July 2006
SHOW REPORT:
NRA Show 2006:  The Next Level
By The Editors

Years of diligent, behind-the-scenes R&D work in energy efficiency paid off in a big way in May when the latest foodservice equipment options were unveiled on the floor of the National Restaurant Association Hotel/Motel & Restaurant Show.

In fact, you could say that suppliers took the energy efficiency issue to the next level, introducing dozens of brand new pieces of equipment that meet current efficiency standards, as well as showing many still-new efficient pieces that were first seen just eight months earlier at The NAFEM Show.

And the NRA itself delivered on its new commitment to showcase the most technologically advanced equipment in its Kitchen Innovations Pavilion. Now in its second year, the KI program assembled 16 truly cutting edge items and hosted several mini seminars on those products and their technologies, all to support current efforts in innovation and encourage future ones. (Read about all of the KI products in the pages following this story.)

The innovation and efficiency buzz began even before the show opened, as members of three associations—the Commercial Food Equipment Service Association, Hospitality Supply Management and the Multi-Unit Architects, Engineers and Construction Officers—addressed these ongoing issues and more in one way or another.

MAECO Examines UV Ventilation

When more than 60 attendees of the NRA’s Multi-Unit Architects, Engineers and Construction Officers study group meeting met at the Wyndham Hotel before the show, they examined topics ranging from HCFC refrigerant phaseouts and HVAC design to Energy Star standards.

In a session devoted to the use of ultraviolet light in ventilation equipment, Jeff Hilbert, national accounts manager for Halton Inc., discussed the ways UV light removes grease residue and reduces duct-, fan- and roof-cleaning costs.

The UV ventilation approach is accomplished in two steps. Hoods using the technology have typical mechanical grease extractors to remove most of the large grease particles. Effluent then passes over special ultraviolet lamps that cause a chemical reaction, converting grease to carbon dust, carbon dioxide and water vapor. The carbon dust that collects on the lamps is easily wiped off with a damp cloth.

While the process does not remove odors, it does offer significant benefits, Hilbert explained. As he showed comparative slides of systems equipped with UV technology and traditional systems, the room of MAECO attendees could see significantly cleaner ductwork in the system with UV.

“Since the UV technology converts grease to an inert powder, the life of the roof liner is extended, and all of your costs for duct and fan cleaning are reduced,” Hilbert said.

On the subject of UV technology safety, Hilbert explained that systems are designed to protect employees from direct UV light, and do so using pressure switches and fan interlocks.

NRA’s Andrews Covers Current Affairs

Next up, the NRA’s director of health and safety regulatory affairs, Christine Andrews, offered a broad-brush review of current affairs that affect the restaurant industry. She presented new NRA information showing that the percentage of the consumer food dollar currently captured by restaurants stands at 47.5%, up from just 25% in 1955. The NRA predicts that by 2015, restaurants will capture more than 50% of the consumer food dollar.

Andrews then addressed several important issues on the NRA’s radar screen. She first discussed the expected fall release of “Fast-Food Nation: The Movie,” a star-packed film based on the controversial “Fast-Food Nation” book release in ’01. Andrews said the NRA has formed an industry coalition to address ways to communicate with consumers when the movie is released. Specifically, the NRA wants to combat any erroneous messages the movie may present.

Andrews also discussed avian flu, saying that NRA is preparing ways to communicate with consumers should an outbreak hit the U.S. poultry market.

Other areas the NRA is tracking now include the development of a Fats, Oils and Grease Tool Kit; the launch of an information clearinghouse related to the new Energy Policy Act, and a study that will look at gaps in implementation of the Americans With Disabilities Act. (See page XX in this issue for more details on the ADA presentation. 

HCFC Phaseout Takes Center Stage

Following a morning break, Jeff Moe, program director of environmental policy for Trane Inc., launched a discussion of the phaseout of R-22 refrigerant and what it will mean for equipment suppliers and buyers.

Moe began with an overview of the Montreal Protocol and its position on hydrochlorofluorocarbons, or HCFCs, including R-22. Under this international treaty, “by 2010 we have to stop production of equipment that uses R-22,” Moe explained, “and by 2020 we have to stop all production and import of R-22 itself.”

Having analyzed current conditions, Trane’s assumption is that “R-22 will be readily available at affordable prices through the end of this decade,” said Moe. “The EPA believes R-22 should be available through the life of today’s products, and the supply of R-22 will be more than adequate to meet demand, mostly because of ongoing reuse and reclamation efforts.”

In closing, Moe stressed the importance of the Montreal Protocol, what he called a “phenomenally successful example of the world working together.” The HCFC phaseout dates were set to allow for a rational transition, he said, and equipment buyers should have a plan in place to determine what direction their refrigerated equipment purchasing should take in the future.

HSM Studies “My Diet”

The same day MAECO members were meeting, more than 180 attendees gathered at the Summit Executive Center for the Hospitality Supply Management Spring Conference. HSM is a forum of the Institute for Supply Management.

Among the key presenters, Ron Paul, president of Technomic Inc., delivered an update on foodservice industry trends. How and what consumers eat is being influenced today by several factors, according to Paul, including personal behaviors, lifestyle needs and increased sophistication about food choices.

The sharp decline of popular commercial diets—remember the low-carb craze?—has occurred in part because of a shifting attitude toward eating. “The most popular diet today is ‘my diet,’” said Paul. Consumers want what they want, when they want it, and it’s very personal to them.

Hand in hand with this is a desire to eat less and more healthfully; 61% of consumers in a recent survey indicated they “would like to” cut down on the amount of food they eat. Whether or not that means they actually will is another matter, but the mindset impacts your business in several ways, Paul said.         

For example, “my diet” and a preference for lean might mean customers will opt to dine “healthy” most of the week and splurge on the weekend. It might mean that three squares a day morphs into six smaller meals that stretch through mid morning, mid afternoon and into late-night hours.

Others might skip breakfast, dine light at night and make lunch the big meal of the day, Paul continued. The bottom line for operators: “My diet” is going to have an impact on hours of business, portion sizes, and the perceived healthiness or indulgence of selections you offer, Paul said.

Less Time Triggers More Takeout

Lifestyle is another factor affecting dining trends. “People have less time to sit-down for restaurant meals, which means takeout is becoming an even more important part of consumer food practices,” said Paul. Expect to see an increased demand for takeout from fast-casual and especially full-service restaurants.

And here’s an interesting point from Paul: “When folks opt for full-service restaurant takeout, they want to pick it up. They do not want it delivered.” Why? While customers know and fully accept that the food from these establishments won’t be quite the same as if they were dining in, they really think delivery services jeopardize the integrity of the meal; they’d rather handle it themselves. So it makes sense to make it as simple as possible to get your food to go.

Consumers’ growing food savvy is impacting their choices, too. The proliferation of The Food Network, global exposure and the fact that you can get sophisticated food everywhere is adding to the “my diet” phenomenon Consumers are becoming even more demanding. Doing coffee at the car dealership? Why not lattes and bake-off muffins? Soft-serve in the gas station? Why not gelato?

In short, everyone’s expectations are higher. “The whole concept of ‘fresh’ is explosive,” Paul concluded. “Fresh translates as healthier.”

Need Growing For Energy Efficiency

Later, Deborah Barrash, assistant professor at the University of Nevada, Las Vegas Food & Beverage Management Department, discussed how foodservice industry trends impact equipment and supplies.

Speaking to the room of HSM purchasing managers, Barrash’s observations nicely dovetailed Paul’s. For example, Barrash, who works with the North American Association of Food Equipment Manufacturers to compile its Size & Shape of the Industry study, says there’s been a marked increase in the number of operators buying energy-efficient equipment. If, as Paul said, folks are going to dine all day and into the late night, energy efficiency is going to matter more than ever before.

Barrash agreed that takeout will grow and said it will be imperative to improve pick-up options and find packaging that retains the quality of food. “To be honest, a lot of chains are loathe to get into takeout [because they] are releasing control of how, when and where their food is eaten,” she said. Nonetheless, takeout’s here and growing.

Consumer food savvy affects equipment, too. “Consumers know what’s authentic,” Barrash reminded the HSM group. “It might be smart to bring in authentic cooking equipment to produce the real deal.” Examples include woks, tandoori ovens, tortilla machines and other specialty equipment. The challenge, however, is finding ways to make new use of specialty equipment if the “fad” dies out.

Barrash also said she sees an increasing need for refrigeration space as more operators opt for convenience products such as precut produce; more intuitive and/or multilingual equipment operation for a diverse labor force; more equipment that helps operators prepare and serve safe food, and better-looking equipment for open kitchens.

CFESA Tackles Warranties, Installations

At the InterContinental Hotel, the Commercial Food Equipment Service Association drew a record 200-plus attendees for its Spring Conference. Among the hot topics on the agenda: warranty rates, the group’s new installation testing/certification program, dispatch systems and inventory stocking methodology.

Seminar sessions kicked off with a panel discussion on warranty costs and pricing that featured three CFESA members and three from the manufacturing community. From CFESA: Bruce Hodge, General Parts; John Schwindt, Hawkins Commercial Appliance, and Paul Toukatly,  Duffy’s Equipment Service. Manufacturers were represented by Michael Buelow, Enodis; Phil Fox, Middleby Cooking System Group, and Patrick Walker, Electrolux USA.

“What are your opinions on maintaining exclusivity in a territory for service agents doing warranty work?” asked moderator and incoming CFESA Pres. Jean Choquette, Key Food Equipment Services.

It may not be good for restaurant customers in the long-term, panelists admitted. “If [you are one of] three or four service companies in a territory doing the same warranty work, your company might take a second look at [the value of continuing to] train, stock, and support fast response times for that supplier’s equipment,” said Toukatly.

As for the value to service agents of being authorized by a manufacturer, panelists agreed that it is a good thing. “By not being authorized, you miss out on rollouts, retrofits, free access to manufacturer training, discounts on parts, factory referrals and more,” Hodge noted. “You have to determine what a manufacturer brings to you across the board as you make your decision.”

Panelists pointed out that service costs don’t vary by market as much as manufacturers might think. “The majority of our cost is for technicians, and since they can move anywhere, we have to compete with major metro areas for those people, which means our wages have to be relatively competitive,” Toukatly noted.

Hodge expanded on that thought. “It costs about the same to equip branches in Fargo, N.D., or Wichita, Kansas, as it does for a branch in Chicago. Technicians get the same training, use the same trucks and tools.”

Service Agent Training Advances

In the next session, Patrick Duffy, Duffy’s Equipment Services, and Mark LeBerte, ATECH Inc., presented a progress report on CFESA’s ambitious installation training and certification program.

The program, which first began taking shape a little more than three years ago, has made steady advancements ever since.

By mid 2004, www.cfesa.com listed all member firms that performed installations and indicated to what extent the companies were involved. Level I, for example, reflects replacement installations of same or similar equipment models, while Level II designates firms that install new-construction kitchen packages, and Level III marks those companies that also install ventilation components.

In addition, the association had developed extensive how-to resources for its members, from lists of tools needed for specific installations to procedures for installation management as well as template contracts and so on.

More recently, CFESA’s finalized a Standard Installation Form, which is a functional checklist to assure proper procedure, as well as detailed standardized forms for start-up and performance check, installation sign-off, job-site survey, new-equipment quote sheets and other forms that standardize the whole installation process. The group has even developed an elaborate installation pricing matrix to help members itemize costs inherent in equipment installs, plugging in their own rates and so on.

A technical installation training syllabus recently has been completed, covering such aspects as basic electrical-, gas- and NFPA code requirements, skills training, health and sanitation, and more. In addition, the written exams have been developed for the certification tests.

CFESA is encouraging members to have at least one certified installer per company. In the long run, the goal is to have consultants specify that a CFESA-certified installer is on hand to make sure the installation is completed according to manufacturer requirements.
 

Training sessions will be scheduled at various locations around the country. The first installation program training session will be held at the CFESA Fall Conference, taking place Aug. 27-29 in Santa Fe, N.M. For more information, visit the association online at www.cfesa.com.