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BA 395 – Independent Research
Tori BybelDom Dibetta (Graduated, Fall 2010)
Kevin McNavageKyle Yorke
Dr. Jennifer Edmonds
HIGHLIGHTING SUSTAINABLE BEHAVIOR IN
SMALL BUSINESSES
A Survey of Lean and Green Practices in the Restaurant Industry
Project Introduction & Scope Dr. Jennifer Edmonds
Sample Demographics Kevin McNavage
Lean & Green Behaviors in the Restaurant IndustryKevin McNavage
Tori BybelKyle Yorke
SummaryFuture Research Dr. Jennifer
Edmonds Tori Bybel
Your questions are welcome at any time…
Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.
Highlighting Sustainable Behavior in Small Businesses
Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.
Highlighting Sustainable Behavior in Small Businesses
A systematic approach to identifying and eliminating waste
through continuous process improvements in the pursuit of
customer satisfactionDefectsOverproduction
WaitingNot Utilizing Employees (People Waste)
TransportationExcess Processing
Motion WasteSpace
Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.
Highlighting Sustainable Behavior in Small Businesses
A systematic approach to identifying and eliminating waste
through continuous process improvements in the pursuit of
customer satisfaction
Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.
Highlighting Sustainable Behavior in Small Businesses
Reduce, Reuse, RecycleWise Consumption
Consistent Process Tracking
Numerous studies address the importance and relevance of the development and implementation of a sustainable operations program.
…is lean green?(Cooper, 2009)
Highlighting Sustainable Behavior in Small Businesses
Low techFundamentalRespect of people
High techRegulations
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 der Linde, 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 KennardCenter for Small Business and the
EnvironmentUSA Today, December 2007
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)
Speed Waste
Restaurants
Adequate staff,Necessary items where needed,
Implementation of some ‘S’s’
Overproduction,Production defects,
Intelligent use of utilities and equipment,
Waste management & recycling
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
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.
650+ Restaurants in Luzerne County Made available by the SBDC (via Dun & Bradstreet, Sept. 2010)
Restaurants
0
10
20
30
40
50
60
70
80
90
100223
Restaurants in Luzerne County
650+ Restaurants in Luzerne County
Types of Restaurants in Luzerne County
American54%
Cafe5%
Catering3%Chinese
3%
Coffee0%
Deli3%
Diner1%
Fast food7%
Greek0%
ice cream0%
Ice Cream Parlor
1% Italian3% Italian
4%
Lithuanian0%
Mexican0%
Pan Asian0%
Pasta0%
Pizza14%
pub food0%
seafood0%
650+ Restaurants in Luzerne County
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.
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
Restaurants
0
10
20
30
40
50
60
70
80
90
100Smaller Organizations in the Restaurant
Industry
290 Restaurants in Luzerne County
Smaller Organizations in the Restaurant Industry
American53%
Cafe6%
Deli5%
Diner2%
Italian 8%
Pizza26%
290 Restaurants in Luzerne County
Smaller Organizations in the Restaurant Industry
290 Restaurants in Luzerne County
89%
7%
2%2%0%
0%
No. of Employees
0-24
25-49
50-74
75-99
100-124
150-174
80%
11%5%
2%
1%1%
0% 0%
Annual Sales
0-499999
500000-999999
1000000-1499999
1500000-1999999
2000000-2499999
3000000-3499999
5500000-5999999
25000000-25499999
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. 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.
Restaurants
Mainly On-site InterviewsData Entry via web form
DemographicsKnowledge/Awareness
RecyclingPaper Products
WasteEquipment
TransportationCleaning & Maintenance
InventoryEnergy & Utilities
Water Usage
Project Introduction & Scope Dr. Jennifer Edmonds
Sample Demographics Kevin McNavage
Your questions are welcome at any time…
Annual Sales ~80% 0-$299K
Number of employees 29% 0-24
38%
38%
4%4% 8%
8%
Annual Sales
0-99999
100000-199999
200000-299999
300000-399999
500000-599999
1000000-1100000
Sample Demographics
26 Restaurants in Luzerne County
0-2429%
25-4913%
50-7457%
Customer Loyalty Programs
6 out of 26 26%
American
Deli
Pizza
Café
0 2 4 6 8 10 12 14 16
8
2
14
2
0
2
4
6
8
10
12
Sample Demographics
26 Restaurants in Luzerne County
UPDATE10 additional
restaurants in this category not
included in results
Project Introduction & Scope Dr. Jennifer Edmonds
Sample Demographics Kevin McNavage
Lean & Green Behaviors in the Restaurant IndustryTori Bybel
Kevin McNavageKyle 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.
Utilities
• Type of Stove Used- Unanimous 100% Gas
• Type of AC Unanimous 100%
Electric
• Type of Heat Electric - 17 Gas - 9
9
17
ElectricGas
Utilities
Yes- 4No - 22
15%
85%
Energy Efficient Light Bulb Use
Yes No
Yes No
22
4
Would you incorporate smartlighting
0% utilize SL now
Utilities
Offer Drinking Water to Customers at no charge Yes- 23 No – 3
Those who DO NOT filter the water (8) All were interested in learning more about offering filtered water
15
8FilteredNot Fil-tered
Those who DO offer drinking water at no charge (23) - Is it filtered or not filtered?
What happens to extra products when too much is produced/when made incorrectly?
Thrown Away Stored for the next day Given to workers
How do you increase efficiency through the flow of your restaurant?
Only hire motivated and high energy people
Regularly checking that everyone knows their designated roles for the day
Assign certain locations for employees to be doing their work
Set up an assembly line style kitchen
Keeping Track of Inventory
All 26 Stores check inventory by hand
Frequency of checks- Daily (25)- Monthly (1)
Most Wasted Items
Pizza & related parts- Sauces- Cheese- Dough
Fries
Chili Sauce
Plan in Place to Reduce Waste
3
23
Plan In PlaceNo Plan
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
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
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
NO YES0
2
4
6
8
10
12
14
16
Paper/Plastic Materials
81%
12%
8%
Knowledge of Products
I DO NOT KNOW IF THEY ARE NOT MADE OF RE-CYCLED MATERIALS
THEY ARE MADE OF RE-CYCLED MATERIALS
THEY ARE NOT MADE OF RECYCLED MATERIALS
Paper/Plastic
Both DISHES PAPER0
2
4
6
8
10
12
14
16
Dishes or Paper Plates
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
Recycling
8 Restaurants do not participate in recycling programs (Blank)
PAPER PRODUCTS, PLASTIC/GLASS
PLASTIC/GLASS PLASTIC/GLASS, FOOD WASTE
(blank)0
1
2
3
4
5
6
7
8
9
10
Items that are Recycled
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
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:
50%50%
35%
65%
yes no
63%
38%
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”
By Hand73%
Elec-tronic 27%
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
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”
73%
27%
yes no
Summary
DemographicsKnowledge/AwarenessRecycling
Paper ProductsWaste
EquipmentTransportation
Cleaning & Maintenance
InventoryEnergy & 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 supportNot 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
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
Abe's Hot DogsAlta Pizzeria & Pasta Shop
Anthracite Café Brickhouse Bar & Grill
Broadway Tavern C.J.'S
Chill GrillCusats CafeDagwoods
Dino'sElmer Sudds Florio's PizzaGrotto PizzaHaystacks
House of Wings III Guys Pizza Inc
Januzzi'sJimmy's Quick Lunch Konefal's Restaurant
L & L Pizza Subs & MoreLaceys Bar & Grill
Mimmo's Pizza & RestaurantRodano's
Sal's Pizza Subs & MoreShelley's American Pie Pizza
Shenanigans
Special Thanks To…