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How Arby's turned on energy efficiency without turning off customers

Environmental sustainability matters now more than ever, and with states like California entering their fourth year of record breaking drought conditions, no stone for conservation will go unturned.

August 25, 2015 by Nicole Troxell — Associate Editor, Networld Media Group

For restaurant chains in particular, corporate responsibility continues to take front seat, with water conservation and energy efficiency topping the priority list, according to Heidi Spade, spokesperson for Hobart Warewash, commercial washing equipment made by Hobart Corp. Environmental sustainability matters now more than ever, and with states like California entering their fourth year of record-breaking drought conditions, no stone for conservation will go unturned, she told us in an interview.

An energy-challenged environment, where these measures may soon be a necessity, requires effective and strategic management by restaurants to ensure customers and staff aren't negatively affected by an energy-efficient conversion.

Why restaurants aren't buying it

"Energy spend is a huge part of a restaurant’s profit and loss," saidFrank Inoa, senior director, operations engineering, Arby’s Restaurant Group Inc.

However, from a new construction perspective, energy efficiency is now more practical, because slightly higher costs in equipment and materials are easier to amortize over long periods, he said.

So why isn't every restaurant buying into eco-friendly equipment and practices?

"Looking at efficiency from an established 'box' is a bit different. Capital is much more difficult to come by at that point. Thus, more long-term planning is required," Inoa said.

That was the approach taken by Arby’s.

"Achieve short-term, low-cost, no-cost objectives, then slowly turn those wins into larger investments," Inoa

"Capital constraints are probably the biggest reason that restaurants hold off on moving toward energy efficient equipment," Spade echoed. However, she noted, some utility providers will offer incentives and subsidize the cost of energy efficient equipment, so educate yourself on those options.

"Benefit vs. cost

Two simultaneous events occurred caisomg Arby's to consider implementing energy efficient strategies: the economy and the development of its PurposeFULL Corporate Social Responsibility program.

Arby’s collaborated with people of diverse expertise within the company and brought them together in a strategic manner to develop new policies and a new culture of efficiency and sustainability. But it "was a bit more tricky," Inoa said. So Arby's employed the help they needed to get the program off the ground.

"Here we are, three years into our Efficiency Matters program with many successes on our side; from financial to recognition among our peers as trailblazers in this arena," Inoa said.

The approach Arby’s undertook involved initiatives such as the re-introduction of a more effective on-off schedule, aerators in hand sinks and adjustments to temperature in its hot water heaters. All strategies had "zero negative impact" on patrons, and at the same times began a whole new culture within the organization.

"Most companies target a 2-year simple payback and for the most part that is Arby’s target as well. However, we take several considerations, from operational benefits, to safety, guest experience and curb appeal. Taking all these elements into consideration makes a much better business case than just ROI," Inoa  said.

Spade's approach to the benefits of energy efficiency is multi-faceted as well.

"If you think about it, it takes about 120 gallons of water to fill a three compartment sink, and this is usually required to be dumped and refilled every four hours," Spade said. "The wash tank temperature typically must be at or above 110°F. If a hot water rinse is used, the water temperature must be kept at or above 171 degrees. Falling below these requirements puts your restaurant at risk for flags from the health department, not to mention unsafe levels of bacteria on surfaces  — so the peace of mind, reliability and water savings that a commercial dishmachine brings to your kitchen is hard to argue."

When a dishmachine is absent in the back of the house, workers resort to a three-compartment sink to scrub large pots, pans and other ware, according to Spade. This could lead to other issues such as back pain, which can result in worker's compensation that costs a restaurant even more money.

Where to start

Energystar.gov is a resource where restaurants can visit to learn which commercial equipment qualifies for which ratings. Some restaurants employ corporate sustainability officers who take a very hard look at kitchen equipment like dishmachines, evaluating for best-in-class performance and to see how they can help to meet aggressive conservation targets, Spade said.

"If you are seeking water and energy consumption improvements, your warewashing process is a great place to start," Spade said. In the current energy-challenged climate, "Dishmachine manufacturers will continue to be challenged with creating equipment that meets high standards for water and energy while maintaining wash performance."

For restaurants in need of a door-style dishmachine, savings are accrued between water, HVAC and the fact that eco-friendly models can eliminate the need for a ventilation hood. Based on estimates of restaurants that wash 200 racks per day, 360 days per year, an operator could save as much as $1,568 these kinds of machines, Spade said.

Operators who have less throughput each day but still care about conserving water and energy can consider under-counter units that are ENERGY STAR qualified.

These models, available in both high-temp and low-temp, can provide a versatile chamber that will accept a variety of ware types. High-temp models can facility energy-efficient technology capable of saving an operator up to $485 per year on energy costs. Low-temp model are able to use a cool-water rinse at the end of the cycle to remove any residual chemical sanitizer that may be left on the ware.

Spade recommends subscribing to blogs, "liking" favorite equipment manufacturers on Facebook and Twitter and collaborating with peers to understand what they're doing in the area of energy efficiency to improve their restaurants.

"Start out by doing your own online research to better arm yourself when talking to an equipment dealer about your needs," Spade recommended. "Dishmachine innovations continue to evolve and get better as technology improves, so use this to your advantage."

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