Bassoul, who has steered the company's market cap from $40m to $7bn, will focus on his Bassoul Dignity Foundation
The Middleby Corporation has announced Selim Bassoul is retiring from his role as chairman, president and CEO. Timothy FitzGerald, the company’s CFO since 2003, has been named as Bassoul’s successor and a member of the board of directors.
David Brewer has been promoted to executive vice president and chief operating officer, while Bryan Mittelman, chief accounting officer, will replace FitzGerald as CFO. Gordon O’Brien, who has served as lead independent director of the Middleby Board since 2010, has been named chairman of the board.
The news was announced yesterday (19 February), by The Middleby Corporation, but with changes made effective as of 16 February 2019.
In announcing his retirement, Bassoul plans to “focus on his family and his humanitarian efforts” through his Bassoul Dignity Foundation. He will also continue to serve as a consultant to the The Middleby Corporation board.
The acquisition trail
In his 23-year tenure with the company, Bassoul has overseen turnover soar from $100m to almost $3bn, while market capitalisation has grown from $40m to $7bn. Bassoul spearheaded an aggressive acquisition strategy that has seen The Middleby Corporation own more than 70 brands, including huge deals in the last year alone for EVO America Inc., Crown Food Service Equipment, Ltd., Taylor Company (for $1.0bn) and Josper S.A.
“It has been an honor to be associated with this outstanding company for more than 23 years,” said Bassoul in a statement. “I am grateful for the team we created and their commitment to the execution of our vision. I am thankful for the many personal relationships I have had the pleasure of building with customers, employees and others in the industry over the years. My heartfelt appreciation goes out to each of our 10,000 employees around the world for their support and unwavering commitment to customer care and innovation.
“This is the right time for me personally to transition to the next generation of leadership. Middleby is well positioned for the future with a strong team and a solid foundation. I am blessed to have worked with a dedicated board of directors that allowed us to implement our strategy. I fully support Tim, Dave and Bryan in their new roles and I am confident that they will excel in their new positions.”
O’Brien thanked Bassoul for ” his inspired leadership” of the company. “Under his direction, Middleby transformed its business portfolio, expanded globally and enhanced its position as a leading manufacturer of commercial, residential and food processing equipment and we wish him the best in his retirement,” he said.
“Many in the industry know Tim well, as he has worked closely with Selim over the past two decades. Tim has been an architect of the Middleby business strategy and has led the acquisition efforts, developing three industry-leading platforms through more than 70 brand acquisitions. We are confident Tim, Dave and the entire management team will continue to move Middleby forward and we expect a seamless transition.”
FitzGerald praised the work of his colleagues, saying :”Together we have built a truly unique company of leading brands, technologies, capabilities and people. We have achieved success over the years through organic growth, international expansion, innovative engineering and strategic acquisitions. Under Selim’s leadership, we have established a strong and lasting culture of innovation and customer focus. I am honored to serve as CEO and continue the journey with Dave, Bryan, Martin and our very dedicated management team.”
The Middleby Corporation acquires commercial cooktop manufacturer for an undisclosed price, reports Michael Jones
EVO America Inc., the innovative commercial cooktop manufacturer, has been acquired by The Middleby Corporation for an undisclosed price.
The Oregon-based company, profiled in the Q3 edition of FCSI’s Foodservice Consultant, currently generates approximately $8 million in annual revenue, according to estimates in Portland Business Journal.
EVO was founded in 2001 by Bob Shingler, a keen outdoorsman and fisherman who pioneered “an evenly heated circular cooktop after struggling to heat fish on his camping trips,” the PBJ reported in 2014.
The company’s EVent series of electric griddles with downdraft ventilation is specifically built for front-of-house cooking in restaurants, sports arenas, cafeterias, convention centers, resorts, grocery stores and other locations without overhead hoods. Currently, EVent systems are used in 27 stadia and arenas in the US and Canada.
“Back in 2012, we were asked to look at a Japanese teppan table for a client who wanted rid of the large, overhead hoods that put a limit on the conversation at the table,” says Scott Heim, president & CEO of Evo, Inc., who presented on the topic of ventless technology with William Caruso FFCSI, founding partner of WC&P in Denver, Colorado, at the FCSI The Americas 2018 Conference in Denver.
“The smell is also an issue in that style of cooking. Some people don’t like ending up smelling like their lunch. So, we installed a ventless unit in a Benihana restaurant in Oregon in 2015 and since then the technology has improved,” says Heim.
“This technology is very useful to us as consultant, as it opens up many opportunities,” says Caruso. “It gives you the option to go ventless with cooked products, rather than serving cold food, which means an increase in per capita spend of up to 30%. Now, you have the ability to put cooking into many areas where it was not previously possible.”
The acquisition, confirmed on 31 December 2018, is a common sense one for The Middleby Corporation, says chairman and CEO Selim A. Bassoul. “We see a growing demand for diversity in ventless cooking options as operators understand the significant costs associated with the installation of traditional ventilation. Additionally, customers are increasingly in search of solutions that minimize restrictions imposed by externally vented hoods and duct work, as they cook in non-traditional locations and add new equipment to existing kitchens.”
We believe there is strong growth potential as we integrate the EVO technology with other Middleby brands and cooking solutions and introduce EVO to Middleby’s sales and distribution channels.”
The move follows the recent acquisitions by The Middleby Corporation of Crown Food Service Equipment, Ltd., a leading design and manufacturer of steam cooking equipment for the commercial foodservice industry, which was also acquired in December 2018, and the October 2018 purchase of M-TEK Corporation, a leading manufacturer of Modified Atmosphere Packing (MAP) systems.
In May 2018, The Middleby Corporation acquired Taylor Company, a world leader in beverage solutions, soft serve and ice cream dispensing equipment, frozen drink machines and automated double-sided grills, from UTC Climate, Controls & Security – a unit of United Technologies – for $1.0 billion.
In April 2018 The Middleby Corporation announced the acquisition of Josper S.A., a leading manufacturer of charcoal grill and oven cooking equipment for commercial foodservice and residential applications, and JoeTap, a subsidiary of A.C. Beverage, Inc., and a leading innovator of on-demand nitro and cold brew coffee dispensing equipment for the commercial foodservice industry. In the same month it acquired Firex Srl., a leading manufacturer of steam cooking equipment for the commercial foodservice industry, based in Sedico, Italy.
In March 2018 The Middleby Corporation announced the acquisition of Ve.Ma.C., a leading designer and manufacturer of handling, automation and robotics solutions for protein food processing lines. In February 2018, The Middleby Corporation acquired Hinds-Bock Corporation, a leading manufacturer of solutions for filling and depositing bakery and food product, an integral part of the industrial baking and food processing line.
The Middleby Corporation’s net earnings for the third quarter were $72.9 million or $1.31 diluted earnings per share on net sales of $713.3 million as compared to the prior year third quarter net earnings of $74.7 million or $1.31 diluted earnings per share on net sales of $593.0 million.
In Foodservice Consultant’s Review of 2017, alongside chefs Ana Ros and José Andrés, The Middleby Corporation's Selim Bassoul was awarded ‘Editor’s Choice: People of the Year'. He speaks to Michael Jones about why he wants to inspire people in this industry to do more
“I want, in a small way, to change the world,” says Selim Bassoul. The CEO and chairman of The Middleby Corporation established the Bassoul Dignity Foundation to do just that. And his foundation has already touched the lives of hundreds of thousands of refugees in Syria, Lebanon, Jordan, Turkey and more recently in the Hurricane Maria-ravaged Puerto Rico.
Despite being at the helm of a $3bn multinational company employing 10,000 people, Bassoul has an urge to help those in need – something he attributes to being displaced himself as a teenager Lebanon’s civil war.
This led Bassoul to work for three years with a team of volunteer engineers at Middleby perfecting a wood-burning stove containing a small solar panel capable of powering a light bulb and charging small devices.
In the wake of Maria, Bassoul chartered a plane and shipped 250 of the ‘Relief Ovens’ to Puerto Rico. 50 more ovens will follow.
“Being homeless is a terrible feeling. People feel hopeless and a sense of emptiness. There is no future. I met so many refugees who dream of someday having a home of their own or simply going back home,” says Bassoul.
“Flying into Puerto Rico, I saw floods everywhere and homes covered in water. We went straight into the neighbourhoods and saw they had no clean water and no cooked meals. 60% of the island were displaced. 80% of the island lost electric power. I immediately knew how the oven would help the situation.”
For Bassoul, while the seeds of his desire to help those displaced by war and natural disaster were sown in his youth, a more direct inspiration came to him in 2011.
“My uncle, who is a priest, asked me to help build a school for girls in a remote village in my home country Lebanon. I was thrilled. Education is the key to lifting families out of poverty. I saw building the school as an opportunity to provide continuous and free education to so many girls in the villages – bringing equality to them in our society,” he says.
Bassoul pledged money and the school was built. A couple of years later, he and his wife Andrea came back to visit the school. A reception was held in their honour by the local mayor and the people of the village.
“We were happy until one mother stood up and told us most parents were not sending their daughters to the school any more. Teachers were not showing up most of the time. They were part time professors sent from the coast to the village – a one-hour drive on backroads. And when the weather was bad, they never showed up.”
Bassoul and his wife were completely devastated. “We wanted to make a difference. We thought we had. That night I could not sleep. I asked myself what went wrong? How did I fail?”
He kept rethinking what he had could have done differently. One thing kept coming back to him: he had broken his own rules of business.
“In 25 years in this industry, I built a company from nothing to $3b in sales, and 10,000 employees, by being there on the ground and finding solutions. At work, I would never engage in a project or a new product without understanding the problem and by being on the ground. That’s what I should have done in the school house,” he says.
Learning from mistakes
Bassoul addressed the mistake he felt he made at the school by recruiting a new principal and committed teachers and listening to the concerns of the parents. The school is now thriving, but the lesson stayed with him. He visited the school and again in Christmas 2015 where the main topic of conversation in the country concerned the 2 million refugees living in camps, having crossed into Lebanon from Syria.
“I wanted to go up and see how can I help. I drove two hours up into the Beqaa Valley to understand their living conditions and how they were eating and preparing food. I went despite the unease of my wife and family, since we had a two-week-old daughter and we were concerned about disease and security in the camp,” he says.
When Bassoul arrived into the camp, children were walking barefoot through the mud. There were mosquitoes and insects everywhere. “30 people were living in each tent. They told me many things I didn’t know: they could only eat every three days, because they needed to fetch wood. They were eating mostly bread. They haven’t had a hot meal in a long time. They had to pay $35 a month in order to get just one lightbulb.”
As Bassoul was leaving the camp, he met Fatima and her husband. Fatima was seven months pregnant. “She had no sense of hope. She was afraid to bring her child into the world under these conditions. I was stunned. I immediately cut my trip short and came back to the US.”
On the plane home, Bassoul started sketching ideas and thinking about a solution for people like Fatima and the refugees of Beqaa Valley. “I began thinking, ‘how can I bring them a solution from our core competencies in cooking?’”
When Bassoul arrived in the US, he met with Middleby Corporation engineers who volunteered to help him design and build a wood-burning oven for the refugees, which included features such as a solar panel to power a light bulb and charge small electronic devices.
“We built the Relief Ovens and delivered them to the camp. Time after time, I went back to the camps to test the ovens and make sure they were working fine,” he says.
“We made a difference for the people in the camp. We provided them with a solution for their needs and the oven became their prized possession.”
The ovens Bassoul recently delivered to Puerto Rico after Hurricane Maria are the fifth iteration of the original design. Through talking constantly to the engineers, and crucially those on the ground who are using the ovens, he feels they have found the right solution.
For Bassoul, the school project taught him three valuable lessons. Firstly, it’s not just about handing out money. “In the school house project, I simply wrote a cheque and I did not get on the ground. I was not an expert on how to run a school. On the refugee project, I went on the ground and I used my core competencies. I am not advocating against donating money and helping charities financially. Money is important. And it is needed of course. But personal involvement creates the multiplier effect,” he says.
“We all have resources and skills that can be used for social innovation or to change the world. In order to make those dreams come true, the easiest way is to use your core competency.”
Finally: get on the ground and get close to the people you are trying to help. “By being on the ground, you connect with people. You will be able to see the positive impact of your resources, skills and time dedicated to your cause.
For Bassoul, being this close to the solution he helped create, and by personally visiting the refugee camps, has given him an “indescribable” feeling.
“You can see how you’re making a difference. We entrepreneurs have the time to change the world. We can impact the 10% or more who are disadvantaged or unlucky. The only way to do that is to change the way we think about giving. Writing a cheque is important, but it’s not enough,” he says. “Every person has the right to a dignified life. We need to inspire people in this industry to do more.”
Bassoul is certainly leading the charge, in no small way.
Visit the Bassoul Dignity Foundation website here: bassouldignityfoundation.org
Portrait: Paul Demczak; Pictures: Selim Bassoul
Selim Bassoul, chairman and chief executive officer of The Middleby Corporation, talks to Michael Jones about his career, his faith and his business philosophy
When Selim Bassoul was in seventh grade junior high at a Jesuit school in Beirut, Lebanon, he was bottom of the class and considered a lost cause academically. Severely dyslexic, in an age when the condition was not recognised, it was only Bassoul’s outstanding performances in the cross country running championships each year that ensured he kept his place in class
Today, having been at the helm of The Middleby Corporation for 15 years, Bassoul is one of the longest serving CEOs of a US publicly listed company. His tenure has seen him turn a struggling, unfocussed firm with a market capitalisation of $15 million in 2000 into a global powerhouse worth $5.5 billion and with over 40 of some of the most respected brands in the business, including Jade, Viking, Blodgett, Pitco, Beech Ovens, Lincat and TurboChef.
Serving all food segments globally, the Elgin, Illinois-based group ranks number one worldwide in the pizza chain, convenience store, fast casual and casual dining sectors. In QSR, its brands have the second largest presence globally.
Having experienced a 20% average growth in international revenues over the past five years, in November 2014 Middleby was added to the annual Fortune Fastest-Growing Companies list, the third-best performing industrial company on the list. It has also been listed as one of Forbes ‘Best performing public companies’ every year since 2004.
The turnaround he has performed in Middleby’s fortunes mirrors that of his own life. And what a life he has led.
From troubled beginnings in his war-torn homeland to top of the tree in corporate America. “I want to be able to, in a small way, change the world,” he tells me with a smile. “It has always been my purpose.”
As we meet in London in early December, Bassoul is preparing to address the annual NASDAQ conference. Stealing time away from his demanding schedule in the lobby of the Waldorf Hilton the 57-year old recalls the pivotal, formative moments in his youth. Moments that were, he feels, responsible for turning him from an underachieving schoolboy with an uncertain future into an academic success and, according to analysts The Motley Fool, one of the most highly regarded, influential CEOs in business.
The fork in the road
The Bassouls were a well-connected family in Lebanese politics and business, but when Beirut fell into civil war when Selim was just 12, they found themselves “asset rich, but cash poor”.
He recalls overhearing his parents talking at night, his father telling his mother “I have only got $20 left in my pocket. That’s all we have now. What am I going to do?” For Bassoul the moment gave him an iron resolve that he would never allow external factors to affect his own future. “I knew in that moment I would never be poor,” he says.
For his mother and father, (formerly an Olympic athlete, competing for Lebanon at the 1948 Games in London), the idea of their son leaving school and taking a family friends’ offer of a civil service job was not an option. “I recall my mother shaking me by the shoulders and saying, ‘You will never work for anyone else,’” he says. “That had a big effect on me.”
An entrepreneurial zeal was building quickly in Bassoul. He threw himself into his studies, achieving the highest grades in his class when he left school. His dream of one day leaving Beirut to head up his own company was now firmly entrenched in his mind. “I always thought I wanted to be an entrepreneur,” he says. “I didn’t know what type of enterprise, but I always had a dream to build something. I felt that legacies occur because you create or change something for the better.”
In 1979 Bassoul graduated from the American University of Beirut, where he received a BA in Business Administration, with distinction (top of the class again). After working for Whinney Murray (now Ernst & Young) in the Middle East he turned down the chance to move to London and continue his career as a chartered accountant by studying at London School of Economics. Instead he opted to continue his postgraduate studies in the US at the Kellogg School of Management at Northwestern University. For him it was a clear choice.
“I always wanted to go to the US. Maybe from watching US movies, US TV and listening to US songs. So I said to my parents, I’ve made the decision to go to Northwestern,” he says.
Bassoul’s parents had to sell a piece of land they were keeping for their retirement to fund him through college. It’s a gesture that touches him to this day. “I will never forget the sacrifice they made. They sold the only asset they had left to send me to school. It shapes your personality and your ambition,” he says.
Bassoul already knew that the US would give him the “entrepreneurial spirit” he wanted. “I knew America would give me a chance for me to network and observe capitalism and entrepreneurship at its source. At the time, Europe was not as entrepreneurial. Neither was the Middle East, because either aristocratic companies or families owned everything and were protected by the government.
The US was the true entrepreneurial capitalistic system, and I wanted to be embedded in it and learn.”
At Northwestern Bassoul would go on to receive a Masters of Business Administration and a certificate in accounting. There he learned three key lessons that he carries with him still.
“Firstly, I learned that rewards come with risks. I never had a big appreciation for risk, so one of the things I learned as an MBA is the risk-return equation. The second thing I learned is for every action, there is a reaction, whether it’s a competitor’s strategy or a capital expenditure or investment you need or borrowing to get there. I’ve learned there was always interaction of learning,” he says.
The final key business lesson Bassoul learned at Northwestern came from esteemed finance professor Alfred Rappaport. “He said to me, ‘It doesn’t matter how rich you are, how financially solid you are, cash is king. You have to manage cash.’ I got that ingrained in me. We don’t run our company through net income, we run it through cash. Coming from a culture in the Middle East where cash is everything, it meant something to me. There was no borrowing to be had in during a civil war. It was all about cash.”
After his studies Bassoul worked in the healthcare industry for eight years, firstly for American Hospital Supply and Baxter Healthcare in various positions including mergers and acquisitions, corporate planning and, aged 28, as a regional director in the Middle East and Africa.
Prior to joining The Middleby Corporation Bassoul worked for eight years in commercial food equipment for Premark Inc, a unit of ITW, as director of marketing, general manager of the cookchill division and vice president of sales for the Vulcan cooking division.
Healthcare and foodservice are not obvious bedfellows, I suggest to him. So why the switch in industries? “I’ve always been a contrarian and a nonconventional executive,” he says. “When I left healthcare to come to food equipment, it was not a very exciting business. People didn’t change ovens often, they used old equipment. The new equipment didn’t have any real technology and the business was full of brands that had rested on their laurels and were living in the past.”
In Middleby, however, a firm with a 100+ year history and proud manufacturing heritage, Bassoul saw huge potential. “It was a great brand,” he says. “They had done a wonderful job developing the revolving oven and automating the pizza business, but they had lost focus. They were no longer dealing with core competency. This was a huge challenge. Nobody lied to me. From the beginning, they told me, ‘Selim, we can’t guarantee where we’re going’, because they were struggling and they wanted me to be part of the turnaround.”
The risks Bassoul took were twofold. First, in switching from a high-flying career at Premark to take a pay cut to join “an unknown, not well-run company” in Middleby. The second risk was to sell the house he had just built to buy a large stake in the business. “It was our dream house, my father even came over from Lebanon and supervised the construction on the house, and I sold it to buy shares in Middleby and became the second-largest shareholder at the time, when nobody was willing to invest in them. These were big risks. Failure was not an option,” he says. “An old boss of mine said, ‘Don’t fear failure, fear success.’ I’ve never forgotten that.”
Being prepared to take risks has earned Bassoul plaudits since taking over the reins of Middleby in January 2001. “The biggest risk I took was when I bought Blodgett Pitco from Maytag, right after 9/11 happened,” he says. “Everybody said, ‘You’re crazy. Why are you buying this company?’”
Back in 2001, Blodgett Pitco was actually a bigger firm than Middleby. The cost of the acquisition was approximately $100 million. “No banks would lend us the money, we ended up using a high-yield, very expensive, interest-bearing financing strategy. Everybody was questioning it, because I had not made an acquisition before, but it turned out we had done really great due diligence.
“We knew the weakness of Blodgett and Pitco and what we were strong at. I think the most important thing is we knew in the first 90 days, how we were going to turn around the company. We didn’t have a five-year plan, we had a 90- day plan, so we were not crushed by that huge debt and interest payments.”
A raft of successful acquisitions, over 50, has followed under Bassoul. “Middleby has been the biggest acquirer of all time in the industry. Nobody has ever done what we’ve done,” he says.
The right stuff
In 2014 Middleby acquired Concordia, Market Forge, U-Line, Desmon and Goldstein Eswood, but even without the impact of those acquisitions the business still grew by 11%. For Bassoul, the success of the business is attributable to a few key factors: ensuring that Middleby products stay ahead of the curve, getting a highly de-centralised management structure in place and building the right team by focussing on the characteristics he demands from his 4,500 employees.
“Middleby did not have a strong team when I joined. It had a 30% annual turnover of its staff. People were regularly retiring, leaving or being poached by competitors. I started assembling the best team I could,” he says. Middleby now retain, Bassoul tells me with pride, a staggering 98% of all their staff. “It’s important to retain the talent,” says Bassoul. “Because it builds loyalty. People who’ve been with you help hire people they know from their community.
“One of the things that has been a big success is the fact that I promote the idea of having families working for me. This is against every principle of HR. It was the first unconventional thing I did when I joined. I have husbands and wives, parents and children working for each other and reporting to each other.
“It’s been such a success because those people are preachers for other people to join the organisation and they now have leverage to say, ‘we have to succeed together’. People like to work for me because I give them full empowerment.
“There’s not a lot of supervision at Middleby and people adore this.”
The common thread Bassoul is looking for in his employees is “a huge passion to win”, he says. “A winner gets up every morning and comes to work wanting to learn, wanting to be a change agent. And that happens at any level.
“Everybody in your organisation matters. And that’s why I only allow three degrees of separation between me and the lowest ranked person in our organisation.”
For Bassoul, this is not necessarily about having a lean management structure, it’s about staying connected with all facets of the organisation.
“When I became CEO of Middleby, there were seven layers of management. Human nature says, ‘I need to build this organisation vertically’. And that’s what has doomed many companies. As they succeed, they become a matrix organisation or hierocratic. That’s one reason I left Premark. It was so matrix driven. It’s important we keep pushing away that hierarchy. I would rather have fewer managers, more soldiers.”
Bassoul is particularly forthcoming when asked what characteristics he avoids in his team. “I can distil into four groups the attributes that I don’t want,” he says. First, I don’t want a whiner working on my team. Second, ‘the sniper’, where it’s always somebody else’s fault. Third, ‘the passive-aggressive’ – the person who tells you what you want to hear, but then it never gets done. But the most difficult to weed out, and it takes me the most time, is ‘the contaminator’. The contaminator is somebody who is very smart, but uses all their intelligence to undermine.”
In good faith
When asked to describe how he divides up his day and allocates his time Bassoul gives a typically candid response. “30% of my time is allocated to customers and connectivity. Learning trends and looking at what the customer is interested in. It’s making sure that I don’t get irrelevant. I don’t want to ever become what the horse and cart was to the automobile,” he says.
The next 30% of his working day is spent on ‘people issues’, making sure his team are incentivised correctly and not becoming unfocused. It is also, says Bassoul, making sure that they get the resource they need to get the job done.
“And that encompasses a lot of saying ‘no’. ‘No, we don’t need to do this’. ‘No, you don’t need to hire that individual.’”
The next 30% sees Bassoul focusing on the type of disruptive technology and ‘total engineering innovation’ that no customer in the market is ever going to give you. “It’s where you take a risk and do something beyond the norm,” says Bassoul. “Nobody told Steve Jobs ‘you need to create an iPhone or an iPod’.”
For Bassoul, that final 10%, of his day is spent in prayer. “I’m a Christian. I spend two hours a day praying, in the morning and in the evening. Those prayers are about God guiding me to keep a purpose in my life. My faith has given me purpose since I was young. Because I was one of lucky few able to leave Beirut I’ve realised you have to give back.
And Bassoul is in one of those positions of power where he is genuinely able to make a difference to people’s lives.
Back in 2000, he began looking into the trends of energy usage in the foodservice industry. Something he felt was going to be an increasing concern to the planet and global population. “In the US nobody talked about energy. I had seen a study that said that energy usage had been rising for the last 25 years and nobody was attacking it.
“So I said, I have to do something, to be environmentally friendly. There were only two companies in 2000 that were innovating products for energy. Toyota, which had introduced the Prius, and Middleby, which introduced a whole slew of highly energy efficient pizza ovens.
“When I grew up in Lebanon, energy was a luxury item. Power is still rationed today. So I came to the US and found people were really wasting energy. I always felt we had an obligation to protect energy when other countries don’t have it.”
The issue of wastage also concerned Bassoul many years before it became the latest buzzword marketing tool for manufacturers. He cites the fact that, according to data from Waste Management, 80% of all food waste in the US comes from restaurants, while water wastage is another huge topic.
“A lot of water is wasted in a kitchen,” says Bassoul. “I’ve created a steamer [from TurboChef] that uses zero water. This has saved one seafood chain more than 400 million gallons of water a year. I created things that sounded impossible and made them possible. I think the energy saving that Middleby has created in the industry counts in millions of BTUs and kilowatts, every year. In 2014 we’ll have saved over two billion gallons of water through our innovation.”
With water costs increasing in 30 major US cities by 6% (a 33% rise since 2010 according to Circle of Blue Water data) product innovation that can deliver annual savings per unit is increasingly attractive to clients.
“Now, everybody talks about energy. But Middleby were the first to help our customers measure the savings they were getting from our products. We asked ‘What is your pay back on using a energy saving appliance?’”
Effective from January 2015, Middleby has implemented a plan to pay back the difference to any customer who doesn’t feel they are getting the appropriate saving, across all products that are energy or water saving. That’s almost 60% of Middleby products.
Putting his money where his mouth is has been a trait for Bassoul and Middleby since he became COO of the firm in 1999.
Then, he introduced a unique ‘no quibble warranty’ that meant if any customer was unhappy with a product, they could immediately take it back for a refund.
“This goes back to my faith,” says Bassoul. “I’ve always wanted to be upstanding. Under my leadership I don’t want to blame anybody else. I have a mentor called Jim Sinegal, the founder of CostCo. At CostCo you can return anything. So he taught me that the best way to improve your quality and your suppliers is to implement a no questions- asked return policy, because the customer will then tell you exactly how they felt about that product. We’re the only ones to do that in our industry now. The highest return I’ve done was $6 million. And we won the customer again, because we became better. Maybe that’s why we’ve been so blessed with the huge success we’ve had.”
Bassoul praises Sinegal “for dignifying and providing opportunity for his people”. That kind of thinking led Bassoul in 2014 to set up his Dignity Foundation to help disadvantaged people, including single mothers struggling for work and felons convicted of minor offences. US-wide centres of training teach career and life skills and Bassoul plans to take the Dignity Foundation global. “We can train people to change their outlook,” he says. “My job is to give people a stake in society so they can co-exist in harmony in a working environment. My aunt told me ‘if you smile, the world smiles with you.’ I’m a great believer in this.”
A QUESTION OF FAITH
Selim Bassoul’s aunt was a nun in Lebanon who created orphanages around the Middle East. Famed for helping a huge number of impoverished people, particularly during the civil war, without discrimination against religion or race, her kindness and ceaseless devotion left a huge impression on Bassoul.
“When people knocked on her door – whether Christian or Muslim, she took them in and helped. I feel that legacies occur because you create something, you change something for the better,” he says. “I’m not interested in resting. I’m here to help people who don’t have the opportunity. I’m able to bridge people’s lives, in the US and Lebanon, by helping them get back on their feet. Those people don’t want money from you. They want to find a job. I’ve always been trying to help as much as I can. This is not about having a big heart. This is an obligation. It’s what leaders do,” he says.
BASSOUL ON HIS LEADERSHIP PHILOSOPHY
“I am the custodian of the culture and the environment. I can drive it to be ugly, or to be good. So the vision in my mind has always been that one day I would be leading an organisation where the employee will drive home with greater self-esteem, feeling that they have learned a lot and played a significant role in the [company’s] success.
“For me, management is a noble profession, if practiced well. It offers ways to help others learn and grow. You must take responsibility and contribute to the success of a team. I want to inspire. I want to change behaviour.”
THE CHANGE AGENT
Bassoul’s next venture will potentially change the lives of four billion people. Within the next two years Bassoul will launch a clean cook ‘refugee stove’ that can also pasteurize water and allow people in war-torn or remote areas to charge their cell phones.
“Every year, around 450,000 worldwide are killed in the process of finding a source of fuel. I want to create an appliance that cooks a family meal fast with minimum fuel and no toxic fumes. I will give it to them for almost nothing. The prototype is unbelievable. I can change the lives of four billion people with it and I will not rest until I get it done,” he says.
Boasting huge scale, impressive insight and cutting-edge innovation, The 2015 NAFEM Show delivered on every level, says Michael Jones
Over 20,000 manufacturers, foodservice operators, consultants and professionals from the equipment and supplies industry attended The 2015 NAFEM Show last week. Hosted by the North American Association of Food Equipment Manufacturers, the biennial show was held at the Anaheim Convention Center in a balmy Anaheim, California, during 19-21 February.
More than 500 manufacturers exhibited at the show, which broke with tradition this year in not featuring any keynote speeches or educational break-out sessions, instead relying on industry associations, such as FCSI, to plan their own seminars and symposiums throughout the week.
NAFEM held ServSafe Food Safety Manager Training examinations at the show, focussing key terms and concepts from the ServSafe textbook. Meanwhile, the famed WHAT’S HOT! WHAT’S COOL! exhibit examined industry-shaping trends, shining a spotlight on the most innovative and sustainable products in four categories: Community Responsibility (energy-efficient, water-saving and environmentally-friendly equipment); Global Flavors & Craft Preparation (equipment for authentic/ethnic cooking and unique tools); Health & Wellness (plant-based cooking, food allergies); Productivity, Efficiency & Precision (equipment that automates or simplifies processes).
Following a plethora of manufacturer organised events each evening, including gatherings hosted by Ali Group’s founder and chairman Luciano Berti and Middleby’s chair and CEO Selim Bassoul as well as parties hosted by Halton, Alto-Shaam and Hatco. A barn-storming aftershow party from Atlanta’s Zac Brown Band closed the show on 21 February.