Foodservice Equipment Reports Fortnightly
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Welcome to FER Fortnightly Online Newsletter
October 6, 2009








Economic Report:
Sponsored by:
MUFES 2010
Technomic Forecasts Another Down Year For Foodservice
A Bit Of Hope Peeks Out From NRA Performance Index
Get Your Seat For FER's E&S Market Forecast Webinar
Nov. 4


Regulatory Report:
Sponsored by:
Manitowoc Foodservice
Strong Showing Needed At ICC Code Hearings Next Month
Water Starting To Get Attention Of Congress
Maryland Town Wants Pros To Install Gas Equipment
Culpeper To Charge Fees For New FOG Licenses
Group Defines Green Specs For Disposables



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In This Section:
Cecilware Buys Grindmaster
Burger King Opens Record Number Of Overseas Stores
Turkey To Gain 25 Krispy Kreme Stores
HFM, ASHFSA Finalize Consolidation
NRA Honors Ops For Community Service

This issue's Economic ReportSponsor: MUFES 2010
Regulatory ReportSponsor: Manitowoc Foodservice

Industry Report Server Products

Cecilware Buys Grindmaster
Cecilware Corp. has acquired Grindmaster Corp. and will change the name of the combined entity to Grindmaster-Cecilware Corp. Terms of the deal were not disclosed.

The combined company now has locations in New York, Kentucky, Illinois and Thailand, and employs more than 375. Cecilware's Richard Moore has assumed the position of CEO for the new Grindmaster-Cecilware Corp., and the company continues to maintain corporate offices in Long Island City, N.Y., and Louisville, Ky.

 

Section sponsored by Server Products

Burger King Opens Record Number Of Overseas Stores
It was a whopper of a year at Burger King. The chain added a record-setting 338 net new stores overseas as development outside the United States and Canada fueled more than 90% of the chain's net growth. Systemwide, in fiscal 2009, BK opened 360 stores, a 28% jump from 2008 and its highest new-store opening count in more than a decade.

With those 338 net new openings overseas, the company continued to strategically diversify its global portfolio. The Europe/Middle East/Africa segment reported its best development year ever, posting record openings for the fifth consecutive year and representing more than half of the company's worldwide net restaurant growth. Additionally, the Asia Pacific/Asia/China segment opened more restaurants this year than during the last four years combined. In Latin America, the company opened 76 net new restaurants. The U.S. and Canada segment completed its second consecutive year of positive net restaurant growth with 22 net new restaurant openings.

In fiscal 2009, the company built 52 company restaurants and completed re-imaging work on 39 stores as part of its U.S. and Canada re-imaging program; a total 71 units have been revamped since the program began in 2008.

Looking ahead to new-unit counts for next year, Burger King estimates that 80% to 90% of net growth will—again—be outside the United States and Canada. Net restaurant growth is estimated at 250 to 300 for fiscal 2010.

The Burger King system operates more than 11,900 restaurants in all 50 states and in 73 countries and U.S. territories worldwide. Approximately 90% are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades.


Section sponsored by Server Products

Turkey To Gain 25 Krispy Kreme Stores
Krispy Kreme is rolling out glazed doughnuts in Turkey.

The doughnut chain recently cut the ribbon for its first store in Istanbul, with plans already in place for more. Franchisee Almana Yiyecek Ve Icecek San. Ve. Tic, Ltd, STI plans to open another two dozen Krispy Kremes over the next five years. A subsidiary of The Almana Group in Qatar, it already operates KFC and Pizza Hut restaurants in that country.

Currently, the Winston-Salem, N.C., franchisor has 550 stores in 18 countries, including a recently announced franchise-development agreement for China. Second-quarter results show the chain's international presence grew by 11 stores.

Domestically, the chain continues to test Kool-Kreme soft-serve products, doubling the number of test locations to 10 company shops in the Southeast. The new, smaller retail Neighborhood Shop and Kremery concept continues to expand, with eight new commitments for the scaled-down stores. Four of the units opened in Texas, Arizona and New York in the quarter.


Section sponsored by Server Products

HFM, ASHFSA Finalize Consolidation
The merger of the healthcare industry's two major associations was completed recently, and the Association for Healthcare Foodservice has officially debuted. The American Society for Healthcare Food Service Administrators dissolved on July 31; the National Society for Healthcare Foodservice Management will dissolved just days ago, on Sept. 30.

The vision of AHF is self-operated healthcare foodservice recognized as the industry's best practice, according to the group. A new official logo marks the first step in a broad branding campaign for the new organization, which will hold its first strategic planning session in November. Discussions there will cover the organization's seven main goals, which include a seamless transition to and financial security of the new organization, broadened awareness of and membership in AHF, and the transition of all existing ASHFSA chapters to AHF.

AHF will also champion self-operated healthcare foodservice and offer new tools and resources, including a new web site blending the best of both organizations; www.healthcarefoodservice.org. will be unveiled by early October. Until then, AHF information can be found at www.ashfsa.org and www.hfm.org.


Section sponsored by Server Products

NRA Honors Ops For Community Service
A hand reaching out is a noble thing, and to encourage that kind of nobility, the National Restaurant Association recently announced the winners of its 2009 Restaurant Neighbor Awards, which recognize restaurants for outstanding community service. The four winners each received a $5,000 donation to their respective causes.

In the large-business category, the award went to BJ's Restaurants, headquartered in Huntington Beach, Calif. Its 90 locations support local philanthropic activities such as the Southern California Special Olympics. In addition, its Greenwood, Ind., team this year built a playground with 40 volunteers for KaBoom!, a national playground-building organization.

Honored in the mid-size business category is Rod's Steak & Seafood Grille in Morristown, N.J., a family-owned restaurant deeply involved with feeding the hungry and sheltering the homeless. Since 1990, Rod's has supported through fundraising Eva's Village, a Paterson, N.J., organization that provides emergency shelter, job training, transitional housing, medical and dental care, and drug/alcohol treatment.

In the small-business category, Madam's Organ in Washington, D.C., was honored. The bar and grill sponsors inner-city children on summer trips and with an annual Christmas party for neighborhood kids and their parents.

Alex Ray, owner of Common Man Family of Restaurants in Ashland, N.H., earned the top award in the Cornerstone Humanitarian category. In the past 38 years, Ray's 17 restaurants and 800 employees have been involved in hundreds of community-service events. Ray reimburses employees for community service and allows them to choose their projects. He was also instrumental in turning the homestead of 19th-century statesman and orator Daniel Webster into the Webster Place Recovery Center for people with drug and alcohol addictions, and is currently building a cooking school in Honduras.

With founding partner American Express, the NRA developed the Restaurant Neighbor Award to raise awareness about the restaurant industry's contributions in local communities and to inspire other operators in their communities. Each participating state restaurant association honors operators in their respective states, who then compete with winners from other states for the national award.

More information on the award program, as well as additional background on national winners and state finalists, can be found at www.restaurant.org/community.


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