Foodservice by Design

Team members from Profitality-Labor Guru discuss how industrial engineering can be applied to the foodservice industry.

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Sustainable Practices for Restaurant Chains: How to Save Money and Help the Environment

With increasing environmental concerns, rising operational costs, and growing consumer interest in supporting eco-friendly businesses adopting sustainable practices has never been more important for today’s restaurant chains.

These initiatives, though, can do more than benefit the environment. They can also contribute to a company’s bottom line. That’s because adopting sustainable practices not only reduces a restaurant’s environmental footprint but also saves money in the long run by improving efficiency and reducing waste.

Food waste represents one of the restaurant industry’s biggest concerns. According to the USDA, restaurants waste an estimated 30% to 40% of their food supply. Addressing this issue can lead to significant cost savings. Start with portion control, as over-cooking and serving food often leads to most of the waste. Something as simple as sauce portioning can have a big impact on an operation’s bottom line. Many menu items in casual dining come with sauces portioned in ramekins that customers often do not fully use. This leads to food waste and extra time spent cleaning wares.

Efficient inventory management can also help reduce pre-plate food waste. Use an AI-powered tracking system to monitor food inventory levels, thus reducing overordering and waste that never even reaches the consumer. A great example of this is having a concept to produce par levels at the fry station for every hour it is open based on historical sales trends. Each time a cook has to restock, following the production charts can reduce waste and improve food quality. Repurposing ingredients creatively, such as using leftover ground beef or turkey for chili or day-old bread for croutons, maximizes the use of available resources. Partnering with food donation programs allows restaurants to provide surplus food to those in need rather than letting it go to waste. Composting can be another effective strategy because diverting organic waste from landfills can reduce disposal costs. Of course, this is often easier said than done given the fact that composting infrastructure varies greatly from one area to another.

Energy efficiency is another vital aspect of sustainable restaurant operations. Replacing traditional incandescent bulbs with LED lighting can lower energy consumption and operational costs, as LED lights can use up to 75% less energy and last much longer. This is probably the most seen change in the last decade. Investing in energy-efficient appliances, such as Energy Star-rated commercial kitchen equipment, can help reduce power usage without compromising performance, thus contributing to the bottom line. Regular maintenance of commercial kitchen equipment as well as heating, ventilation, and air conditioning (HVAC) systems improves efficiency and reduces energy waste. Some restaurants are even adopting renewable energy sources like solar panels to further cut down on carbon emissions and electricity costs.

Water conservation is equally important, given the significant water usage in restaurant operations. Installing low-flow faucets and toilets can greatly reduce water consumption without affecting functionality. This impacts not only water consumption but also sewer costs. Upgrading to energy-efficient dishwashing systems also minimizes water and electricity use such as grey water for plate rinsing. Regular maintenance checks for leaks ensure that water is not wasted unnecessarily. Educating staff about water-saving practices, such as turning off faucets when not in use, further enhances conservation efforts.

Another crucial sustainability effort involves minimizing or eliminating single-use non-recyclable materials. Encouraging dine-in customers to use dishware rather than disposable alternatives also reduces waste. We’ve seen this move recently implemented by Starbucks offering customers free refills when ordering certain beverages for here served in a reusable ceramic mug. One initiative that has been implemented by many is the elimination of plastic straws in favor of paper, or bamboo options.

Transportation emissions associated with restaurant deliveries and supplies can be reduced through green transportation initiatives. For restaurants that offer delivery services, transitioning to electric or hybrid delivery vehicles is an effective way to lower fuel costs while being environmentally responsible. Optimizing delivery routes and order consolidation with the help of software can further enhance efficiency which requires less labor and reduces fuel consumption. One great example of this is a ghost kitchen concept in New York that manages up to 80 simultaneous deliveries using mapping, consolidating and routing software for their orders that are delivered in electric bikes around the city.

Another area of opportunity is waste reduction, not necessarily the elimination of waste but the reduction of trash volume. By reducing the amount of trash a restaurant can reduce the number of truck rolls to the facility and the landfill. This not only benefits the environment it lowers operating costs. We’ve seen concepts compacting trash bags before placing them into the dumpster and bailing cardboard boxes before placing them in separate recycling areas. This initiative, even though is good for the environment, was implemented because of its cost-reduction impact.

Employee engagement is essential for the success of sustainability initiatives. Restaurants should educate their staff on waste reduction, energy conservation, and sustainable sourcing. Implementing sustainability training programs ensures that employees understand their role in eco-friendly practices. Establishing sustainability meetings, or just bringing it up on daily huddles in the restaurant can create a mindset around new green initiatives.

Look for ways to engage customers in sustainable restaurant operations. Offering discounts or perks to customers who bring reusable cups encourages waste reduction and eliminates purchasing costs.

Sustainability in the restaurant industry is not just about being environmentally responsible — it should also be a smart financial decision. Reducing waste, optimizing energy and water use, sourcing responsibly, and engaging employees and customers can save money while making a positive impact on the planet. Implementing these eco-friendly initiatives benefits the environment, enhances brand reputation, and hopefully attracts more consumers, and ensures the long-term success of the brand in the evolving food service industry. By making small yet meaningful changes, restaurant chains can lead the way in creating a greener, more sustainable future.