Sustainable. Eco-Friendly. Vegan. Zero Plastic. Zero Waste. Biophillic.
Theses terms are thrown around a lot, but not everything is as it seems and as a result the do’s and dont’s of sustainability are becoming more and more difficult to navigate,
The definition of sustainability is - "The ability to be maintained at a certain level” i.e Sustainability of economic growth. “The avoidance of the depletion of natural resources, in order to maintain an ecological balance” i.e. global environmental sustainability.
When you apply this to a restaurant business, it is quickly evident that this is not a short term goal as creating sustainable econmic growth is a slow burn. This does not mean it is not possible however and with all my clients I aim to put them on the path of long term sustainability. How do we do this, I hear you ask? Let us break it down into 3 main categories'; 1. Profit , 2. People, 3. Planet. Current trends and media have a strong focus on the planet (which is great!) but in order to get the balance right, these three fundamental aspects need to be considered together.
Profit
The obvious one! Every business needs to make a profit. What the situation with the Covid-19 pandemic has taught us all is that it is essential to have a steady income stream all year with mutltiple revenue streams. So that, if something like lockdown happens, you have something to fall back on.
Creating a sustainable income stream is not a small topic, there are a few key areas that arose as a result of the pandemic that I did want to highlight here.
Understand your menu - know what dishes have the highest profit margins and compare this to the best selling items. This is the cost analysis and it is so often overlooked. Often operators hold stock of items that are barely requested or ordered and this not only has a cost implication but also results in high volumes of food wastage.
Benefit from economies of scale - you may have heard the phrase community over competition a lot recently. If operators are able to benefit from volume ordering from suppliers that they all already use, this can result in significant cost reductions for all involved. The added benefit is being able to support one another in a time of need. Other examples of this could be for food deliveries, staffing, cleaning, price negotiations and lobbying your local council. A great example of this in action is how communities of operators grouped together to create outdoor seating for customers once lockdown was eased post Covid-19.
Understand your suppply chain - using local suppliers eleviates the reliance on global supply chains. The cost may be higher this way, however if you include this in your marketing messages, that you are suporting local producers, reducing your carbon footprint and bossting the local economy, it will more often than not be well received. According to CGA’s latest brandtrack survey, 65% of UK customers expected to see that their food was ethically sourced and 25% were more than happy to pay extra for this. The added benefit is a loyal base of suppliers that may also help by being your brand ambassadors!
2. People
People consist of your staff, your customers and your community.
Many businesses focus on potential customers creating social media strategies and advertising campaigns to entice new faces to their business. Budgets for this tend to be quite substantial, so it is vital you understand what you are doing and why. Too often I see messages copied and pasted across various social media platforms and too often they fall into an abyss. The number one reason for this is not building a community.
Your client base will be primarily located in your local vicinity with travel being no more than an hour, so this is where your marketing efforts should be focused. Of course we would all love globally recognised businesses, but what are the chances that someone that lives in Manchester will come to your restaurant in London? After this, consider your target demographics, think carefully about their spending power and interests. Once you have your customer “avatar” the marketing becomes really easy and your return on time and investment in marketing is instantly higher. Higher returns on a smaller and constant budget for marketing is in the long run going to create a more profitable business.
Staffing accounts for the largest proportion of your expenditure. If you think of this as your largest asse,t as you would with say with your home or a luxury car, it is obvious that they need to be taken care of in order to provide you with the best output. Along with a fair wage, staff need to feel like they are valued. Creating opportunities for your employees through career progression or training is known to help with morale and job satisfaction. Happy employees will exude how they feel and will in turn show this through their customer service. With increasing pressures on the industry, consumers are looking for good food but great service, so this is not something you can ignore. Talk to your workforce, make sure you understand what they are looking for, it may surprise you!
3. Planet
Creating a restaurant business while helping the planet, is no longer an abstract idea, but an essential part of the business model. The reason for this is evident, not only is it an ethical responsibility but there are clear implications on improved profit margins too.
Waste
The biggest priority for most operators is food waste. I touched on this when thinking about profits earlier but the impact on the environment is also something that cannot be ignored. There are more and more green initiatives to help restaurant operators, apps such as TooGoodToGo and Olio are two that immediately come to mind. The idea being that people can collect left over food at the end of the day to avoid it being wasted. There are many initiatives that also take food to those in need such as homeless shelters and foodbanks. A great article that goes into detail with some alarming statistics is here from UK Hospitality.
Packaging
There are many “eco friendly” packaging options available now. However it is important to understand that this does not always equate to a sustainable option. Many companies claim to have eco-friendly products but provide no clarity around the manufacturing process and the carbon emissions involved in their suppply. In addition some materials may be eco-friendly but not practical. For example many materials are unable to hold liquids and grease, much to the disapointment of operators who have purchased these products with high expense! I cannot stress enough, how important it is to not take things at face value and ensure you understand what packaging solutions work for you.
Environment
In designing your restaurant do think about how you can use eco-friendly materials to benefit your environment. Using biphyllic design not only looks amazing but also improves the air quality of your premises. Other items to consider are VOC emissions in paint and repurposing or reusing furniture. I go into a lot of detail about this is a blog post I wrote about eco-friendly interiors. Read here.
Creating an environment that will attract customers, is as important as providing great food and great service. Consumers, now more than ever, need you to give them a reason not to run to Deliveroo and Uber Eats. The secret sauce is finding a designer that understand you and your business and can help you execute the design for your ideal customer. There is obviously a front ended investment, but the long term gain is that customers feel comfortable to return, will tell their family and friends about you and will use social media to advertise your brand for you. This is the reason so many venues want to be “instagrammable” and why it is in my mind, a non negotiable to creating a sustainable business.
Bottom line (see what i did there?!) is that you need to know your business costs and revenues inside and out to be able to make sensible and profitable decisions for long term sustainability. Sometimes this does mean spending more money on marketing campaigns, changing suppliers, training staff or changing your interiors, but with excellent planning and with the help of experts, it is completely within your ability to make it happen!
Need help to create a sustainable restaurant? Contact us now to see how I can help!