Foodservice Equipment

Attention: There is an updated edition available for this report.

SBI updated its in-depth investigation of the $6.4 billion U.S foodservice equipment industry. Our analysis points to the sales opportunities created by the foodservice industry's need to improve operating efficiency as labor costs rise. In order to uncover these trends SBI organized industry data in chapters to review the growth and profit potential of commercial cooking and food warming equipment, commercial food preparation machinery, beverage dispensing equipment, ice-making machines, commercial dishwashing equipment, restaurant furniture and fixtures, restaurant and hotel kitchen sheet metal equipment, as well as refrigerated food storage and display equipment shipped to the foodservice industry. Each section provides shipments by product line, price movements, profitability, the competitive environment, and foreign market sales. SBI also evaluated the factors determining industry demand. This comprehensive database includes statistical trends analyzing foodservice industry spending on new, used, and rental machinery; spending on machinery repairs; foodservice industry labor costs and productivity; restaurant seating capacity; and capital spending by leading U.S. foodservice chains. This is followed by an investigation of U.S. away-from-home foods sales and pricing, commercial and noncommercial foodservice sales and number of outlets, sales by menu type, and a regional and state breakdown. In order to take advantage of sales opportunities and boost profit margins, leading players are making acquisitions to extend their product lines and develop international distribution and service networks. This strategy was uncovered as part of our effort to collect information on company product lines, new product introductions, acquisitions, and capital investments for 18 leading manufacturers and marketers.

Scope And Methodology

The SBI Market Profile on Foodservice Equipment is an analysis of the market for various products designed specifically for use in eating and drinking places, and reviews manufacturer and marketer strategies that maximize growth and profitability. This comprehensive database covers U.S. shipments, price gains, profitability, the competitive environment, and foreign market trends for each industry equipment sector. Report sections also investigate foodservice industry trends, eating and drinking place capital expenditures, and competitor intelligence.

Sections two through eight each cover a different equipment sector. Data trends are broken down for:

  • Commercial Cooking and Food-warming Equipment
  • Commercial Food Preparation Machinery
  • Beverage Dispensing Equipment
  • Ice-Making Machines
  • Commercial Dishwashing Equipment
  • Restaurant Furniture and Fixtures
  • Restaurant and Hotel Kitchen Sheet Metal Equipment

Each section provides data on U.S. factory shipments for the entire sector and for specific product lines. Shipment data were compiled from U.S. Department of Commerce surveys. In addition, shipment data for various types of commercial cooking equipment, commercial mixers, and commercial dishwashers were compiled from Appliance Magazine. Price trends were collected from the Bureau of Labor Statistics’ Producer Price Index. Government survey data also includes the number of U.S. manufacturers for each product and for some sectors, the cost structure and profitability of domestic plants. U.S. Customs’ records are the source for the export and import data included in this study. Trade data is provided by product line where available and by major countries of destination and origin.

Shipment data is for all manufacturers whether plants are owned by U.S.- or foreign-based companies and whether or not plants specialize (50% or more of total facility revenues) in any of the product sectors. Estimates and forecasts are based on historical trends and the data analyses that are provided in the following sections.

Section 9 investigates foodservice industry spending on buildings and machinery. Machinery spending is provided for new, used, and rented machinery, and spending on machinery repair. Factors affecting machinery spending include nonresidential building construction, interest rates, and labor costs and productivity. Restaurant seating capacity is evaluated as well. The number and sales of restaurant and equipment and supplies wholesalers are provided for the total United States.

This is followed by an analysis of U.S. foodservice industry trends (Section 10). Government survey data were compiled, analyzed, and estimated on away-from-home food sales and pricing, commercial and noncommercial foodservice sales and number of outlets, sales by menu type, and on regional and state markets. SBI also calculated per capita eating and drinking place sales and population per eating and drinking place by region and state. In addition, sales, units, market share, and capital expenditure data were compiled for the top restaurant brands.

Industry data were supplemented with data from 18 individual companies in order to evaluate industry profit margins and the competitive environment. Company financial statistics were compiled as part of an exhaustive effort to provide competitor intelligence (Section 11). Annual reports, databases, and trade journals were searched for global growth- and profit-oriented strategies.

Categories Covered:
Commercial Cooking and Food-Warming Equipment

  • Market Share and Growth
  • Product Shipments
  • Non-electric / Electric Equipment
  • Foreign Market Shipments
  • Competitive Environment
  • Profit Margins

Commercial Food Preparation Machinery & Refrigerated Storage Equipment

  • Market Share and Growth
  • Product Shipments
  • Competitive Environment

Beverage Dispensing Equipment

  • Market Share and Growth
  • U.S. Shipments
  • Exports and Imports
  • Competitive Environment

Ice-Making Machines

  • Market Share and Sales
  • Shipments by Equipment Type
  • International Trade Activity
  • Competitive Environment

Commercial Dishwashing Equipment

  • Market Share and Growth
  • Product Line Shipments
  • Exports
  • Competitive Environment

Restaurant Furniture and Fixtures

  • Market Share and Growth
  • Product Line Shipments
  • Pressures & Profit Margins

Restaurant and Hotel Kitchen Sheet Metal Equipment

  • Competitive Environment
  • Profit Margins
  • Expanding Manufacturing Capacity

U.S. Foodservice Industry Capitol Expense

  • Machinery Purchases
  • Seating Capacities

Issues Addressed:

  • Current and Projected Market Growth
  • Factors Driving Demand
  • Factors Influencing Sales
  • Competitive Environment Analysis
  • Product Shipment Analysis
  • Industry Profitability
  • Consumer Demographics
  • Export Analysis
  • Plant Cost Structure & Operating Ratios

Tables and Graphs:

  • Value of US Foodservice Industry Shipments
  • Value of Equipment Shipments by Sector
  • Distribution of Equipment by Sector
  • Ranking of Leading US Equipment Manufacturers
  • US Foodservice Equipment Profit Margins
  • Market Sales of Commercial Foodservice Equipment
  • Value of US Exports
  • Market Sales of Commercial Food Preparation Machinery
  • US Foodservice Sales for Top Twenty Chains
  • Operating Ratios for US Manufacturers

Companies Discussed:

  • Ballantyne of Omaha
  • Dover Corp.
  • Electrolux AB
  • Enodis
  • Falcon Products
  • Glynwed
  • Hoshizaki America
  • Illinois Tool Works
  • IMI
  • Lancer Corp.
  • The Manitowoc Company
  • Maytag
  • The Middleby Corp.
  • Nor-Lake
  • Perfect Fry Corp.
  • Specialty Equipment Companies
  • Standex International
  • TurboChef Technologies

1. Sizes and Shares
2003 headlines
Lager remains dominant
The rise of economy- priced lagers
Price war dampens value growth
Premium products bow to pricing pressures
Stout shows signs of recovery
The niche products remain niche
Carlsberg retains lead
Guinness Anchor still in the hunt
2. Pricing
Taxes and duties plays an important role
The AFTA effect
Price war between the two domestic players continues
3. Lager by Origin
Lower excise duties boost domestic beer
Influx of imported economy beer lowers value of imported beer
4. Packaging
Glass still dominant
Cans continue to grow in the off- trade channel
Kegs rising slowly
5. Distribution
On- trade vs Off- trade Trends
Off- trade Distribution Patterns
6. Forecasts
Rise is taxes to impede volume growth
AFTA concession to cease, possibly
Price war among domestic beers to impede growth of economy and imported lagers
The revival of stout

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