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QSRs go green
3/25/08
"Paper or plastic?"
That question was the first taste many consumers had of the environmental movement in the United States. Customers pondered whether to choose the eco-friendly paper bag or the potentially harmful plastic bag.
Now, however, the consumer is asking the questions and the restaurant industry has taken notice.
"People want to know where their food comes from, what you are doing about being responsible to the environment and how you are minimizing the negative impact you're having on the community," said Jack Graves, chief cultural officer for Holland Inc., which owns Burgerville, a 39-store chain in Oregon and Washington.
More and more restaurants are "going green" to meet public demand. In a 2007 study conducted by Restaurants & Institutions Magazine, 87.4 percent of consumers said it was very or somewhat important that restaurants have taken steps to improve recycling or food and paper waste. More than 85 percent said it was important that restaurants implement design changes to conserve energy, gas and oil consumption.
Aaron Allen, founder and CEO of Quantified Marketing, said restaurants that implement eco-friendly policies can improve their public image and attract new customers who look for socially aware companies to patronize.
"The overarching trend for 2008 is consciousness," he said. "It's becoming very important to the restaurant industry because people are becoming very aware about what they're putting into their bodies and what type of corporate citizen the business is."
Brian Darr, managing director of Datassential Research in Chicago, said small, independent chains are leading the eco-friendly charge because they have more flexibility than the national and international chains.
"If McDonald's or Burger King or Wendy's decided to switch (non-recycled) takeout containers for something recyclable, there may not be enough supply in the marketplace for them," he said. "They have to really study it and look at it from cost point of view. Are they going to put undue pressure on franchisees to comply with it?"
But Darr added that all the major players are looking at green tactics because it may help them lower costs in the long run.
U.S. playing catch-up
McDonald's already is experimenting with green-friendly initiatives overseas. In Switzerland the company installed dry urinals to cut water consumption, and in England it converts cooking oil into biofuel to operate delivery trucks.
For the most part, the U.S. restaurant industry is behind the times in the eco-friendly movement, playing catch-up with other parts of the world that have dealt with rising energy costs for years, Darr said.
"Europe is certainly ahead of us so far as those types of trends go," he said. "Over there it's a fact of life in your home and business, while here if someone implements some energy-saving technology it makes news."
Burgerville's motto is "Serve with love." And company officials believe the best way to fulfill that goal is by implementing environmentally friendly practices.
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Burgerville offsets its electricity use by purchasing 100-percent renewable wind-power credits. It also instituted a recycling program in 34 of its 39 locations and a recycling and composting plan in 18 restaurants. The goal is to reduce its landfill waste by 85 percent.
"People feel good about spending their dollars with us because there is a lot of added value in our product and that's what people appreciate," Graves said. "All those things contribute and assist the communities where we do business. And in order for our business to succeed, the communities we're in must thrive."
Burgerville buys its meat and produce from local farmers, which decreases fuel consumption by eliminating the need to ship in meat from thousands of miles away. More importantly, Graves said, the chain is supporting struggling local businesses.
"Family ranchers are disappearing across the country in the thousands and we're doing what we can to turn this around, at least in our local vicinity," Graves said. "And our guests see and understand this as being of value to the greater community we live in. We have family ranches where the young people are now saying, ‘This can be my future and the way I earn my living. I can actually raise my children on this ranch.'"
Helping the bottom line
Going green isn't just about saving the environment. Les Winograd, public relations officer for Subway Restaurants, said the motivating factor behind the chain's eco-friendly initiatives is the bottom line.
"We're always trying to be more efficient and cut back on things like utility costs," he said. "We looked at things our franchisees could do that would save them money and increase profitability, and that's what our Eco-Store is about. If we can save the environment at the same time, that's even better."
Subway opened its first Eco-Store on Nov. 5, 2007 in Kissimmee, Fla., and later opened two more in Louisiana and Oregon. The stores include high-efficiency HVAC systems, remote condensing units for refrigeration and ice-making equipment, day lighting and controls for high efficiency lighting, LED interior and exterior signs, low-flow water fixtures and building materials made from sustainable sources.
"We always have to consider what's most cost-effective for our franchisees, because the lower the cost, the more profit they're bringing in," Winograd said. "A piece of equipment may be a little more expensive at first, but over time it would be more cost-effective. We're not doing it for our image."
