Increase Foodservice Revenue and Customer Satisfaction by Improving Your Most Important Beverage Ingredient

MINNETONKA, MN, April 21, 2011 (Press-News.org) The foodservice industry has lost almost $1B in value since 2006*. Although the National Restaurant Association has seen its Restaurant Performance Index (RPI)--which measures same stores and store traffic--at its highest level in three years, the NPD predicts same store restaurant traffic to increase modestly in 2011. The poor economy and unemployment, that is nearly into the double digits, has led to a number of trends that have increased pressure on foodservice operations including value menus, bundling promotions, smaller portions and Groupon. Mintel predicts that consumers will continue to demand price deals everywhere they eat.**

Consumers are also trading down, with QSRs and C-stores continuing to encroach on other foodservice segments. According to Technomic, full service restaurants resulted in a 1% decline in 2010, from a 2009 decline of 8%. Non-commercial experienced a 0.7% increase in 2010, after a 9% fall in 2009.

These financial and market pressures will be further complicated by an expected rise in commodity prices in 2011. These numbers required many facility managers to reduce staff and budgets in 2009-2010, with many of them continuing through the majority of 2011.

With all these challenges, it's more important than ever to give customers an experience that will keep them coming back. There is a way that facility managers can help increase store traffic and sales, and help differentiate their business: provide filtered water and let customers know about it.

The primary ingredient of beverages is water: it's 98% of a cup of coffee, 87% of a fountain beverage and 100% of ice. It's critical to ensure that water is free of unwanted contaminants including:
- Chlorine; gives water a "swimming pool" smell and taste, and causes problems with carbonation.
- Organics; can give water a musty or earthy taste and odor.
- Total Dissolved Solids; can lead to water with a metal or sour taste, and cause soft, mushy ice.
- pH; can cause beverages to taste bitter or sour.

Quality water will improve the flavor and smell of beverages, and thus the overall customer experience. However quality water can also provide another benefit: perceived value. C-stores traditionally have values that focus on convenience. However, c-store operators know that quality commands higher margins, and promotes repeat traffic. Past c-stores had limited hot foods--typically hot dog rollers--and cheap coffee. Today, c-stores have upgraded to foodservice venues offering stir fry, fajitas, hand-made pizzas and fresh baked breads, with in-store baristas preparing lattes and cappuccinos. Branding has also become common with many c-stores offering Peet's Coffee, Krispy Kreme donuts, Ballpark Franks and Jolly Rancher Slurpees. These improvements directly impacted c-stores nominal growth of 1.5% in 2009, while traditional foodservice fell 3.5%***.

A facility manager can improve the perceived value of their company's operation by ensuring that beverages and food are prepared with filtered water. A research study surveyed 689 consumers on foodservice attitudes and behaviors and found that water plays an important role in the quality perception of a foodservice operation. The questions and results are listed below.

The proper filtration system, and regularly changed filters, will help ensure that customers get the maximum enjoyment from the beverages and food served. It will also help to promote to customers that the ingredient water is filtered, through signage and menu mentions.

A foodservice trade publication predicted the death of the generic restaurant. Food and beverage trends are all about differentiation. Foodservice operations create this by offering unique new beverages such as specialty teas, purchasing locally grown fruits and vegetables, creating flavorful ethnic dishes, experimenting with burgers and desserts and revamping children's menus. All of these changes can be effective, but at the end of the day, the most successful differentiation is giving customers an excellent dining experience. As the humblest of ingredients, water, is an important contributor.

To learn more about the business benefits of improving water quality, visit http://pentair.nextcom.com/water_quality.

About Everpure
Everpure/Pentair Foodservice, a leading foodservice industry supplier for over 75 years, is a trusted provider of commercial water treatment solutions worldwide. Pentair markets Everpure-branded filtration products for foodservice, office coffee/water, vending, consumer, marine and aviation applications. The company is a division of Pentair, Inc. Its Water Group is a global leader in providing innovative products and systems for the movement, treatment, storage and enjoyment of water. With 2010 revenues of $3.0 billion, Pentair employs approximately 14,000 people worldwide. For more information, please visit us at www.everpure.com.

*Foodservice Equipment & Reports 2010 Equipment & Supplies Forecast
** IFMA 2011 Foodservice Forecast & Outlook
*** Technomic U.S. Foodservice Industry 2009-2010

Next Communications is a full service marketing communications firm specializing in print, online and search marketing. For further information, contact Dennis Gallaher at 952-934-8220 or dennis.g@nextcom.com or www.nextcom.com.