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From the editor
July 25, 2011
Robin Lee Allen
We’re well into summer now. Nathan’s Famous has crowned this year’s hot-dog-eating champion — five-time winner Joey Chestnut, who ingested 62 hot dogs in 10 minutes earlier this month. The National League has clinched baseball’s annual All-Star Game, 5-1. Local farmers markets are bursting with fresh fruits and vegetables. And Nation’s Restaurant News has finished another season of Top 200 data collecting, counting, crunching and analyzing.
This issue contains the second installment of our annual Top 200 census, a ranking of the 200 largest foodservice chains and parent companies based on domestic systemwide sales, corporate revenues and 33 other metrics, ranging from unit counts to growth in franchised locations.
Like the Top 100, which appeared in the June 27 issue, the Second 100 provides a window on the health of the restaurant industry by delivering a three-year view of the growth — or contraction — of those entities ranked 101 through 200. Along with a profusion of data packed into tables, graphs and pie charts, the Second 100 includes insights into the performance of various industry segments and an overview of notable findings, which begins on page 1 and kicks off the special section.
For more information on Top 200 methodology, answers to frequently asked questions about the census and thought-provoking takeaways about this year’s results from project champion Alan J. Liddle, visit www.nrn.com/nrn-top-100.
Meanwhile, in the Finance section of the issue, we explain how the pervasive wheeling and dealing of the past year has transformed both the restaurant industry and the Top 200 qualifiers, with the timing of transactions resulting in the elimination of $3.82 billion in latest-year revenue from the 2011 ranking.
However, Liddle notes, “There is no doubt the money will come roaring back next year.”
The Operations section of the book contains several compelling stories, starting with a look at efforts by some industry members to broaden the reach of an option in the Supplemental Nutrition Assistance Program, or SNAP, previously referred to as the Food Stamp Program. Specifically, supporters would like to see more states adopt a provision that would allow some SNAP recipients to use Electronic Benefit Transfer cards at restaurants, which they say would bring new customers and build incremental value and goodwill.
Also in Operations, John Barone serves up the latest on the volatile state of commodities costs with a focus on corn, while Jim Sullivan suggests ways to increase the effectiveness of Groupon and other Web-based daily deals.
We also look into a legal case that franchisors hope will win a hearing before the U.S. Supreme Court. At the heart of the matter is a 10-year-old lawsuit pitting Louisville, Ky.-based KFC Corp. against Iowa’s Department of Revenue. The suit hinges on the question of whether states have the right to tax franchise companies headquartered outside of their borders. Observers are waiting anxiously to see what the high court will do. According to some, a decision not to hear the case could unleash a torrent of litigation as other states seek to fill their depleted coffers with newfound revenue. That story begins on page 1 and continues in the Business Intel section.
And on a lighter note, in Food & Beverage we look at treats like raspberry lemonade and other unique nonalcoholic drinks made from low-cost, high-margin sodas that are quenching the thirsts of customers at chains and independents alike.
In other words, we’ve pulled together a varied mix of hot topics and cool refreshment for this time of year. May the abundance of the summer season translate to your sales.
Robin Lee Allen
Executive Editor
[email protected]
Follow me on Twitter @RobinLeeAllen