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Restaurant business strongest in almost six years

February 3, 2012

The following article has been published by The Packer and was written by Andy Nelson:

Fresh produce sales could jump in the near future, if the latest restaurant performance index is any indication.

TheU.S. restaurant industry in December turned in its strongest performance in almost six years, according to one leading industry measure.

The National Restaurant Association’s restaurant performance index was 102.2 in December, up 1.6% from November and as high as it’s been in almost six years, according to a news release from the Washington, D.C.-based association.

It was the third time in four months the index, which tracks the current health and outlook for the industry, was over 100.

Thehigh scores were driven by strong same-store sales and customer traffic in December and by operators’ plans for capital spending — expected to be at their highest levels in more than four years.

Sixty-nine percent of restaurant operators reported a same-store sales gain between December 2010 and December 2011, while only 18% reported a decline, according to the association.

That marked the strongest sales performance since February 2004.

Restaurant operators also reported brisk customer traffic in December. Fifty-seven percent reported higher customer traffic levels from December 2010 through December 2011, while just 23% reported a traffic decline.

Forty-eight percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the past three months, the highest level in six months.

And for the first time in a year, a majority of restaurant operators expect their sales to be higher in the months ahead, according to the association.

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Northwest

Onions

This yellow onion market is still very bleak for growers. For lack of a better analogy; it's just plain ugly. There are some unrealistic prices being asked for and surprisingly accepted by several shippers. Historically, we will be seeing this market show strength within the next months. Good news for the growers is the steady market on white & red onions. Red onion market may even see increased pricing soon as there are rumors of a short red crop in Mexico. Quality is very good overall. There are also organic yellows and sweet onions available.

Northwest Russet Potatoes

Demand has increased. Market is finally showing some life after being mono-priced for the last few months. Large potatoes are the hardest being hit however. Food services are putting pressure on the small cartons as well. More shippers are pushing the prices this week up as demand increased. This market won't see a drastic increase, but growers will welcome anything at this point. Product quality is excellent.

Colored Potatoes

The Mt Vernon district market steady. White potatoes are finished in this district. California is offering whites now if you need. Very nice looking reds & yellows, are being packed with good availability. Good demand on a steady market. There are a few purples as well as red and yellow finerlings available. Eastern WA has light availability of red and yellow colored potatoes.

Idaho Russet Potatoes

Norkotahs and Burbanks. Good availability across the board in Idaho for cartons and bales. Prices remain fairly steady with just a slight drop in prices from last week. Norkotahs are only being offered by a few shippers but they are getting tight. Quality, condition and appearance are excellent.

Apples

The apple market is moving along extremely well this year. Shipments continue to be at very high levels and quality is excellent. Braeburn and Cameo apples should be good through the end of May on all sizes; Fuji apples should be available clear through the mid August range at this time. The Gala movement and demand are at an all-time high, and should be available through mid-June. The Granny Smith apples are exceeding supply and demand on all sizes. We can expect the prices moving higher by mid-spring, although we expect to have supplies through August. On the Pink Lady apples, the small sizes are most plentiful and good supplies available now through June. The Red Delicious are eating awesome this year and we should have supply through until new crop this year.

Pears

The Bartlett Pears are finished for the season, and it was a very successful year. The D'Anjou pears are excellent again this year and the supply should last well into July this year. The Bosc Pears are excellent as well and should be available through the end of April this year.

Snoboy 1925

We talk about the history of the Snoboy brand quite a bit. This initial version of the brand was trademarked in 1925. Thus began a successful trade in what would eventually become one of the longest continually packed produce brands in existence.

Snoboy 1960

The Snoboy brand was updated for the first time in the 1960's. During this time the brand was well known for apples, potatoes, pears, and a few other items. There was even a billboard erected in Minneapolis that still exists.

Snoboy Present

Today's version of the brand has been with us since the mid 80's and has become one of the broadest lines of fresh produce in one brand. Depending on the time of year, Amerifresh packs between 80 and 85 different items in Snoboy. With the strict standards and specifications used to identify raw product suitable for the Snoboy box, you can be sure you will be getting a great box of produce day in and day out.