrated markets in Ohio and, if he exercises his option, will bring IHOP restaurants to the Kentucky market for the first time in IHOP's history."

The 45-year-old family dining chain, based in Glendale, Calif., operates about 1,170 restaurants in 48 states and Canada.

Section sponsored by Hatco Corp.

Panera Rising
Like the dough baked daily in its ovens, Panera Bread’s unit count is on the rise. The St. Louis chain recently signed two agreements that will result in the eventual opening of 27 new bakery-cafes in Colorado, Georgia and South Carolina.

New franchisee Southern Bread plans to open 12 stores in Georgia and South Carolina, with the first two opening slated by yearend 2005. The second agreement gives franchisee Breads of the World the development rights for 15 additional stores in the Denver and Boulder, Colo., markets. BOTW currently operates 45 Panera stores in Colorado and Ohio.

A typical Panera Bread runs 5,000 sq. ft., seats 130 and offers an array of specialty breads baked from scratch on location. The quick-casual chain operates more than 637 cafes in 35 states.

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