Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
October 31, 2006

Economic Report:
Sponsored by:
Scotsman Ice Systems/Enodis
NAFEM Releases Latest 'Size & Shape' Study; 2005 E&S Manufacturers' Sales Reached Nearly $9.1 billion
MAFSI Barometer Records Booming Third Quarter E&S Sales
Canadian Foodservice Sales Growth To Moderate In 2007
Blue Chip Consensus Drops 2006 and 2007 GDP Forecasts
2007 Foodservice Equipment Reports Forecast Hits Market

Regulatory Report:
Sponsored by:
Franke Foodservice Systems
Public Comment Needed Now On Controversial Bay Area Exhaust Proposal
Trans Fat's In The Chicago Fire, Again
California Offers Incentives For Solar Power
Hong Kong Promotes New Rule With 'Smoke-Free' Days

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In This Section:
Somat Buys Red Goat Disposers
Wendy's Sells Baja Fresh, Goes Back To Burgers
Big New Digs For Detroit's AR Repairs/Baker's Needs
Ozone-Infused Water Rinses Away Bacteria
Starwood Plans To Open Green Hotel Chain

This issue's Economic ReportSponsor: Scotsman Ice Systems/Enodis
Regulatory Report
Sponsor: Franke Foodservice Systems

Industry Report Wood Stone Corp.

Somat Buys Red Goat Disposers
Somat Co., Lancaster, Pa., has expanded its share of the food waste disposal equipment market with the acquisition of Red Goat Disposers, Murfreesboro, Tenn., from Standex Int'l. Terms of the transaction were not released.

Red Goat, which specializes in heavy-duty food waste disposers and controls for the foodservice industry, serves customers in the hotels, cafeterias, restaurants and healthcare segments.

Somat plans to keep all Red Goat sales and service channels intact, which will continue to operate as usual. Somat manufactures waste handling systems, including systems for pulping and dewatering foodservice waste in schools, hospitals, casinos, colleges, employee cafeterias and cruise ships.

Somat is owned by Illinois Tool Works Food Equipment Group.


Section sponsored by Wood Stone Corp.

Wendy's Sells Baja Fresh, Goes Back To Burgers
Wendy's International agreed to sell its Baja Fresh chain to a California investor group for $31 million. Wendy's paid $225 million for the 169-unit chain in 2002, but tried to expand at the same time McDonald's invested heavily in Chipotle Mexican Grill. Lackluster performance, despite changes in menu and management at Baja Fresh, had Wendy's investors pressuring the company to improve its results.

Last month, Wendy's sold off the rest of its investment in the Tim Hortons chain of coffee and doughnut shops, based in Canada, as part of a strategy to refocus on its core hamburger business. Same-store sales at Wendy's units continue to grow by 3% to 4%, according to a statement by interim president Kerrii Anderson. The company also announced it is buying back both stock and franchises.

Baja Fresh, now with 300 units, was bought by a group headed by David Kim, owner of the Sweet Factory candy stores and a number of Cinnabon and Denny's franchises, which the group operates as part of the RD Restaurant Group, Anaheim, Calif.

Section sponsored by Wood Stone Corp.

Big New Digs For Detroit's AR Repairs/Baker's Needs
With a booming installation business outgrowing its existing facilities, AR Repairs/Baker's Kneads pulled the veil off a big new facility Oct. 5. The Grand Opening featured chefs preparing the food on-site, entertainment and a tour of the facility.

The new building, in Center Line, Mich., takes the service company to a new level, with 20,000 sq. ft., complete with overhead cranes, expansive warehouse space for storage and staging, and a well equipped training/demo kitchen with an 18' hood; hookups for gas and 208- and 240V electrical connections; and a training area sporting LCD projection and seating for 30.

The new location is at 26352 Lawrence St., Center Line, Mich., near I-696 and Van Dyke.
Phone 800/852-2261 or 586/758-4440.

Section sponsored by Wood Stone Corp.

Ozone-Infused Water Rinses Away Bacteria
In the wake of the widespread E. coli outbreak caused by tainted bagged spinach, a group of Green Bay, Wis., investors is looking to hit it big with a new sanitizing device. The VeriPure water filter injects ozone into water at the faucet. Ozone has been approved by both the USDA and FDA as a sanitizing agent.

VeriPure provides two levels and types of filtration and then injects powerful ozone gas as a final stage disinfectant which ensures microbiologically safe water. The first filter removes dirt, rust and other particulates from the water. The second filter is a 1-micron carbon block filter that removes cysts, chlorine, organics and other impurities.

You can use ozone-infused water to sanitize utensils, cutting boards and even vegetables and fruits by rinsing them under running water from the filter for 30 to 60 seconds. Ozone in the water reverts to oxygen within a few minutes, so the filter doesn't change the taste of your tap water.

For more information, contact Longmark Industries at 888/688-0303, or go to

Section sponsored by Wood Stone Corp.

Starwood Plans To Open Green Hotel Chain
In a bid to link luxury with environmental consciousness, the Starwood Capital Group says it will build a line of ecologically-friendly "luxe" hotels. Called "1" Hotels and Residences, the new hotel brand will combine green construction and operating principles with luxurious comfort and impeccable service, according to CEO Barry Sternlicht. The Natural Resources Defense Council has agreed to advise the company on environmental issues.

The first four properties will be new construction, built to Leadership in Energy and Environmental Design standards. Created by the U.S. Green Building Council, LEED promotes sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. The chain expects to open a Seattle hotel in 2008, followed by locations in Mammoth Mountain, Calif.; Scottsdale, Ariz.; and Ft. Lauderdale, Fla. A renovated property in Paris will be the first international "1" hotel.

Starwood plans to have 15 properties signed or under construction within the next two years.

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