Cautious Wish Lists: Energy-Efficient Equipment

Purchase-intent research finds that multipurpose, energy-efficient equipment is what operators are looking to buy in 2008.

By Kate Leahy, Senior Associate Editor -- Restaurants & Institutions, 1/1/2008

Stanford University's renovated Ricker Dining Hall uses energyefficient equipment in its kitchens.

If money were no object, chefs such as Jose Garces easily could spend more than $1,000 on a griddle that coldsears food with below-freezing temperatures- a piece of equipment first used at Chicago's Alinea restaurant.

Yet this year's conservative equipment- buying forecast suggests that such high-price, task-specific items will remain neglected at the bottom of most operators' wish lists.

Instead, energy-efficient, durable and multipurpose equipment, along with traditional items such as ovens, fryers and toasters, will get priority. Though Garces, who runs restaurants Tinto and Amada in Philadelphia, isn't ruling out acquiring the colder-than-ice griddle, he's more likely to invest in a combination oven that can roast, steam and hold food for his forthcoming restaurant in Chicago. "I haven't had the fortune of having that piece of equipment yet," he says.

Well-designed, modular equipment blends the kitchen and dining areas at the Wagamama unit in Cambridge, Mass.

According to the 2008 Industry Forecast Operator Report from Foodservice Equipment & Supplies (FE&S), a sister publication to R&I, several signs suggest that operators are steeling themselves, reluctant though they may be, for a tough year.

Conducted this past November, the FE&S forecast polled 508 restaurant operators from all industry segments on their equipment-buying projections for 2008. Of the operators surveyed, about 30% estimate that their 2008 equipment budget will be more than $200,000. But nearly half of respondents expect energy costs to rise significantly in 2008. Although more than a third of those surveyed predict that their equipment-purchasing budget will increase this year, 21% expect it to decline-7 points more than those who forecast a downturn for 2007.

Of those who foresee a budget increase, slightly more than 40% anticipate that their budget will grow between 1% and 9%. Of those who predict a decline, 21.9% anticipate a 50% to 59% budget cut.

Shopping List
Top 5 pieces of primary cooking equipment purchased in 2007
1. Toasters
2. Ovens
3. Fryers
4. Griddles/Grills
5. Steamers
Source: Foodservice Equipment & Supplies 2008 Industry Forecast Study

That's not surprising news for Michael Haimowitz, chef of Arthur's Landing in Weehawken, N.J., who also cites food-cost increases as a reason for conservative spending.

"Rising food costs definitely play a role in decisions to replace or upgrade equipment," he says. "It really forces a restaurateur to weigh need versus desire."

To stave off large purchases, Haimowitz plans to continue regular equipment maintenance through 2008. "We try several times a year to go through our equipment so that it's operating as efficiently as possible, a check from top to bottom," he says. "There's some upfront cost to bring in people, but the equipment lasts longer."

In doing so, Haimowitz is sidestepping the No. 1 reason operators buy new equipment: to replace existing equipment. According to the FE&S forecast, last year operators spent on average 52.5% of their equipment-and-supplies budget on replacement equipment and only 9.1% on new equipment relating to menu changes.

Will a conservative equipment-purchasing forecast mean fewer menu rollouts? It might, but what's more likely is that operators will develop menu items around existing equipment, focus on core menu items and phase out fringe items, particularly those whose preparation requires the use of specialty equipment.

Says Andrew Dunmire, vice president of design and construction for Pittsburghbased Eat'n Park Hospitality Group, "We try to evaluate how much of our menu is going through certain pieces of equipment." Grills, fryers and broilers are still the most essential pieces in Eat'n Park kitchens.

Yet some interest remains in new equipment. Of the operators surveyed, 35.5% say the addition of a new menu item will be a significant factor in their decision to purchase new equipment this year. Panini presses, a hot item in 2007, are expected to be moderately popular in 2008; 21.7% of operators surveyed plan to buy one this year.

THE BUZZ
Whether replacing equipment or buying new, the buzzword is efficiency: how many tasks a machine can perform and how much energy it consumes.

Dunmire, who oversees an annual equipment-and-supplies purchasing budget of between $500,000 and $600,000, notes that although energy-efficient equipment can be more expensive initially, it pays for itself through the equipment's life cycle, particularly as utility rates rise. Indeed, more than 40% of operators surveyed say they purchased energy-efficient equipment in 2007; dishwashers and ovens were the top sellers in the category.

At Stanford University in Palo Alto, Calif., every piece of equipment purchased for the newly renovated Ricker Dining Hall had to meet stringent energy-efficiency requirements. Among the purchases was a dishwasher that uses water recycled from the dishwashing cycle for spraying down plates before they are washed.

Eat'n Park's new location in Triadelphia, W.Va., employs durable, classic pieces of kitchen equipment.

Sometimes small changes can make a difference. Toasters remain popular in the foodservice sector, with 46.3% of operators polled by FE&S having bought one last year. At Eat'n Park, Dunmire phased out conveyor-belt toasters in favor of popup toasters. He explains that whereas conveyor- belt toasters run continuously and use energy when they're not in use, popup toasters have a low upfront cost and run only when needed. Maintenance costs decreased after the switch.

Lighting is another area in which operators are making simple changes to reduce energy consumption. Even though few respondents polled in the FE&S report say that they planned to switch to energy-efficient light bulbs, there are signs that this will change.

Stanford's Ricker Dining Hall now has new fluorescent lights with dimming capabilities. According to Rafi Taherian, executive director of Stanford Dining, the energy-efficient lights mimic the ambient light provided by incandescent bulbs. Ricker also has more natural light than other dining halls thanks to larger windows and skylights-lessening daytime energy use.

In addition, several restaurants, such as Scottsdale-based chain RA Sushi, Tampa, Fla.-based chain Evos, and The Gladstone Tavern in Gladstone, N.J., have installed or are planning to install light censors in bathrooms and in lowtraffic areas of the restaurant to reduce energy use.

Such changes save money, too. Atlanta-based Ted's Montana Grill recently switched to using low-voltage 8-watt light bulbs; the move brought the annual per-socket energy cost to less than $3, compared with more than $22 annually with conventional 60-watt bulbs.

But efficiency is defined in more ways than one. For Dunmire, efficient pieces of equipment also require little maintenance and come with a comprehensive warranty. "We're not necessarily negotiating for the lowest price," he says