By Steve Rowen, Managing Partner
10/20/2009
We’re focusing quite a bit of effort on discovering the opportunities that environmental sustainability projects afford retailers, both from a cost-savings perspective (see Nikki Baird’s article this week) and from a position of those that re-think existing practices to provide proven, earthly benefits. In the past few months, alone, we’ve seen a mighty shift in retailers’ overall perception of why moving toward “greener” practices is a smart move, from purely oil reduction-based, one-off projects to something far more brand-savvy: enterprise-wide efforts to win market share by incorporating brand-forward, customer-facing strategies. In sum, “We care about the environment because you care about the environment” has become a strong message the best brands are using to differentiate themselves, on the part of both those who are making the products, as well as those who are presenting them to the end-consumer.
But how does this cultural shift spill over to another member of the retail ecosystem – the restaurateur? One of our publication partners, Nation’s Restaurant News, has taken a heavy focus on the role of environmental sustainability in the restaurant segment of retail. The pages of their weekly print periodical feature advertisements that play to restaurant retailers who wish to be “seen as green,” including such manufacturers as Chinet, whose Savaday line of molded fiber plates, bowls and trays are made of 100% recycled papers and are fully biodegradable (when disposed of properly in professionally managed composting facilities), as well as some excellent editorial coverage of how environmental sustainability is playing out in the restaurant segment.
For example, the city of Atlanta, Georgia, is currently debating a proposed piece of legislation put forth by a private, nonprofit group called Sustainable Atlanta, which seeks to eliminate the city’s overall carbon footprint by the year 2030. Much of the ordinance pertains to new and existing commercial buildings (reducing energy and water consumption in existing sites, reducing the atmospheric impact of building emissions, improving overall indoor environmental quality within the building, itself, and setting strict guidelines for all new construction). The legislation includes a requirement that all commercial buildings (and larger residences) comply with either independent environmental construction standards specific to the city of Atlanta or to the more globally accepted standard, LEED certification (Leadership in Energy and Environmental Design, for more info, click here). LEED certification is, by all expert (even the radicals’ and do-nothings’) accounts, a good thing – a well researched initiative to reduce waste and wasteful practices. According to NRN, many restaurant retailers are none too happy about the possibility of the ordinance – the first of its kind in the US – passing, as the combination of increased expense of doing business in Atlanta and a tough economy may force restaurateurs to look elsewhere.
At the same time, NRN’s pages are filled with stories of green initiatives that have been taken on voluntarily by numerous restaurant retailers looking to set themselves apart (and increase their bottom line). McDonald’s Corporation’s director of public affairs, Jill Scandridge, outlines the company’s ongoing push to be greener; their core sustainability program focuses on the four components of energy efficiency (admittedly their biggest opportunity), product design, product packaging, and sustainable supply. That company has already has two LEED-certified restaurants (one of which is corporate owned). In Chicago, (where similar legislation as that in Atlanta is currently being considered) celebrity chef Rick Bayless just opened his first LEED-certified restaurant in September. At nearly 3,000 square feet, “Xoco,” offering Mexican street-cuisine, incorporates recycled wood, environmentally friendly paint, roofing, and appliances, as well as LED and fluorescent lighting. Also in Chicago, local restaurant Shaw’s Crab House has partnered with the Shedd Aquarium to create the “Right Bite” menu, guiding diners to select dinners that are healthier for ocean wildlife by supporting farm-raised fish.
So what parallels can we draw? Just as we’ve seen in our recent retail-specific research (which does not include much input from restaurateurs), the best performing retailers, regardless of whether they sell LCD flatscreens or chicken saltimbocca, understand that environmental sustainability matters to the customer. And not just to the high end customer, but to customers from all walks of life. Rick Bayless understands this, taking on extra expense to sell $8.00 chorizo tortas to no more than 40 people at a time (the seating capacity of Xoco) just as well as Walmart does selling phosphate-free laundry detergent to millions. Laggards may ultimately be forced to come around via legislation, but until that time comes, true green initiatives will remain the hallmark differentiator of those who understand their customer’s desires and pony up to do the right (and right business) thing. At the end of the day, the up-front costs fade away in the din of a packed house.
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