MIAMI—Sustainability practices that minimize the impact of restaurant operations on the environment appear to be gaining momentum as the foodservice industry finds ways to measure the return on its investment in green systems and technologies, according to the results of a new benchmark survey from RSR Research. The study, “The Better-Run Restaurant: Environmental Sustainability in Restaurant Retail 2010,” finds restaurant organizations of all sizes hungry for greater efficiency in their operations, particularly those solutions which cut energy costs, reduce wasteful packaging, and can be leveraged to “tell a green story” to diners. While the industry is still struggling to correlate top line revenue with green investments, it does recognize the bottom line benefits of cost savings from energy and waste management.
Notably, 58 percent of respondents said sustainability is a strategic initiative in multiple departments of their companies, and 54 percent said they expect a return on their investments in sustainable technologies or practices within three years.
The findings are based on a survey of 124 restaurant retailers conducted in late 2009. The report was produced in partnership with Nation’s Restaurant News, the foodservice business network.
“There are three reasons for restaurants to enact environmentally sustainable practices, according to our report: to save cost, to reduce waste, and to build a greener brand,” said Steve Rowen, managing partner at RSR and co-author of the report. “In fact, the best performing restaurateurs believe green-minded consumers care enough about a brand’s environmental positioning to factor it into ‘where to dine’ decisions. As momentum builds, this creates a genuine opportunity to gain new business.”
Majority Budget for Green Initiatives
Among the report’s more significant findings: a majority of respondents said they have either already incorporated green initiatives and technologies at their business or have them budgeted for 2010. These sustainable practices for 2010 include:
• 79 percent recycle raw materials;
• 68 percent regulate energy use in their stores or facilities;
• 67 percent promote eco-friendly items or ingredients in-store;
• 65 percent reduce take-out/send-home waste;
• 64 percent feature green processes such as ethically sourced products; and
• 60 percent incorporate green construction practices into new facilities and stores.
When asked where they thought their biggest cost-cutting opportunities lay, respondents cited the kitchen, food preparation and packaging as offering the best-case scenarios. In fact, the larger the operation, the greater the cost-cutting opportunity perceived. Approximately 50 percent of those operating 100 restaurants or more cited this area as having the most potential, versus about one-third of smaller operators. Among those operating three to 10 restaurants, the opportunity to reduce transportation and delivery costs was ranked as most important.
“Sustainability has been on the foodservice radar for many years, and this data supports our ongoing attention to the growing trend,” adds Nation’s Restaurant News publisher, Randall Friedman. “Time will tell whether this study benchmarks an incremental moment or an inflection point where the industry as a whole shifted from awareness to action and learned to minimize the impact of foodservice operations on the environment—profitably.”
“The Better-Run Restaurant: Environmental Sustainability in Restaurant Retail 2010” report contains analysis of the business drivers, opportunities, and organizational constraints surrounding environmental sustainability issues specific to the restaurant and foodservice industry, as well as baseline recommendations for pragmatic steps to make sustainability a strategic issue within any restaurant organization. The report is part of RSR Research’s ongoing efforts to provide market intelligence on retail technology trends. Click here to download it.
