Regulatory Report

Some Chains Revising Construction Projections Downward
Construction forges ahead for McDonald’s, Jack in the Box and Papa John’s—just not quite as quickly as initially projected.

McDonald’s Corp. expects to open 500 traditional stores in 2004, down from its May forecast of 550. The Oak Brook, Ill., company also plans to open 250 satellite restaurants this year, down from the May projection of 300. On the opposite side of the books, McDonald’s trimmed estimates of store closures to 350, down from the originally projected 400.

Meanwhile, Jack in the Box announced that construction delays meant it would be opening 60 new stores in ’04 instead of 65. The San Diego restaurant company also slightly eased off on opening plans for its other concepts. Jack in the Box will open 67 Qdoba stores this year, which is 11 fewer than originally projected; and 13 new Quick Stuff c-stores, two fewer than projected.

Over in pizza land, Papa John’s Int’l. recently told investors it would be opening 100 to 120 stores this year, slightly down from the 120 to 140 initially planned. The Louisville, Ky., chain expects to shutter more units than previously stated, with up to 130 domestic closures compared to the 60 to 80 closures stated earlier.

FCSI White Paper: No Subs Without Approval
Foodservice Consultants Society Int’l.’s North American Division is moving forward on the issue of equipment substitution, the topic of a recent white paper written by Len Bundy, George E. Bundy & Associates; and John Cornyn, The Cornyn Fasano Group.

On Aug. 31, a cross-industry meeting will work out procedures to ensure clients receive equipment that’s been specified for the job, or at least retain approval on suitable substitutions. The meeting will include representatives from FCSI, the North American Association of Food Equipment Manufacturers and the Manufacturers’ Agents Association for the Foodservice Industry. FCSI also will be reaching out for more industry input from the Foodservice Equipment Distributors Association as well as several operator groups.

"The industry as a whole should support what the client wants in the specifications created," said Georgie Shockey, chairperson of FCSI’s North American division and principal of Ruck-Shockey Associates. Shockey said consultants should be able to write tight specs "that leave little room for unequal substitution."

"We hope to have procedures in place by yearend, but that’ll depend on the results of the August meeting," Shockey added.

Download a copy of the white paper, called "Proprietary Specifications—In the Client’s Interest, a Critical Need for a Set of Protocols," from www.fcsi.org.