LEAN & GREEN Restaurants (F10)

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LEAN & GREEN Restaurants (F10)

  1. 1. BA 395 – Independent Research<br />Tori Bybel<br />Dom Dibetta(Graduated, Fall 2010)<br />Kevin McNavage<br />Kyle Yorke<br />Dr. Jennifer Edmonds<br />HIGHLIGHTING SUSTAINABLE BEHAVIOR IN SMALL BUSINESSES<br />A Survey of Lean and Green Practices <br />in the Restaurant Industry<br />
  2. 2. Project Introduction & Scope Dr. Jennifer Edmonds<br />Sample DemographicsKevin McNavage<br />Lean & Green Behaviors in the Restaurant Industry<br />Kevin McNavage<br />Tori Bybel<br /> Kyle Yorke<br />Summary<br />Future Research Dr. Jennifer Edmonds Tori Bybel<br />Your questions are welcome at any time…<br />
  3. 3. Highlighting Sustainable Behavior in Small Businesses<br />Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. <br />LEAN<br />GREEN<br />
  4. 4. Highlighting Sustainable Behavior in Small Businesses<br />Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. <br />LEAN<br />A systematic approach to identifying and eliminating waste through continuous process improvements in the pursuit of customer satisfaction<br />Defects<br />Overproduction<br />Waiting<br />Not Utilizing Employees (People Waste)<br />Transportation<br />Excess Processing<br />Motion Waste<br />Space<br />
  5. 5. Highlighting Sustainable Behavior in Small Businesses<br />Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. <br />LEAN<br />A systematic approach to identifying and eliminating waste through continuous process improvements in the pursuit of customer satisfaction<br />
  6. 6. Highlighting Sustainable Behavior in Small Businesses<br />Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. <br />GREEN<br />Reduce, Reuse, Recycle<br />Wise Consumption<br />Consistent Process Tracking <br />
  7. 7. Highlighting Sustainable Behavior in Small Businesses<br />Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. <br />…is lean green?<br />(Cooper, 2009)<br />LEAN<br />GREEN<br />High tech<br />Regulations <br />Low tech<br />Fundamental<br />Respect of people<br />
  8. 8. Highlighting Sustainable Behavior in Small Businesses<br />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. <br />(Greathouse, 2010)<br />‘Pays to be Green’ Empirical Research<br />Expenditures on pollution control are positively correlated with financial performance in pulp and paper firms<br />(Spicer, 1978)<br />Positive link between environmental and financial performance in manufacturing firms<br />(King & Lennox, 2001)<br /> …and future cost savings<br />(Porter & van derLinde, 1995)<br />Positive relationship between environmental and financial performance for scrap steel yards<br />(Clemens, 2006)<br />Small businesses report 20-30% cost savings by making energy saving moves….<br />Byron Kennard<br />Center for Small Business and the Environment<br />USA Today, December 2007<br />
  9. 9. Highlighting Sustainable Behavior in Small Businesses<br />Restaurants<br />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. <br />(Greathouse, 2010)<br /> Speed Waste<br />Adequate staff,<br />Necessary items where needed,<br />Implementation of some ‘S’s’<br />Overproduction,<br />Production defects,<br />Intelligent use of utilities and equipment,<br />Waste management & recycling<br />
  10. 10. Highlighting Sustainable Behavior in Small Businesses<br />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. <br />Why small businesses? <br />an excellent opportunity to conduct system-wide research <br />large numbers of homogenous firms<br />(Rigg & Bracker, 1986)<br />Hold a relatively small share of the market,<br />Fewer than 500 employees<br />
  11. 11. Highlighting Sustainable Behavior in Small Businesses<br />Restaurants<br />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. <br />650+ Restaurants in Luzerne County <br />Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)<br />
  12. 12. 223<br />Restaurants in Luzerne County<br />650+ Restaurants in Luzerne County <br />
  13. 13. Types of Restaurants in Luzerne County<br />650+ Restaurants in Luzerne County <br />
  14. 14. Highlighting Sustainable Behavior in Small Businesses<br />Restaurants<br />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. <br />650+ Restaurants in Luzerne County <br />Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)<br />Not including national chains or fast food outlets<br />Not including under-represented categories or drinking-dominated establishments<br />
  15. 15. Smaller Organizations in the Restaurant Industry<br />290 Restaurants in Luzerne County <br />
  16. 16. Smaller Organizations in the Restaurant Industry<br />290 Restaurants in Luzerne County <br />
  17. 17. Smaller Organizations in the Restaurant Industry<br />290 Restaurants in Luzerne County <br />
  18. 18. Highlighting Sustainable Behavior in Small Businesses<br />Restaurants<br />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.<br />LEAN<br />GREEN<br />
  19. 19. Mainly On-site InterviewsData Entry via web form<br />Demographics<br />Knowledge/Awareness<br />Recycling<br />Paper Products<br />Waste<br />Equipment<br />Transportation<br />Cleaning & Maintenance<br />Inventory<br />Energy & Utilities<br />Water Usage<br />
  20. 20. <ul><li>Project Introduction & Scope Dr. Jennifer Edmonds</li></ul>Sample DemographicsKevin McNavage<br />Your questions are welcome at any time…<br />
  21. 21. Annual Sales <br />~80% 0-$299K<br />Number of employees <br />29% 0-24<br />Sample Demographics<br />26 Restaurants in Luzerne County <br />
  22. 22. Customer Loyalty Programs<br />6 out of 26 26%<br />Sample Demographics<br />UPDATE<br />10 additional restaurants in this category not included in results<br />26 Restaurants in Luzerne County <br />
  23. 23. <ul><li>Project Introduction & Scope Dr. Jennifer Edmonds
  24. 24. Sample Demographics Kevin McNavage</li></ul>Lean & Green Behaviors in the Restaurant Industry<br />Tori Bybel<br /> Kevin McNavage<br /> Kyle Yorke<br />Your questions are welcome at any time…<br />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.<br />
  25. 25. Utilities<br /><ul><li>Type of Stove Used
  26. 26. Unanimous 100% Gas
  27. 27. Type of AC</li></ul>Unanimous 100% Electric<br /><ul><li>Type of Heat</li></ul>Electric - 17<br />Gas - 9<br />
  28. 28. Utilities<br />Yes- 4<br />No - 22<br /> 0% utilize SL now<br />
  29. 29. Utilities<br /><ul><li>Offer Drinking Water to Customers at no charge</li></ul>Yes- 23<br />No – 3<br /><ul><li>Those who DO NOT filter the water (8)</li></ul>All were interested in learning more about offering filtered water<br /><ul><li>Those who DO offer drinking water at no charge (23)
  30. 30. Is it filtered or not filtered?</li></li></ul><li>What happens to extra products when too much is produced/when made incorrectly?<br /><ul><li>Thrown Away
  31. 31. Stored for the next day
  32. 32. Given to workers</li></li></ul><li>How do you increase efficiency through the flow of your restaurant?<br /><ul><li>Only hire motivated and high energy people
  33. 33. Regularly checking that everyone knows their designated roles for the day
  34. 34. Assign certain locations for employees to be doing their work
  35. 35. Set up an assembly line style kitchen</li></li></ul><li>Keeping Track of Inventory<br /><ul><li>All 26 Stores check inventory by hand
  36. 36. Frequency of checks
  37. 37. Daily (25)
  38. 38. Monthly (1)</li></li></ul><li>Most Wasted Items<br /><ul><li>Pizza & related parts
  39. 39. Sauces
  40. 40. Cheese
  41. 41. Dough
  42. 42. Fries
  43. 43. Chili Sauce</li></ul>Plan in Place to Reduce Waste<br />
  44. 44. Awareness - Lean<br />Are you aware of what it means to be LEAN in terms of the way you operate?<br />2 out of 26 said no<br />Are you interested in being LEAN in terms of the way you operate?<br />6 out of 26- uninterested<br />
  45. 45. Awareness - Green<br />Are you aware of what it means to be GREEN in terms of the way you operate?<br />All restaurants know what it means to be green<br />Are you interested in being GREEN in terms of the way you operate?<br />3 out of 26 restaurants were not interested<br />
  46. 46. Awareness-Practices of Suppliers<br />Comments:<br />Low costs<br />Depending on competition <br />Depends on suppliers will to cooperate<br />21 out of 26 would still utilize their services<br />
  47. 47. Paper/Plastic Materials<br />
  48. 48. Paper/Plastic<br />
  49. 49. Paper/Plastic<br />Are you aware that you can purchase goods out of recycled materials?<br />2 answered no<br />Do you use silver or plastic ware for serving?<br />16 silver ware<br />10 plastic ware<br />
  50. 50. Recycling<br />8 Restaurants do not participate in recycling programs (Blank)<br />
  51. 51. Recycling<br />Are they locally supported activities?<br />22 said yes, 4 said no<br />Do you have to take any recyclables to a recycling center on your own?<br />3 said yes<br />
  52. 52. Transportation<br />Utilize Local Merchandise: Yes or No?<br />Deliver: Yes or No? <br />Out of 35% that do <br /> deliver all were used cars<br /> that the delivery person owned <br />Concerned about fuel efficiency: <br />
  53. 53. Inventory<br />All but one restaurant maintain inventory by hand, the other kept track electronically <br />How are orders taken? By hand or electronically? <br />All Businesses claim to keep track through “constant monitoring” <br />
  54. 54. Equipment<br />1 of the businesses rents their equipment <br />1 of the businesses claimed to not have all of their needed ingredients in a common vicinity <br />100% restaurants require their employees to regularly clean up <br />
  55. 55. 100% claim that their employees are informed of their basic job requirements <br />Routines for employees: <br />Common theme amongst the<br /> businesses require employees <br /> to stick to a time based schedule <br /> along with being a “jack of all trades” <br />
  56. 56. Summary<br />Demographics<br />Knowledge/Awareness<br />Recycling<br />Paper Products<br />Waste<br />Equipment<br />Transportation<br />Cleaning & Maintenance<br />Inventory<br />Energy & Utilities<br />Water Usage<br />Most restaurants interviewed are aware of what is meant by being lean and green<br />…but they’re only interested in being green<br />30% do not participate in recycling programs at all<br />All who participate have local support<br />Not as much participation in recycling food waste<br />Overproduction occurs with home-made condiments, sides and sauces<br />Half support local suppliers<br />Most restaurants institute at least 3 of 5 S’s<br />Only 15% of the restaurants use energy efficient light bulbs<br />…but 85% would incorporate smart lighting<br />
  57. 57. 46% want to receive the results of the survey<br />Spring 2011<br />Behavior across chains<br />International restaurants<br />Differences in behavior by size <br /> (no. of employees, sales)<br />Future Research<br />
  58. 58. References<br />Environmental Defense Fund website - Green Dining Best Practices http://innovation.edf.org/page.cfm?tagID=34864&s_src=ggad&s_subsrc=greendining&gclid=CK_T-ZKZuqQCFRI95<br />Collier, David., & Evans, James. (2010). OM2. South-Western Cengage Learning.<br />Greening Your Business." GreenBiz. Green Business Network, 2001. Web. www.greenbiz.com<br />National Restaurant Association website. http://www.restaurant.org/research/facts/<br />http://www.allbusiness.com/manufacturing/food-manufacturing-fruit/701215-1.html<br />
  59. 59. Special Thanks To…<br />Abe's Hot Dogs<br />Alta Pizzeria & Pasta Shop<br />Anthracite Café <br />Brickhouse Bar & Grill <br />Broadway Tavern <br />C.J.'S<br />Chill Grill<br />Cusats Cafe<br />Dagwoods<br />Dino's<br />Elmer Sudds<br />Florio's Pizza<br />Grotto Pizza<br />Haystacks <br />House of Wings <br />III Guys Pizza Inc<br />Januzzi's<br />Jimmy's Quick Lunch <br />Konefal's Restaurant<br />L & L Pizza Subs & More<br />Laceys Bar & Grill<br />Mimmo's Pizza & Restaurant<br />Rodano's<br />Sal's Pizza Subs & More<br />Shelley's American Pie Pizza<br />Shenanigans <br />

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