November 19, 2020
We Want to Hear from You!
2021 is going to be a year of massive change for our industry. We’d like to help you make the most of it by providing the very BEST content in this newsletter and through our virtual (and hopefully live) events in 2021… but we can’t do that without your help. 
Please take a moment to complete this content survey – and enter a drawing for one of FOUR $50 Amazon gift cards! You can always reply directly to this address if you have other suggestions too…we’d love to hear from you!
There is no question that restaurants will be laser-focused on safety and sanitation for years to come. Whether dining in or off premises, there are more consumer demands for operators to demonstrate cleanliness than ever before. Join DMA for a webinar that will share all sides of the situation including potential solutions for some challenges currently in the marketplace.

Who Should Attend
  • Multi-Unit Operator Executives – learn best practices for engaging consumers
  • Food/CPG Manufacturers – understand new demands on operators and distributors
  • Supply Chain Professionals – hear about potential challenges and remedies for supply issues in 2020-0221 

Industry Experts Will Address These Key Questions
  • How should restaurant brands be preparing differently for the first half of 2021 vs the second half? Will safety and sanitation needs be different?
  • What is the ONE THING brands CANNOT let happen in 2021?
  • How can the industry do a better job of supporting restaurants in 2021?
  • What advice would you give distributors in 2021? How can they best support operators’ needs for health, safety and sanitation processes, products or promotions to patrons?
Speaker Profiles:
  • Carey Jaros serves as President and Chief Executive Officer at GOJO Industries. GOJO is a 75-year-old Family Enterprise in Akron, Ohio, a leader in skincare and hygiene solutions and the MAKERS of PURELL™. Most notable PURELL products include PURELL® Instant Hand Sanitizer and Soap, award-winning PURELL® Surface Spray, and PURELL® SMARTLINK IoT-enabled hygiene compliance and smart building solutions. She has led the company’s response to the global COVID-19 pandemic, more than doubling global production nearly overnight across North America and Europe, and quickly scaling the business for ‘new normal’ demand, including initiating a several-hundred-million-dollar capital expansion plan. Jaros received her BA in Public Policy from Brown University, magna cum laude and Phi Beta Kappa, and an MBA at Harvard Business School. 
  • Shohini Banerjee is a proven general manager, with demonstrated expertise in the CX, market research and consulting space. Shohini has worked with some of the world's most admired brands to shape their customer and shopper experience strategies in the Tech, Retail, Financial Services and Hospitality sectors. At Ipsos, Shohini serves as a Senior Vice President and leads the Channel Performance US West region. Prior to joining Ipsos in 2017, Shohini was a very early employee at Medallia, a leading CX technology provider, where she gained extensive CX technology and consulting experience. Shohini holds a MS in Electrical Engineering from Stanford University. and serves on the Advisory Board of the Center for Innovation Education at Rutgers University.
  • James H. Kennedy is the Director of P&G Professional’s Restaurant “Center of Excellence” Leader. He brings over 33 years of P&G Sales, Marketing & Customer Business Development insights. Beginning his career in the F&B divisions of P&G “Retail” in 1987 out of college, James subsequently was promoted to Food Service & Lodging Products division in Los Angeles in 90’, and has been passionately engaged in our industry for 30+ years. Kennedy has served on the NRA’s “Expert Exchange” Supply Chain Management Advisory Board since 2014, and previously served on the Arby’s Foundation Board & Dot Foods National Account Advisory Board. In his hometown of Davidson NC, James has served on the local Parks & Rec board and continues to serve on the Troop 58 Eagle Scout Board of Review. A graduate of NC State University, James and his wife Mary are the proud parents of adult children Katherine, Clay & Sean.
Foodservice Pivots Towards Convenience
Several leading foodservice companies have revealed plans for more convenient store models that are designed with pickup and delivery in mind.

Chipotle is opening its first digital-only restaurant called the Chipotle Digital Kitchen. Located in Highland Falls, NY, the restaurant is opening Nov. 14 for pick-up and delivery only. Full Story

The new prototype will allow Chipotle to enter more urban areas that wouldn’t support a full-size restaurant and allows for flexibility with future locations. It does not include a dining room or front service line and guests must order in advance via, the app, or third-party delivery partners.
Orders are picked up from a lobby that is designed to include all of the sounds, smells, and kitchen views of a traditional Chipotle.

“The Digital Kitchen incorporates innovative features that will complement our rapidly growing digital business, while delivering a convenient and frictionless experience for our guests,” said Curt Garner, Chief Technology Officer of Chipotle. “With digital sales tripling year over year last quarter, consumers are demanding more digital access than ever before so we’re constantly exploring new ways to enhance the experience for our guests.”

The Digital Kitchen will also service larger catering orders that can be picked up in a separate lobby with its own dedicated entry.

Captain D’s
Fast casual seafood chain Captain D’s is launching a new restaurant prototype called Express which features a significantly smaller footprint than its traditional models. Full Story

Captain D’s Express is designed to fit within .35 – .5-acre land parcels in metropolitan areas with high population densities. Compared to the brand’s usual 44-seat, 1,964-sq. ft. model, Express features an average footprint of 960-sq. ft. and has a drive-thru and walk-up window for ordering and picking up. There are no indoor dining rooms.

The new design reflects extensive guest feedback that displays an increased demand for enhanced drive-thru and takeout options, as well as Captain D’s overall goal to provide franchisees with flexibility to develop the restaurant footprint best suited for their markets. Express models can also reduce startup costs for franchisees by as much as 32%.

“Long before the pandemic and subsequent social distancing mandates, we were intently listening to our guests and closely following evolving real estate trends, all which led to the development of our Express prototype,” said Phil Russo, VP of real estate for Captain D’s. “Pre-COVID-19, 70% of our sales were generated by off-premises dining – 50% drive-thru and 20% takeout – and those numbers have held strong over the past several months, only reinforcing the need and viability of Express’ design.”

McDonald’s also recently shared some model-of-the-future designs that it expects to reach more than 10,000 restaurants worldwide, reported QSR Magazine (Nov. 10). Full Story

The company is working on a smaller restaurant footprint that focuses exclusively on efficiency. It features a drive-thru, takeaway, and delivery with limited or no dine-in seating.

“Customers’ desire for convenience, speed, and ease will only grow, and we’re ready for that. We’re taking steps to accelerate our phenomenal drive-thru advantage,” said Mason Smoot, SVP and chief restaurant officer. “We know better than anyone what drive-thru customers care about. It starts with speed of service.” Food Institute Focus

Cities, States Renew Lockdown Orders with COVID-19 on Rise
Across the nation, mayors of cities and governors of states are restricting hours for businesses in an effort to tamp down on a rising trend of COVID-19 infections.
The legislation was not unwarranted. With the CDC reporting 151,855 new COVID-19 cases in the country on Nov. 17 alone, the total number of cases in the U.S. has surged to about 11.1 million.
California Gov. Gavin Newsom and Iowa Gov. Kim Reynolds were among the latest government leaders to issue lockdown orders due to the virus. Most of California’s larger counties were moved back into the most restrictive reopening tier, meaning that indoor dining and some other businesses would have to shut down again. In Iowa, restaurants and bars were ordered to close at 10 p.m., with a 15-person cap on indoor gatherings and 30-person cap outdoors, reported The New York Times. Full Story (Nov. 17)

In Today in Food, the Food Institute also tracked shutdown orders in many states, including North Dakota, Washington, Oregon, New Jersey, New York, Illinois, and Michigan. Philadelphia and Chicago were among the cities ramping up protective efforts, as well. This news was likely not welcome among restaurant industry professionals across the country.

For an industry suffering more than most during the pandemic, many looked to their legislators for help. As an example, the Independent Restaurant Alliance of Oregon petitioned the state to provide various relief measures, including COVID-19 testing, financial assistance, and clearance to sell to-go cocktails. About 300 Oregon-based restaurant and bar industry members signed a letter to Gov. Kate Brown after shutdown measures were enacted, reported The Oregonian (Nov. 16). Full Story

“Our businesses don’t operate like hardware stores,” the letter read. “We can’t just flip a switch and walk away. Each time we close we lose perishable inventory and we have to maintain payroll to properly shut down the business… And right now, we need immediate financial assistance from the State of Oregon. Without it our industry will perish.”

The financial impact of remaining open were apparent, too. The NYC Department of Transportation (DOT) began adding more restrictions to outdoor dining as winter approaches. New regulations require restaurants to retrofit their curbside outdoor dining setups with more safety features including heavy filler material, more reflective strips, and brightly-colored snow sticks, among other stipulations, reported Eater (Nov. 16). Full Story

The International Foodservice Distributors Association (IFDA) was one of the voices calling for greater federal assistance, arguing that restrictions on the industry were particularly untimely during the holiday season. Full Story

IFDA President and CEO Mark Allen noted the organization was disheartened by a lack of progress on a second stimulus package, noting Congress and the Administration should know how much revenue generation could be lost during the holidays due to the lockdowns.

“It appears that little effort is being made to protect and assist these small businesses just as they would otherwise be making much-needed income at the end of the year. Another round of restaurant closures and restrictions are devastating to the industry that was just beginning to rebound. Also, while the pandemic continues, the winter months, which will greatly impact outdoor dining, are likely to hurt worse than any in recent memory,” he said.

The National Restaurant Association (NRA) also joined the fray, and sent a letter to the National Governors Association claiming there is no scientific evidence linking restaurants to the increase in COVID-19 cases and urging them to consider policies and regulations that will enable the industry to safely serve their communities for the duration of the pandemic. The letter noted that restaurants have enhanced FDA Food Code practices, while restaurants have updated floorplans to ensure social distancing of at least six feet between guests while in a restaurant. Full Story

“There is an unfounded impression that restaurants are part of the problem, and we are suffering as a result of inconsistent, restrictive mandates,” said Tom Bené, NRA’s President and CEO. “Data tying systemic community outbreaks of COVID-19 to restaurants has yet to emerge, but we are too commonly labelled as ‘super-spreaders,’ and have become a convenient scapegoat for reflexive shutdowns.”

The lockdowns also came at a time of recovery for the industry. Although October represented the best month for same-store sales growth in the restaurant industry since February, the recovery seemed to slow due to fears of a coming second wave of COVID-19, according to Black Box Guest Intelligence. Guest sentiment was more positive year-over-year during October based on restaurant food and service, according to a separate Black Box report. To see more, check out the Economic Pulse section. Food Institute Focus

Nutrition and Health Businesses Taking Center Stage
Nothing has been more impactful in 2020 than how the COVID-19 pandemic has altered the way people view their lifestyles. Consumers are becoming increasingly more cognizant of the importance of health and well-being for themselves and their families. And companies are following these important trends by pivoting their focus to nutrition and health and other food-related areas.

Archer-Daniels-Midland (ADM), a food processing and commodities behemoth, which has had its hands in numerous businesses (such as Oil Seeds and Corn Processing; Chemicals, Packaging; Fertilizers; and Paper & Pulp) for nearly 120 years, has been making a big push in the direction of nutrition over the last several years.

“Consumers’ attitudes, priorities, and behaviors are shifting significantly,” said Ana Ferrell, VP of marketing at ADM. “This evolution is providing a unique opportunity for forward-looking food and beverage companies to bring a suite of trailblazing new products to market.”

According to an ADM report, “People are looking for new ways to improve their mental wellness during these stressful times, including granting themselves permission to consume indulgent, comforting food and beverages. However, they are tempering this desire with weight management needs and seek a careful overall balance of indulgence and good nutrition.”

The nutrition division gained 35% during its second quarter of 2020 versus a year ago on strong sales of products including probiotics, fibers, and plant-based proteins, and the company is projecting operating profit of this division to reach $1 billion, up from year ago levels.

Nestlé SA, the largest food and beverage company in the world, noted the pandemic definitely raised consumers’ awareness on health, which has been a boon for its growing health-sciences unit.
CEO Mark Schneider mentioned that the Health Sciences unit represents only about 3% of Nestlé’s overall sales, but said, “we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins, and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.”

The Health Science unit posted double-digit growth during the first nine months of 2020, supported by strong momentum for consumer and medical nutrition products. The company reported that demand for vitamins, minerals, and supplements that support health and the immune system remained high. Garden of Life and Pure Encapsulations saw strong growth, particularly in e-commerce. Healthy-aging products grew at a double-digit rate, supported by Boost in North America and Nutren in Brazil. Medical nutrition grew at a high single-digit rate, led by food allergy and adult medical care products.

Meanwhile, Danone S.A., a world leading food company out of Paris, focuses on several business lines: Essential Dairy and Plant-Based Products, Waters, and Specialized Nutrition (including Early Life Nutrition and Advanced Medical Nutrition).

Danone touts itself as having the #1 leadership position in Europe Medical Nutrition and #2 worldwide in Early Life Nutrition.

Specialized Nutrition sales did however see a decline of 5.7% in the third quarter of 2020 on a year-over-year basis, primarily by the performance of China, which posted a steep double-digit sales decline in the quarter against a high base last year. Yet, in the Chinese domestic market, the company said it’s continuing to see strong underlying consumer demand for its brand as Aptamil (infant formula for 1-2 year-olds) experienced good market share momentum in e-commerce and mum&baby stores, driven by the Platinum premium range.

Ultimately, technology and advancements in health and nutrition science are paving the way for the rise of personalized nutrition and the end of a one-size-fits-all approach to daily nutrition, and most of the world’s largest food companies are at the table. Food Institute Focus

Executives on the Move:
  • Ecolab appointed Christophe Beck CEO. Full Story
  • McDonald’s appointed Bethany Tate Cornell chief learning and development officer, reported QSR Magazine (Oct. 28). Full Story
  • McDonald’s named Reginald Miller global chief diversity equity and inclusion officer, reported St. Louis Post-Dispatch (Nov. 2). Full Story
  • Noodles & Company named Carl Lukach CFO. Full Story
  • Meanwhile, Noodles & Company appointed John Ramsay as vice president of franchise sales and hired real estate directors Eric Briggs and Greg Burnthorn. Full Story
  • Sysco Corp. named Aaron E. Alt CFO. Current EVP and CFO Joel Grade will take the role of EVP, business development. Full Story
  • Legacy Foodservice Alliance named Michael Push VP of operations. Full Story
  • Chicken Salad Chick appointed Marianna Magee as Director of Marketing and Jon Musser as Director of Supply Chain. Full Story
  • Ruth’s Hospitality Group appointed Kristy Chipman CFO, reported FSR Magazine (Nov. 12). Full Story

Store Expansions, Closures, and More:
  • Muscle Marker Inc. acquired one of its previously franchise-owned locations in Manhattan, reported QSR Magazine (Nov. 2020). Full Story
  • Sweetgreen is restructuring its business and reducing its Southern California-based workforce by 20% as the pandemic continues to cripple operations, according to a Medium memo published by CEO Jonathan Neman. Full Story
  • Inspire Brands will buy Dunkin’ Brands Group for a total of approximately $11.3 billion, including assumption of Dunkin’s debt. The deal brings Dunkin’ and Baskin-Robbins into Inspire’s existing portfolio of Arby’s, Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, and Rusty Taco, reported Nation’s Restaurant News (Oct. 30). Full Story
  • Meanwhile, Dunkinexpects to close 800 under-performing domestic stores, equaling 8% of its U.S. footprint, and 687 of those locations have already shuttered, reported The Wall Street Journal. Full Story
  • Additionally, Baskin-Robbins is now offering delivery via Uber Eats. Full Story
  • Stoner's Pizza Joint signed a ten-unit franchise agreement with new franchisee. Full Story
  • Fajita Pete's to bring its unique business model to Denver with 5 new restaurants starting in 2021. Full Story
  • Jollibee will open locations in Texas, California, and Canada. Full Story
  • Dickey’s Barbecue Pit is opening its first virtual kitchen in Chicago. Full Story
  • Amici Partners Group will acquire substantially all assets of Friendly’s Restaurants, also known as FIC Restaurants. Full Story
  • Starbucks Corp. will close an additional 100 locations in the U.S. in the next year, reported Restaurant Business (Oct. 30). Full Story
  • Meanwhile, Starbucks will open a location in Vientiane, Laos, by summer 2021, reported Yakima Herald-Republic (Nov. 1). Full Story
  • El Pollo Loco plans to roll out the first stage of a new drive-thru and remodeling initiative in Q4, reported QSR Magazine (Nov. 2020). Full Story
  • Wing It On! is rapidly accelerating nationwide franchise growth, with the 15-store New England-based chain is targeting Texas, Louisiana, and North Carolina for expansion markets, reported QSR Magazine (Nov. 2020). Full Story
  • The Wendy’s Co. is considering a bid to acquire restaurants from bankrupt NPC International Inc. according to an SEC filing, reported QSR Magazine (Nov. 2020). Full Story
  • Additionally, Wendy’s may withhold franchise permission from Flynn Restaurant Group, the stalking horse bidder approved to buy assets from NPC International, reported Bloomberg (Nov. 13). Full Story
  • Meanwhile, Wendy’s floated a "drive-thru-only" model during its third quarter earnings call. CEO Todd Penegor noted the company is testing some prototypes to determine feasibility of the concept, reported Forbes (Nov. 6). Full Story
  • Tropical Smoothie Café announced a mobile app refresh ahead of its new seasonal menu item launch. Full Story
  • MOOYAH Burgers, Fries & Shakes partnered with Agape Management to bring 10 new restaurants to Dallas. Full Story
  • Potbelly plans to close 25 to 30 stores, reported QSR Magazine (Nov. 2020). Full Story
  • Four Corners Property Trust acquired an Outback Steakhouse property in Florida for $1.9 million. Full Story
Second COVID-19 Wave Fears Push Down Sales
Although October represented the best month for same-store sales growth in the restaurant industry since February, the recovery seemed to slow due to fears of a coming second wave of COVID-19. Same-store sales growth (-7.5%) was up 0.6 percentage points from September’s year-over-year results, down from the average 3.6 percentage point increase reported between July and September. Comparable traffic (-13.7%) remained below last year’s levels. Full Story

Guest sentiment was more positive year-over-year during October based on restaurant food and service, according to a separate Black Box Guest Intelligence report. October became the third consecutive month in which more than 50% of all restaurant food mentions were classified as positive. This is a substantial increase from the 34% of food mentions that were classified as positive back in April. Full Story

Selected Restaurant Industry Results:
  • BJ’s Restaurants gained $21 million in its third quarter with the help of outdoor patio seating. The chain was still able to capture roughly 80% of last year’s marks with 13% of dining rooms still closed. To add more room indoors, the brand invested in glass dividers which it expects to be featured in about 170 locations by mid-November—adding around 12 to 14 tables per restaurant, reported FSR Magazine. Full Story
  • Denny’s Corp. continued to see same-store sales improve during third quarter. Temporary closures also improved, declining from 47 in July to 35 in August and 22 in September. As of the end of the quarter, 1,127 units had dining rooms open and 369 locations were doing off-premise sales only. Full Story
  • US Foods Holding Corp. reported sales fell to $5.85 billion from $6.53 billiofor the third quarter when compared to the prior year, with capacity restrictions and social-distancing measures hurting the company's bottom line. However, the company noted sales improved from second quarter, reported MarketWatch (Nov. 2). Full Story
  • Sysco Corp. reported a sales drop of 23% in the first quarter to about $11.8 billion, up from the FactSet consensus of $11.7 billion. The company noted both U.S. and international foodservice sales were down 25.7% during the quarter, reported MarketWatch (Nov. 3). Full Story
  • Performance Food Group Co. reported a net sales increase of 12.9% to $7 billion during its fiscal 2021 first quarter. However, the company posted a net loss of $700,000 during the period. Full Story
  • The ONE Group, parent of STK Steakhouse and Kona Grill, is optimizing store layouts in the face of restrictions. The strategy appears to be working as comp sales grew 4.2 percent in October, 8.6 percent at Kona Grill and 0.3 percent at STK, reported FSR Magazine (Nov. 2020). Full Story
  • Ruth’s Chris Steak House has displayed agility during the COVID-19 pandemic with rising demand from non-business customers. While private dining sales are down, the brand’s off-premises program has overcome almost 90% of that decrease in Q3. Ruth’s Chris finished Q3 with 77 restaurants. It’s closed nine locations since the start of the pandemic and is evaluating one additional unit for a potential shut down, reported FSR Magazine (Nov./Dec. 2020). Full Story
  • Papa John's reported same-store sales increased 23.8% during the third quarter in its North American markets, while international same-store sales jumped 20.7%. The company ended its franchise support program during the period, which cost $55 million over the past year, reported MarketWatch (Nov. 5). Full Story
  • Carrols Restaurant Group Inc. reported a 0.8% same-store sales increase for its Burger King restaurants, while its Popeyes restaurants saw same-store sales increase 5.5% in its third quarter. Total restaurant sales were up 2.2% to $407 million. Full Story
  • Meanwhile, Carrols Restaurant Group plans to give up the right of first refusal that it previously received from Burger King, suggesting the chain’s largest franchisee will dramatically slow its acquisitions within the Burger King system. Carolls expects to give up that right as part of a negotiation with Burger King to reduce its development commitment to just 50 locations over the next five years, reported Restaurant Business. Full Story
  • Cracker Barrel improved performance with a 16.4% decrease in same-store sales, according to preliminary results of its 2021 Q1. However, the company received another letter from activist shareholders Biglari Capital Corp. condemning what they call “troubling” and “false and misleading statements” from Cracker Barrel about their performance and recovery. The company said it addressed these claims in a presentation to shareholders and will report full first quarter results in December, reported Nation’s Restaurant News (Nov. 5). Full Story
  • Red Robin Gourmet Burgers continues to struggle with same-store sales, which decreased 25.1% driven by a 24.6% decrease in guest traffic for the quarter ended Oct. 4. Although six of 35 temporarily closed company-owned restaurants reopened during the quarter, five shuttered permanently. The company is starting to install partitions between tables in order to expand indoor capacity during winter, and plans to add Donatos pizza to 120 locations in 2021, reported Nation’s Restaurants News (Nov. 5). Full Story
  • McDonald's reported same-store sales jumped 4.6% in the U.S. during third quarter, propelled by a meal deal promotion with rapper Travis Scott and the launch of spicy chicken nuggets. Customer traffic was down during the period, but purchases were up due to larger group orders. However, international results were lower than the prior year, with fears increasing coronavirus cases will force shutdowns in European markets, reported Yakima Herald-Republic (Nov. 19). Full Story
  • BurgerFi saw an 80% increase in delivery sales volume and 55% uptick in order volume in the third quarter. In total, BurgerFi earned $11.5 million from delivery based off of more than 476,000 orders. That exceeds the pace of quarter one and quarter two combined when BurgerFi served 428,000 delivery orders and generated $10.9 million in sales, reported QSR Magazine (Nov. 2020). Full Story
Datassential Takes the Guesswork Out of Menu Innovation
If the success of Wendy’s nationwide breakfast roll out in the midst of a worldwide pandemic is any indicator, menu innovation matters more than ever. Considering the disruption to morning school and work routines, this growth is a testament to the love consumers have for restaurants and the draw of new items. 
Developing the ‘next big thing’ is an art that can be optimized by data. SCORES, Datassential’s menu concept testing platform, can simplify your innovation process. Quickly screen concepts with a sample of 1,000 consumers to understand key performance indicators like purchase intent and uniqueness. We are pleased to offer a special DMA Partner Rate for testing. 
Contact Kelley Fechner to learn more about this limited time partner rate, and take your menu development to the next level or click here to learn more.
U S Chemical
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USC Shurguard HP RTU is:
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  • Effective against key pathogens - TB, MRSA, Norovirus and VRE
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  • Compatible with most hard, non-porous surfaces 30 second soft surface sanitizer

Learn more via this brochure.
Superior Performance for One Less Thing to Worry About
At P&G Professional, we believe Every Experience Counts. With over 180 years of innovation and product development to our name, our cleaning products and programs feature well-known and trusted brands. Let us help you develop and deliver a Best-in-Class Cleaning Program to ensure every Experience counts for both your employee’s and customers. 

While most foodservice professionals and operators are familiar with Dawn, Comet, and Spic N Span , please see the attached link on new and innovative Safeguard and Microban products which provide added protection against COVID-19 and other harmful bacteria and pathogens. Additionally, take a look at an overview of our complete Total Food Service Solution and offerings, featuring Cascade Professional, Dish machine Equipment and 24/7 Service & support. Learn more via this brochure.

Feel free to contact us to learn more. Please contact James Kennedy (, Bruce Bykowski ( or Taft Sales ( to learn more about the Total Foodservice Solutions program from P&G Professional... delivered by DMA!
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