TREND WATCH : <i> A roundup of business developments spotted by other publications. Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management. </i>
Big Plans for Child Care: ServiceMaster, the Illinois-based provider of cleaning services, food-service management, pest control and lawn care, is moving into employee-sponsored child care. Sensing a growth market, the company is launching a center in a Chicago office complex that will accommodate 122 children. It plans to open 175 centers nationwide in the next five years. Industry watchers say the market is projected to grow to $48 billion in 1995 from $15 billion in 1988. Crain’s Chicago Business
Kiddie Book Boom: While many American consumers are tightening their belts, they’re still spending on children’s books. Book Industry Study Group said children’s book sales this year will be just under $1 billion, double 1985’s. When you throw in what libraries spend and include audiocassettes of books, the number skyrockets to $1.7 billion. Jumping on this phenomenon are Walt Disney Co., which is launching a generic Reader’s Digest for kids 7- to 14; Time Warner Inc., which started a children’s version of Book-of-the-Month Club, and hundreds of book stores, whose children’s books already account for up to 30% of sales. Boston Globe
Full Throttle: Although Japanese motorcycle manufacturers have safety in numbers--with Kawasaki, Honda, Suzuki and Yamaha--the leader of the large-bike pack remains Harley-Davidson. Harley’s share of the category has increased from 12.5% to a whopping 64.9% since 1983. Its annual income has risen from $8 million to $33 million. While new motorcycle registrations have decreased nearly 50% since 1985, Harley has boosted its revenue with strong demand and low inventories. It cites the adoption of Japanese-style manufacturing, the Harley name and employee loyalty and morale for its success. Cleveland Plain Dealer
Pieces of Pizza: Domino’s, Pizza Hut and Little Caesars hold a combined 29% of the $25-billion pizza market, with 53% going to smaller chains and independents. Making way for new growth, Pizza Hut is opening small kiosks around the country. It also is testing drive-through units and outlets where Pizza Hut, Taco Bell and Kentucky Fried Chicken--all Pepsico companies--will share space. Domino’s is opening non-delivery units, called Pizzazz, in malls, stadiums and in Burger Kings. And Little Caesar is increasing its stores and opening in K marts. St. Paul Pioneer Press
