 
          S U S T A I N A B I L I T Y
        
        
          10
        
        
        
          Winter 2014 Issue
        
        
          A 2014 National Restaurant Association
        
        
          (NRA) report on sustainability revealed
        
        
          this good news: Operator interest in
        
        
          creating green and sustainable sourcing
        
        
          and production practices within their
        
        
          businesses is growing in America’s
        
        
          990,000 restaurants.
        
        
          Yet while awareness is there, the industry
        
        
          has a way to go toward implementing
        
        
          serious recycling and resource conservation
        
        
          strategies, or purchasing and installing
        
        
          energy-saving equipment. In non-scientific
        
        
          terms, some do and some don’t, and
        
        
          numbers on who’s-doing-what can vary
        
        
          greatly within restaurant segments.
        
        
          Doubtless the hyper-competitive market
        
        
          and ever-increasing margin pressures
        
        
          have operators hesitant to spend money
        
        
          on non-essential purchases such as
        
        
          tankless water heaters or compostable
        
        
          food packaging. They know that even
        
        
          without Energy Star-rated appliances and
        
        
          roof-mounted solar panels, the business
        
        
          of serving customers continues apace and
        
        
          the bottom line stays black.
        
        
          Overall, industry observers believe this
        
        
          glacial shift toward green thinking will
        
        
          accelerate over time as younger and more
        
        
          environmentally conscious operators take
        
        
          over. And perhaps more importantly,
        
        
          customers are demonstrating a preference
        
        
          for sustainably minded operations by
        
        
          patronizing them—even when it costs
        
        
          them a little more for their meals.
        
        
          The industry’s brightest example is Chipotle
        
        
          Mexican Grill, a chain whose crusade to
        
        
          find sustainably raised proteins has raised
        
        
          its food prices well above its competitors’.
        
        
          Yet its comparable-store sales have grown
        
        
          at blistering double-digit rates for years.
        
        
          (As of December 2014, the burrito chain’s
        
        
          stock remained the industry’s priciest
        
        
          at $650 per share.) Chipotle’s fans are
        
        
          sold on its sustainability message, which
        
        
          extends even to the dining room, where
        
        
          customers sit at arguably austere benches
        
        
          and tables illuminated by LED bulbs. But,
        
        
          of course, they like Chipotle’s food, so they
        
        
          return in droves.
        
        
          The best news for all restaurant operators
        
        
          is that thinking and acting sustainably is
        
        
          an increasingly big deal to a lot of people
        
        
          whether they’re employees, owners or
        
        
          customers. Applying those actions to real
        
        
          world changes is another matter—a gradual
        
        
          one, in all likelihood. Some are doing it,
        
        
          however, and here’s what the NRA discovered
        
        
          those operators have accomplished.
        
        
          In January 2014, the NRA polled 1,000
        
        
          quickservice and fine dining operators
        
        
          about their energy conservation efforts, be it
        
        
          through recycling, the purchase of energy- or
        
        
          water-saving equipment and other directives:
        
        
          • Only one-third of operators in both segments
        
        
          are using tankless water heaters, while
        
        
          48 percent are using low-flow toilets and
        
        
          waterless urinals. Only 23 percent are using
        
        
          motion-activated faucets and toilets.
        
        
          • A mere 29 percent are using faucet aerators.
        
        
          • A solid 61 percent are using products made
        
        
          from recycled materials, while only 40 percent
        
        
          are using compostable products.
        
        
          • Just 37 percent are using Energy Star
        
        
          rated appliances.
        
        
          • More than half are using programmable
        
        
          thermostats and 63 percent are
        
        
          using compact florescent lighting.
        
        
          • Surprisingly, only 39 percent recycle
        
        
          glass and cans, though 66 percent
        
        
          recycle paper and cardboard.
        
        
          • Not surprisingly, 74 percent recycle used fryer oil.
        
        
          • Perhaps the most impressive number is 75
        
        
          percent of operators surveyed track food waste
        
        
          regularly. From within that waste, 22 percent
        
        
          find ways to donate to food banks.
        
        
          • And while it may sound small, it’s inspiring
        
        
          to note that 17 percent of operators surveyed
        
        
          compost their food waste.
        
        
          To view the full report,
        
        
          
            visi
          
        
        
        
          Additional NRA research revealed some
        
        
          interesting facts about consumer interest in
        
        
          restaurant sustainability. In the Association’s
        
        
          2013 and 2014 Restaurant Industry
        
        
          Forecast, along with its 2013 National
        
        
          Household Survey, researchers found that:
        
        
          • Fifty-five percent of consumers say it’s
        
        
          likely they’ll choose a restaurant that offers
        
        
          menu items grown or raised in an organic or
        
        
          environmentally friendly way.
        
        
          • Fifty-eight percent of consumers choose
        
        
          restaurants based on eco-friendly practices.
        
        
          • The research also revealed that a majority of
        
        
          restaurateurs in all segments believe guests
        
        
          are increasingly interested in environmentally
        
        
          sustainable menu items.
        
        
          Additionally, the NRA found that green
        
        
          practices are particularly appealing to
        
        
          Millennials, a demographic containing 77
        
        
          million 18–34 year olds who spend $600
        
        
          billion in the U.S. each year. Much of that
        
        
          spending is done in restaurants, where
        
        
          Millennials do much of their socializing.
        
        
          The research found that:
        
        
          • Forty-three percent of Millennials feel that
        
        
          organic or environmentally friendly food is an
        
        
          important factor in their restaurant decisions.
        
        
          • Fifty-nine percent said a restaurant using eco-
        
        
          friendly practices is likely to earn their loyalty.
        
        
          • Sixty-seven percent said they are more likely to
        
        
          visit a restaurant that offers locally produced
        
        
          food items.
        
        
          In theNRA’s2014Spotlight onSustainability
        
        
          report, Hudson Riehle, its senior vice
        
        
          president of research and knowledge, put it
        
        
          this way regarding Millennials: “The research
        
        
          is pretty clear. If an operator communicates
        
        
          what he or she is doing—whether it’s using
        
        
          recyclable materials or planting gardens
        
        
          or something else—it can have a positive
        
        
          retention factor.”
        
        
          Apanel discussion featured in the Spotlight
        
        
          concluded that when any sustainability
        
        
          efforts underway in your restaurant are
        
        
          communicated to guests, operators have
        
        
          a greater chance of retaining customers.
        
        
          So start that dialogue and share your
        
        
          sustainability goals with them.
        
        
          
            Picture this:
          
        
        
          To view the report and see its multiple
        
        
          graphic illustrations visit 
        
        
        
          
            Get them engaged:
          
        
        
          To solicit help in your
        
        
          conservation program, make your employees part of
        
        
          the effort using these tips.
        
        
        
          By Steve Coomes
        
        
          Contributing Writer
        
        
          
            NRA FACTS:
          
        
        
          Why Green is Good for Making Green