Article

Raising the bottom line: Why restaurants should reduce packaging footprint, increase recycling

New advances in technology and a more general awareness of the sustainability movement has resulted in a greater emphasis on the social-responsibility aspect of re-use, recycling and reducing food waste.

November 24, 2015 by Travis Wagoner — Editor, Networld Media Group

Sustainability, reducing packaging waste and the increased use of recycling have become more important to restaurant customers, which means they are important to brands hoping to increase their bottom lines. New advances in technology and a more general awareness of the sustainability movement has resulted in a greater emphasis on the social-responsibility aspect of re-use, recycling and reducing food waste.

Technology takes on waste

Tampa-based FusionPrep is just one company combating waste. Its cloud-based system enables restaurants to store, update and communicate recipes, builds, training documents, photos and videos, and the info simultaneously to all of their kitchens online, saving paper.

All culinary operations teams are given access to a secure, web-based control panel to manage their data, according to FusionPrep. This eliminates emailing new/updated recipes, physically mailing large recipe binders and producing and shipping training videos and documents. FusionPrep also delivers above-store reporting that culinary and operations teams can use to see exactly what's happening in all of their kitchens. 

PDQ, which has units in eight states, is one brand that relies on the system.

"By using FusionPrep, PDQ has eliminated sending paper binders and specs for recipes," said Chon Nguyen, founder of FusionPrep. "Everything is up-to-date 100 percent of the time. In the past, operators would need to create and ship paper binders to every single unit several times a year. Now we make a change and its' up-to-date in all of our units across the country."

It's in the packaging

Additionally, the Foodservice Packaging Institute's 2015 Trends Report found that foodservice operators are looking for environmentally friendly packaging and customization techniques to differentiate products.

"When it comes to foodservice packaging and the materials used to manufacture them, interest in sustainable, green or environmentally friendly options continue to be popular. What's notable this year is the overwhelming number of mentions related to compostable packaging," said Lynn Dyer, president of the Foodservice Packaging Institute. "We create this Trends Report each year to help our members understand what's driving sales so they can take advantage of these opportunities and support the changing needs of their customers."

According to the Foodservice Packaging Institute, major trends include:

• Packaging — Environmentally friendly or sustainable packaging remains a long-term overall trend. Specifically, compostable packaging was mentioned in an overwhelming number of responses, Dyer said. Other trends include the shift to a more natural look through the use of "Kraft" paper over bleached paper to promote the belief that "brown is the new green." Conversely, another trend was an increase in graphics and color as operators recognize the opportunity to promote their brand on packaging.
• Raw materials — Green packaging is apparent in raw materials, as different resins and papers are trending based on both the real and perceived environmental advantages of those materials.
• Machinery — In the machinery used to manufacture foodservice packaging, the desire for highly automated machines that run faster, more efficiently and at lower costs continues — but with little innovation in the industry.
• Distribution —Consolidation remains a major trend in food-service distribution, along with SKU rationalization, which is an analytical process used to determine the merits of adding, retaining or deleting items from a retailer's merchandise assortment. An effective SKU rationalization program lays the groundwork for initiatives such as space-planning and price-optimization, and it's used to improve product availability. Increased competition from small- and medium-sized distributors is also a distribution trend.
• Operations — In a continued effort to stand out and differentiate themselves from competitors, foodservice operators are increasingly choosing customized food and beverage items, as well as their associated packaging. 
• Other major trends include increased breakfast business, grab-and-go items and smaller portion sizes that reflect the consumer snacking trend.

The survey was distributed in September, collecting opinions from companies in the raw materials, machinery, packaging, distribution and operations sectors.

HAVI Global Solutions, which designs packaging, manages promotions and supply chains, and provides waste and recycling solutions, also has seen an increase in source reduction efforts, said Amy Duquette, sustainability project manager for HAVI Global Solutions.

"This is prevalent in all parts of the packaging industry," Duquette said. "At industry sustainability events and conferences and in discourse among sustainable packaging professionals, the first topic of discussion often is optimization, or source reduction. This is in keeping with the EPA’s waste management hierarchy that highlights source reduction and reuse — reducing waste at the source — as the first step (and most environmentally preferred strategy) in reducing waste. If you use less material upfront, there is less to dispose of later. Lately, packagers and brands are talking about what’s next in terms of sustainability and what additional steps they can take to reduce weight in packaging."

Despite these efforts, however, recycling restaurant packaging remains a challenge due to the mobility of the product.

"Systems do not yet exist on a national basis to recycle foodservice packaging; there are systemic barriers to this," Duquette said. "For instance, the majority of foodservice packaging leaves restaurants and is disposed of at consumers’ homes or in their workplaces. Unfortunately, many residential curbside recycling programs do not currently accept foodservice packaging."

It's about being committed

Eco-Products, based in Boulder, Colorado, is another company focused on sustainability solutions. Its products are, according to the company website, relative to traditional counterparts, gentler on the environment because they require fewer virgin resources to produce, and make diversion from landfills an option upon disposal.

"We educate everyone we come into contact with about what is true and false as it relates to waste diversion in food-service," said Wendell Simonson, vice president for Eco-Products. "The long and short of it is that the most reliable way to divert waste in environments like these [QSRs] is with a systems approach using exclusively compostable packaging. This is because we can’t recycle all food-service packaging; we can’t even recycle most of it. We can compost all of it, along with the food, as long as there is access to commercial compost infrastructure. For this reason, we make compostable versions of every food-service package we can, and help our customers maximize their waste-diversion efforts."

Simonson sees a large number of new QSR concepts entering the market with brands and food concepts that are rooted in the world of organic, natural and local.

"This makes total sense because we’ve seen a broader shift in the way consumers want to eat, and they increasingly expect to be able to find more healthy and sustainable alternatives to traditional QSR offerings."

Simonson believes that when a restaurant operator develops a brand that is defined by sustainability and authenticity, he or she can’t stop at food sourcing.

"You have to extend your commitment to your other impacts, and waste is clearly one of those," Simonson said. "Another piece of the equation is the changing regulatory environment. As more and more municipalities legislate what materials can and can’t be used in packaging, and even what you can and can’t do with your food waste, QSRs are having to respond."

In addition, more brands are starting to realize the benefits of compostable packaging. It makes good business sense. A national survey by Shelton Group, for example, found one in five Americans would be more likely to buy concessions at a venue if they learned that all of the trash left behind was recycled or composted.

"Waste is a very tangible issue to consumers," Simonson said. "Questions around what happens to a paper cup or plastic fork after it has been used engage consumers in a very tangle way. It’s literally in their hands. That’s why food packaging represents a unique opportunity for QSRs to share an environmental message and build positive brand associations."

Simonson used another example of the customer connection to packaging.

"Imagine you’re a customer holding a soft drink cup. You look at the printing on the cup and learn that you don't have to toss it in a trash can. That’s a powerful feeling. It’s good for the environment, and it’s good for business."

Food waste is the largest component of what we send to landfills every year, according to Simonson.

"Once the food is in a landfill, it will break down and release methane, which is over 20 times worse as a greenhouse gas than CO2. If that methane is not captured, it will contribute to the global climate crisis we are facing. If, on the other hand, that food waste was composted, it would become a valuable soil amendment that farmers could use to fertilize their fields. It’s also just plain good for business. Customers want to feel like their part of the solution, not part of the problem. And compostable packaging is part of the solution."

An example of Eco-Products in action is its partnership with The Melt. Eco-Products teamed with The Melt to develop packaging to keep grilled cheese sandwiches hot and crispy until they're delivered to their catering destination. The result has earned Eco-Products two industry honors for creating a compostable box that prevents grilled cheese sandwiches from getting soggy and stale and instead keeps them fresh, hot and crispy during their commute.

"These containers are a true marvel of engineering in food packaging," Simonson said.

The Melt partnered with Eco-Products to design compostable containers that would complement the new Smart Box. The Eco-Products design team created a new container that acts as a sort of portable convection oven to keep sandwiches tasting as good at their destination as they do in the restaurant. In addition to grilled cheese, the new Eco-Products container works perfectly with The Melt's cheeseburgers, too.

"We want to ensure the best product experience for our guests in store, at the office, or for any occasion," said Jonathan Kaplan, CEO of The Melt, in a press release. "We just couldn't find an existing catering delivery solution that could do the job, so we invented one ourselves."

The container is 100-percent compostable.

"It's great to see the industry honoring compostable packaging for innovation," Simonson said. "It shows that environmentally friendly products perform just as well – and oftentimes even better – than conventional products."

Eco-Products designed the box with a number of innovative features, including "crisping ridges," which elevate the sandwich off the base and allow air to flow around the sandwich. This prevents moisture from becoming trapped underneath the sandwich, keeping the bread hot and crispy. Another of the box's features is "moisture ventilation" — strategically placed ventilation slots that allow moisture and cooler air to escape.

The Melt has believed in recycling and sustainability since its first store opened in 2001.

"From day one of The Melt's founding, we've had no trash cans at The Melt — only recycling and compost bins," said Kerri Martin, The Melt vice president of marketing. "The Melt uses 100 percent recyclable and compostable packaging and cutlery in our restaurants. This includes cups, lids, straws, paper goods, utensils, to-go boxes, catering…you name it. There are no trash cans at The Melt — only recycling and compost bins. One of our core values is 'responsible' and it drives our commitment to the environment and the communities we serve. There's one mother earth, we all have a responsibility to do our part to take care of it."  

Making sustainability a priority is key to its success for restaurants.

"It's really about being committed. Which is another one of our values," Martin said.  

About Travis Wagoner

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Travis Wagoner spent nearly 18 years in education as an alumni relations and communications director, coordinating numerous annual events and writing, editing and producing a quarterly, 72-plus-page magazine. Travis also was a ghostwriter for an insurance firm, writing about the Affordable Care Act. He holds a BA degree in communications/public relations from Xavier University.