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Green and growing

Consumers say they like to see eco-friendly practices and many operators find that minimizing waste and maximizing use of sustainable or local foods are smart business.

By Derek Gale, Associate Editor -- Restaurants and Institutions, 9/1/2007

Already shouldering increasing responsibility for consumers' health and wellness, foodservice now is expected to help save the earth.

Many operators have volunteered for the “green” cause in one or more of its many forms: energy and resource conservation, use of environmentally safe products, use of local/sustainable foods, etc. Others may feel they are being conscripted into a battle where foodservice needn't serve on the front lines.

But the green revolution clearly is gaining socio-political momentum, as well as adherents. Rarely does a day go by without an announcement about steps an operation has taken or will take to become more green, however it chooses to define the term. Those that haven't yet moved in that direction must play catch-up.

Why is it that green now looks good on everything?

First, many supporters say, going green simply is the “right thing to do.” It is a responsible approach with potential benefits for consumers, employees and business as well as Mother Nature.

Consumers may know little about trans fats other than that the substances widely are said to be bad, but consumers say they get “green”: A majority (58%) of those polled for R&I's 2007 Tastes of America Study agree or strongly agree with the statement “I understand what the term 'green' means.”

When asked for specific meanings, consumers give a wide range of definitions (see “What Does 'Green' Mean to Consumers?”). But they seem to accept that green is a good way to go.

One-third of consumers agree or strongly agree with the statement, “Living a 'green' lifestyle is important to me and my family.” Agreement is highest among baby boomers (ages 40 to 60).

Another motivator for operators is that many green projects are a financially justifiable or even advantageous investment. Of course, it also doesn't hurt that consumers generally appreciate restaurants' going-green efforts. Nearly 30% of consumers agree or strongly agree that they are more likely to patronize a restaurant that promotes itself as a green operation, and only 6.5% strongly agree that green practices “have little to do with restaurants.”

More than one-third (35%) of consumers agree or strongly agree with the statement “It is very important to me that foods I purchase in restaurants are local and sustainable.” On the other side of the coin, 31% disagree or strongly disagree with the statement “I am likely to make purchasing decisions based on how 'green' a product or company is.”

Wearing the Halo

Many operators say green advocates are more vocal than naysayers.

“I have people regularly tell me, 'That's the best turnip soup I have ever had,'” says Executive Chef Mark Sullivan of The Village Pub restaurant in Woodside, Calif. “It's the turnip we're getting—it's coming from our [local] farm. This stuff comes in with mud on it … warm from the earth. People notice it.”

Green operations also can color employees' perception of a restaurant. “When people come looking for jobs, the first thing they say is, 'I'm so excited about the fact that you are a sustainable, green restaurant; that's something that's very important to me,'” says Craig Patzer, executive chef at Jardinière in San Francisco.

That halo effect creates a competitive mandate for many operators. And if that is not pressure enough, some states and municipalities are considering mandating or offering incentives for the adoption of eco-friendlier practices.

“I think there's no other way” than to implement green measures, says Chris Giarraputo, corporate executive chef for New York City-based B.R. Guest Restaurants, which recently had 13 of its restaurants certified as green by the Boston-based Green Restaurant Association (GRA). “Unfortunately, voluntary steps probably aren't enough to solve these problems. The government will have to get involved.”

“[Go green] before you have to, financially and legislatively,” urges Michael Oshman, GRA founder and president.

“There are various bans across the country, as well as recycling mandates,” Oshman notes. “Our proposition is do this voluntarily; make your customers happy; get new customers; get good media; and you might save some money and make your bottom line even healthier. And when legislation comes, you will be relaxed.”

Getting to Green

Many of those who have committed their operations to green initiatives say the transformation to eco-friendly business practices needn't be painful.

“We monitor our consumption as much as we can,” says Ralph Burgin, general manager of Cliff House restaurant in San Francisco. “That includes timers for lights or signage or HVAC equipment, temperature control, sensors for lights in storage areas and little things like using unbleached paper products.”

And for the first time this year, “we decided to erase our carbon footprint entirely,” Burgin says. Doing so entails buying carbon credits from a local company, which creates the credits through reforestation or by stimulating plant growth.

Why make such a concerted effort to be green? “We don't really have a choice,” Burgin contends. “We are at the ocean's edge, looking out to the Pacific, in the middle of a national park with all its beauty. We need to take our responsibility seriously. This is not just a place where we try to make a buck.”

Tea and Empathy

Los Angeles-based The Coffee Bean & Tea Leaf made a move toward greener operations by changing all company-owned stores' lighting to more-energy-efficient systems. “There is an initial capital investment, but the energy savings gives you return on investment in under a year,” says Mel Elias, chief operating officer. “Any investment like that is a good one.”

But changes or investments don't have to be major. The Coffee Bean & Tea Leaf also adopted mugs for crew members to help reduce paper use. That was one part of the process for the company's 200 corporate stores to become certified by the Green Restaurant Association.

“The financial impact of giving everybody one mug when they come to work as opposed to using paper cups [every time] is huge,” Elias notes. But although such moves may seem like they require minimal effort to implement, that really is not the case, argues GRA's Oshman.

“If we didn't do the majority of work [toward finding suppliers of green products] for most of our [GRA member] restaurants, it either wouldn't get done, or it would, but it wouldn't be the best product or solution,” he says. “If you're going to spend the time and the resources, you want to make sure you save the most energy, or get the best cleaning chemicals.”

The Coffee Bean & Tea Leaf's Elias seconds the notion that going green is easier with help. “I would recommend partnering with somebody,” he says. “We wouldn't have had the resolve to see this through without our hands being held.”

The Green Behind the Green

“Much to our positive surprise, we realized we could do this without negative financial impact,” Elias continues. “Having gone through the conversion of 200 stores [to GRA green-restaurant certified], the big message I have for other operators is that you can do it, and it doesn't cost you more money.”

When administrative costs are factored in, going green is not necessarily a profit-making exercise, Elias says. But, he adds, “It's definitely not going to cost us—we're going to be in the good.”

The cost question is one that almost every operation asks, Oshman says. “We figure out a plan for each different restaurant,” he explains. “If you want to save the most money, we'll do particular things. Yes, certain steps might cost more, but to be first to [do something specific], that is priceless in terms of exposure, loyalty from customers and getting press.”

At Jardinière, where 85% of waste is recycled or composted, Patzer says that one of the biggest benefits of composting is that the restaurant's number of citations by the city has dropped to zero. “There are no overflowing trash cans anymore,” he says, “and that's a big savings for us, because each time that happened it meant a fine of several hundred dollars.”

Judy Wicks, owner of the White Dog Cafe in Philadelphia, says going green has helped her stay in business for 25 years. “The decisions that I've made, though they may seem like they will cut into profits in the short term, have led to a long-term financially sustainable business,” she says.

“One of the reasons my business is still here is that customers appreciate what I'm doing,” she adds. “That results in loyalty that is irreplaceable. And in the long run, that has made us more profitable.”

Wicks is considered a pioneer of the green movement, although she concedes that she didn't even know the terms “green” or “sustainable” 20 years ago. “It just made sense to me to buy from local farmers,” she says.

As she became known for her efforts in that regard, Wicks began sharing her knowledge with her competitors to get them to buy local as well. “It's something I wanted for my whole community and for the farmers,” she says. “We provided free consulting and continue to do so for other restaurants on how to buy from local growers. Restaurants are in a unique position to popularize the concept of local food.”

The Buy-In

With all of the buzz surrounding going green, do Wicks and other pioneers of the movement resent those who have only recently found faith? Quite the opposite; they seem proud that more companies and people are snapping out of a slumber of sorts.

“As a society, we've been asleep and not been thinking when we make our choices of how we buy and dispose of things,” Wicks says. “The green movement is about becoming awake and thoughtful. It's imperative that we—business owners and restaurant owners—think about these things ... We need to be leaders.”

Elias speaks similarly about setting an example. “What I'd like to see out of this is the opportunity to tell other people it works,” he says.

He also emphasizes the broad positive results of going green. “Team member buy-in was outstanding—they got it right away,” he says. “That translated directly and indirectly to customer buy-in. They give us credit [for going green] with return visits and acknowledgements that we are doing something good for the community and the environment.”

What “Green” Actions Do Consumers Value?
R&I's Tastes of America Study asked consumers how important they consider a variety of actions a restaurant can take to be more “green.” Recycling efforts are considered most important.
ActionVery importantSomewhat importantNot important
Has taken steps to improve recycling of food and paper waste49.9%37.5%12.6%
Uses environmentally friendly cleaning cleaning supplies45.640.813.6
Uses biodegradable materials for cutlery, napkins, beverage cups or takeout packaging 45.341.313.4
Has implemented design changes, such as as adding thermal windows or ceiling fans, to conserve electricity, gas or oil38.846.414.8
Has taken steps to reduce its use of electricity, gas or oil for cooking, heating or cooling38.747.114.2
Purchases and serves organically grown or raised foods24.051.224.8

Contact writer at derek.gale@reedbusiness.com

 

Golden Arches Turning Green?

Since 2003, McDonald's Corp. has had basic environmental principles and guidelines for a socially responsible supply chain. In 2005, the Oak Brook, Ill.-based company initiated an environmental scorecard program with key suppliers for its five major food products (beef, chicken, pork, buns and potatoes) in McDonald's top nine markets.

These suppliers are rated and ranked on water use, energy consumption, solid waste production and disposal, and air emissions. Results are then shared among all suppliers to breed an open and competitive environment—something that is “good for them, good for us and good for the environment,” according to spokeswoman Lisa McComb.

In the first year of the pilot program (2003-2004), water use by participating facilities declined an average of 23%.

Also in 2005, McDonald's franchisee Gary Dodd opened the first LEED-certified (Leadership in Energy and Environmental Design) McDonald's restaurant in Savannah, Ga. McComb says the unit is a model of green practices and may serve as a knowledge base for future stores.

“We're not building others exactly like it, but we're taking a look at what is working and what things we might want to consider elsewhere as other restaurants are being built or re-imaged,” she says.

McDonald's has joined the U.S. Green Building Council and the World Green Building Council to help the company evaluate how to improve its building standards.

Other key areas of environmental focus for McDonald's include energy and water conservation, packaging optimization and recycling. In March, the U.S. Environmental Protection Agency named the company Energy Star Partner of the Year based on energy awareness, energy-use reduction and efficiency improvements.

Growing Up Green

Many operators are taking steps toward going green, but a few newer ones were born green.

Fort Lauderdale, Fla.-based Pizza Fusion, for example, has been “saving the earth, one pizza at a time,” since it was founded in early 2006. Every aspect of the fast-casual pizza chain, from the entirely organic menu to a fleet of hybrid delivery vehicles and a commitment to the use of renewable energy, has been designed to preserve and improve the environment.

“We felt there was no other way to do business except for having a conscience when we did it,” says co-founder Vaughan Lazar, whose nickname within the company is 'The Green Giant.' “Initially, we didn't know how green you could take it.”

To that end, the company announced over the summer that new stores would be built according to the Leadership in Energy and Environmental Design (LEED) certification standards set by the U.S. Green Building Council. The chain's first LEED-certified restaurant will open in Palm Beach Gardens, Fla., later this year.

Grille Zone in Boston is another new concept that was green from the get-go. Green-restaurant certified by the Green Restaurant Association, the restaurant has a zero-waste stream—it does not even use a trash receptacle. All in-store and takeout paper products are 100% compostable, and all disposables are delivered to composting or recycling facilities. In addition, Grille Zone cooks its Americana fare with the latest energy-efficient equipment and sources many of its ingredients via a neighborhood purchasing plan.

As for balancing saving the earth with being successful in business, Pizza Fusion's Lazar says his restaurant is doing everything it can to make responsible choices. “We are in business to be profitable—we are a socially responsible, for-profit company,” he says. “Every choice we make for our franchisees is based on sticking with our core values and making sure they are profitable at the end of the day.”

When looking for greener packaging or cleaners, for example, “I look first and foremost at pricing to see if it's within the ballpark,” Lazar says. “If there is more than a 10% to 15% premium, I probably won't go for it unless there is some long-term reward or eventual ROI.”

“A lot of people thought it was crazy to purchase our own vehicles, but I thought it was a great tool to advertise our business,” he continues. “The amount of marketing we've [done by] having the cars on the road—you can't put a price tag on it.”

Lettuce Sustain You

Chicago-based Lettuce Entertain You Enterprises (LEYE) has formed a green committee dedicated to finding the best ways for each of its restaurants to take part in the industrywide going-green initiative.

Leading the committee are Dan McGowan, president of Big Bowl restaurants, and Steve LaHaie, partner in Shaw's Crab House restaurants. Other members include one representative from each division of the company, as well as two corporate representatives.

“We were finding a lot of the divisions were doing different things [around going green], but we were not communicating well as a company as to what we were doing,” LaHaie says. “This gives us an opportunity to share ideas and a better way to communicate. We want all the restaurants to participate in initiatives that will lessen the carbon imprint and help the environment.”

Some initiatives underway at LEYE include moves at Big Bowl restaurants to the use of sustainable or wild chicken, pork and fish and the use of post-recycled paper products and takeout bags. Big Bowl also has designed a kids menu that offers environmental education as well as more eco-conscious food options.

In addition, the fresh Chinese and Thai concept is outfitting its waitstaff with uniforms made of bamboo, an earth-friendly material. These uniforms cost four times more than the former Big Bowl waitstaff attire, but with bamboo being plentiful and biodegradable, McGowan sees the uniforms as an investment in the earth and its ecosystem.

“[Bamboo] is cost-prohibitive for us,” notes LaHaie about Shaw's, “but we're seeing if we can find uniforms with organic cotton.” Shaw's also is focusing on sourcing sustainable seafood, he says. “We're very active with that, and we're giving advice to the [corporate] purchasing department.”

As for other LEYE concepts, “more and more of our restaurants are using local [sourcing],” LaHaie says, and the restaurants have their own recycling programs.

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