Marketing to Conserving Customers: A Guide to Operating Green with a Triple Bottom Line

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    Marketing to Conserving Customers: A Guide to Operating Green with a Triple Bottom Line - Presentation Transcript

    1. Marketing to Conserving Customers A Guide to Operating Green with a Triple Bottom Line NRA Restaurant Show May 19, 2008 Lisa Kivirist & John Ivanko co-authors of ECOpreneuring and Rural Renaissance Inn Serendipity Bed & Breakfast
    2. MENU FOR PROSPERITY In An Emerging “Green Economy”
      • Climate for Change
      • - Changing perspective
      • - Definitions
      • - Trends
      • Green Guide to Operating Sustainably
      • - Ingredients for restaurant sustainability
      • - Ecopreneurial restaurant profiles
      • Action Plan
      • - Selected resources
    3. PERSPECTIVE Peak Oil
      • Global production of crude oil peaking
      • • Raw material for gas,
      • diesel fuel, plastics,
      • pesticides in agriculture
      • • End of abundant,
      • easy to reach, cheap oil
      Source: peakoil.org, energybulletin.net, richardheinberg.com
    4. PERSPECTIVE Rising Cost of Energy
      • Wealth = Energy
      • Energy impacts all aspects
      • of restaurant industry
      • – Operations & customers
      • • 600%-plus increase in oil over 10 years
      • – $12/barrel in 1998
      • – $86/barrel in 2008
      • Upward spiral of natural gas & electricity costs
      • – Electricity rates going up 6 - 8% in many parts of country
    5. PERSPECTIVE Inflationary Times
      • Wholesale restaurant food prices rose 7.4%
        • – Largest increase in 3 decades
        • – Source: National Restaurant Assn.
      • Present conventional food system unsustainable
        • – For every calorie of vegetables, more than 10 calories of hydrocarbons (oil) are needed
        • – For every calorie of beef, more than 50 calories of energy needed
        • – 29 calories of transport energy for 1 calorie of Chilean asparagus
        • – Source: Omnivore’s Dilemma, Confronting Consumption
      World appetite for oil & grain resulting in higher food prices (and energy)
    6. PERSPECTIVE Ecological Decline
      • Every ecological system is in decline
        • – Habitat destruction & poor land use decisions
        • – Air & water pollution
        • – Over fishing or harvesting
      • Rapid loss of biodiversity
        • – 90% of food supply from 15 food crops & 8 species of livestock
      Source: The Ecology of Commerce, State of the World Earth’s life support systems failing
    7. PERSPECTIVE Climate Change
      • Buildup of carbon dioxide in atmosphere
      Source: Intergovernmental Panel on Climate Change, ipcc.ch
      • Extreme weather events
      • – Increasing variability and
      • unpredictability
      • Likely cap-and-trade schemes legislated to mitigate climate change
        • – Even higher cost for energy (coal, oil-based energy)
    8. PERSPECTIVE Precious Water
      • Water likely to become the next oil
      Source: EPA, Food & Water Watch
      • Water pumped from aquafers
      • faster than replenished
      • Bottled water waste
      • – 60 million water bottles disposed
      • every day in US
      • – Only 12% recycled
      • – Producing bottles requires 1.5 million barrels of oil
      • – Transport adds to carbon dioxide emissions
    9. PERSPECTIVE Restorative Opportunities
      • From Scarcity…
      • - Running out
      • - More is better
      • - Externalizing costs
      • - Work harder = more customers
      Source: ECOpreneuring, ecopreneuring.biz … To Abundance - Quality, not quantity - Filling “ecological” niches - Adaptable, resilient - Internalizing costs - Greater self-sufficiency - Re-localization
    10. DEFINITIONS Sustainability
      • The practice of sustainability is about creating new ways to live and prosper while ensuring an equitable, healthy future for all people and the planet.
      Source: The Natural Step, naturalstep.org
    11. DEFINITIONS Sustainability
      • Transformation of economy
      • … from life-depleting to life-restoring
      Source: The Natural Step, naturalstep.org
    12. DEFINITIONS Triple Bottom Line
      • Multiple bottom lines:
      • Planet (environment)
      • – Enhancing, restoring and
      • conserving nature
      • People (social)
      • – Customers, workers, vendors,
      • investors
      • Profit (economy)
      • – Reinvesting for the future?
      Source: Angry Trout, ECOpreneuring, ecopreneuring.biz
    13. TRENDS Food Related: Organic
      • Organic food industry growing
      • at 10%-20% per year
      • - Source: Organic Trade Association
      • • 7 in 10 Americans express some concern about pesticides, hormones, antibiotics and other chemicals in food
        • - Source: Roper Public Affairs
      • • Households with incomes LESS than $50,000 spend more money, per capita, on organic food than higher income households Source: Hartman Group and Nielsen Homescan
    14. TRENDS Food Related: Local
      • The avg. meal travels 1,500 miles
        • - In local food system, food travels avg. 45 miles
        • - Source: Environmental Commons
      • Between 1994 and 2004, the number of farmers’ markets in the U.S. more than doubled, adding almost 2,000 markets
        • - Source: USDA Agricultural Marketing Service
      • Local food linked to health benefits, environmental preservation, exceptional flavor, local economy benefits
        • - Source: Midwest Organic & Sustainable Education Service
    15. TRENDS Food Related: Fair Trade
      • Fair trade is exchange that seeks to create greater equity and partnership through paying fair wages, supporting participatory workplaces, ensuring environmental responsibility, respecting cultural identity, building direct and long-term relationships, educating customers
      • - Source: Fair Trade Federation, fairtradefederation.org
      • Small but rapidly growing market segment
      • - In 2006, global fair trade cocoa grew 93%, coffee 53%, tea 41%
      • bananas 31% Source: Fair Trade Federation, transfairusa.org (listing)
    16. TRENDS Food Related: Restaurants
      • More restaurant customers prefer “sustainable” businesses
        • - 62% of patrons chose restaurants based on commitment to environment
        • - Source: National Restaurant Association, 2008
      • 5 of the top 10 “hot trends” according to national chefs
        • - Local produce, organic produce, artisan/microbrew beer, sustainable seafood, grass-fed items
        • - Source: National Restaurant Association, American Culinary Federation, 2008
    17. TRENDS Food Related: Travel
      • Tourism is big business for tableservice restaurants
        • About 40% of revenues at
        • fine-dining restaurants
        • National Restaurant Assn., 2008
      • Ecotourism increasing at annual
      • rate of 10-20%, versus overall
      • tourism 4% annual rate
        • Source: World Resources Institute
      • Geotourism
        • - Travel that enhances “sense of place” & features cuisine
        • - National Geographic/Travel Industry Assoc. of America
    18. TRENDS Food Related: General
      • Thrive in “Experience Economy”
        • Seek emotional experiences, even transformational ones
        • But not transactions
          • Joseph Pine/James Gilmore, Experience Economy
      • Emergence of the “Creative Class”
        • “ Place is becoming the central organizing unit of our economy and society.”
          • Richard Florida, Rise of the Creative Class
    19. GREEN GUIDE Ingredients for Restaurant Sustainability
      • Diversity of ingredients
      • • Plenty of room for creativity, innovation
      • • Start in the back of the house…
        • Replace energy inefficient appliances
        • Immediate return on investment
      • • Then move to front of
      • the house
      • • Boldly state your values
    20. GREEN GUIDE Ingredients for Restaurant Sustainability
      • 1. Energy Efficiency & Conservation
        • – Nearly 1 million restaurants consume more electricity than any other retail outlet (National Rest. Assn.)
      • – Compact fluorescent, linear fluorescent, or LED?
      • – Energy Star-certified appliances
      • 2. Water Efficiency & Conservation
      • – Avg. restaurant uses 300,000 gallons of water/year (Green Restaurant Assn.)
      • – Low flow toilets, waterless urinals
      • – Eliminate bottled waters
      • – Provide tap/filtered water upon request
    21. GREEN GUIDE Ingredients for Restaurant Sustainability
      • 3. Recycling & Composting
      • – Avg. restaurant generates 50,000 pounds of
      • garbage/year (Green Restaurant Assn.)
      • – Seek to eliminate the concept of waste
      • – Select disposable cups, plates, cutlery that can be composted
      • – Re-useable carry out containers (even with deposit)
      • – Turn waste fryer oil into biodiesel
      • 4. Sustainable Food
      • – Local
      • – Organic
      • – Grass fed, Pastured
      • – Seasonal menus
      • – Do you feature your farmers or producers?
      • – Signature items that showcase community
    22. GREEN GUIDE Ingredients for Restaurant Sustainability
      • 5. Pollution Prevention
        • Eliminating polystyrene foam (Styrofoam)
        • Purchasing carbon “off-sets” for operations
        • Chlorine-free paper products
      • 6. Recycled, Tree-Free, Biodegradable
      • & Organic Products
      • – Natural soaps in bathrooms
      • – Cloth napkins from organic cotton
      • – 100% recycled, post-consumer waste paper for menus
      • – Sustainable furnishings
    23. GREEN GUIDE Ingredients for Restaurant Sustainability
      • 7. Non-Toxic Cleaning & Chemical Products
      • – Buy from companies you trust (and disclose ingredients)
      • – Terms like biodegradable, non-toxic, organic are
      • unregulated
      • 8. Renewable Energy
      • – Participate in “green energy” programs offered by large utilities
      • – Generate your own with photovoltaics or if site permits,
      • wind turbine
      • – Use the sun to heat water with solar thermal system
      • – Heat with renewable wood, corn or geothermal system
    24. GREEN GUIDE Ingredients for Restaurant Sustainability
      • 9. Green Building & Construction
      • – No Volatile Organic Compounds (VOC) in caulks, paints
      • – Forest Stewardship Council (FSC) certified wood
      • – Natural buildling materials: cork, bamboo
      • – Daylighting, passive solar design
      • – Use of reclaimed building materials, recycled materials
      • – Secure Leadership in Energy and Environmetal Design (LEED)
      • certification offered by U.S. Green Building Council (usgbc.org)
      • 10. Stakeholders
      • – Employees paid “living wage”
      • – Training address environmental issues
      • – How can your customers pitch in?
      • – Giving back to community
    25. GREEN GUIDE Certification in the USA
      • Green Restaurant Association
        • dinegreen.org
        • Certification based on recycling, elimination of Styrofoam, 4 steps/yr. for environment
      • Co-op America Business Network
        • coopamerica.org
        • members based on social & environmental criteria (restaurants as well as other business sectors)
      • Travel Green Wisconsin
        • travelgreenwisconsin.com
        • state sponsored, voluntary certification program that includes restaurants
        • Certification based on extensive list addressing all aspects of operations
    26. GREEN GUIDE Voluntary Review: Green Routes Source: Green Routes, greenroutes.org
      • Find one-of-a-kind places to eat, play, shop, sleep and learn
      • Web-delivered content
      • Innovative networking of restaurants and other rural enterprises
    27. GREEN GUIDE Voluntary Review: Green Routes
      • Key elements in review:
      • Ecological responsibility
      • Contribution to local economic vitality
      • Cultural sensitivity
      • Experiential richness
      This is a program by Renewing the Countryside in Minnesota, greenroutes.org
    28. MARKETING TO CONSERVING CUSTOMERS
      • Serving conserving customers, not “consumers”
      Source: ECOpreneuring , ecopreneuring.biz
      • Awareness building about human impacts on the planet
      • Changing how we live, work, eat and play
      • Change in consciousness that influences our lifestyle and spending habits
    29. MARKETING TO CONSERVING CUSTOMERS
      • 50 million Americans
        • – About 1/4 of US population
      • Strongly aware/deeply concerned
      • about issues facing planet
        • Taking action to address them
      • Focus on health, well-being
      • Wiser consumption
      Source: Cultural Creatives , by Paul Ray/Sherry Anderson, culturalcreatives.org Cultural Creatives, creating a new culture, worldview
    30. MARKETING TO CONSERVING CUSTOMERS
      • Lifestyles of Health and Sustainability (LOHAS)
      Source: LOHAS, lohas.com
      • Integrate social, political and economic values with their actions in the marketplace
      • Roughly 1 in every 3 people in U.S.
        • – 58 million adults
      • • Authenticity and transparency key
      • – Avoid “greenwashing”
      • – Walk the talk
    31. MARKETING TO CONSERVING CUSTOMERS
      • 5 key LOHAS market segments
      Source: LOHAS, lohas.com
      • (1) Healthy lifestyles: organic & natural foods
      • (2) Ecological lifestyles: ecotourism, eco-products
      • & natural building/green design
      • (3) Sustainable economy: self-sufficient, eco-friendly
      • Alternative healthcare
      • (5) Personal development: yoga & spas
    32. MARKETING TO CONSERVING CUSTOMERS
      • Communicate responsibility & legacy story
        • Avoid focus on “environment”
      • Offer authentic EXPERIENCES
      • Selective approach to media
        • Public radio, partner with non-profits,
        • menu tastings & tours
      • Celebrate the local community
        • Focus on unique sense of place
        • Network with like-minded lodging, attractions, events (packaged tours)
    33. MARKETING TO CONSERVING CUSTOMERS
      • “ 7 Ps” of marketing, not 4
        • Product
          • How do you treat nature,
          • vendors, employees?
          • - Eliminate waste
        • Price
          • The premium goes to nature,
          • employees, or community
          • Based on values, not simply a “good value”
      Source: ECOpreneuring , ecopreneuring.biz
    34. MARKETING TO CONSERVING CUSTOMERS
      • “ 7 Ps” of marketing
        • (3) Place (distribution)
          • - How can you showcase your community?
        • (4) Promotion (PR and advertising)
        • - Tell YOUR unique story
        • - Let your customers be your ad/PR agency
        • People
          • Go beyond “transactions”
          • Create experiences
          • Follow the “80-20 rule”
      Source: ECOpreneuring , ecopreneuring.biz
    35. MARKETING TO CONSERVING CUSTOMERS
      • “ 7 Ps” of marketing
        • (6) Partnerships
          • Networking (non-profits)
          • Cause-related marketing
        • (7) Purpose
          • Celebrate your passion
          • and purpose
          • - Sell steak, not sizzle
      Source: ECOpreneuring , ecopreneuring.biz
    36. Ecopreneurial Profile Angry Trout Cafe
      • Sustainable,
      • local ingredients
        • Customers care about the fishermen, farmers & brewers, want to hear their stories
        • – Local maple syrup, produce, microbrews
      • “ Place-based” cuisine
        • Featuring local varieties of wild rice
        • Feature only fish from the region in season
    37. Ecopreneurial Profile Angry Trout Cafe
      • Reduce waste with reusable items
        • Reusable take-out food trays
        • Refillable pens
        • Organic cotton little napkins
      • 6-inch x 11-inch
      • half material
      • half the water, energy, detergent to clean them
    38. Ecopreneurial Profile Angry Trout Cafe
      • Living wage
        • Lowest $8.50/hr.
        • and kitchen staff, $12.50/hr.
        • Share the wealth
      • Community connections
        • Buying from neighbors;
        • selling to neighbors
        • Furniture, dishware, décor, tilework, metalwork
        • Supporting the local economy
    39. Ecopreneurial Profile Hook, Washington DC
      • Sustainable seafood leader
        • Highest quality product
        • Direct interactions with suppliers
          • On site visits to Caribbean/West Africa by chef/owner, Barton Seaver & staff
      • Menu reflects seasonal focus
        • Exclusively sourced local produce
        • Humane meat & dairy products
      • Linking food & environment
        • – Partnership with EarthEcho
    40. Ecopreneurial Profile Habana Outpost, New York
      • First solar powered restaurant in New York
        • Patrons can recharge cell phones & computers
      • “ Bike blender” pedaled by patrons to make fruit drinks
      • Local organic ingredients
      • Dishes, flatware, cups made from corn/sugar cane fiber
    41. Ecopreneurial Profile Habana Outpost, New York
      • #1 Photovoltaic system
      • #2 Reused truck is kitchen
      • #3 Kids corner (garden)
      #5 Rain water collection (for toilets, irrigation) #8 Recycled aluminum table #12 Reclaimed doors
    42. Ecopreneurial Profile Chipotle Mexican Grill
      • “ Food with integrity”
      • - Foods, design of restaurants, treatment of employees
      • Featured pasture-raised pork from Polyface Farm (Virginia only)
        • Vegetarian and vegan options
      • Return on Investment & Return on Environment
        • Publicly traded stock up 100% since May, 06
    43. Ecopreneurial Profile Kavarna Vegetarian Coffeehouse, Green Bay, WI
      • Purchase “green energy” from local utility
        • Offer free beverage to customers who also participate
        • in green energy program
      • Vegetarian cuisine
        • Reducing ecological footprint
        • Tapping growing trend
      • Innovative use of Internet
        • Blog website format
        • Social networking
    44. Ecopreneurial Profile American Flatbread Bakery & Restaurant, Los Alamos, CA
      • Artisan, handmade pizzas
        • Made in woodfired oven
      • All locally grown ingredients
        • Pizza with a “sense of place”
        • All within 300 miles
      • Feature farmers by name
        • “ Windrose Farm Baby Lettuce
        • Salad…”
        • “ Strauss Family Organic Vanilla Bean Ice Cream”
    45. Ecopreneurial Profile American Flatbread Bakery & Restaurant, Los Alamos, CA
      • Support fair trade movement
        • Locally-roasted, certified Fair Trade, organic coffees
      • Seasonal & fresh menus
        • Reducing ecological footprint
        • Bar appetizer: fresh pea pods
      • Frozen certified organic pizza
        • Restaurant open on
        • weekends only
    46. Ecopreneurial Profile Inn Serendipity Bed & Breakfast, Browntown, WI
      • Two room B&B, near Monroe, Wisconsin
      • - Niche lodging-place food service
      • Organic and vegetarian
      • Fresh, from garden to plate
      • Seasonal cuisine
        • Offers variety for returning guests
      • Fair Trade, Organic coffee/tea
        • Only earth-friendly vendors
    47. Ecopreneurial Profile Inn Serendipity Bed & Breakfast
      • Renewable Energy Systems
      • • Net Producer of Electricity on Annual Basis
      • Reduce Ecological Footprint
    48. Ecopreneurial Profile Inn Serendipity Bed & Breakfast
      • Solar Thermal System
      • for Hot Water
      • 3 collectors
      • Capture heat from sunlight to heat water
      • for domestic use
      • Estimated payback of less than 5 years
    49. Ecopreneurial Profile Inn Serendipity Bed & Breakfast
      • Off-Grid Photovoltaic System & all-electric Car
      • .5 kW PV system for charging:
      • – All-electric CitiCar
      • – Back-up electricity for
      • greenhouse
      • – Recharging electric mower
    50. SELECTED RESOURCES Sources for Sustainable Ingredients
      • Local Harvest
        • - Locate sustainably-raised foods in your area; localharvest.org
      • Community Supported Agriculture (CSA)
        • - Purchase “shares” of farm’s products; www.wilson.edu/csasearch/search.asp
      • Eat Well Guide
        • eatwellguide.org
      • HappyCow vegetarian restaurants
        • - happycow.net
    51. SELECTED RESOURCES Sources for Sustainable Ingredients
      • Chefs Collaborative
        • Farmer-Chef Connection provides a good source for farmer and restaurant collaboration
        • Guide to Good Eating to help diners locate Chefs in their network
        • chefscollaborative.org
      • Pastured Products Directory
        • eatwild.com
      • Slow Food USA
        • slowfoodusa.org
    52. SELECTED RESOURCES Sources for Sustainable Ingredients
    53. SELECTED RESOURCES Sources for Sustainable Seafood
      • Marine Stewardship Council
        • Certification of seafood
        • msc.org
      • Monterey Bay Aquarium
      • Seafood Watch Card
        • montereybayaquarium.org
      • Blue Oceans Institute
        • Cell-phone text messaging service
        • blueocean.org
    54. SELECTED RESOURCES Organizations
      • Database of State Incentives for Renewable Energy
        • Funding for energy conservation and renewable energy
        • www.dsireusa.org
      • Midwest Renewable Energy Association
        • Educational resources and connections to professional installers
        • www.the-mrea.org
    55. SELECTED RESOURCES Organizations
      • GreenOptions
        • From their Eat.Drink.Better. portal to their Ecopreneurist and Sustainablog, this dynamic and upbeat blog site receives over 300,000 unique visitors per month and serves as a bridge to operating greener
        • www.greenoptions.com
      • Consortium for Energy Efficiency (education)
        • Promotes energy efficient products, technologies and services
        • www.cee1.org
    56. SELECTED RESOURCES Organizations
      • Energy Star (EPA)
        • Listing of Energy Star certified appliances & equipment that will save your business money, reduce impacts on environment
        • Resources, management tools & numerous examples
        • www.energystar.gov
      • National Restaurant Association’s “Conserve”
        • To be launched on Earth Day, 2008
    57. SELECTED RESOURCES
      • Angry Trout Café Notebook
        • by George Wilkes
      • The Ecology of Commerce
        • by Paul Hawken
      • Omnivore’s Dilemma
      • - by Michael Pollan
    58. www.ecopreneuring.biz www.ruralrenaissance.org
      • Books by Lisa Kivirist & John Ivanko
      • • ECOpreneuring
      • Pragmatic how-to guide to
      • launching or greening your enterprise.
      • • Rural Renaissance
      • Practical guide to greening operations.
      • • Edible Earth
      • Simple vegetarian cookbook.
      SELECTED RESOURCES

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