Foodservice Equipment & Supplies

SEP 2018

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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26 • FOODSERVICE EQUIPMENT & SUPPLIES • SEPTEMBER 2018 or Ubereats $13 billion. Catering for pickup or delivery will hit $40 billion, according to CHD-Expert. "More and more restaurant opera- tors realize the industry is heading toward a greater focus on delivery. And when you think of it from a consumer perspective, there's nothing more convenient than food delivered to them," Riehle says. "Different op- erators are adopting different business strategies to deal with this. QSR has always been convenience driven but the tableside segment is starting to realize the potential for this segment moving forward." Another factor shaping the restaurant industry: the growing presence of private equity. "Over the past five years private equity has been very active in the restaurant space," Tristano notes. "Tradition- ally, private equity would buy under- performing restaurants and it was a real estate play. Now they are buying stronger concepts and that has been a very good fit for their portfolios." The presence of private equity continues to impact not only restaurant merger and acquisition activity but also how these concepts go to market once the deal closes. "They are getting a little smarter by investing in companies that overlap," Tristano says. "If they own a coffee business, for example, they are buying companies that sell coffee. So, there's greater synergies and informa- tion-sharing among those companies." "There are two things a private equity company looks at differently," Tristano adds. "First is moving into the retail space, and that has a lot of opportunity." This allows the opera- tors to create new revenue streams by licensing their products for sale in grocery stores and other retail outlets. The second growth opportunity is not just franchising but also licensing and moving internationally, Tristano notes. The chain leverages its system by finding investors that want to open and run its restaurants in markets outside the U.S. "These steps give the brand opportunities to generate reve- nues without having to run restaurants and without pulling a lot of capital out of the system," he adds. If you are a fan of that familiar feeling that comes from watching re- runs of old television shows, then you should enjoy the next 12 to 18 months in the restaurant industry. In addition, the changing nature of corporate dining continues to impact the restaurant world. Foodservice Industry Forecast for 2019 TARIFF TALK O ne economic factor with potential to im- pact the foodservice industry is a series of tariffs imposed by the U.S. on goods made overseas. The initial tariffs took effect in April and immediately raised the prices of aluminum and stainless steel, two key ingredients when making foodservice equipment. "And that caught everyone's at- tention. It demonstrates that ma- terials costs are going to rise, and the cost of finished products will rise," says Charlie Souhrada, vice president, regulatory and techni- cal affairs for the North American Association of Food Equipment Manufacturers (NAFEM). The next round of tariffs were announced this summer and are designed to protect intellec- tual property and the high-tech interests in the U.S. These tariffs impact three different types of products: material inputs and component parts, tools used to By Joseph M. Carbonara

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