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Organic Growth: Being Green to Build Customer Loyalty

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Visit www.restaurant.org/show for more NRA Show 2008 education session topics and information.

Visit www.restaurant.org/show for more NRA Show 2008 education session topics and information.

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    • 1. Organic Growth: Being Green to Build Customer Loyalty 18 May 2008 National Restaurant Association
    • 2. More Frequent, More Personal, More Food
      • People connect to sustainability personally and initially through their food choices.
      • Food is the new “newspapers and aerosol deodorant.”
      • The responsibility to make the right choice increasingly falls to Food Service Professionals
    • 3. Special Focus on Food Choices
      • Media attention
      • Activism from PTA to Celebrity Chef’s
      • Connection between “Health, Fresh, Natural, Local and Sustainable.”
      • Food Safety incidents now at historic levels…and certain to climb.
      • Connecting the dots of food inflation, biofuels and climate change.
      • A “dash” of anti-China sentiment.
    • 4. Consumer Insights
      • Environmental Concerns drive consumers to buy “Green Products.”
      • ...Except for Food
      • Health Concerns drive consumers to buy Natural and Organic Foods.
      • Mintel Green Living March 2008
    • 5. So What is “Green”? Truly Fusion Cuisine! And who will come up with the next Thai Pizzaritto? Healthy Local Animal Welfare Fair Trade Good for the Planet Organic Fresh Natural Biodegradable
    • 6. The Premium Conundrum
      • About half of consumers are willing to pay a 10% premium for “green products” (Mintel)
      • And maybe less than 25% (Brandweek)
      • The rest will buy them when they are available at mainstream places at prices
      • Only the most committed consumers seek out “green products” at specialty retailers.
      • Premium shoppers are most skeptical of “green” claims.
      • For the 50-75%, it’s a difference maker.
    • 7. The Big Opportunity in the Middle The Retail Response
    • 8. Boom to X
      • Younger consumers are less likely to buy “green” premium products than Baby Boomers and Seniors.
      • They are more likely to expect their food to reflect their values.
      • Good cooking and good practices are a “ticket to play.”
    • 9. How to Reach the Consumer?
      • Certification
      • Or
      • Marketing?
    • 10. What’s in a Certification
      • Third party verification of means of production
      • Sets standard for all businesses
      • Which one to choose?
      • How many are there?
    • 11. What’s in a Certification?
      • Does it reflect the values you are trying to communicate?
      • Is there sufficient supply and selection?
      • Who else is associated with the certification?
      • Is the certification recognized by your customers?
      • Or does the certifying agency have a compelling plan to do so?
    • 12. Can Marketing Work?
      • Can you tell a more compelling and verifiable story yourself?
      • Is the message a part of your existing brand identity? Or closely associated with it?
    • 13. There are good cars and bad cars for the environment… But is there really good food and bad food?
    • 14. How much energy is used?
      • What percentage of overall US energy needs go to producing food?
        • 1-3%
        • 3-5%
        • 5-7%
        • 10% or more
    • 15. How much energy is used?
      • The food sector now consumes 10.4% of all energy used in the United States.*
      • Globally, the food sector consumes between 10 and 15% of all energy used in industrialized countries.**
      • In the United States, 2-5% of US energy consumption, is used on the farm alone.***
    • 16. Energy needs for food
      • The cheeseburger
      • … from farm to plate
      Carlsson-Kanyama, Annika and Mireille, Faist, Energy Use in the Food Sector: A data survey
    • 17. Close up: the hamburger
      • Hamburger Ingredients*
      • Bread .16 lb
      • Hamburger .19 lb
      • Dressing .04 lb
      • Lettuce .06 lb
      • Onions .0037 lb
      • (freeze dried)
      • Cucumber .016 lb
      • (pickled)
      • Cheese .032 lb
    • 18. Bread supply chain Cultivated Wheat Milled Grain Flour Baked Bread To Storage To Restaurant Burger
    • 19. Bread supply chain: energy needs
    • 20. Bread supply chain: energy needs
      • The energy inputs accumulate from field to table.
      • The calories of food energy decline.
      • Energy needed for food production often exceeds the energy contained in the food product.
      Cumulative Energy Inputs
    • 21. Meat patty supply chain Crop Production Drying Fodder Production Feed Consumed Slaughter House Cutting To Storage To Restaurant Burger To Grill
    • 22. Meat patty supply chain: energy needs Cumulative Energy Inputs
    • 23. Hamburger energy profile
      • The total energy inputs to produce a hamburger are between 1,743 and 4,454 calories of energy inputs required to produce a hamburger.*
      • Each hamburger contains 310 calories of food energy.**
      • In addition to the kitchen, our supply chain also is a major contributor.
      Total Energy Inputs for a Hamburger Bun Burger Cheese Pickle & Onion Lettuce
    • 24. Intrinsic or Extrinsic Cultivated Wheat Milled Grain Flour Baked Bread To Storage To Restaurant
    • 25. Extrinsic or Intrinsic
    • 26. Local and Global!
      • Food has been traded for 2K, 5K or 10K, as you choose to believe
      • Can we still both eat locally and act globally?
    • 27. The Way Forward
      • Get this right and you have customers for life!
      • Service Customers great food that reflects a customer’s values and contributes to a healthy life and they’ll keep coming back.
    • 28. Exceeding Expectations At Every Level
      • Our company’s reputation
      • Total transparency about what we do
      • Community connections
      • A great dining environment
      • Great food
      • Great service
    • 29. Literacy on Sustainability
    • 30. Inside Park at Café St. Barts
      • Venerable New York institution on Park Avenue.
      • A completely new restaurant designed by New York-based Conant Architects with a new state-of-the-art kitchen designed by Pascoe-Jacobs Associates.
        • ‘ Wood’ used is sustainable bamboo
        • Non formaldehyde wood products
        • Low VOC (Volatile Organic Compound) paints and products
        • Non toxic floor finishes
      • Executive Chef Matthew Weingarten is creating menus focusing on local, seasonal and responsibly sourced ingredients.
    • 31. National Geographic Employee focused Visually stunning Globally Sustainable Matching culinary approach Reflect Sodexo and Nat’l Geo Values
    • 32. The University of Vermont Dudley H. Davis Student Center
      • “The sustainability concept for building is really a part of the University’s vision” Annie Stevens, Assistant VP for Student and campus life.
      • The center was constructed with great attention to Green Building Design and sustainability concepts.
    • 33. The Sustainability Concept for the Student Center
      • Natural light.
      • Green roof and terrace collects rain and storm water.
      • A tunnel built from trees harvested on UVM land is attached to the building.
      • Water, heat and electricity use tracked on computer monitors in a public Sustainability Gallery.
      • Serves organic and sustainable food including soups and salads – developed by UVM’s Sodexo team.
    • 34. Northwestern University
      • Northwestern University named the nation’s most vegetarian-friendly university by Peta2
      • One of 30 colleges nominated by our students nominees
      • 20% of the 6,600 recipes Sodexo serves in the dining halls are vegetarian friendly
    • 35. Sodexo and Illinois Farmers
      • Sodexo purchased over $4.75 million in fresh produce from Illinois farmers.
      • In season, this is about half of all produce purchases.
    • 36. Food = Sustainability
      • 1.3 billion people work in the food sector, the world’s largest employment group.
      • One quarter of all arable land is dedicated to food production.
      • One crop – coffee – is the second most valuable commodity in world trade after oil.
      • Food production accounts for 34% of water use in the U.S. and about 40% globally.
      • Food production accounts for more than 10% of energy use in the U.S. and 10-15% globally.
    • 37. Sustainability = Food
      • Efforts to promote sustainability are linked to our ability to feed ourselves.
      • Climate Change is forecast to be the leading cause of hunger in the coming decades
      • Uncertainty in agricultural production means uncertainty in food price, supply and safety.
    • 38. Sodexo’s Corporate Citizenship Priorities
      • Sustainability
      • Health and Wellness
      • Business Ethics
      • Fighting Malnutrition Worldwide
      • Diversity & Respect for Our People
    • 39. Our Work Ahead: Our Common roles in the Global context

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