Food & Food Equipment News

Restaurant Industry Oulook Dampened

 The outlook for the restaurant industry worsened in September, as the National Restaurant Association’s comprehensive index of restaurant activity fell to a new record low. The association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 96.7 in September, down 1.7 percent from August and its 11th consecutive month below 100.

“The September decline in the Restaurant Performance Index was the result of broad-based declines across the index components, with both the Current Situation and Expectations indices falling to record lows,” says Hudson Riehle, Senior Vice President of Research and Information Services for the Association. “Nearly two out of three restaurant operators reported negative same-store sales and traffic levels in September, while 50 percent expect their sales in six months to be lower than the same period in the previous year.”

“The rapid deterioration in economic conditions is reflected in operator sentiment, with a record 42 percent of restaurant operators saying the economy is currently the number-one challenge facing their business,” Riehle added. “Operators aren’t optimistic about the economy looking forward either, with 50 percent expecting economic conditions to worsen in six months.”

The RPI is based on the responses to the NRA's Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures. The RPI consists of two components – the Current Situation Index and the Expectations Index.  For more information, or a complete copy of the report, click here (warning: PDF link).

Restaurants Lower Prices for Cash-Strapped Consumers

Restaurants may be moving beyond big steaks and even bigger spenders. As financial woes grip the nation—and people grip their pocketbooks—Mintel Menu Insights reports that more restaurants are promoting “value” on the menu.

Through Mintel’s newly enhanced Menu Insights database, director and registered dietician Maria Caranfa sees more restaurants from fast food to fine dining promoting quality menu items for lower prices. She thinks it’s a wise move:

“Foodservice has been hit hard by people cutting back. When we surveyed Americans last January, over half said they were trying to reduce restaurant spending because of the economy. Many people’s finances have worsened since then, so it’s smart for restaurants to advertise lower prices. The key to making these lower prices work, however, is maintaining food quality and making sure every customer’s experience is optimal. Restaurants need to make cheap chic.”

Caranfa highlights a “$5 phenomenon” taking place in quick service restaurants. For example:

• Subway Footlong subs for $5
• Quizno’s Large Deli Favorites for $5
• Pizza Hut’s Pizza Mia Pizzas for $5 each (when you order three or more)
• Boston Market meals for $5

“Many quick-service restaurants are permanently lowering regular menu prices to draw in customers,” comments Caranfa. “They’re giving people more for their dining dollar, offering good quality food at a reasonable price. For restaurants, the $5 deal is a happy medium between satisfying the customer and staying competitive within the industry.”

Family and fine dining restaurants are also finding innovative ways to help diners stretch a dollar:

• T.G.I. Friday’s “Right Portion, Right Price” – smaller servings of regular entrees, value-priced between $5.99 and $9.99
• Ruth’s Chris Steak House’s “Economy Proof” meal – soup or salad, entrée and side dish from a limited menu of items for $35.95

“Dining out is a choice, not an obligation,” states Caranfa. “By offering people the prices they can afford with the food quality and experience they crave, restaurants can stay vibrant and current in today’s economy.”

Mintel Menu Insights has been enhanced to provide the best in menu analysis. Tracking over one million food and drink items on 2,400 US menus, Mintel Menu Insights brings trend, flavor and ingredient data to life, helping companies stay on top of evolving menu concepts and ahead of the competition. To learn more, visit www.menuinsights.com.

Pepperidge Farm, Prego Partner With Scotto Family

In an effort to share delicious, wholesome meals with American families, Pepperidge Farm® and Prego® brands have joined efforts with New York icons, the beloved Scotto family to bring restaurant quality recipes and the restaurant experience home to the family dinner table. This partnership with Marion, Elaina, Anthony Jr. and John Scotto, owners of Fresco by Scotto, NYC and frequent guests on NBC’s Today show, brings together the brands' core values of family, authenticity and tradition, in this exciting relationship.

With the launch of this partnership in October, which is also Italian American Heritage month, consumers are inspired to commemorate Italian ancestry, and embrace it by enjoying the delicious food! The Scottos have created some delicious, yet simple, meal ideas using Prego Italian sauce and Pepperidge Farm frozen garlic bread. The sweetness of the sauce compliments the ingredients perfectly and the warm, fresh-from-your-oven garlic bread is a guaranteed crowd pleaser.

“These are delicious, easy-to-prepare recipes; it’s like eating the meals we serve at the restaurant, only in the comfort of your home,” says Marion Scotto, owner of Fresco by Scotto Restaurant. “The recipe creation was simple, especially when we began with the flavorful varieties of hearty Prego Italian sauce and authentic, hot and crusty Pepperidge Farm garlic bread.

The Scottos have turned supper into a celebration by including garden vegetables, fresh herbs, savory sauces, plus the most essential ingredient: family. Armed with a collection of 15 recipes, the Scottos have created a plethora of new classics including, Prego Penne alla Fresco with Pepperidge Farm Texas Toast, Scottos Sunday Sauce with Meatballs; and Prego Chicken Italiano with Pepperidge Farm Garlic Bread, just to name a few.

Emerson Climate Technologies Intros Copeland Narrow Copevap Condensing Unit

The Copeland® Narrow Copevap® Condensing Unit for high-, medium- and low-temperature refrigeration applications delivers reliability in a compact design. Its narrow 8.25” wide base allows for greater OEM design flexibility, versatile usage in demanding space-limited applications and faster field service replacement.

This unit features a fan guard, compact condenser coil and molded plastic shroud for durability and airflow across the entire coil face. I

ts high efficiency compressors allow for lower end-user utility expenses, while its larger condensate holding volume eliminates potential over-spills in retail settings. All models have UL recognized agency approval.

For more information, please visit www.emersonclimate.com.

Virtual Food Court to be Demo'd at IH/M&RS

Meals in Motion Online™, a New Jersey-based “virtual food court,” will demonstrate its online menu ordering system Nov. 8-11 at the International Hotel/Motel & Restaurant Show at the Jacob K. Javits Convention Center, New York City.

The new service, which grew out of a 2005 business class assignment at Camden County College, is a convenient alternative to wasting time and gas picking up take-out for the family or workplace.  With just a few clicks at www.mealsinmotiononline.com, hungry customers can order delivery from what will ultimately be dozens of area restaurants.

“In this tough economic climate, Meals in Motion Online can significantly reduce overall advertising cost and particularly cost of reprinting outdated menus,” notes Richard Santangelo, Meals in Motion Online’s founder and CEO.  “Customers want convenience in all aspects of their daily lives, and this is just one more way restaurants can make their lives less stressful and more efficient.  These days, for example, it just doesn’t make sense to run out to pick up a meal, not to mention the time on the phone ordering, busy signals, and botched orders.”

Restaurants that sign onto Meals in Motion Online get their own live “Zen Shopping Cart” where they can display their logos, menu items, specials and even coupons.  Restaurants pay a fee to be included, while the service is completely free for consumers, who pay for their orders securely via credit card. The restaurant receives orders via fax or e-mail, freeing up staff from the telephone. Restaurants that don’t offer delivery will have the order ready for pick-up when the customer arrives. Establishments will soon also be able to take and confirm reservations through the Web service.

For the duration of the International Hotel/Motel & Restaurant Show, Meals in Motion Online is offering a 15 percent discount off all of its restaurant packages.

Pizza Equipment Supply, Inc Reorganized

PESI announces the appointment of Daniel Reis to the position of Project Manager, where he will be responsible for all projects involving the Production, Shipping and Parts Departments. Loucretia Bramhall, CFO, stated, "Dan is a highly experienced operations manager with more than 15 years experience in management and logistics, we are fortunate to have found someone of his caliber and are certain that he will be a great asset to the company."

In addition to bringing Reis into our executive team, PESI has reorganized its Parts and Production Department with a goal of better quality control, better customer service and a higher level of inventory control. The PESI customer base has expanded not only in size but also in geography. With customers spanning the globe, we have now added 24/7 oven technical support for their benefit.

PESI's main goal has always been "Supplying the World, One Slice At A Time" by meeting our customers' needs with equipment, small wares and parts. PESI strives to supply like new, refurbished gas conveyor ovens (Middleby Marshall, Blodgett, Lincoln), quality refurbished Hobart and Stephan planetary mixers and VCM (Vertical Cutter Mixers), and refurbished double pass dough sheeters (Anets, Acme, Somerset). PESI is truly the pizza store entrepreneur's one stop shop for all their pizza supply needs.

For more information, visit https://www.pesi.us.

QSR Labor Usage Data from R&M Now Available

Research and Markets has announced the addition of Restaurant Research, LLC's new report "RR Industry Data Report - Unit Level Operations Industry Data Report" to their offering.

The 3rd Annual Unit Level Operations Industry Data Report which provides unique data on labor usage and operating efficiency for 14 national QSR chains is now available.

The Unit Level Operations Industry Data Report is based on a survey of 25 operators with 708 stores across 14 QSR chains and provides unique data on labor usage (total daily man hours and crew size) and operating efficiency (sales/labor hour and annual sales/sq. ft.). Also, they include additional color on average management salaries and hourly wages by market. While R&M believes the samples represent a fair estimate for each concept, actual figures may vary.

Key Topics Covered:

• Key findings and daily labor usage
• Daily labor productivity and building efficiency
• Annual turnover, management salaries and crew wages

For more information or to obtain a copy of the report, click here.

New Coalition Advocates National Nutrition Standard for Chain Restaurants

A new coalition announced today that it will support federal legislation that provides consumers with detailed nutrition information in chain restaurants and other foodservice establishments using a uniform national standard. Legislation has been introduced by Senator Tom Carper (D-Del.), Senator Lisa Murkowski (R-Alaska), and Congressman Jim Matheson (D-Utah), which provides consumers across the country with nutrition information in a uniform, predictable way.

The Coalition for Responsible Nutrition Information (CRNI) was formed to ensure that consumers across the country will have access to detailed nutrition information when they dine out. Americans are becoming more health conscious and have a growing interest in the nutritional value of the food they eat. The coalition (www.nationalnutritionstandards.com) is launching with more than thirty companies and associations that represent restaurant owners and franchisees, food manufacturers, distributors, suppliers, business organizations and health organizations.

“We believe consumers who visit chain restaurants should have access to detailed written nutrition information in a consistent and convenient manner. The only way to make sure this happens is by creating a uniform, national standard,” says Dawn Sweeney, President and CEO of the National Restaurant Association. “When different rules exist in various parts of the country, it makes it difficult for consumers to compare options. Consumers deserve a federal standard that provides access to the same nutrition information no matter where they are or where they live.”

“Consumers are increasingly looking for a variety of nutrition information to be available for their use in restaurants. The Coalition for Responsible Nutrition Information is working to create a nationwide standard that provides a significant amount of nutrition information in a manner that is efficient and effective for the wide variety of restaurants and dining occasions enjoyed by our guests,” says Joe Taylor, Vice President of Communication & Public Affairs for Brinker International.

The Coalition for Responsible Nutrition information is a broad based coalition of restaurants, industry organizations and companies that believe a uniform national nutrition standard for chain foodservice establishments will give consumers access to detailed nutrition information that meets their needs. For more information, visit  www.nationalnutritionstandards.com.

4 Enodis Brands Recognized as 'Best in Class'

Four Enodis brands were recognized again among the “Best in Class” in the 2008 survey conducted by Foodservice Equipment and Supplies Magazine. Cleveland, Delfield, Frymaster and Lincoln received recognition in the survey of foodservice operators, dealers, consultants, and broadline distributors. Enodis had more companies recognized than any other manufacturer.

For the eighth consecutive year, Frymaster was voted overall Best in Class in the fryer segment. Cleveland was voted No.1 overall for steamers for the sixth consecutive year. Delfield repeated as No.1 one overall in chef counters. Lincoln again was voted No.1 overall for conveyor ovens.

Of note was the Operator selection for Best in Class. Lincoln was named best for conveyor ovens and Cleveland won for the first time for the Convotherm® Combi Ovens. Frymaster Fryers and Cleveland Steamers were also tops with Operators in their category.

Survey participants identified operator satisfaction, quality products, service, support and responsiveness by the companies as the most important factors for Best in Class ratings.

“We’re grateful to equipment owners everywhere and our channel partners for their continued recognition of the performance and quality of our leading brands,” said Jim Weaks, president of Enodis USA. “Whether it’s a single product or an entire kitchen supporting menu flexibility and productivity, Enodis can create a “Best in Class” solution to fit the needs of virtually every operator,” Weaks added.

For more information, visit www.enodis.com.

Technomic: Restaurants Bound to Suffer from Financial Crisis

In a recently-completed survey of consumers, Chicago-based foodservice consultants Technomic, Inc. found that the financial market meltdown is likely to cause a high number (74 percent) of consumers to visit both quick- and full-service restaurants less often. Technomic also found that over 50 percent of consumers – and over 70 percent of higher-income consumers – plan to spend less when they do visit either type of restaurant.

“Our research indicates that consumers are deeply concerned about the loss in value of their home equity, stock portfolio and retirement investments and their credit card debt. As a result, they indicate clear intentions to reduce spending in a variety of ways,” says Bob Goldin, Technomic Executive Vice President. “Restaurants will most certainly feel the effects of the pull-back.”

For more information on this study, visit www.technomic.com.