Newsletter Archive - March 2008

Ideas well done.

A Newsletter for Foodservice Executives

 

March 2008

 

News, trends, science, design and tidbits that influence food, foodservice and foodservice equipment 

Stellar Polaris

Congratulations and a small pat on our back

Stellar Steam recently introduced the Polaris gas steamer - a completely connectionless model that allows you to cook on a golf course, in a field, parking lot,  or mountain slope. The mobile four-pan steamer is mounted on a stand that holds a gas tank; water is added manually when needed. The steamer's pilot light produces electricity to power the control and lights. We designed that model while we owned Stellar Steam and are very excited that it is a winner of the Kitchen Innovations award at NRA.

 

 

Quick Links

 

MUFES logo

 

Rebate $$$

Many local utilities provide rebates for replacing equipment with Energy Star rated appliances.  To check out your area go to Energy Star Rebate Finder:

www.energystar.gov/cfsrebate_locator.

 

Smallwares and Tabletop Supply Chain Issues

An open forum conducted by Robin Ashton, Publisher of FER, revealed insight to chains' purchasing considerations.  When asked if overseas manufacturing is a concern, several people said that it can be a problem during the development phase because they want to be able to "go back and forth quickly", especially if the item is to be used in a large roll-out.  Others noted that they are happy as long as sufficient inventory is warehoused in the

US.  Some chains prefer stock items to custom. On the other hand, it was noted that there is very little manufacturing capacity in the US for smallwares, none for flatware and very little for china. 

 

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Next week we'll be at the Hoteres show in Tokyo and will report back to you about what we see there in a few weeks.

 

Life Cycle Calculator

NAFEM has developed a comprehensive Life Cycle cost calculator which can help buyers compare competitive models and analyze their purchasing decisions.

To access the new tool, log on at www.nafem.org and click on "NAFEM Lifecycle Tool Download." Review the agreement statement and enter your name, company and e-mail address to receive an e-mail link to download the tool. For more information, call Charlie Souhrada at 312/821-0212.

 

Please forward this newsletter to anyone who would be interested in foodservice equipment design, development and invention.

 

IWD Shameless Plug 

Do you have product design challenges? Are you busy keeping up with your existing product lines - there's no time to be creative and design something new? Are you running a restaurant chain and can't find the equipment you really need?  Contact us. We can help. Call 877-312-1706, Mike Colburn at ext.101 or Mary Esther Treat at ext. 102.

info@ideaswelldone.com

Greetings!

Defining Innovation

Innovation, not inventiveness, is the source of wealth and business success. Many inventions and great ideas die for lack of commercialization. So what is innovation and how do you use it?  

Innovation is creatively bringing something to market and creating value, creating a competitive advantage that produces wealth. However you want to put the words together, innovation is making money with something new.

Additional definitions of innovation are offered by The Economist: "new products, business processes, and organic changes that create wealth or social welfare" and by Richard Lyons, the chief learning officer at Goldman Sachs: "fresh thinking that creates value" (my favorite).

Innovation starts with recognizing something different that can improve your market performance.  Recognizing different-ness is a talent. Does your organization practice this and use the results?

At Ideas Well Done we have assembled a team unequaled in our industry to design and develop new equipment, improve existing equipment and to extend your R&D functions. But, a big BUT, what we are really good at is seeing and recognizing innovation opportunities for our customers.

I will use one more quote to make my point. Larry Huston of 4INNO, a consulting firm, said in Forbes that "future competitive advantage will depend on 'innovation networks of individuals and organizations outside a company that can help it solve problems and find new ideas for creating growth'."

If you want the engineering, we're here. What we really want to talk to you about is maximizing your market opportunities through innovation. Let's talk.

 

Mike Colburn

877-312-1706 Ext 101

MUFES 2008 

Mike and I attended the biennial 2008 MUFES conference (sponsored by Foodservice Equipment Reports) in Austin, TX recently and came away with a lot to share with you. Attended by a balanced mix of people from chains and manufacturers, the conference provides insightful and thought-provoking sessions along with good food and many opportunities to mix and learn.

The articles below give you a hint of what we heard

-- Mary Esther Treat

 

Global Warming - What's in it for You

Gregg Easterbrook of the Brookings Institute kicked off the conference with "Global Warming: What's in it for you", adapted from his article in the April 2007 Atlantic Monthly (http://www.theatlantic.com/doc/200704/global-warming) with a special focus on foodservice. He noted that foodservice will be increasingly affected by energy costs - energy will become more expensive and more tightly regulated. He encouraged attendees to be proactive now before we are hit with proscriptive regulation. 

Agriculture contributes as much to greenhouse gas as petroleum, therefore prices are certain to rise. Additionally, beef is a greenhouse problem: an estimated ten calories of hydrocarbons goes into one calorie of consumable beef - "beef is a global warming issue."

The US is "the fountain of innovation in the world" and Easterbrook believes that as soon as Congress starts regulation of greenhouse gas, there will be a financial incentive to tackle the problems. He cited the history of smog: once a profit incentive was created, solutions were devised and smog is declining in all US cities and beginning to decrease in the developed world. Acid rain has declined 60% in the last 15 years.  What Easterbrook finds particularly important is that there were no international treaties, no one was required to do anything; the US invented inexpensive solutions and other countries decided it was in their own best interests to adapt.

 

Climatologist Sees Trouble Ahead

Gerald R. North, Distinguished Professor of Meteorology at Texas A&M University, talked about climate change in the US.  Modern climate research began with the satellite era in the mid-1970's giving us the first views of earth (and weather) from space coupled with the ability to crunch huge amounts of data with computers.

Dr. North said that Al Gore's attribution of individual events to global warming is true for the Arctic and the drought in the Southwest US, but not hurricanes like Katrina.  "Even the intensity of hurricanes is controversial," he said.  Otherwise he felt that Gore was "pretty faithful to the science".

Dr. North projected more precipitation in the Northeast US and less in the Southeast and Southwest; water will be more costly in most areas, especially in the US Southwest.  Population change is a big factor in water projections.  He also noted that snowpack will melt earlier, leading to dry conditions later in the year.  Fires will be a bigger problem.  Texas rivers will dry up before they reach the Gulf of Mexico in 30-40 years - what happens to the nuclear power plants using those rivers for cooling water?

Dr. North feels that biofuels cause more greenhouse gases than expected and that biofuels are not an attractive strategy for greenhouse gas abatement, but may be good for national security.

Dr. North summary: agricultural consequences - the Ogallala Aquifer in the TX Panhandle will dry up so that the windmills now there will generate power instead of pumping water; there will be a lot of population dislocation; the cost of energy and transportation will increase leading food prices to go up (he said rail is more efficient transportation than trucks); in order to make a change we will need to do things that we don't want to do and Dr. North is pessimistic about Americans' political will.

 

Market Forecast

Robin Ashton, FER Publisher, and John Muldowney, Principal at Clarity Marketing, updated their 2008 E&S Market Forecast; the short version: it's down but still positive. Robin said that despite the "self-induced" current recession there's still money to be made. While the outlook looks poor, it's not consistent across all segments of foodservice - full service restaurants are projected to be off but quick service is expected to grow (people will still dine out, but move to less expensive options). Most retail, lodging, schools and colleges are expected to post positive numbers; business & industry will "plummet" and healthcare and most other noncommercial segments will slow.

NRA expects slower capital spending by restaurants, but some chains, notably McDonald's, will increase capital expenditures. Noncommercial segments, except B&I and military, will have "robust" E&S spending. 

The take-away on volatile materials prices is that material flexibility will be very important going forward. If only we could build ovens out of wood!

FER's Equipment & Supplies forecast bottom line is that plusses outweigh minuses, barely, with a real growth forecast of 0.5% for 2008.

Robin's conclusion (keep in mind this was an hour-long presentation) noted that it's an election year and politicians will do their best to keep the economy going. Manufacturers need to help pressured operators save money and create new sales.

 

 

 Energy Star II: The Next Generation

An update on energy and water saving programs was provided by Gwen Dobbs of ICF International. WaterSense is a partnership program with the US EPA that promotes water-efficient products and services including high efficiency toilets and faucets, and landscape irrigation services. Under development are weather- or sensor-based irrigation controls and high-efficiency showerheads. 

New additions to the Energy Star rated appliances include dish machines and ice machines. Energy saving equipment eligible for rebates in California include combi, convection and rack ovens, glass door refrigerators, large vat fryers and griddles.

Coming Energy Star categories in 2008 are griddles and ovens plus revisions to the refrigeration standards. Large vat fryers are scheduled to be added in 2009. Gwen said that some state regulators are requiring Energy Star efficiency levels, or exceeding them.

Gwen cited four chains that are committed to reducing their environmental footprints: Starbucks uses recycled cups and incorporates efficiency to store design and operation; Carl's Jr. has an energy operations manager, has reclaimed significant money in rebates from CA utilities and converted 20% of their vehicles to run on oil; Pizza Fusion uses hybrid vehicles, renewable wind energy and recycles pizza boxes and paper; and McDonalds recycles or reduces materials, builds to LEED standards and is an Energy Star Partner of the year.

I learned a new word from Gwen: water resources are "deplenishing". The cost of water and waste water in the US has risen sharply in recent years, faster than the CPI.

 

Design Detail 

http://www.halfbakery.com/category/Product_3a_20Cooker

Invention ideas are discussed; some are slammed, some are goofy.  Some are good.  Example - printing a bar code directly on food that will be read by an oven or microwave which will then cook the product properly and the markings disappear during cooking.  What about ovens that are modular so you can take a side panel off and put two together?  Not bad.


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