Foodservice Equipment Reports Fortnightly

Welcome to FER Fortnightly Online Newsletter
December 21, 2004

Economic Report:
Sponsored by:

Public E&S Companies Maintain Strong Growth
NRA Forecasts A Year Of ‘Solid’ Real Growth In 2005
Blue Chip Economists Hold GDP Forecast at 3.5% Real
Federal Reserve Raises Key Interest Rate As Expected

Regulatory Report:
Sponsored by: APW Wyott Innovations

Tucson Tests Low-Flow Nozzles
Four States and D.C. Mull Menu Nutrition Labels
A/C Efficiency Standards To Limit Patchwork Regs
Newport Beach Requires New FOG Fee
South Carolina To Adopt ICC Codes

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In This Section:
Hobart Debuts Incentive Program For Dealers
New Purchasing Group Launches In January
Second Valve Recall From Robertshaw
DI Foodservice Unveils Rep Advisory Council
MAFSI Roadshows—Coming Your Way
New Faces In High Places
Bobby Cox Buys Schlotzsky’s

This issue's Economic ReportSponsor: ES3 |  Regulatory ReportSponsor: APW Wyott Innovations

Industry ReportAtlas Metal Industries Inc.

Hobart Debuts Incentive Program For Dealers
Channel partnerships between Hobart Corp. and its dealers are about to get stronger, thanks to a new initiative announced by the Troy, Ohio, manufacturer.

Under its "Performance Plus–Dealer Advantage Program," Hobart in 2005 will reward dealers for specifying and stocking, and for focusing dealer salespeople’s selling efforts on Hobart and Traulsen equipment.

Hobart’s new dealer incentives include:
• Specification rebates, in which dealers earn rebates for designing and specifying the Hobart and Traulsen brands into new construction or major renovation projects;
Stocking rebates which rewards dealers for stocking and offering immediate delivery of select Hobart and Traulsen products;
• Preferred compensation rebates, in which dealers earn rebates for providing a preferred compensation structure to dealers’ sales representatives who sell Hobart and Traulsen products.

"For some time now, we’ve recognized the need for an activity-based compensation program that rewards dealers for the functions they perform in selling and supporting our products," said John McDonough, president of Hobart Foodservice. "We believe this fundamental change in the way we compensate our dealers [will] ensure the success of our respective business plans."

Section sponsored by Atlas Metal Industries Inc.

New Purchasing Group Launches In January
Are you shopping around to join an equipment and supplies purchasing group? If so, check out Cooperative Purchasing Services LLC, opening for business on Jan. 1.

The Miami Beach, Fla., company will be led by John Barnett, former v.p. of equipment and facilities purchasing for Burger King’s exclusive supply chain management company, Restaurant Services Inc., and Stephen Marks, former sr. director of equipment and facilities purchasing for RSI, who will serve as operations v.p.

CPS is focused to serve anyone overseeing equipment, supplies and services for commercial chain restaurant as well as multiunit institutional and healthcare foodservice operations.

The company intends to use its purchasing and consulting leverage to save money for its member firms on nearly everything in a restaurant, including equipment for cooking, refrigeration, storage, handling, serving, food prep and warewashing, not to mention furniture, HVAC, restroom fixtures, and even uniforms and smallwares. CPS can also help you buy services such as waste removal, music, equipment handling and distribution and energy purchasing.

For more information, log on to after Jan. 1.

Section sponsored by Atlas Metal Industries Inc.

Second Valve Recall From Robertshaw
Robertshaw Controls Co., maker of a broad range of gas equipment parts, has initiated its second recall in recent months. The subject of the new recall is its 7000-series gas valve.

The Carol Stream, Ill., manufacturer, in cooperation with the U.S. Consumer Products Safety Commission, is instituting a voluntary recall of 425,000 of the valves, sold both in the U.S. and abroad.

The valves, produced between Feb. 2003 and Sept. ’04, are used in gas appliances, including commercial fryers, water heaters, boilers, fireplaces, infrared heaters and furnaces. Defective valves could malfunction and lead to a gas explosion and fire under certain conditions.

If you have purchased a gas appliance since Feb. ’03, or if you have had a gas valve repaired or replaced since that date, your product may be affected.

You can identify the defective products by checking the four-digit date codes of the 7000 or U7000 model valves. Anything between 0306 and 0436 is considered faulty for recall purposes. The four-digit date codes are found on a white label affixed to the side of the housing.

Robertshaw had previously issued a recall for TC-11 thermal safety control valves in October.

Call Robertshaw at 800/232-9389 or visit to determine if your product is affected, and to obtain a free repair or replacement.

Section sponsored by Atlas Metal Industries Inc.

DI Foodservice Unveils Rep Advisory Council
Reps’ feedback, always crucial, now has a formal forum at DI Foodservice Companies.

The Jackson, Miss., manufacturer recently formed its first Rep Advisory Council. The goal is to help DIFC provide the best products and services to the foodservice equipment industry for the company’s Groen, Randell and Avtec brands.

DIFC’s initial Rep Advisory Council meeting was held in late November to determine the group’s key initiatives. The next meeting will be held in February—the first of four annual meetings.

Four members from the independent rep companies will represent the opinions of 25 nationwide rep groups. The independent representatives will serve on the Council in two-year rotating terms.

"The Council was established to have our reps play a greater role in our decision making process, and as partners in the company’s strategic direction," said E.J. Morrow, DIFC’s v.p. of marketing.

Council members include Jack Crowley of Crowley Marketing Associates, Bob LaDew of Griffin Marketing, Steve McKay of Pro Reps West, Phil Powell of Allied Technologies, Lynn Bay, DIFC’s sales v.p. and E.J. Morrow, DIFC’s v.p. of marketing.

Section sponsored by Atlas Metal Industries Inc.

MAFSI Roadshows—Coming Your Way
The 2005 season of MAFSI’s Technology Roadshows—a series of educational sessions intended for dealers, consultants, service agents, manufacturers and operators as well as reps—is just around the corner, believe it or not. So pull out your calendar, and read on…

The dates and locations for the Manufacturers’ Agents Association for the Foodservice Industry’s Roadshow educational series are as follows:

Feb. 22/Washington, D.C.
March 15/Portland, Ore.
April 5/San Franscisco
April 27/Cleveland
Sept. 22/Anaheim, Calif.

MAFSI Technology Roadshows cover basic and advanced AutoQuotes, and basic and advanced KCL CADalog. The courses will earn you continuing education credits from Commercial Food Equipment Service Association, Certified Professional Manufacturers Representatives and Foodservice Consultants Society Int’l.

So far, the series has trained more than 1,900 industry professionals from all segments in 27 cities since its '03 debut.

For more information and online registration, visit, or call 770/433-9844.

Section sponsored by Atlas Metal Industries Inc.

New Faces In High Places
The past few weeks have seen a lot of change in the upper echelons at several supply channel headquarters. Boelter, Hatco, Master-Bilt and Win-Holt all have new faces, or new titles, in high places.

At Boelter Cos., in Milwaukee, Eric Boelter has been promoted to president of the contract and supply division. The 12-year company vet previously held the position of executive v.p. He follows Bill Boelter, who will continue to serve as chairman and CEO.

Meanwhile, refrigeration specialist Master-Bilt Products has a new "Big Chill" in the person of Charles Dawson. The 30-year industry vet has been named president of the New Albany, Miss., company, a division of Standex Int’l. Corp. Dawson comes to the company from Carrier Corp. Before that, Dawson had served at Witt Heat Transfer Products, Manuerop, Inc., and Bohn Heat Transfer.

Over at Hatco Corp. in Milwaukee, President and CEO David Hatch has stepped up to become the company’s new chairman of the board. He replaces Rod Chaudoir, who retired and is now serving as consultant. David Rolston was tapped as Hatco’s new president and CEO, moving up from his previous position as engineering v.p.

Finally, Win-Holt Equipment Group’s new president and CEO is Howard Lind, who takes the place of Jon Holtz. Lind joined the Garden City, N.Y. manufacturer in 2002. Before that he served as president of Bayside Motion Group, a supplier of high-tech actuators used in robotics and factory automation. Holtz will stay with the company as chairman, overseeing acquisitions and strategic growth.

Section sponsored by Atlas Metal Industries Inc.

Bobby Cox Buys Schlotzsky’s
Schlotzsky’s, the sub sandwich concept with the hard-to-spell name, will enter the new year under new ownership and management.

Bobby Cox Cos., a Fort Worth, Texas-based multi-concept firm, has signed an agreement to acquire the majority of Schlotzsky’s restaurants. The deal is valued at $28.5 million and is expected to close at the end of December. Under the agreement, Bobby Cox will operate the fast casual chain’s franchise system as a privately owned company.

Schlotzsky’s filed for bankruptcy protection in August. The chain currently operates 511 restaurants in seven countries from its headquarters in Austin, Texas.

Bobby Cox runs more than 30 businesses throughout the southwestern United States. The company’s restaurant portfolio includes Rosa’s Café Tortilla Factory, Taco Villa and Texas Burger.

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