lean & green restaurants (f10)

BA 395 – Independent Research

Tori BybelDom Dibetta (Graduated, Fall 2010)

Kevin McNavageKyle Yorke

Dr. Jennifer Edmonds

HIGHLIGHTING SUSTAINABLE BEHAVIOR IN

SMALL BUSINESSES

A Survey of Lean and Green Practices in the Restaurant Industry

Project Introduction & Scope Dr. Jennifer Edmonds

Sample Demographics Kevin McNavage

Lean & Green Behaviors in the Restaurant IndustryKevin McNavage

Tori BybelKyle Yorke

SummaryFuture Research Dr. Jennifer

Edmonds Tori Bybel

Your questions are welcome at any time…

Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.

Highlighting Sustainable Behavior in Small Businesses



A systematic approach to identifying and eliminating waste

through continuous process improvements in the pursuit of

customer satisfactionDefectsOverproduction

WaitingNot Utilizing Employees (People Waste)

TransportationExcess Processing

Motion WasteSpace



A systematic approach to identifying and eliminating waste

through continuous process improvements in the pursuit of

customer satisfaction



Reduce, Reuse, RecycleWise Consumption

Consistent Process Tracking


…is lean green?(Cooper, 2009)


Low techFundamentalRespect of people

High techRegulations


Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. However, very few empirical studies highlight the prevalence of such practices in the restaurant industry.

(Greathouse, 2010)

‘Pays to be Green’ Empirical Research Expenditures on pollution control are positively correlated with financial

performance in pulp and paper firms(Spicer, 1978)

Positive link between environmental and financial performance in manufacturing firms

(King & Lennox, 2001)

…and future cost savings(Porter & van der Linde, 1995)

Positive relationship between environmental and financial performance for scrap steel yards

(Clemens, 2006)

Small businesses report 20-30% cost savings by making energy saving moves….

Byron KennardCenter for Small Business and the

EnvironmentUSA Today, December 2007


Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. However, very few empirical studies highlight the prevalence of such practices in the restaurant industry.

(Greathouse, 2010)

Speed Waste

Restaurants

Adequate staff,Necessary items where needed,

Implementation of some ‘S’s’

Overproduction,Production defects,

Intelligent use of utilities and equipment,

Waste management & recycling


Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. However, very few studies highlight the prevalence of such practices in the restaurant industry. The purpose of this study is to highlight lean and green programs' implementation observed within smaller organizations in the restaurant industry of Northeastern Pennsylvania.

Why small businesses? an excellent opportunity to conduct system-wide research large numbers of homogenous firms

(Rigg & Bracker, 1986)

Hold a relatively small share of the market,Fewer than 500 employees



650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)

Restaurants

0

10

20

30

40

50

60

70

80

90

100223

Restaurants in Luzerne County

650+ Restaurants in Luzerne County

Types of Restaurants in Luzerne County

American54%

Cafe5%

Catering3%Chinese

3%

Coffee0%

Deli3%

Diner1%

Fast food7%

Greek0%

ice cream0%

Ice Cream Parlor

1% Italian3% Italian

4%

Lithuanian0%

Mexican0%

Pan Asian0%

Pasta0%

Pizza14%

pub food0%

seafood0%

650+ Restaurants in Luzerne County



650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010) Not including national chains or fast food outlets Not including under-represented categories or drinking-

dominated establishments

Restaurants

0

10

20

30

40

50

60

70

80

90

100Smaller Organizations in the Restaurant

Industry

290 Restaurants in Luzerne County

Smaller Organizations in the Restaurant Industry

American53%

Cafe6%

Deli5%

Diner2%

Italian 8%

Pizza26%


Smaller Organizations in the Restaurant Industry


89%

7%

2%2%0%

0%

No. of Employees

0-24

25-49

50-74

75-99

100-124

150-174

80%

11%5%

2%

1%1%

0% 0%

Annual Sales

0-499999

500000-999999

1000000-1499999

1500000-1999999

2000000-2499999

3000000-3499999

5500000-5999999

25000000-25499999


Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. However, very few studies highlight the prevalence of such practices in the restaurant industry. The purpose of this study is to highlight lean and green programs' implementation observed within smaller organizations in the restaurant industry of Northeastern Pennsylvania. This study focused on the prevalence of the following sustainable behaviors: recycling and waste management programs, maintenance, equipment and transportation, and ‘smart’ energy utilization and consumption.

Restaurants

Mainly On-site InterviewsData Entry via web form

DemographicsKnowledge/Awareness

RecyclingPaper Products

WasteEquipment

TransportationCleaning & Maintenance

InventoryEnergy & Utilities

Water Usage

Annual Sales ~80% 0-$299K

Number of employees 29% 0-24

38%

38%

4%4% 8%

8%

Annual Sales

0-99999

100000-199999

200000-299999

300000-399999

500000-599999

1000000-1100000

Sample Demographics


0-2429%

25-4913%

50-7457%

Customer Loyalty Programs

6 out of 26 26%

American

Deli

Pizza

Café

0 2 4 6 8 10 12 14 16

8

2

14

2

0

2

4

6

8

10

12

Sample Demographics


UPDATE10 additional

restaurants in this category not

included in results



Lean & Green Behaviors in the Restaurant IndustryTori Bybel

Kevin McNavageKyle Yorke


This study focused on the prevalence of the following

sustainable behaviors: recycling and waste management programs, maintenance,

equipment and transportation, and ‘smart’ energy utilization

and consumption.

Utilities

• Type of Stove Used- Unanimous 100% Gas

• Type of AC Unanimous 100%

Electric

• Type of Heat Electric - 17 Gas - 9

9

17

ElectricGas

Utilities

Yes- 4No - 22

15%

85%

Energy Efficient Light Bulb Use

Yes No

Yes No

22

4

Would you incorporate smartlighting

0% utilize SL now

Utilities

Offer Drinking Water to Customers at no charge Yes- 23 No – 3

Those who DO NOT filter the water (8) All were interested in learning more about offering filtered water

15

8FilteredNot Fil-tered

Those who DO offer drinking water at no charge (23) - Is it filtered or not filtered?

What happens to extra products when too much is produced/when made incorrectly?

Thrown Away Stored for the next day Given to workers

How do you increase efficiency through the flow of your restaurant?

Only hire motivated and high energy people

Regularly checking that everyone knows their designated roles for the day

Assign certain locations for employees to be doing their work

Set up an assembly line style kitchen

Keeping Track of Inventory

All 26 Stores check inventory by hand

Frequency of checks- Daily (25)- Monthly (1)

Most Wasted Items

Pizza & related parts- Sauces- Cheese- Dough

Fries

Chili Sauce

Plan in Place to Reduce Waste

3

23

Plan In PlaceNo Plan

Awareness - Lean

Are you aware of what it means to be LEAN in terms of the way you operate? 2 out of 26 said no

Are you interested in being LEAN in terms of the way you operate? 6 out of 26- uninterested

Awareness - Green

Are you aware of what it means to be GREEN in terms of the way you operate? All restaurants know what it means to be green

Are you interested in being GREEN in terms of the way you operate? 3 out of 26 restaurants were not interested

Awareness-Practices of Suppliers

Comments: Low costs Depending on competition Depends on suppliers will to

cooperate 21 out of 26 would still utilize

their services

NO YES0

2

4

6

8

10

12

14

16

Paper/Plastic Materials

81%

12%

8%

Knowledge of Products

I DO NOT KNOW IF THEY ARE NOT MADE OF RE-CYCLED MATERIALS

THEY ARE MADE OF RE-CYCLED MATERIALS

THEY ARE NOT MADE OF RECYCLED MATERIALS

Paper/Plastic

Both DISHES PAPER0

2

4

6

8

10

12

14

16

Dishes or Paper Plates

Paper/Plastic

Are you aware that you can purchase goods out of recycled materials? 2 answered no

Do you use silver or plastic ware for serving? 16 silver ware 10 plastic ware

Recycling

8 Restaurants do not participate in recycling programs (Blank)

PAPER PRODUCTS, PLASTIC/GLASS

PLASTIC/GLASS PLASTIC/GLASS, FOOD WASTE

(blank)0

1

2

3

4

5

6

7

8

9

10

Items that are Recycled

Recycling

Are they locally supported activities? 22 said yes, 4 said no

Do you have to take any recyclables to a recycling center on your own? 3 said yes

Transportation

Utilize Local Merchandise: Yes or No?

Deliver: Yes or No? - Out of 35% that do deliver all were used cars that the delivery person owned

Concerned about fuel efficiency:

50%50%

35%

65%

yes no

63%

38%

Inventory

All but one restaurant maintain inventory by hand, the other kept track electronically

How are orders taken? By hand or electronically?

All Businesses claim to keep track through “constant monitoring”

By Hand73%

Elec-tronic 27%

Equipment

1 of the businesses rents their equipment

1 of the businesses claimed to not have all of their needed ingredients in a common vicinity

100% restaurants require their employees to regularly clean up

100% claim that their employees are informed of their basic job requirements

Routines for employees: Common theme amongst the businesses require employees to stick to a time based schedule along with being a “jack of all trades”

73%

27%

yes no

Summary

DemographicsKnowledge/AwarenessRecycling

Paper ProductsWaste

EquipmentTransportation

Cleaning & Maintenance

InventoryEnergy & Utilities

Water Usage

Most restaurants interviewed are aware of what is meant by being lean and green

…but they’re only interested in being green

30% do not participate in recycling programs at all

All who participate have local supportNot as much participation in recycling food waste

Overproduction occurs with home-made condiments, sides and sauces

Half support local suppliers

Most restaurants institute at least 3 of 5 S’s

Only 15% of the restaurants use energy efficient light bulbs

…but 85% would incorporate smart lighting

46% want to receive the results of the survey

Spring 2011 Behavior across chains International restaurants Differences in behavior by size

(no. of employees, sales)

Future Research

Abe's Hot DogsAlta Pizzeria & Pasta Shop

Anthracite Café Brickhouse Bar & Grill

Broadway Tavern C.J.'S

Chill GrillCusats CafeDagwoods

Dino'sElmer Sudds Florio's PizzaGrotto PizzaHaystacks

House of Wings III Guys Pizza Inc

Januzzi'sJimmy's Quick Lunch Konefal's Restaurant

L & L Pizza Subs & MoreLaceys Bar & Grill

Mimmo's Pizza & RestaurantRodano's

Sal's Pizza Subs & MoreShelley's American Pie Pizza

Shenanigans

Special Thanks To…

lean & green restaurants (f10)

Documents

sustainable operations

empirical studies

green programs implementation

small share

green practices

luzerne county650

financial performance

types of restaurants