More Evidence that
Sustainability Helps Your Bottom Line
Shortly after completing a sustainability project for the New Jersey Small Business Development
Center and the New Jersey
Sustainable Business Registry, I came across more statistics about how
being sustainable can help small businesses save money — especially restaurants
– the foundation of the country’s economy and the small business community.
According to an article in Foods Safety Magazine written by Marty Sieh, chief operations officer at ENGIE Insight, restaurants that implement sustainable practices can
reduce costs by 30%. In a tight
business environment, these reductions are boosted by increased traffic by
consumers who are looking for sustainable and environmentally friendly
foodservice venues.
For example, Sieh wrote: “More than 80% of the $10 billion annual energy bill for the commercial
foodservice sector is spent on inefficient food cooking, holding, and
storage equipment. According to the National
Restaurant Association’s 2018 State of Restaurant Sustainability report,
restaurants could be doing more to tackle energy efficiency, waste
management, and water usage. For example, less than half of restaurants
surveyed use US Environmental Protection Agency's Energy Star-rated
refrigerators or low flush toilets, and only 25% of restaurants use Energy
Star-rated efficient dishwashers.”
While untapped technological efficiencies hurt the bottom
line and the environment, the industry needs to do more than simply buy new
equipment. Foodservice operations must also adopt new business models, utilize
data collection, and evaluate their operations to holistically incorporate
sustainability, he wrote.
“The ability to harness massive amounts of data from
sophisticated control systems monitoring a variety of equipment brings new
opportunities for companies to improve performance and mitigate risk. Beyond
scarce resources and environmental consequences, more than half—55%—of
consumers say they consider a restaurant’s food waste reduction efforts an
important factor when they choose a restaurant,” he pointed out.
Indeed, statistics abound about consumers’ preference for businesses that are sustainable.
Millennials are more inclined to spend their disposable dollars at retailers
and restaurants that are recognizably sustainable. This means if your business
is sustainable then tell the marketplace that it is.
Sieh wrote that as consumers and governments crack down on
waste and recycling regulations, foodservice companies must implement programs
that maximize efficient waste practices and stay in compliance.
“While certain regulations, such as municipalities banning
plastic straws, have been making headlines over the last few months, they are
slowly rolling out other legislation, including separating organic food waste
from inorganic garbage. Companies looking to stay in compliance and avoid
major fines must first understand their current waste makeup. By conducting
waste audits—scientific studies of waste streams—businesses will understand the
data associated with their waste profile, how food waste affects their hauling
costs, and where the best diversion opportunities are. Understanding and
utilizing this output helps foodservice providers adapt their business models
to streamline waste practices and capitalize on their recycling and composting
programs in a cost-effective manner,” he elaborated.
In many instances restaurants can incorporate simple changes
to can have a major impact on the business as well as the environment, he
wrote. It’s not necessary to stop everything and rebuild your business to
become sustainable. Hospitality businesses and foodservice operations account
for nearly 15% of commercial water use in the country. Sieh found that on the
West Coast, Shari’s Cafe & Pies realized the dipper wells used to clean ice
cream scoops were wasting 8 million gallons of water every year through data
audits. As a result, Shari’s decided to switch from a perpetual flow of water
to a heated demand-based system that reduced water usage by 35% and led to
15–18% savings on natural gas usage. Because equipment and building sensors are
cheaper than they’ve ever been, and data monitoring and analytics are more
advanced, restaurants can avoid massive losses in critical resources and
capitalize their return on investment.
Furthermore, according to Energy Star, restaurants that invest strategically can cut utility
costs up to 30% without sacrificing service, quality, or comfort.
“Restaurants, now more than ever, need to integrate
sustainability and energy efficiency strategies into their business operations
and corporate strategy. The road to sustainability is paved in data and without
this foundational element restaurants cannot capitalize on all the
opportunities these initiatives have to offer,” Sieh concluded.
The suggestions that Sieh cited in his article have
applications beyond the foodservice industry. Eliminating waste, adjusting
water consumption and improved energy management can help all businesses
improve their bottom lines.
The August sustainability edition of The Small Business Voice that I referred to at the top of this blog
focused on the benefits of joining the New
Jersey Small Business Registry for expert no-cost consultation on how to
convert your company into an efficient, sustainable business.
With information about the United Nations’ 17 Sustainable Development Goals, which serve as a
roadmap for businesses and municipalities on becoming sustainable, the issue also
offers statistics on how businesses that are members of the registry have made
a positive difference on the environment and their balance sheets.
Sustainability is not only a target for large businesses but
small businesses, the corner retailer and restaurant, can also benefit from
jumping on this global bandwagon.
As Deborah K. Smarth,
chief operating officer and associate state director of the NJSBDC, wrote:
“The most successful sustainability strategies often start
with simple, low-cost initiatives that even the smallest business can
accomplish. There are real opportunities for small businesses to yield significant
benefits from the adoption of basic environmental best practices.
“For businesses interested in sustainability, but not sure
where to start, the New Jersey Small Business Development Centers (NJSBDC)
offer pro bono sustainability consulting and technical assistance. Over the
past two years small businesses across New Jersey have taken advantage of this
no cost service to find ways to integrate environmentally friendly practices
into their day to day operations. NJSDBC’s expert counselors work with business
owners to identify ways to increase efficiency through energy conservation,
waste reduction, pollution prevention, streamlined procurement and risk
management. Businesses are provided a baseline assessment of their
environmental footprint, and a series of recommendations on how to implement
sustainable practices.”
Looked from another point of view, sustainability is a growth opportunity for small businesses.
The issue also presents sustainability success stories of these
Garden State companies: Consolidated Packaging Group, Ridgefield Park; Seeds of
Hope Community Development, Atlantic City; Adams Rental, Hamilton; Viridian
Environmental Field Services, Upper Montclair; Classic Auto Body, Paterson;
Hamilton Washery, Hamilton; and Atlantic Health System, Morristown, NJ.
It’s a lesson for all businesses and even non-profit
organizations. As Prof. Jeffrey
Hollender of New York University’s Stern School of Business observed in the
issue: for businesses, sustainability is more than the ecology.
For further information about the organizations cited here,
visit their websites:
NJSBDC: https://www.njsbdc.com/
NJ Sustainable Business Registry: http://registry.njsbdc.com/
National Restaurant Association: https://www.restaurant.org/Home
Energy Star: https://www.energystar.gov/
ENGIE Insight: https://www.engieinsight.com/
Send me your sustainable success stories and I’ll share your
achievements with others in cyberspace.
Scroll through my blog to read about more ways to boost your
outreach.
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website:
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