Article
Finding the ROI in sustainable practices
Taking small steps can prove cost saving from the start.
February 23, 2009
* This article is an excerpt from the guide, "True Restaurant Sustainability: More success, better future."Click hereto download a copy of this special publication.
Sustainability has been attracting a lot of attention, from the mainstream media as well as with brands such as McDonald's and Subway, both of which are building environmentally friendly stores. But not all quick-service restaurant operators are quick to jump on board, whether they fear the cost of implementing such a program or simply don't know where to start.
Beginning a sustainable program starts with identifying the company's objectives, said Dan Black, manager of sustainable energy for consulting firm Delta Energy.
"We see customers doing this because they think there are cost savings in it and others because they just believe it's the right thing to do," he said. "Some are looking for a brand reputation benefit, so really identifying what you are trying to do with your sustainability program is the first step."
Identifying those objectives will lead operators to what their first activities might be in implementing a sustainability program, he said.
"If you are looking at it from a cost-savings perspective, for example, it may lead you to energy-efficiency evaluations within the restaurant and what you could do to improve that," he said.
Take small steps
Implementing a sustainability program is most appropriately done in stages, Black said.
"No organization has the resources to tackle the whole thing at once."
One of the first areas an operator can look at when developing a sustainability program is restaurant lighting, as old fixtures or bulbs are likely wasting energy.
"Lighting projects are one of the things that a lot of businesses look at first because normally they are fairly easy to implement, and there is a pretty attractive payback," Black said.
The National Restaurant Association's Conserve Web site offers tips for saving resources and costs, from turning off lights and equipment when not in use to training employees on energy conservation.
"In many cases there can be cost savings in a single operation of a couple thousand dollars, even doing just simple things like changing the timing of when the lights go on in certain parts of the restaurant," said Sue Hensley, the association's senior vice president of communications.
The Web site features a Virtual Green Restaurant, which provides visitors with beginning steps they can take in all areas of their stores. For example, when visitors click the Waste Area tab, Tip No. 1 advises operators to reduce waste and recycle. Tip No. 2 suggests they start composting food scraps.
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Looking long term
Once a company takes those small steps, operators can move deeper into their sustainability efforts for even greater returns on investment.
Truitt Bros. Inc., a shelf-stable food products producer, has developed a sustainability program that includes energy-saving efforts and recycling as well as partnering with sustainable suppliers — and seeking third-party certification of its manufacturing facility.
Like many companies, Truitt Bros. had a recycling program for its paper products. But when the company looked into expanding that program, it found significant ROI.
For example, the company added a second wastebasket for paper recycling in each office. Next, receptacles for recyclable materials, from cardboard to metal, were placed throughout the manufacturing facility.
In two years, the company saved nearly $46,000 in waste reduction and earned nearly $113,000 in recycling, said Peter Truitt, president, Truitt Bros.
"It just flat out saved us a lot of money," he said.
For more cost-saving tips and information, read thespecial report, "A Checklist of Restaurateurs: Optimizing your restaurant ROI through sustainability."
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