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Seeing green

Cost vs. benefit is a key factor in the decision to incorporate sustainability

February 3, 2009

While the concepts of "going green" or "sustainability" sound great in theory, top of mind for most restaurant operators right now is the impact on the bottom line. With many struggling simply to get by, persuading an operator to invest in a feel-good initiative that some perceive to be without a payoff is a difficult sell.

But while most operators think of implementing a sustainability strategy as something that's going to cost some green, it doesn't have to be a budget buster. In fact, working toward sustainability can have an immediate, beneficial impact on earnings.

A number of fast casual concepts are launching green initiatives. In October, fresh-Mex concept Chipotle Mexican Grill announced plans to build a restaurant outfitted with on-site water storage and a wind turbine to generate electricity.

"The wind turbine is a symbol of our intent to design and build our restaurants more efficiently and environmentally Cost vs. benefit is a key factor in the decision to incorporate sustainability 27 friendly," Chipotle CEO Steve Ells said. "We want to incorporate some elements of sustainable design into all of our new restaurants." Bakery-café concept Boudin SF has made changes that include a move from bleached napkins to recyclable ones and eliminating polystyrene clamshell containers.

And sustainable efforts by gourmet burger concept Burgerville include recycling clean paper, as well as glass, tin and plastic. The company already composts its organic waste and recycles used cooking oil into biodiesel fuel.

"When you talk about things like energy efficiency, what you are really talking about is taking waste out of the operation," said Dan Black, manager of sustainable energy with consulting firm Delta Energy. "It is a normal thing for a business to look at where they are wasting money."

Where to start

Still others are looking to improve their brand reputation.

For example, if an operator looks at sustainability from a cost-savings perspective, he may want to begin with an energy-efficiency evaluation. In many areas, utility companies will conduct one at no charge.

"When you're going green, the reality is that energy is the whole issue," said George Kehler, director of sustainability and carbon management for energy-management firm Advantage IQ. "When you understand where you are consuming energy and you can measure it, you can take a 

(Top) Buying produce locally can help save in delivery costs and supports local economies. (Bottom) Operators who review energy use through lighting often find hidden savings.

The first steps

Most businesses incorporate sustainability programs in stages, starting with the simplest projects first, Black said.

An easy way to make an immediate impact on earnings is to look at lighting. Typically, about 15 percent of a restaurant's electric bill is related to lighting, according to energy consulting firm E Source.

"Lighting projects are one of the things that a lot of businesses look at first, because normally there is a pretty attractive payback and they are fairly easy to implement," Black said. "In terms of energy efficiency, do you have old lighting fixtures and bulbs that are wasting a lot of electricity?" According to E Source, when casual dining concept TGI Friday's switched to energy-efficient lighting, the company saved $500 per restaurant, thanks to a reduction on its electric bills.

And switching to energy-efficient equipment in the kitchen can offer significant savings. E Source says that cooking equipment accounts for about a third of a restaurant's energy usage.

According to the government-backed energy-efficiency program Energy Star, the owners of Tripp's Grill & Six Pack in North Bend, Pa., shaved nearly $2,000 per year off the restaurant's energy bill by upgrading to energy-efficient freezers, and the Reedville Café in Oregon cut its gas bill by $3,800 per year by upgrading to energy-efficient gas fryers.

Another easy step is to look at the waste an operation generates. Taking a look at what goes into the dumpster may provide ideas for composting, which could help cut down wastehauling costs or even open the door to converting trash into cash.