Foodservice Equipment Reports Fortnightly
www.fermag.com

Welcome to FER Fortnightly Online Newsletter
September 25, 2007








Regulatory Report:
Sponsored by:
Enodis
NYC Calorie-Posting Law Tossed, But California Paves Way For Others
More States Adopting EU-Type RoHS Laws
Illinois Governor Signs Utility Relief Bill
Chicago Foie Gras Ban Is Big Trouble For Popular Bistro
BK Swaps Apples For Fries, Joins Kids Ad Initiative

Industry Report:
Sponsored by:
Server Products
Full-Spectrum Lighting May Not Have Patrons Seeing The Light
NSF Int'l. Acquires CMi
ASHFSA, FCSI, SFM Move Offices
Bargreen-Ellingson Acquires American Restaurant Supply
NRA Opens 2008 Kitchen Innovations Program
More Chains Ditch Trans Fat



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In This Section:
Chain Rollouts Drive Surging Sales For Public E&S Companies
Foodservice Traffic Growth Faster At Retail Outlets Than At Restaurants, Says NPD
Panels Set For FER's Focus On Channels Forecast Meeting

This issue's Regulatory ReportSponsor: Enodis
Industry ReportSponsor: Server Products
Economic Report Manitowoc Foodservice Group

Chain Rollouts Drive Surging Sales For Public E&S Companies
Anecdotal reports of some softening in third-quarter sales for foodservice equipment and supplies manufacturers aside, second-quarter results from the big public companies indicated an industry on a roll, though chain rollouts helped pushed the numbers significantly higher than core growth.

According to final numbers compiled by John Muldowney, principal at Clarity Marketing, 10 public E&S companies reported blended sales up 16.4% in the second quarter of 2007 and 13.3% for the first half.

These numbers were pumped by huge gains from two equipment companies involved in large chain rollouts. Discounting for the spikes, most companies reported organic growth in the 6% to 8% range for the quarter and first half. All but one of the companies said sales rose during the second quarter.

Of the eight equipment-oriented companies, two equipment companies reporting chain rollouts, and three other large companies posted double-digit gains in the quarter.

The two supplies-oriented companies included in the list bounced back in the second quarter, to 6.9%, after a slower first quarter. Sales for the two companies were 5% higher for the first half.

The strong gains by the big publics contrast with a moderate 2.8% sales gain for the Manufacturers' Agents Association for the Foodservice Industry Business Barometer in the second quarter.

 

Section sponsored by Manitowoc Foodservice Group

Foodservice Traffic Growth Faster At Retail Outlets Than At Restaurants, Says NPD
Foodservice traffic at retail outlets has posted significant gains during the past two years, outpacing even that at fast-growing quick-service restaurants, according to data from NPD Group, Inc.

While customer traffic rose 3% at all commercial foodservice, what NPD terms QSR Retail saw traffic up 5% during the two years from June 2005 to May '07. In comparison, conventional quick-service restaurants saw traffic rise 4% while casual-dining traffic was up 2% during the period. Traffic at midscale restaurants fell 3% during the same two-year span.

Convenience stores accounted for 54% of all foodservice occasions during the period, but the fastest growth in traffic was posted by foodservice at discount stores and price clubs, which have added significant foodservice operations. Discount stores saw traffic rise 11% and now garner 11% of all occasions. Foodservice traffic at supermarkets posted 6% traffic gains and accounts for 32% of retail foodservice traffic.


Section sponsored by Manitowoc Foodservice Group

Panels Set For FER's Focus On Channels Forecast Meeting
Two panels, one exploring the 2008 business prospects of foodservice equipment and supplies channels and another probing the cost and structure of after-sale service, will be featured at Foodservice Equipment Reports 2008 E&S Market Forecast Focus on Channels Meeting. The meeting will be held Oct. 25 at the Embassy Suites O'Hare near Chicago.

The program will also feature FER's exclusive, hard-number forecasts of E&S market growth in '07 and '08, analysis of general economic and operator metrics and trends, materials price forecasts and exclusive data on E&S price changes from AutoQuotes.

The opening panel will assess factors affecting the business prospects of dealers, reps, consultants and service agents. The panel will feature Allan Keck of R.W. Smith (dealer), George LeCavalier of EMI Marketing (rep), Steve Carlson, FCSI, of Robert Rippe & Associates (consultant), and Gary Schermann of General Parts (service agent).

A second panel will look at the reimbursement structures and costs of after-sale service. Participating in the panel will be Patrick Duffy of Duffy's Equipment Service, Andy Dunmire of Eat'n Park Restaurants, Wayne Best of the National Service Cooperative and Mike Buelow, v.p. service at Enodis Corp. The panel was developed with the help of the Commercial Food Equipment Service Association.

The Focus on Channels program registration fee is $845. Attendees receive both print and electronic versions of all the presentations. Registration and hotel forms, as well as the complete agenda, are available at http://www.fermag.com/events/index.htm or by calling Chris Palmer at 847/336-2049 or emailing her at cpalmer@fermag.com.



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