Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
December 1, 2009

Economic Report:
Sponsored by:
Internorga 2010
FER Adjusts 2009 Forecast Up, 2010 Down
E&S List-Price Increases Moderating, AutoQuotes Says
McDonald's Same-Store Sales Gains End In October
QSR Grows Units In U.K.; Ireland Forecast Bleak

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
New FDA Model Food Code On The Books
Tennessee Judge's Ruling May Start Legislative Gunfight
Expansion Of FDA Powers A Step Closer To Reality
FDA Decides Oyster Is Not Its World

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In This Section:
McDonald's Pledges $2.4 Billion To CapEx
Chipotle Takes Solar Plunge
ABC Honors Suppliers
NACUFS Hosts Foodservice Directors Meeting
CPK Takes Its Menu To India

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

Industry Report Server Products

McDonald's Pledges $2.4 Billion To CapEx
Staying on top next year means no tarnish will dim the Golden Arches. McDonald's has announced plans to open about 1,000 new restaurants and re-image 2,300 existing locations worldwide in 2010. Citing its strong competitive position, the company is increasing capital expenditures in 2010 to $2.4 billion for strategic brand-differentiating investments such as the re-imaging program.

The announcements came during the Oak Brook, Ill., burger giant's mid-November conference call to investors. Though no specifics on new-store locations were announced, senior management clarified its priorities to continue to drive growth in sales, market share and returns by focusing on its customers and restaurants under its "Plan to Win" strategic plan.

"Over the last seven years, we have stayed committed to the Plan to Win and our focus on being better, not just bigger," CEO Jim Skinner said. "This focus has delivered results as we have consistently exceeded our growth targets."

The chain reports it aims to maintain average annual sales growth of 3% to 5% by pursuing and emphasizing opportunities in service enhancements, restaurant re-imaging and menu innovation. "With service, we will leverage technology to make it easier for managers and crew to quickly and accurately serve the customer," COO Ralph Alvarez said. "To enhance brand perceptions and drive higher sales and returns, we're accelerating our interior and exterior reimaging efforts around the world. And we are innovating at every tier of our menu to sustain our momentum and create excitement for our customers."


Section sponsored by Server Products

Chipotle Takes Solar Plunge
While others talk the talk, Chipotle Mexican Grill's walking the walk where it comes to alternative energy. The Austin, Texas-based chain's current push to install solar panels will make it the restaurant industry's largest direct harvester of sun power.

Chipotle is partnering with Houston-based Standard Renewable Energy to install solar panels on approximately 75 of its Chipotle restaurants over the next year. The panels will each produce 500 kWh of electricity.

Solar-panel installations are in the works in Denver, Austin, Dallas and San Antonio. Markets and individual units are chosen based on a formula that includes a restaurant's electricity consumption, local-utility solar rebate and the location's access to direct sunlight. Chipotle says it hopes to reduce its restaurants' traditional energy consumption during peak hours for energy use (11 a.m. to 7 p.m.), when pressure on the energy grid is greatest. The company says the amount of power produced through the solar program will eliminate more than 41 million pounds of CO2 emissions.

The solar initiative is the latest in Chipotle's push for eco-friendly balance. The chain's founder and chairman, Steve Ells, has said his company's commitment to sustainable resources began with the menu but now extends to all areas of Chipotle's business.

Chipotle's Gurnee, Ill., store was the first restaurant to receive Platinum LEED certification—the highest rating—by the U.S. Green Building Council. The unit features an on-site wind turbine and an underground cistern to harvest rainwater for irrigation. Chipotle also has a LEED-certified restaurant in Long Island, N.Y., and a third restaurant that is pending certification in Minneapolis. All new restaurants include environmentally friendly systems, including recycled drywall and stainless steel; photocell light controls that regulate electric lighting based on availability of natural light; or low-E window glass that helps reduce heating and cooling needs.

Chipotle opened its first restaurant in 1993 and currently operates nearly 900 restaurants. Founded in 2006, SRE is a leading provider of solar and wind-energy systems, energy efficiency and on-site renewable energy solutions for homes, businesses and government entities.

Section sponsored by Server Products

ABC Honors Suppliers
Four manufacturers were honored with Allied Buying Corp.'s Supplier of the Year awards during the group's fall conference. ABC member dealers honored Waring Products (light equipment and furnishings); Globe Food Equipment (heavy equipment); American Metalcraft (supplies); and Diversified Ceramics (tabletop) for their top-quality people, products and service; order accuracy; warranty and service policies; and overall support of ABC.

The Lombard, Ill.-based group also presented its Supplier Sales Executive of the Year award. Tony LaPorte of Diversified Ceramics and David Wasserman of Focus Foodservice were honored.

Section sponsored by Server Products

NACUFS Hosts Foodservice Directors Meeting
The meeting season begins soon, and one of the first is the Foodservice Directors Symposium. Hosted by the National Association of College and University Food Services, it will be held Jan. 27-30 in Charleston, SC.

Open to self-operated foodservice directors, this annual event provides peer-to-peer discussions about current issues and emerging trends on today's college campuses. This year a pre-symposium operator roundtable will partner institution and industry representatives for a day of one-on-one dialogues to build strong business relationships and discuss critical business issues. Up to 14 schools will be allowed to bring an extra campus decision-maker, such as a purchasing manager or executive chef, to this portion of the program, which will include an opening dinner/speaker and a full day of operator roundtables.

The remainder of the program, open to foodservice directors only, will continue with speakers, campus profiles, peer-to-peer discussions, and a panel presentation on comfort cooking. Also new in 2010: a free, no-cost option. Watch for further information and the registration form to apply for this year's event. More information is available at

Section sponsored by Server Products

CPK Takes Its Menu To India
California Pizza Kitchen has signed on new franchise partners, JSM Corp. Pvt. Ltd. and Daud Arabian Trading, to expand into India. As part of the agreement, at least 15 new CPK full-service restaurants are expected to open in that country over the next ten years.

The first restaurant is expected to open by next summer. "We are thrilled to be expanding our CPK brand into India, a country with a growing consumer economy and that represents one of the world's largest emerging markets," reported Rick Rosenfield and Larry Flax, CPK co-founders and co-CEOs.

JSM is based in Mumbai and is the exclusive franchisee for Hard Rock Café across India. The company operates the Asian-inspired Shiro Concept and other independent restaurants. Daud, headquartered in the UAE, is a subsidiary of The Daud Group of Oman which has additional operations throughout the Gulf region, Taiwan and India. One of its other subsidiaries, Gourmet Gulf Co., is a current CPK franchise partner which opened the chain's first restaurant in Dubai earlier this year.

The chain has 252 restaurants, 208 of which are company-owned and 44 under franchise or license agreements. There are currently 27 CPK restaurants located internationally—in China, Guam, Indonesia, Japan, Malaysia, Mexico, Philippines, Singapore, South Korea, and United Arab Emirates.

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