FOODSERVICE NEWS

Mass. Governor Urges Hyatt To Reinstate Workers or Face Business Boycott
Mass. Governor Deval Patrick said that he will direct all state employees to stop doing official business with Hyatt unless the company rehires the housekeeping staff it fired from Boston-area hotels on August 31.  In a letter to Hyatt CEO Mark Hoplamazian the governor again expressed his concern for the impacted workers, called the company’s treatment of its long-term employees “substandard” and said that he plans to meet with a group of affected workers this week to better understand the circumstances surrounding their discharge.
On Aug. 31, Hyatt Hotels laid off housekeeping staff at the Hyatt Regency Boston, Hyatt Regency Cambridge and Hyatt Harborside Hotel and replaced them with lower-paid workers from Georgia-based Hospitality Staffing Solutions.
Reacting to the governor’s announcement, Hyatt, a few days later, announced that all housekeepers affected by the decision will be offered new full time positions in the Boston market. The jobs, which will be provided by an affiliate of United Service Companies, will match the employees previous Hyatt rate of pay through the end of 2010. Hyatt will extend health care coverage through March 31, 2010 for employees who choose to accept positions with United Service Cos., after which they will have the option to obtain health care benefits through their employer.
The Patrick Administration is working to connect workers with such resources as unemployment insurance and benefits and reemployment services available through the 37 One-Stop Career Centers across the state.

Dunkin Donut Franchises Accuse Company of Imposing Penalties For Alleged Contract Violations
Dunkin Donut franchisees are accusing the company of targeting some shop owners in an effort to terminate store agreements and collect penalties for alleged contract violations. At a meeting of the Independent Franchise Owners, Atty Robert Zarco said the Dunkin Donuts loss prevention department is now a profit center and has gone after franchisees for infractions that include improper tax filings, unauthorized transfers of the business and cracked floor tiles ad a way to increase revenues.
Responding to these charges, Dunkin Donuts issued a statement which said, “At Dunkin’ Brands, we share a common goal with our franchise community: To protect our brand reputation and our franchisees’ investment in the brand. To that end, we have and always will conduct our business with uncompromising integrity, holding both employees and franchisees to the highest standards of professional and ethical conduct. All Dunkin’ Brands employees and franchisees are held to the highest standards of professional and ethical conduct. Our franchisees are required to follow all local, state and federal laws, and we maintain the right to pursue legal action to remove from our system franchisees who are in violation of these laws. The company also said it is also irresponsible and incorrect to imply that litigation is in any way part of Dunkin’ Donuts’ strategy for profitability. In 2008, despite the economic downturn, Dunkin’ Donuts global system-wide sales were up 5 percent and the company opened more than 1,300 new stores worldwide.”

New York City Council Proposes Paid Sick Leave
New York City is looking to join San Francisco and Washington in requiring businesses to provide paid sick days for employees. A bill pending in the city council would require employers of 10 or more to provide eligible employees with up to nine paid sick days per year. Employees in businesses with fewer than 10 employees could earn five paid sick days a year. New York City Mayor Michael Bloomberg supports the two-tier mandate and has given his qualified endorsement to the proposal. Under the proposal workers would earn one hour of paid sick leave for every 30 hours they work, starting on their 90th day of employment. Employers would decide whether employees could roll over accumulated sick leave from year to year.

Food Service Latest Word…
The AGAR fall show will be held at Twin River in Lincoln, R.I. 10:00 a.m. to 5:00 pm.. and the two day Perkins Trade Show will be held at Gillette Wednesday, Sept. 30 from 11: 00 to 5:30 pm.. and Thursday, Oct. 1 from 10:00 a.m. to 4:00 pm.

The largest tasting of Portuguese wines will be held in Boston at The Loft, 319A St., Boston. More than 30 importers of Portuguese table and fortified wines will pour at the event.

Papa Bello Enterprises which operates and franchises Italian style eateries in the U.S. will move its corporate headquarters to Baltimore, Md. effective Oct. 15.

C-STORE NEWS

Banking Chairman Senator Pushes For Interchange Fee Form
U.S. Senate Banking Committee Chairman Chris Dodd (D-CT) is working on legislation to “protect Americans from excessive checking account overdraft fees,” Last week he said that the bill would also “substantially modify" the interchange fees that merchants pay. In May, Dodd indicated he would address the issue of credit card interchange (or “swipe”) fees, following enactment of credit card reform legislation signed into law.
"Every state you go to, you hear it from retailers," said Senator Dodd "The fees are excessive."
Last week, the National Assn. of Convenience Stores reported that the Merchants Payments Coalition released a study that said that banks collected estimated $48 billion in interchange fees in 2008 – an average of $427 per American household in just one year.
Meanwhile 7-Eleven said that its franchisees and store operators collected more than 1.6 million signatures in its “Stop Unfair Credit Card Fees” petition drive over the summer. 7-Eleven asked customers to support a petition calling for Congress to pass legislation that prohibits credit card networks and card issuing banks from charging unfair transaction fees.

Wise Foods Gets New Financing
Wise Foods, Inc., last week announced today the completion of a new $25 million credit facility which includes a revolving credit line and a term loan.
The new debt arrangements will allow Wise to expand and grow through investments in marketplace initiatives including new products. Additionally, the new facility will be used for capital investment to improve efficiencies and expand production capabilities at the company's main production facility in Berwick, Pa.
Edward M. Lambert, Wise chairman and chief executive officer said, "Wise's financial performance over the last year has been solid and the company is positioned well for the future. We are gratified to close this lending facility in a difficult lending environment, and continue our relationship with GMAC CF that started in 2004." The company's brands include Wise Potato Chips, New York Deli Kettle Cooked Potato Chips, Ridgies Potato Chips, Cheez Doodles, and Dipsy Doodles Corn Chips.

Irving Oil Announces $220 million Investment In Saint John Refinery
Irving Oil’s Saint John Refinery in Canada is beginning one of the most significant investments ever conducted at the facility. The 60-day project is expected to employ 1,800 trades people at peak times, with a total investment of approximately $220 million The investment aims to strengthen the refinery’s ability to serve markets in Atlantic Canada and the U.S. Northeast through improving the facility’s yield or conversion to higher grade fuels such as Ultra-Low Sulphur Gasoline. “This is an extremely valuable investment in our refinery’s future, to further prepare for the challenging market and industry conditions we are facing and ensure the facility’s viability for decades to come,” said Mark Sherman, refinery general manager.“

C-Store Latest Word…
The New England Convenience Store Assn. (NECSA) announced that We Card (Responsible Tobacco Retailing) seminars will be held Oct. 27 at the Innplace Downtown in Springfield, Mass. from 9 a.m. to 11 a.m.; the New Haven, Conn. Lawn Club Oct. 27 from 3:00 to 5:00 pm.; Oct. 28 at the Crowne Plaza Hotel in Warwick, R.I., from 9:00 a.m to 11:00 a.m. and the Hyannis, Mass. Resort and Conference Center from 3:00 to 5:00 pm.. Call 1-888-923-1444 or email at register@wecard.org.

The Ohio Petroleum Marketers and Convenience Store Assn. has named Jennifer Rhoads as the new president and chief executive officer of the organization. She succeeds Roger Dreyer who retired earlier this month. Ms. Rhoads has served as the association legal counsel since 1999.

General Tobacco announced a company sales reorganization in conjunction with the company’s realignment strategies. Changes in the company’s sales team will direct resources to areas for new distributor and market growth. Seven sales directors will be managing a field sales team of 33 people.

NEW CHANNELS

H Mart Korean Store De buts In Boston Area
The Boston area’s first H mart Korean supermarket opened in Burlington, Mass. last week. The store is 51,000 square feet. H Mart is a New Jersey based grocery chain with 40 locations nationwide. The market has three Western aisles stocked with familiar mainstream brands such as Sauve and Pantene, Hood, Campbell Soup, Ocean Spray as well as international brands such as Goya.
According to the Census Bureau, the Asian community in Massachusetts has grown from 238,000 in 2000 to 305,000 in 2007.

Office Depot To Partner With Lil Drug Store To Sell Office Products Nationwide
Office Depot and Li’l Drug Store Products, Inc., announced last week an exclusive partnership that will enable the distribution of Office Depot office supplies for sale in convenience stores throughout the country. Office Depot will supply Lil’ Drug Store Products with an assortment of more than 25 frequently used office products that are sized and packaged for convenience stores. Lil’ Drug Store will redistribute those products to convenience stores nationwide. Products being offered start around $1.29 and will include pens, scissors, envelopes, notebooks, calculators, tape, markers and more.
“We are very excited to be partnering with such a powerful brand in office supplies,” said Paul Rossberger, vice president of sales & marketing for Lil’ Drug Store. “This partnership offers new convenience to our customers and their shoppers. It makes frequently needed products more readily available at the corner store or gas station – whether you’re a business traveler who forgot some items or a Mom or Dad who needs something for a school project.”
“Office Depot is always looking for new and innovative ways to serve our customers,” said Steve Schmidt, President of Office Depot’s North American Business Solutions Division. “By teaming up with Lil’ Drug Store to stock thousands of convenience stores with office products, we will be able to serve the on-the-go customer with the product they need, when they need it the most.”

Sara Lee To Sell Body Care & European Detergent Business to Unilever
Sara Lee Corp. plans to sell its global body care and European detergents businesses to Unilever. In fiscal 2009, these businesses generated annual sales of nearly $1 billion. The global body care and European detergents businesses encompass a wide variety of brands, including Sanex, Radox, and Duschdas.
Sara Lee has also received significant interest in the remainder of its household business and is continuing to pursue divestiture options for this business, which includes hair care, shoe care, insecticides and non-European cleaning brands.
"The divestiture of body care and European detergents would advance our strategy to concentrate on our core food and beverage businesses where we enjoy a strong competitive position and where we can generate superior shareholder returns," said Brenda C. Barnes, chairman and chief executive officer, Sara Lee Corp. "We intend to use proceeds from the divestiture to invest for growth in our core businesses and to repurchase stock."
Sara Lee's International Household and Body Care business generated nearly $2 billion in sales in fiscal 2009. The remainder of its household business, which is not included in the proposed transaction, includes the Ambi Pur air care brand, Kiwi shoe care, Ridsect insecticides and White King bleach brands.

New Channels Latest Word…
Tree of Life has joined the Smartway Transport Partnership, a collaboration between the U.S. Environmental Protection Agency and the freight industry. It is designed to increase energy efficiency and reduce greenhouse gases and air pollution. Tree of Life also announced a new floral program available to natural food stores.

Giant Food Store will offer free HIV screenings in four store locations in Washington D.C. over the next several weeks.

McQuade’s Market, a three store independent market in Rhode Island has received a GreenChil gold level award for its store in Westerly, R.I.

B.J.’s Wholesale Club recently appointed Leonard Schlesinger to its board of directors. He is the president of Babson College and was formerly chief operating officer of Au Bon Pain.

H1N1 or Swine Flu vaccinations may be released and administered to patients during the first week of October, according to the U.S. Centers for Disease Control and Prevention.