Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
December 15, 2009

Economic Report:
Sponsored by:
Internorga 2010
NRA Performance Index Rises Two Years Into Recession
Job Losses Slow In November, Unemployment Dips To 10%
Consumer Confidence Up, Down, Plus Other Trendy Notes
Newly Revised FER E&S Market Forecast Available For Mere Pittance

Regulatory Report:
Sponsored by:
Manitowoc Foodservice
N.J. Senate Pushes Calorie Posting Toward Vote
Virginia Slims Smokers' Opportunities
L.A. May Ban Patio Smoking By Year's End

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In This Section:
Obituary: Pioneering Rep Ed Gregory
Phil Morton, Quiet Leader, Retires From Gaylord
Corner Bakery To Add 23 Stores
Krispy Kreme Awards Franchise Rights for Thailand, Dominican Republic
Ruby Tuesday's Stakes Claim in Middle East
London To See First Chipotle

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

Industry Report Hotelex 2010

Obituary: Pioneering Rep Ed Gregory
Ed Gregory, longtime pillar of the rep industry and member and officer of the Manufacturers' Agents Association for the Foodservice Industry, died Dec. 3. at his home in Northport, Mich., after a long battle with cancer.

A Kentucky native, Gregory moved to Detroit in the mid-1960's to work in sales for Vulcan-Hart Co. There he befriended Walter Hirschberg, a competing salesman, and in '69, they joined forces as partners in forming The HGA Group.

For more than 35 years, Gregory was active in both MAFSI and the School Foodservice Association. He was considered a visionary within the industry and a true professional in his business.


Section sponsored by Hotelex 2010

Phil Morton, Quiet Leader, Retires From Gaylord
It's rare when one's first job turns out to be his only job, but such was the dedication of industry veteran Phil Morton, who worked 43 years at Gaylord Industries quietly building a legacy as one of the industry's leading voices in commercial kitchen ventilation.

Morton's retirement in October caps a career in which his quiet voice and innovative work literally shaped the way that kitchen exhaust systems are designed, built and installed throughout the world. As a member of several code and regulatory bodies, he has served as a tireless advocate for industry standards and improved ventilation efficiency. He helped write industry standards that started the air-savings movement and mitigated the risk of fire in commercial buildings, cruise ships and the U.S. Navy.

Section sponsored by Hotelex 2010

Corner Bakery To Add 23 Stores
Corner Bakery Cafés' strategic franchise-development program continues to ink deals. The 115-unit chain has announced two new partnerships that will add 23 stores to its stable of casual bakery cafés. In a deal with S&B Development, Corner Bakery will open 11 franchise-operated locations in San Diego by 2016, and it will venture into non-traditional venues through a partnership with franchisee PhaseNext Hospitality to develop 12 new stores over the next five years.

Both franchisees bring long track records with them. S&B partner Steven Fricker is a 32-year veteran of the restaurant industry. In addition to being a Panera Bread franchisee, he previously served as an Outback Steakhouse senior executive and was a founding partner in the California franchisee for Outback. He has developed more than 100 restaurants in California and is past chairman of the California Restaurant Association. His business partner, Bob Carson, is a veteran of the San Diego real estate market.

PhaseNext Hospitality is a minority- and woman-owned multi-concept franchise operator, focusing on operating premium, fast-casual restaurants in non-traditional venues including airports, train stations, military bases and university campuses. Roz Mallet, treasurer of the National Restaurant Association, is founder and CEO of the Dallas company; its restaurant portfolio also includes Smashburger. Mallet and PhaseNext co-founder Amy O'Neil previously worked at Caribou Coffee, where O'Neil helped grow the business from five locations to 500.

Established in 1991, Corner Bakery Café restaurants are owned and operated by CBC Restaurant Corp. These newly announced franchise partnerships bring the total of committed franchise locations to 125, which will more than double the current Corner Bakery Café system.

Section sponsored by Hotelex 2010

Krispy Kreme Awards Franchise Rights for Thailand, Dominican Republic
Krispy Kreme Doughnut Corp. has entered into franchise agreements expanding its brand to Thailand and the Dominican Republic. The agreements will add another 34 stores to the Winston-Salem, N.C., chain's present total of 530 stores in 18 countries.

An agreement with KDN Co. Ltd. will develop 20 retail shops in Thailand over the next five years. "Krispy Kreme is very popular in Japan, South Korea and the Philippines, and we expect Krispy Kreme to be well-received in Thailand as the Thai people are very fond of sweets, and believe in the concept of sharing and generosity. We are pleased to enter into a franchise relationship with Krispy Kreme," said Ausanee Mahagitsiri, CEO of KDN.

A similar franchise development agreement is in place with Dominspec S.A. for the development of 14 Krispy Kreme shops over the next five years in the Dominican Republic. Dominspec S.A. operates 30 Burger King and three Papa John's restaurants, as well as movie theaters, in the Dominican Republic.

Section sponsored by Hotelex 2010

Ruby Tuesday's Stakes Claim in Middle East
The chain that started in Knoxville, Tenn., will soon have stores in 15 countries. Ruby Tuesday's has finalized international franchise agreements for units in the Middle East and the U.K. The company has also granted franchise rights for Wok Hay, an Asian-focused casual dining concept, in Chile, Tobago and Trinidad.

Global PartnerShips, which manages Ruby Tuesday's international and domestic franchise development, has inked deals for three new Ruby Tuesday units in the eastern territories of Saudi Arabia. Rights were granted to an affiliate of Daliya Al-Wataniya for General Trading and Contracting W.L.L., the current franchisee for the countries of Bahrain, Oman, Jordan, and Lebanon. Another six restaurants will be developed in Abu Dhabi by Bin Hendi Hospitality, the franchisee that now has the rights to open 18 Ruby Tuesday restaurants in all seven UAE nations over the next five years.

In addition, a Ruby Tuesday will open in the United Kingdom—the first in the chain's 37-year history. Development will begin shortly on a franchise for Wales and southwest England, adding up to five store openings in less than five years.

The company's Pan-Asian concept, Wok Hay, has so far been focused solely in two stores in Knoxville. International franchising will roll out with units in Chile, and in Trinidad and Tobago by current Ruby Tuesday franchisees in those regions.

Currently, there are 670 company-owned Ruby Tuesdays, and 171 domestic and 55 foreign franchised stores, across 46 states and in 13 foreign countries.

Section sponsored by Hotelex 2010

London To See First Chipotle
Chipotle Mexican Grill is finalizing design and building plans for a unit on Charing Cross Road in London. The store, Chipotle's first European location, is expected to open in April 2010.

"We are very encouraged by the prospects for Chipotle in the U.K.,"said Steve Ells, Chipotle's founder, chairman and co-CEO. "London has become an important food city over the years, especially because of the awareness of and desire for things like locally sourced, seasonal, and artisanal ingredients."

Chipotle's 900-plus stores serve only food made with ingredients from sustainable sources. With the emphasis on local sourcing and sustainable supply chains, Ells said, "In many ways, the food culture in Europe matches our priorities much more closely than in the United States."

The majority of Chipotle's growth through 2010 will be in the United States, though the company continues to look for additional sites in London, as well as for locations in Paris and Munich. The chain has not identified specific sites or released timelines for overseas expansion.

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