Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
August 9, 2005

Regulatory Report:
Sponsored by:
APW Wyott Innovations

Chicago's Ventilation Code Going Nowhere Fast
Dallas Restaurants Get New Food Code
Final Draft Of ISO Safety Standard In Review
Palm Beach Considers Grading Restaurants
Alberta Drops Permit Requirement For Young Restaurant Workers

Industry Report:
Sponsored by:
Manitowoc Foodservice Group

Hot E-Seminar On Cutting Ventilation Costs - TOMORROW
AGA Buys Stellar Line From ColburnTreat
Alto-Shaam Launches New Culinary Center
Marmon Group Installs Alexander-Otto
M. Tucker Co. Acquires Jacob Licht
IFED Calendar Update

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In This Section:
MAFSI Barometer Rises Nearly 3% In Second Quarter
Traffic, Sales Show Moderate Gain In Second Quarter, NPD Reports
NRA's Performance Index Boasts Moderate Gain
Publisher's Note On 2005 Forecast Revision

This issue's Regulatory ReportSponsor: APW Wyott Innovations Industry ReportSponsor: Manitowoc Foodservice Group

Economic Report Hatco Corp.

MAFSI Barometer Rises Nearly 3% In Second Quarter
Sales for equipment, supplies and furnishings lines rose 2.9% in the second quarter of 2005, compared to same quarter last year, according to Manufacturers' Agents for the Food Service Industry's quarterly Business Barometer. The gain for the first quarter was 2.7% and compares to a similar 2.9% gain in the second quarter last year.

The South showed the most vitality with a 5.1% overall gain. The West came in at a 3.3 gain; Canada was up 3.7%. The Midwest and Northeast lagged at 0.7% and 1.9% increases respectively.

Sales of supply lines were up 3.5%, in contrast to tabletop which showed only a 2.1% gain. Equipment was up 3.0% and furnishings 2.7%.

The 133 rep groups responding to the survey forecast an overall gain of 3.6% in the third quarter.


Traffic, Sales Show Moderate Gain In Second Quarter, NPD Reports
Commercial foodservice operators experienced growing sales and traffic through the first half of 2005, according to the latest consumer panel data from NPD Foodworld's CREST research. But the rate of growth has moderated.

Commercial operator traffic grew 1.5% in the March through May quarter according to NPD's quarterly CREST Executive Topline. This followed 2.1% growth in the December
'04 through February '05 quarter and compares with 2.2% traffic growth in the second quarter last year.
Traffic growth has been positive for eight consecutive quarters. Both quick service restaurants and big chains continue to outperform the industry and grab share. Casual dining also has showed traffic growth.

Commercial foodservice dollars grew 3.5% overall in the second quarter, down from 3.9% in the previous quarter, as check increases lagged the consumer price index for food away from home.

Section sponsored by Drive To Survive Charity Golf Event

NRA's Performance Index Boasts Moderate Gain
The CREST sales and traffic data cited above is mirrored by the performance of the National Restaurant Association's Restaurant Performance Index during the first six months of 2005. Since spiking late last year, the Index has bumped along in the 101 to 102 range on a scale that marks 100 as no change. The RPI did turn upward in June on a strong jump in current same-store sales, traffic and capital expenditures. The Expectations Index also rose, though not as strongly. Hudson Riehle, senior v.p. of research and information services at NRA said strong summer travel is helping the picture.

The capital expenditures component of the Current Situation Index rose a healthy 1.2 points in June, to 101.2. The component reflects purchases made in the past three months. The capital expenditures indicator in the Expectations Index also rose, by 0.8 point. Sixty-one percent of those polled said they would make capital expenditures during the next six month, up from 57% in the May reading.

Section sponsored by Drive To Survive Charity Golf Event

Publisher's Note On 2005 Forecast Revision
Rather than revise in detail the Foodservice Equipment Reports magazine 2005 forecast of the E&S market, as promised this week, John Muldowney and FER Publisher Robin Ashton have decided to wait until after Sept. 1, when they can revise using the new NAFEM Size & Shape of the Industry data for dollars size of the various segments.

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