1. BA 395 – Independent Research Tori Bybel Dom Dibetta(Graduated, Fall 2010) Kevin McNavage Kyle Yorke Dr. Jennifer Edmonds HIGHLIGHTING SUSTAINABLE BEHAVIOR IN SMALL BUSINESSES A Survey of Lean and Green Practices in the Restaurant Industry

2. Project Introduction & Scope Dr. Jennifer Edmonds Sample DemographicsKevin McNavage Lean & Green Behaviors in the Restaurant Industry Kevin McNavage Tori Bybel Kyle Yorke Summary Future Research Dr. Jennifer Edmonds Tori Bybel Your questions are welcome at any time…

3. Highlighting Sustainable Behavior in Small Businesses Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. LEAN GREEN

4. Highlighting Sustainable Behavior in Small Businesses Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. LEAN A systematic approach to identifying and eliminating waste through continuous process improvements in the pursuit of customer satisfaction Defects Overproduction Waiting Not Utilizing Employees (People Waste) Transportation Excess Processing Motion Waste Space

5. Highlighting Sustainable Behavior in Small Businesses Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. LEAN A systematic approach to identifying and eliminating waste through continuous process improvements in the pursuit of customer satisfaction

6. Highlighting Sustainable Behavior in Small Businesses Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. GREEN Reduce, Reuse, Recycle Wise Consumption Consistent Process Tracking

7. Highlighting Sustainable Behavior in Small Businesses Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program. …is lean green? (Cooper, 2009) LEAN GREEN High tech Regulations Low tech Fundamental Respect of people

8. Highlighting Sustainable Behavior in Small Businesses 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. (Greathouse, 2010) ‘Pays to be Green’ Empirical Research Expenditures 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 derLinde, 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 Kennard Center for Small Business and the Environment USA Today, December 2007

9. Highlighting Sustainable Behavior in Small Businesses Restaurants 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. (Greathouse, 2010) Speed Waste Adequate staff, Necessary items where needed, Implementation of some ‘S’s’ Overproduction, Production defects, Intelligent use of utilities and equipment, Waste management & recycling

10. Highlighting Sustainable Behavior in Small Businesses 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. 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 employees

11. Highlighting Sustainable Behavior in Small Businesses Restaurants 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. 650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)

12. 223 Restaurants in Luzerne County 650+ Restaurants in Luzerne County

13. Types of Restaurants in Luzerne County 650+ Restaurants in Luzerne County

14. Highlighting Sustainable Behavior in Small Businesses Restaurants 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. 650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010) Not including national chains or fast food outlets Not including under-represented categories or drinking-dominated establishments

15. Smaller Organizations in the Restaurant Industry 290 Restaurants in Luzerne County

16. Smaller Organizations in the Restaurant Industry 290 Restaurants in Luzerne County

17. Smaller Organizations in the Restaurant Industry 290 Restaurants in Luzerne County

18. Highlighting Sustainable Behavior in Small Businesses Restaurants 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. LEAN GREEN

19. Mainly On-site InterviewsData Entry via web form Demographics Knowledge/Awareness Recycling Paper Products Waste Equipment Transportation Cleaning & Maintenance Inventory Energy & Utilities Water Usage

21. Annual Sales ~80% 0-$299K Number of employees 29% 0-24 Sample Demographics 26 Restaurants in Luzerne County

22. Customer Loyalty Programs 6 out of 26 26% Sample Demographics UPDATE 10 additional restaurants in this category not included in results 26 Restaurants in Luzerne County

24. Sample Demographics Kevin McNavageLean & Green Behaviors in the Restaurant Industry Tori Bybel Kevin McNavage Kyle Yorke Your questions are welcome at any time… 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.

26. Unanimous 100% Gas

28. Utilities Yes- 4 No - 22 0% utilize SL now

31. Stored for the next day

33. Regularly checking that everyone knows their designated roles for the day

34. Assign certain locations for employees to be doing their work

36. Frequency of checks

37. Daily (25)

39. Sauces

40. Cheese

41. Dough

42. Fries

43. Chili SaucePlan in Place to Reduce Waste

44. Awareness - Lean Are you aware of what it means to be LEAN in terms of the way you operate? 2 out of 26 said no Are you interested in being LEAN in terms of the way you operate? 6 out of 26- uninterested

45. Awareness - Green Are you aware of what it means to be GREEN in terms of the way you operate? All restaurants know what it means to be green Are you interested in being GREEN in terms of the way you operate? 3 out of 26 restaurants were not interested

46. Awareness-Practices of Suppliers Comments: Low costs Depending on competition Depends on suppliers will to cooperate 21 out of 26 would still utilize their services

47. Paper/Plastic Materials

48. Paper/Plastic

49. Paper/Plastic Are you aware that you can purchase goods out of recycled materials? 2 answered no Do you use silver or plastic ware for serving? 16 silver ware 10 plastic ware

50. Recycling 8 Restaurants do not participate in recycling programs (Blank)

51. Recycling Are they locally supported activities? 22 said yes, 4 said no Do you have to take any recyclables to a recycling center on your own? 3 said yes

52. Transportation Utilize Local Merchandise: Yes or No? Deliver: Yes or No? Out of 35% that do deliver all were used cars that the delivery person owned Concerned about fuel efficiency:

53. Inventory All but one restaurant maintain inventory by hand, the other kept track electronically How are orders taken? By hand or electronically? All Businesses claim to keep track through “constant monitoring”

54. Equipment 1 of the businesses rents their equipment 1 of the businesses claimed to not have all of their needed ingredients in a common vicinity 100% restaurants require their employees to regularly clean up

55. 100% claim that their employees are informed of their basic job requirements Routines for employees: Common theme amongst the businesses require employees to stick to a time based schedule along with being a “jack of all trades”

56. Summary Demographics Knowledge/Awareness Recycling Paper Products Waste Equipment Transportation Cleaning & Maintenance Inventory Energy & Utilities Water Usage Most restaurants interviewed are aware of what is meant by being lean and green …but they’re only interested in being green 30% do not participate in recycling programs at all All who participate have local support Not as much participation in recycling food waste Overproduction occurs with home-made condiments, sides and sauces Half support local suppliers Most restaurants institute at least 3 of 5 S’s Only 15% of the restaurants use energy efficient light bulbs …but 85% would incorporate smart lighting

57. 46% want to receive the results of the survey Spring 2011 Behavior across chains International restaurants Differences in behavior by size (no. of employees, sales) Future Research

58. References 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 Collier, David., & Evans, James. (2010). OM2. South-Western Cengage Learning. Greening Your Business." GreenBiz. Green Business Network, 2001. Web. www.greenbiz.com National Restaurant Association website. http://www.restaurant.org/research/facts/ http://www.allbusiness.com/manufacturing/food-manufacturing-fruit/701215-1.html

59. Special Thanks To… Abe's Hot Dogs Alta Pizzeria & Pasta Shop Anthracite Café Brickhouse Bar & Grill Broadway Tavern C.J.'S Chill Grill Cusats Cafe Dagwoods Dino's Elmer Sudds Florio's Pizza Grotto Pizza Haystacks House of Wings III Guys Pizza Inc Januzzi's Jimmy's Quick Lunch Konefal's Restaurant L & L Pizza Subs & More Laceys Bar & Grill Mimmo's Pizza & Restaurant Rodano's Sal's Pizza Subs & More Shelley's American Pie Pizza Shenanigans