Did you know “greening” a restaurant can save money?
Myth: Operating in a more environmentally sustainable way costs more money.
Fact: Today, many restaurants are implementing numerous environmental steps and saving thousands of dollars annually.
Yes, there are many ways to implement environmental steps incorrectly, which can cost restaurants more money. But when done right, environmental savings equals financial savings.
Environmental steps can be categorized into three groups based on their financial impact:
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Cost-saving
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Cost-neutral
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Higher cost
Cost-saving steps
The following environmental steps can significantly reduce energy, water, and waste, while also conserving operators’ hard-earned money.
The most water-efficient pre-rinse spray valves can save $400 each annually. In addition, a .5 gpm aerator can save $188 annually. These two steps can easily save a restaurant over $1,000 annually, and for restaurants with multiple sinks, they can save thousands of dollars per year. For guidance on what to ask your vendors when choosing new aerators and pre-rinse spray valves, the Green Restaurant Association has outlined water standards.
For take-out and delivery, when operators provide utensils, condiments, and straws that some customers do not need or want, it can create unnecessary costs and annoyance for customers who don’t need these utensils. When customers must check off the items they want on take-out orders, many will not select these extras. In fact, a restaurant can save over $5,000 annually by reducing unnecessary items.
There are also cost-saving opportunities when seating customers. How many restaurant customers do not want water? How many cups of water sit on the table each day, untouched? To get that water on the table, operators must pay for the water in the cup and the hot water, chemicals, energy, and labor to clean that cup, which all add up. Some estimates show that the total real cost of an unused cup of water exceeds $1.
Here’s a really easy fix. Operators can just change their policy to ask customers if they would like water. You still provide that service to those who want it, and are providing value to those who don’t, as many would appreciate not wasting unused water. If 50 customers per day do not want water, then that could amount to over $18,000 in annual savings. Operators could equally create similar policies for straws and bread, which could save even more.
Below are steps that have some investment and differing annual savings:
Here are a few more cost-saving steps:
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Increase the purchase of bulk products.
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Implement recycling and composting, which could save thousands of dollars in some locations.
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Reduce food waste. Research shows that every dollar invested in reducing kitchen food waste saves $7 in operating costs.
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Invest in solar energy. For building owners, installing solar panels can be a lucrative investment. It typically achieves payback in approximately 7 years and then provides free electricity for another 23 years.
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Replace in-house disposable items with reusables, which can also save thousands.
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Switch from serving bottled water in-house to a filtered or carbonated water system to increase profit margins.
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Landscape with native plants can save vast amounts on your water bill.
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Install occupancy sensors to significantly reduce electricity bills.
Have we debunked the myth that “Operating in a more environmentally sustainable way costs more money?” Let’s flip that myth on its head: “Operating in a more environmentally sustainable way saves money.”
Cost-neutral investments
For those willing to implement some environmental steps that don’t necessarily save money, but also won’t cost more, here are some cost-neutral steps.
Add more vegan and vegetarian menu items.
This step won’t cost more and in fact, might reap a higher profit margin. Operators can attract a growing demographic of vegans, vegetarians, flexitarians, and customers who want a non-meat option.
Choose organic products that have price parity.
While some organic foods are more expensive, others are not. Choose individual items with cost parity and purchase those. Organic dried beans, rolled oats, and bananas often have price parity with their non-organic counterparts.
Opt for sustainably sourced fish.
Some sustainably sourced fish are cost-competitive, according to Seafood Watch.
Use green cleaning chemicals.
Many green cleaning chemicals are cost-competitive and clean just as well at the same price.
Steps that cost operators more
Some environmental steps require a higher upfront investment but come with significant environmental benefits.
Buying 100% organic vegetables, grains, legumes, fruits, and meats will increase food costs. However, whether you go 20%, 50%, or 100% organic, operators can offset these costs by slightly increasing menu prices for those items. Many customers are happy to pay a small premium for organic food, just as they do in the multi-billion-dollar organic household food market. Clear and transparent marketing is the key.
Switching to greener disposable takeout container alternatives will cost more, but you don’t have to go all in at once. Operators can start out by pricing out a few greener products individually and finding options that sometimes have price parity, such as napkins.
There are many ways to save a significant amount of money by going green. There are also several cost-neutral environmental steps that decrease your environmental footprint without increasing your budget. And for the most dedicated, there are higher-cost environmental steps that can pay off by attracting new customers and building your brand’s sustainability reputation.
