BA 396 - Lean & Green Restaurants

BA 395 Independent Research

Brian FanelliAngela Van StranderMatthew Vital

Dr. Jennifer EdmondsLean & Green Operations in Local NEPA BusinessesProject Introduction Dr. Jennifer EdmondsWhat does it mean to be LEAN? Angela Van StranderWhat does it mean to be GREEN? Matthew VitalWhat does this mean for Restaurants? Brian FanelliScope of Project Dr. Jennifer EdmondsNext StepsDr. Jennifer Edmonds

Your questions are welcome at any time

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

Angela Van Strander

Highlighting Sustainable Behavior in Small Businesses

LEAN

GREEN

In order for each step process adds value for a customer.Strategy focused on elimination of waste

doing more with less:[time, inventory, space, labor, and money]Proven implementation of standards & principlesGuaranteed continual process improvementEnhance:EfficienciesReduce wasteImprove profit margins

Key Focus:

Managing employee productivityPlace unique valueMaking sure every item worked onStreamlining supply chainTo support the end user.

To Be Considered Lean:Organization operates with minimum wasteHigh levels of productivity and efficiency

Lean Manufacturing

Toyota Production System7 Waste System*Not limited to manufacturing

Areas to Target:

Benefits of Lean ProductionWaste reductionProduction cost reduction Decreasing manufacturing cycle times Labor & inventory reductionWhile increasing customer service levels

Benefits of Lean Production (contd)

Higher quality Higher profits Higher system flexibilityReacting to changesMore strategic focus Improved cash flowIncreasing shipping &billing frequencies

Elements of Enabling a Lean ApproachSpecify Identify and Map the Value Stream FlowsToyota Production SystemPullPerfection

Ultimate Goal:

Perfect value to the customerThrough perfect value creation process that has zero waste.

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

Matt Vital

Highlighting Sustainable Behavior in Small Businesses

LEAN

GREEN

To pursue knowledge & practices that can lead to a more environmentally friendly and ecologically responsible decisions and lifestyles. Help protect the environment & sustain its natural resources for current and future generations.

Green Business GuideComply with Environmental RegulationsDevelop an Environmental Management PlanBuild GreenBuy Green ProductsAdopt Energy Efficient PracticesReduce, Reuse, Recycle WastesConserve WaterPrevent PollutionCreate a Green Marketing StrategyJoin Industry Partnership and Steward Programs10 steps to integrate green business Practices

Green Business Guide (contd)Comply with Environmental RegulationsDevelop an Environmental Management PlanComplying protectsEnvironment and business from fines and legal actions Minimize companys eco-footprintEncourage practice throughout organization

Green Business Guide (contd)Build GreenBuy Green ProductsBuild greenInstall energy efficient systemsHeating and A/CEquipmentLighting

Recycled materialsBio-basedNon-toxicEnergy efficient productsEnergy StarRenewable and recyclableLocally produced (foods)

Green Business Guide (contd)Adopt Energy Efficient PracticesReduce, Reuse, Recycle WastesPurchase energy efficient equipmentProvide tips to employeesSeek green power and renewable energy sources

Waste managementRecycled productsEliminate excessOptimize paper productsIntegrate recycling programs

Green Business Guide (contd)Conserve WaterPrevent PollutionConduct a water audit by a local agencyUse best available technology and water saving equipmentMinimize sewageRoutine actions with proper handling and disposalSave more money

Green Business Guide (contd)Create a Green Marketing StrategyJoin Industry Partnership and Steward ProgramsBrand image and secure market share among consumersEco-labelsUS Environmental Protection Agency (EPA)Aim to reduce industrial activities on the environmentBuilds credibility How to Become More Energy Efficient:LightingWater HeatingRefrigerationEquipmentHeating and CoolingBuildings

LightingShut offDisconnectReplace to fluorescent Install automatic sensors/timersDay lightingLED signs

Water Heating

Set at low tempInstall faucet aerators & showerheadsUse wiselyRefrigerationRoutine maintenanceAuto lights in refrigeratorsDefrost regularly

Equipment

MaintenanceEnergy efficientMotor and motor systems at optimum efficiency

Heating and CoolingInspect and clean filtersAdjust thermostatReduce A/C hours

Buildings

Block direct sunlight through windowsDay & nightKeep well ventilatedCeiling fans

Highlighting Sustainable Behavior in Small BusinessesNumerous 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 ResearchExpenditures 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)Restaurants Going GreenBrian Fanelli

ImprovementsEnergy Efficient LightingTurn off unused cooking hoodsSet up energy curtains in freezer roomRun dishwashers only when fullKeep everything clean

Improvements Cont.RECYCLEGet ride of StyrofoamInstall motion sensors in lightingUse waterless urinals and low-flow toiletsRepair leaky faucets and toiletsInstall flow restrictors on faucets

Current TrendsChipotle, Starbucks, are the first movers in this trend.

Money is a big motivatorSome demographics specifically look for green businesses

Current RestaurantsBurgervilleUsing left-over burger grease for biodiesel

Pizza Fusion Each store leases up to four hybrid delivery cars to deliver its pizzaPizza made of locally grown, organic ingredients

Current RestaurantsStarbucksServes most of its drinks to in-store customers in ceramic mugsAll new stores built in the USA will be green buildings

SubwayUsing less paper for wrappingNapkins are 100% recycled paper

Keeping up TrendsDoing green (vs. going green) creates binding customer loyalties generating sustainable revenues.Keeping surfaces clean

Highlighting Sustainable Behavior in Small BusinessesNumerous 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 ResearchExpenditures 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 2007Highlighting Sustainable Behavior in Small BusinessesNumerous 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 employeesHighlighting Sustainable Behavior in Small BusinessesNumerous 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.

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

223Restaurants in Luzerne County650+ Restaurants in Luzerne County Types of Restaurants in Luzerne County

Highlighting Sustainable Behavior in Small BusinessesNumerous 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.

650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)Not including national chains or fast food outletsNot including drinking-dominated establishments~300 restaurants in Luzerne County

Highlighting Sustainable Behavior in Small BusinessesNumerous 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 will focus on the prevalence of sustainable behaviors

LEAN

GREEN

Mainly On-site InterviewsData Entry via web form

ReferencesGoing Green: Sustainable Living Guide (2010). Retrieved from http://www.thrall.org/special/goinggreen.htmlGreen Business Guide (2011). Retrieved Feb. 12, 2011 from http://www.business.gov/manage/green-business/Lean Manufacturing (2010). Retrieved Feb. 10, 2011 from http://www.1000advices.com/guru/processes_lean_5elements_bywj.html Lean Production (2010). Retrieved Feb. 10 2011 from http://www.1000ventures.com/business_guide/lean_production_main.html http://www.usatoday.com/money/industries/environment/2008-05-15-green-restaurants-eco-friendly_N.htm http://restaurants.about.com/od/resources/a/Go_Green.htm http://www.greenrestaurants.org/ http://www.entrepreneur.com/management/greencolumnistbillroth/article194882.html