Innovation Exchange

The No Net Cost Challenge

What It Is

The conventional thinking has always been that sustainable dining is expensive. We’re turning that assumption on its head by showing that significant cost savings can be achieved by deploying the Green Dining Best Practices. Reducing purchases of carbon intensive proteins and unsustainable seafood in favor of alternatives, conserving energy and water, and reducing waste all cut food or operations costs. These savings - which can be substantial - can be used to pay price premiums for sustainable food or equipment upgrades.

The No Net Cost Challenge encourages dining managers to invest savings captured from one or more of the Best Practices to offset costs that might occur in others, thus maximizing the environmental, reputational and customer experience benefits at No Net Cost. We invite you to take the challenge, share your experience in balancing costs and savings, and offer new ideas on how your company is implementing the Green Dining Best Practices.

Engaging the Building Owner

If you own the building out of which your restaurant operates, or your lease makes you responsible for all utility costs, great – you are able to accrue all savings from energy, water, and waste reduction best practices, like swapping out incandescent bulbs for compact fluorescents. However, many restaurants and dining companies lease their space from a landlord or operate out of their client’s building and have contracts that lump rent and utility costs together. In cases like these, there is little incentive to purchase new, energy efficient appliances at a higher upfront cost, because any energy savings accrue to the building owner or client, and not your business.

Fortunately, there are ways to resolve this conflict – and chances are, your building owner or client wants to work with you to reduce your environmental footprint. The key is to make sure that you are compensated appropriately for the investments that your company makes to reduce energy, water, and waste costs, and where another party – either the building owner or client – normally would recoup the monthly savings on their own utility bills. You can achieve this objective by renegotiating your rental or operating lease, or attaching an addendum that separates out energy costs from rent, and provides language that compensates your company for any upfront investments that lower utility and waste disposal costs over time. You can learn more about designing green or energy efficiency leases, and view sample lease language here.

Adding It Up

Best Practice Category  Areas of Potential Savings
Bottled Beverages  Lower waste hauling fees with “bottleless” water and soda solutions
Cleaning Chemicals  Lower cleaning product costs by improving chemical management and application
Coffee & Tea  Lower costs by turning off coffee urns when not in use
Cooking & Refrigeration Equipment  Lower energy costs by using efficient appliances and proper scheduling
Dishwashing & Water Use  Lower energy and water costs by controlling water temperature and flow, and using efficient dishwashers
Facility Design  Lower operating costs by using efficient lighting, heating and air conditioning
Food Transport  Lower shipping costs by reducing transport distances
Meat, Dairy, Eggs  Lower meat costs by switching to less costly, low-carbon protein choices and offsetting smaller meat portions with grains and vegetables
Produce  Lower produce costs by purchasing organic produce during peak growing season
Seafood  Lower seafood costs by replacing costly unsustainable fish species with abundant, affordable options
Serviceware  Lower serviceware and waste hauling costs by using reusable dishware
Waste & Recycling  Lower waste hauling fees and increased recycling revenue by using reusable serviceware and composting or pulping food waste

 

Posted: 12-Mar-2009; Updated: 10-Jul-2009

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