“This industry needs fact-based, unbiased information from a trusted source to operate effectively.”
If you're in the service industry and haven't felt the pinch, or at least heard about the changing landscape of OEM parts, then you haven't been paying attention. Non-OEM's are flooding the marketplace and service agents are often held hostage to take it on the chin as some manufacturers try to make up margin on the steep equipment discounts they offer to the dealer community.
Despite the challenging economy, the talk of "going green" continues to flourish. In fact, the difficult business environment provides an even greater impetus for foodservice operators to take action to become more sustainable. Shifting to green and socially responsible products and behaviors can be a smart investment.
Happy New Year and welcome to the 2011 version of FE&S magazine. To those of you who have been faithful readers of this magazine for years, we hope that you will appreciate the many changes and improvements that we have in store for 2011.
We’ve all heard the saying “when life hands you lemons, make lemonade.” Beverage metaphor notwithstanding, we are operating in a time when we have to take a fresh look at the way we do business to improve shrinking margins.
Five years ago when I interviewed with Fritzi Woods, the owner of PrimeSource, for the position of vice president of operations, she asked me, "What is your business philosophy?" I was fortunate to have had prior mentors who challenged me to think about the world in that way. I was quick with my response. "It's only about two things: customers and products."
Menu evolution, specifically in the form of diversification and customization, means the front of the house will continue to send larger amounts of information back to the already bustling commercial kitchen. As a result it is becoming simultaneously more difficult and critical for foodservice operators across all segments to manage and analyze how staff members leverage the information to ensure customer hospitality and generate a profit.
Perhaps more than any other, this is the question that every business person must come to terms with eventually.
Menu evolution, specifically in the form of diversification and customization, means the front of the house will continue to send larger amounts of information back to the already bustling commercial kitchen. As a result it is becoming simultaneously more difficult and critical for foodservice operators across all segments to manage and analyze how staff members leverage the information to ensure customer hospitality and generate a profit.
When buying new equipment, particularly warewashers, foodservice operators seem to have no shortage of choices these days.
With the calendar finally displaying 2010 dates, I look forward to shaking off the doldrums from the previous year and am excited about what 2010 holds for the foodservice industry. Still, the trials and tribulations of 2009 were not without their benefits. Indeed, the challenging business and social environment taught us all some valuable lessons and reminded us of a few fundamental foodservice truths that will never change. With that in mind, here are my key observations from last year.
It's All About the Menu and It Always Will Be
The menu is the heart and soul of any foodservice operation and 2009 only confirmed that. Though consumers spent more time at home, they still ate out, meaning that despite the economy, there still was significant demand for food prepared away from home. What did change was how consumers defined value, illustrated by how they traded down or patronized restaurants with creative menu packaging and pricing. At the end of the day, the promise of something special at the center of the plate is what continues to prompt consumers to get off the couch and part with what little discretionary income they have. And the operators that are able to leverage their equipment and supplies investment to help create that something special in the most effective and efficient manner possible are the ones that will continue to prosper.
The Polarization of the Dealer Community
Until now, seismic changes in the dealer community have been relegated to quiet, backroom conversations. Make no mistake, though, the way dealers align themselves and go about procuring equipment and supplies is undergoing a major shift. The formation of a new dealer buying group featuring six of the bigger names in equipment and supplies distribution set off a domino effect in the industry. The fallout from the formation of the first group led to the creation of a second buying organization. As a result, one dealer buying group is but a mere shell of its former self. And another group will almost certainly dissolve, which is why its remaining dealers reportedly are searching for a new organizational umbrella.
While many speculate as to what's driving these changes, one thing is for certain: The dealer community is polarizing. The emerging dealer landscape seems to align the really big dealers in two buying groups, leaving the smaller ones to form their own alliances. It's sort of like the television show "Survivor," with factions forming among competitors--except in this case the players are pooling their purchasing power to get the best deals on stainless steel and china. I expect there will be considerable movement within dealer groups in the months ahead, distracting them from the slow pace of the economic recovery.
H1N1 and Food-Safety Fundamentals
While it's hard to imagine something good coming from something as nasty as the H1N1 pandemic, that's actually the case for the foodservice industry. Foodservice professionals were reminded that there's no substitute for fundamentals of food-safety, notably proper hand washing and cleaning and sanitizing of all surfaces. As Handwashing for Life's Jim Mann points out on page seven, lessons learned from this pandemic have set a precedent for future foodservice professionals. "In fact, the spread of the virus has motivated industry professionals to develop better food safety policies, facility designs, and training programs," Mann says.
The past year was far from dull, but something tells me its events only set the table for an even more exciting 2010. Here's wishing you and your business a prosperous New Year!
The more we as an industry can quantify and accelerate the return on investment a piece of equipment produces, the better our chances for success.
It's no secret that many of the individual companies that comprise the foodservice equipment industry have struggled in finding individuals interested in pursuing a career in our corner of the world. And the many members of the Commercial Food Equipment Service Association are no exception.
Over the years, the service agencies that comprise our association have found it challenging to attract trained technicians to repair commercial cooking and refrigeration equipment. The simple fact of the matter is unless you grew up in this industry, it's highly unlikely that you dreamt of pursuing a career in it. That's why our members felt we needed to take action to broaden the appeal of employment in all aspects of the foodservice equipment industry, including service, sales, manufacturing, marketing, design and operations. More to the point, we realized in order for younger people, as well as those individuals interested in an alternate profession, to find us, we first had to find them during a time when they are exploring career options.