Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
August 23, 2005

Regulatory Report:
Sponsored by:
APW Wyott Innovations

Clarification: N.Y. Mandates CPR Equipment For Ops
Big Upheaval For Iowa Inspections
West Virginians Mixed On Smoking Bans; North Dakotans Clear The Air Almost Completely
B.C. Becoming First Province To Rate/Inspect/Measure Hospital Food

Industry Report:
Sponsored by:
McCall/Manitowoc Foodservice Group

Vulcan, Wolf Join In 'Power Forward Initiative'
FCSI Recognizes Innovative Products
Taiwan: Can You Hear Me NOW?
IHOP Hoppin' With Plans To Open 400
Register Now For MAECO Meeting In Anaheim
The Americans Are Coming! The Americans Are Coming!

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In This Section:
Public E&S Companies Show Continuing Growth
Blue Chip Economists See New Buoyancy In U.S. Economy
Big Chains, QSR, Continue To Drive Traffic Growth; Units Grow

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

Economic Report Hatco Corporation

Public E&S Companies Show Continuing Growth
While the robust rates of growth seen in the first quarter of 2005 appear to be moderating somewhat, the seven public E&S companies who have filed reports on the second quarter showed good gains again.

The numbers, compiled by John Muldowney of Clarity Marketing, show blended growth of 4.5% for the quarter. For the first half, the companies report a combined 6% gain. Ten companies followed by Muldowney had combined growth of 8.6% in the first quarter, though equipment companies were up 13.3% and supplies and tabletop companies down 1%.

Cooking equipment companies continue to show the strongest growth, with several again recording double-digit increases. Refrigeration, however, was quite a bit softer. The two supplies companies reporting grew 4.5% and 6.5% respectively after very soft first quarters, suggesting good activity in operator sales.

Complete results for the quarter should be available in the next few weeks.


Section sponsored by Hatco Corporation

Blue Chip Economists See New Buoyancy In U.S. Economy

With all the negative news about high gasoline prices, you may not have noticed that the general economy is showing surprising strength. According to the more than 50 leading economists polled monthly by Blue Chip Economic Indicators, the economy appears to be accelerating again.

The consensus forecast for real growth of gross domestic product in 2005 and in '06 calendar years remained unchanged at 3.6% and 3.3% respectively, according to the early August survey. But the group now predicts growth in the third quarter this year will be 3.9% on an annualized basis, up dramatically from last month's 3.2% forecast. The forecast for fourth quarter growth remained unchanged at 3.3%, but Blue Chip Editor Randall Moore said he would not be surprised to see that figure revised upward next month.

While some of this change is a result of refinements of earlier calculations, much is prompted by strengthening consumer spending in June and July and a big draw-down in inventories in the second quarter. While the federal government's first estimate of GDP growth in the second quarter came in is as expected at 3.4%, the massive swing in inventories subtracted 2.3 points from the actual growth rate. Business investment in equipment and software and exports both rose at double digit levels.

Section sponsored by Hatco Corporation

Big Chains, QSR, Continue To Drive Traffic Growth; Units Grow
The big guys are still driving the bus. As reported two weeks ago, restaurant traffic grew a moderate 1.5% in the March through May period, versus the year prior, according to data from NPD Foodworld's CREST research. But not everyone is fairing equally.

Big chains continue to show robust traffic growth, 3%, while smaller chains and independents are languishing at flat to slightly negative. According to the data, both bigger quick service and casual dining concepts showed strength. Big chains have captured 3 points of share since the March through May quarter of 2003, now controlling 55% of all traffic.

Among the major segments (including both chains and independents), QSR showed traffic growth of 2%, midscale was off 2%, casual dining grew 1% and fine dining, only one percent of total traffic, was up 3%.

In the half-year update of NPD's Recount unit census, both chains and independents showed unit growth of 1%.

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