Web Exclusive: Seeking Returns on Green Investments
Pursuing a green strategy means a larger investment initially, but it could pay off in the long run for restaurant chains.
By David Farkas, Senior Editor -- Chain Leader, 2/1/2008
Environmentalists frequently offer businesses ways to reduce their carbon footprints (the measure of the amount of carbon dioxide that goes into the atmosphere) in an effort to trim greenhouse-gas emissions that scientists say lead to global warming.
Such efforts can take a variety of forms, because just about any energy-consuming activity produces harmful emissions.
Restaurants, for example, can buy produce (especially organically grown without petroleum-based fertilizers) from nearby farmers, install Energy Star-rated equipment in their kitchens or follow energy-saving guidelines from the U.S. Environmental Protection Agency.
All well and good. But what if an operator desires to aggressively pursue green initiatives with an eye to trimming costs? For advice, we turned to two restaurant consultants who have advised restaurant clients on going green.
Aggressively Green
An aggressive green strategy includes installing a minimal-flow system to conserve water in bathrooms, offers consultant Jim Lake of WD Partners, a restaurant and retail design firm headquartered in Columbus, Ohio.
A comprehensive sustainability plan would address HVAC systems, too. "You'd be looking at controlling different heating levels at certain times of the day," Lake says. "Humidity is also an issue. You have a lot of moisture coming off hoods.
"It costs money to generate that heat initially, and then you have to remove all that heat again to get to a comfortable environment," he explains. "Balancing those two systems is a challenge."
To solve the problem, Lake recommends installing variable speed fans and partially shutting down ovens during off-peak hours. Lake estimates operators may cut utility bills by 10 percent with such equipment, but warns that return on investment could take two to five years.
Lights Out
Changing lighting might sound like low-hanging fruit, but Lake thinks -restaurants could save money using motion-activated systems to keep rooms like storage and break areas dark when empty.
Today, he adds, daylight harvesting is becoming popular among retailers, who use skylights with sensor-controlled lighting systems that dim lamps when the sun is shining and vice versa. While effective, such systems may cause problems.
One is getting a landlord's permission to cut a hole in the restaurant's roof, which would likely nullify roofing warranties. Lake suggests negotiating any such plans before leasing. Another is the ability to control the mood of the dining room or bar, as lamps could be going on and off regularly.
"It's less of an issue in a retail environment," he acknowledges.
More with Less
Operators can also save the environment and money by doing with less. Denver-based environmental consultant Tim Stein, former food and beverage director for parks-management company Xanterra, advises operators to consider fewer and smaller pieces of equipment in their kitchens.
A typical question is: "Can I go with a smaller BTU burner on this [menu] item and still produce it with the same speed and quality?"
The cost of energy-savings equipment is higher, Lake and Stein warn. "It could be 10 percent more than the alternative," Stein estimates. Overall costs for a green strategy increase capital expenditures, they agree, though how much depends on which area of your business--kitchen equipment, culinary, packaging or building materials--you're considering.
That's true for the operators we talked to. Big Bowl President Dan McGowan says his company's many green efforts, including menuing sustainable seafood and using uniforms made with organic cotton, have increased his costs. "Our initiatives have not paid for ourselves yet," he concedes.
Still, McGowan adds, there is an upside to saving the planet: "Has it helped us in marketability? Yes."
Says Stein: "Green strategy is a journey you continue to work on and refine as you go forward."
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