Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
October 12, 2004

Economic Report:
Sponsored by:

Technomic Forecasts Improved Operator Sales, Unit Growth For 2005
Macro Indicators Slightly Negative For Foodservice
Major Chains Weather September As Expectations Rise

Regulatory Report:
Sponsored by: ES3

Maryland Calls For Refrigerator Efficiency
Massachusetts Throws Wet Blanket On Nightspots
30-Year-Old Kentucky Food Code Gets Remod
Louisiana Looking For Five-Pelican Restaurants
ADA Measurements Got You Down (On the Floor)?

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In This Section:
Boelter Buys Assets Of U.S. Foodservice Contract Design
Oneida To Close Last Flatware Factory
Bright Idea: Next-Gen LED Bulbs Even Better
Cunningham Named Interim Pres at DI Foodservice
Oberweis Dairy Chain Moooves To Expand
A Go-Vote Note
Parikh Joins Up Your Stack Team

This issue's Economic ReportSponsor: MAECO |  Regulatory ReportSponsor: ES3

Industry ReportSponsored by Lakeside Mfg.

Boelter Buys Assets Of U.S. Foodservice Contract Design
The Boelter Companies, the Milwaukee-based industry equipment and design firm, has finalized the acquisition of certain assets of the Contract Division of U.S. Foodservice, the business arm responsible for procuring and installing commercial foodservice equipment. The acquisition nearly doubles Boelter’s existing contract division.

The new company, called Boelter Contract & Design, LLC, will be headed by Lenny Mazurek, president, and Steve Trebisovsky, v.p. Both former U.S. Foodservice Contract Division vets, Mazurek had served as national v.p. of sales, while Trebisovsky is the former Midwest regional manager.

Boelter will support the management and completion of all existing projects of the U.S. Foodservice’s Contract Division across the United States—an estimated $16 million in remaining work. The company plans to maintain U.S. Foodservice Contract Design offices in Atlanta, Los Angeles, Minneapolis, Phoenix, Sacramento, Calif., St. Louis and Wells, Maine.

Boelter currently operates 12 offices in eight states.

Section sponsored by Lakeside Mfg.

Oneida To Close Last Flatware Factory
Oneida Ltd., the last U.S. domestic maker of stainless steel flatware, has announced the closing of its remaining plant, in Sherrill, N.Y. As of early next year, the Oneida, N.Y., company will become wholly an importer, buying goods from other countries and selling them under the Oneida name.

Five hundred workers stand to lose their jobs. About 400 employees, however, will remain at the company's headquarters in Oneida, its warehouses and the Oneida Home store.

The Sherrill factory closure comes despite an attempt to cut operating costs through a "lean" manufacturing system. Ultimately the measures were not enough to stem the factory’s losses, which soared to $48.3 million including $45.5 million in one-time charges during the second quarter of this year.

"For long-term viability, closing the factory dramatically lowers our costs, which will help return Oneida to profitability," said Oneida CEO Peter Kallet. "While [we] understand the impact and significance of the factory closing, this step is essential in order to protect the company’s future."

The decision to close the more than 100-year-old plant was reached in early September. The company had decided in October 2003 to close its five other manufacturing facilities due to similar losses.

Section sponsored by Lakeside Mfg.

Bright Idea: Next-Gen LED Bulbs Even Better
Q: How many restaurant managers does it take to change a light bulb?

A: None for 10 years, if they’re using one of the new LED bulbs now under development through a partnership between PolyBrite Int'l. and Westinghouse LED.

This next-generation product from the LED lighting industry promises a bulb with a 10-year lifespan, using about a tenth the electricity of incandescent bulbs, encased in unbreakable plastic.

LED bulbs are powered by light-emitting diodes—small crystals that can convert small amounts of electricity into bright points of light. What sets the new LED bulbs apart from other LED products is the fact that each bulb is powered by one to three LEDs—about half the number of diodes compared to other products on the market, according to the company. Light from the LEDs is evenly distributed across the surface and further amplified by a patented polymer lens.

The price varies according to bulb, but in general, the manufacturer expects to charge about three times the cost of a comparable incandescent bulb.

Section sponsored by Lakeside Mfg.

Cunningham Named Interim CEO at DI Foodservice
Pat Cunningham, a long-time Dover Industries executive, has been named interim president of DI Foodservice, according to CEO Tim Sandker.

Cunningham takes the reins in the wake of the Sept. 29 departure of Ron Rosatti.

DI Foodservice Cos. brands include Groen, Randell and Avtec, specializing in steam technology, cook-chill production systems, refrigeration, ventilation and air-handling systems. The Jackson, Miss., company operates three manufacturing facilities in Arizona, Michigan and Mississippi.

Section sponsored by Lakeside Mfg.

Oberweis Dairy Chain Moooves To Expand
Looking for a franchise? Oberweis Dairy headquarters in North Aurora, Ill., plans to begin franchising the dairy company’s retail business.

The company’s current 33 retail stores accounted for more than 40% of its $50 million in sales last year. The shops sell hand-packed ice cream, shakes, sundaes, plus milk and other dairy products.

The short-term goal is to have sold about 175 franchises by yearend 2006. This year will see the opening of three corporate stores. Initial target markets include Indianapolis and Milwaukee, followed by openings in Cincinnati; Columbus, Ohio; and Detroit, in addition to the existing Chicago and St. Louis area stores.

A typical Oberweis ice cream shop covers about 2,500 to 2,800 sq. ft. and seats 30 to 40, depending on parking availability. The furniture, fixtures, equipment and signage package runs about $190,000. Ice cream is stored in enclosed dipping cases. Reach-in freezer and cooler cases offer customers a range of dairy products, pies, cakes and other items.

Section sponsored by Lakeside Mfg.

A Go-Vote Note
Uncle Sam—and the National Restaurant Association—want YOU… to vote this November. To that end, the NRA has launched the GO-Vote! Election Center, a nonpartisan information service found online at

Everything you, or your employees, need to know about how to register and vote, in person or by mail or absentee ballot, is at the site. GO-Vote! also includes background material on national and statewide candidates from all 50 states, plus issue comparisons and campaign Web site links.

Section sponsored by Lakeside Mfg.

Parikh Joins Up Your Stack Team
Where there’s smoke, there’s Jayendra Parikh, the new hire at commercial kitchen ventilation resource firm Up Your Stack. Parikh takes the role of director of business development.

His background includes 26 years at Underwriters’ Laboratories specializing in kitchen ventilation and fire safety. He has served on national committees, including NFPA 96 and ASHRAE TC-5.10, and participated in the former ICBO (now ICC) code hearings.

At Up Your Stack, he’ll be working with code agencies and municipal code officials nationwide.

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