The Sustainable Restaurant Model
A deep dive into the Sustainable Restaurant Model featuring case study on D.C. restaurant, Founding Farmers.
These days, it does not matter if a practice is good for the environment or community unless it is economically profitable.
It is necessary to turn sustainability into dollar signs in order for a practice to be adopted.
This stands true for the restaurant industry.
However, by following the Sustainable Restaurant Model, restaurant’s can decrease their negative impact on the environment, support local community, and positively influence human health all while increasing their bottom line. All restaurants should strive to be more sustainable in order to increase profits and save the world one meal at a time. The following infographic provides information about the Sustainable Restaurant Model, while the brief explanation details the impacts that sustainable restaurants can have.
How it is profitable?:
There are three main reasons why the Sustainable Restaurant Model is profitable.
First, sustainability is not just good for our world, it is trendy. This means that people are not only attracted to sustainable restaurants, but are willing to pay more for the food, with 74% of global Millennials willing to pay more for sustainable products and services (“Restaurant Sustainability”).
Second, decreasing waste means saving money. That 11.4 million tons of food waste mentioned earlier translates to about a $25 billion dollar loss per year, which is money that restaurants could be profiting from. For every one dollar invested in food waste reduction, restaurants can gain about $8 in cost savings (Petter). By decreasing the amount of food wasted, restaurants will make more money.
Third, by incorporating sustainable practices into their restaurant like decreasing energy consumption, the total operating costs of a restaurant can be reduced.
Winners and Losers:
All stakeholders benefit from restaurants becoming more sustainable, including the restaurant, customers, local farmers, employees, livestock, and the environment.
However, there are some individuals that may suffer in the short term from restaurants becoming more sustainable. For example, food waste that is not thrown away is often donated. If restaurants limit the amount of food waste they produce by implementing strategies on the front end, individuals who rely on their donations to sustain their diets may suffer since that food source in the form of donation is no longer available. However, it could also result in more local, raw foods being available for those who rely on donations since the restaurant is no longer wasting it.
The second party that may suffer from restaurants becoming more sustainable is the original food suppliers. If a restaurant decides they want to source food locally or simply purchase less food, the original food providers will lose business which means they are losing money.
Who is doing this?:
The Farmers Restaurant Group, a restaurant chain owned by the North Dakota Farmers Union, has had incredible success with its sustainable restaurants in the D.C. area. The Farmers Restaurant Group is committed to sourcing produce from local, family-owned farms to ensure that profits remain in the hands of the families, communities, and farmers themselves (Olefson). They are a member of the Green Restaurant Association and are LEED-certified, which means the building facilities and operational aspects of the restaurant are run sustainably. Other elements that make these restaurants sustainable include having a from-scratch kitchen, upcycled decor, house filtered water, and sustainable kitchen appliances.
Although the Farmers Restaurant Group has seen incredible success by following the Sustainable Restaurant Model, many restaurant owners are skeptical to evolve. It is important to remind those owners that decreasing waste means saving money, and no harm can come from being more profitable. It can be overwhelming for a restaurant to make these changes all at once since they can initially be costly. If a restaurant cannot afford the LEED or Green Restaurant Association certifications, they should still follow the guidelines in order to become a more sustainable business, which will help decrease costs in the long run. Additionally, restaurants should follow these easy switches to decrease food waste, which will decrease money lost.
Learn more about The Farmers Restaurant Group in the article below.
Farm to Fork:
How “Founding Farmers” Found Success in Sustainability
Every player in the game should be trying to create a field more sustainable for the next, which is exactly what the Farmers Restaurant Group set out to do from day one.
The story begins in 2005 when the members of the North Dakota Farmers Union (NDFU) began to look for ways to bring their products directly to consumers in order to reignite the connection that people had with their food. They sought to prove that family farming in the United States was as relevant and important as ever, especially in times where small, family-owned farms were, and are, threatened and decreasing drastically because of the pressures to join corporate farming conglomerates or industrialize. The NDFU decided the best solution was to create a farmer-owned restaurant, which would enable farmers to gain a greater share of food dollars while getting their products directly to consumers. Thus, the first restaurant of Farmers Restaurant Group, Founding Farmers, was born in Washington, D.C.
This incredibly successful restaurant was created to give family farmers back the pride and confidence they deserve in order to overcome the corporate pressures exerted over them, while maintaining their unwavering commitment to sustainability, which is imbued into every single crumb that Founding Farmers serves. The restaurants are now owned by more than 47,000 family farmers, members of the NDFU, a number which is inscribed on all of the forks in the restaurants to remind guests just how much went into the meals that they are enjoying.
From farm to fork, Founding Farmers is committed to sustainability. I sat down with their very own Erin Chalkley, Construction & Development Project Manager and LEED Green Associate, to discuss how they maintain their position as a leader in environmentally-responsible restauranteering.
Additionally, family farms are more likely to want to run sustainably. Erin explained, “Family farmers have the incentive to run their farm in a sustainable way because they need it, their farm is the value, the land is the value.” She continued to say that farms are incentivized to use much more intensive farming practices involving the use of harmful chemicals when on a corporate structure. However, a family farm would see the value in organic farming and more sustainable practices, like using ground plants — which deposit nitrogen into the soil — and other methods to avoid the use of harmful chemicals. When avoiding intensive agricultural practices, including the use of chemicals, farmers ensure that their land will retain its value and continue to thrive.
Furthermore, being a sustainable restaurant is not as costly as people think. Since day one, Founding Farmers built sustainability into their total operating costs, and because of this, sustainability itself has never been an issue for any of their price points or impacted the guests’ experience. Their biggest cost of creating a sustainable restaurant was construction in order to acquire LEED certification. However, when a restaurant is smart about its investments, it pays off in the long run, like how decreasing energy consumption will decrease energy bills.
Surprisingly, when you walk into the restaurant, the lengths gone to create this sustainable experience are not obvious, despite everything in the restaurant, right down to the faucets, being carefully selected to be the most sustainable option. The subtle details which make the restaurant sustainable are tucked away so guests can have the best experience. This is partially because the restaurant knows it will get nowhere by pushing their sustainable agenda down their guests’ throats, who come in for their iconic Chicken and Waffles, not a lecture. Erin described the choice to avoid putting sustainability at the forefront of the restaurants messaging by explaining “we really try and make it so we've already made the hardest decisions for our guests before they come in so that way they don’t have to make them themselves.” She continued to explain that the restaurant owners already know they are responsible and only wants to give the guests a great experience, which means not explaining every little decision. Nevertheless, individuals who do care and are conscious of the sustainable choices made in the restaurant will notice the filtered water in a glass bottle that is served in glass cups without ice, they will notice when the waiter pushes their homemade scratch sodas made from freshly pureed fruit, and they will notice the upcycled decor within the restaurant.
Because the restaurant was explicitly structured from the very beginning, they actually do not accumulate much waste. As Erin put it “the best impact we make is preventing the waste from coming in here in the first place, waste reduction as opposed to how do we handle the waste after the fact.” Regardless, the kitchen still has ways to prevent food waste. Founding Farmers cooks everything from scratch, right down to the bread and dressings, which significantly reduces food waste. Additionally, the restaurants run on a tightly controlled production schedule to avoid any major food waste due to spoilage. Nearly eliminating waste with methods like these help the restaurant save money.
Room For More?
Founding Farmers will continue working towards their mission of finding more ways to bring people closer to their food and farmers. At the end of our conversation, Erin reflected on ways in which other restaurants could follow in their tracks in becoming more sustainable, which could translate into higher profits. It is motivating for the Founding Farmers team that other companies see their success and try to emulate it, knowing that sustainability is part of their equation to success. She left me with this word of advice: “turn sustainability into dollar signs.” Since in reality, our world runs on money, it is important to learn how to make a business case for sustainability, like how decreasing waste means saving money, to see a bigger impact overall.
Want to Learn More?
www.wearefoundingfarmers.com/about/story/
Citations
(https://www.modernrestaurantmanagement.com), Modern Restaurant Management 2019. “Why Are Sustainable Restaurants Important? | Modern Restaurant Management | The Business of Eating & Restaurant Management News.” Modern Restaurant Management, 2 Oct. 2018, www.modernrestaurantmanagement.com/why-are-sustainable-restaurants-important/.
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Olefson, Julia. “Farm to Fork: How Founding Farmers Found Success in Sustainability.” Planet Forward, Https://Www.planetforward.org/, 3 Mar. 2019, www.planetforward.org/idea/founding-farmers-sustainability-success.
Petter, Olivia. “How Eco-Friendly Restaurants Are Shaking up the Food Industry.” The Independent, Independent Digital News and Media, 28 Nov. 2018, www.independent.co.uk/life-style/food-and-drink/sustainable-dining-eating-eco-friendly-restauran ts-food-waste-environment-a8650946.html.
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Verrill, Courtney. “American Restaurants Are Wasting an Incredible Amount of Food - Here's the Proof.” Business Insider, Business Insider, 17 May 2016, www.businessinsider.com/solving-food-waste-in-americas-restaurants-2016-5.