Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
October 7, 2008

Economic Report:
Sponsored by:
Manitowoc Foodservice Group
How Will Financial Crisis Affect Foodservice World? Find Out At FER Forecast Webinar
Commodities Prices Moderating, But Not For Us
NRA Performance Index Remains In Negative Territory
Jobs Decline Again, Consumer Confidence Remains Weak

Regulatory Report:
Sponsored by:
California Labeling Law Signed, U.S. Senators 'LEAN' Toward National Standard
Menu Calorie Listing Spreads Beyond NYC
Another California Town Tackles Expanded Poly Foam
Restaurants Lose Fight Against S.F. Health Plan
Milwaukie Passes FOG Law But Gives Coffee Shops A Break

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In This Section:
Wendy's, Triarc Say What's Old(er) Is New Again
Starbucks' About-Face Good News For Oven Makers
Gill Wins FEDA's Anoff Award
MAFSI Names 2008 Officers, Award Winners

This issue's Economic ReportSponsor: Manitowoc Foodservice Group
Regulatory ReportSponsor: Enodis

Industry Report Hotelex Shanghai

Wendy's, Triarc Say What's Old(er) Is New Again
Triarc Cos. completed its acquisition of Wendy's on Sept. 29, rolling the hamburger chain into the new Wendy's/Arby's Group Inc. The deal, in which Triarc swaps 4.25 shares of its stock for each share of Wendy's, was valued at about $2 billion.

New management has already announced changes at Wendy's, first and foremost in strategy. Reversing a recent trend, the chain plans to pursue older customers, ages 24 to 49, by focusing on food quality. To that end, President and CEO Roland Smith said that the chain needs to improve the quality of existing items, particularly french fries, buns, bacon and coffee and needs to reformulate some of its breakfast items. Marketing efforts, he said, should emphasize freshness.

Smith also said that due to higher ingredient and labor costs, Wendy's likely will change its value menu somewhat in the coming year. The chain will push to remodel its stores, but in the current credit crunch, franchisees may find that details remain to be worked out.


Section sponsored by Hotelex Shanghais

Starbucks' About-Face Good News For Oven Makers
Since announcing earlier this year that Starbucks would ditch hot breakfast sandwiches, much has been in the works. In early September, the chain added five healthy non-sandwich breakfast options to its menu. And then later in the month, the company announced it had decided to add three new hot breakfast sandwiches. All of which was good news for the equipment and supplies end of the business.

Starbucks President Howard Schulz said last January that breakfast sandwiches were contributing to the chain's slowdown in sales because their aroma overwhelmed that of the coffee the company's known for. So they were taken off the menu in many locations, but then recently the company announced it had changed to a lower-aroma cheese used in sandwiches, and the concerns had abated.

Now Starbucks is rolling out three new sandwiches it calls "Piadini." The sandwiches feature artisan bread with a choice of fillings, including sausage, egg and cheese, and portobello mushroom, spinach and ricotta cheese. To accommodate the launch, the company is putting ovens in 800 more stores in addition to the 3,000 that already have them.

Section sponsored by Hotelex Shanghai

Gill Wins FEDA's Anoff Award
Kenneth Gill, longtime industry equipment and supplies dealer, former FEDA president and cofounder of Foodservice Equipment Reports magazine, has been named the recipient of the Foodservice Equipment Distributors Association's highest honor, the 2009 Sam Anoff Lifetime Achievement Award.

Gill founded foodservice equipment dealership The Gill Group in 1973. The company, which encompasses Gill Marketing, is based in Crofton, Md. Among his many rolls within FEDA, he's a former trustee on the FEDA Education Foundation.

The Anoff Award will be presented to Gill during the FEDA Annual Convention, taking place March 25-29, 2009, at the JW Marriott Resort, Las Vegas.

Section sponsored by Hotelex Shanghai

MAFSI Names 2008 Officers, Award Winners
The Manufacturers' Agents Association for the Foodservice Industry has elected new officers. David Wyllie, Wyllie Marketing, Weymouth, Mass., will take the reins as president; John Hoskinson, E. Ruff & Associates, Cincinnati, will take over as vice president; and Michael Turetzky, Chernoff Sales, Pompano Beach, Fla., will assume responsibilities as treasurer.

MAFSI also honored four industry professionals and one MAFSI chapter.

Tony Award: Ray Ward, Link2 Hospitality Solutions, Rochester, N.Y.

Pacesetter Award: Peggy Bensinger, VQ&T, St. Louis.

Market Mover Award: Jim Cullinane, Vulcan-Hart Co.

Special Recognition Award: Michael Posternak, Posternak Bauer Associates, Eastchester, N.Y.

Bill Loveless Chapter Of The Year Award: MAFSI Region 26—Canada.

The announcements were made at the MAFSI Annual Conference, held in Tucson, Ariz.

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