Hobart Consultant Resource Center

| Spring 2010

Segment Trends

 | Biggie-Sizing Sustainability

Biggie-Sizing Sustainability: How the Wendy’s/Arby’s Group Tackles Energy Efficiency
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Wendy’s / Arby’s Group Inc. (WAG) is the nation’s third largest quick-service restaurant company and is comprised of the Wendy’s® and Arby’s® brands, two companies distinguished by traditions of quality food and service. WAG, with approximately $12 billion in system-wide sales, owns or franchises over 10,000 restaurants.

The company is committed to being good stewards of the environment and has implemented sustainability programs at its restaurants, regional offices, restaurant support centers and Atlanta headquarters. A significant part of its overall sustainability practices is working with its vendors to purchase products and services with a view toward energy efficiency and environmental impact.

According to Walt Taylor, director of energy for WAG, the company closely considers how it purchases and uses energy in order to lower costs and consumption. The company has incorporated several practices to increase energy efficiency at its restaurants.

“We included ENERGY STAR-certified kitchen equipment, such as fryers, ice makers and reach-in refrigerators, as well as LED lighting and low-flow toilets,” he says. “We also use tankless water heaters to conserve water and installed energy-efficient HVAC systems in some restaurants.”

One of its restaurants in Magnolia, Texas, obtained Silver LEED certification from the United States Green Building Council (USGBC). Taylor says this is a result of incorporating several sustainable elements, both inside and outside.

“In addition to the typical energy-efficient practices, the restaurant’s décor incorporates low-emitting materials—such as paints, coatings, adhesives and sealants for flooring and wallpaper—that contain fewer pollutants. The upholstery laminate and floor tile all contain recycled materials as well,” says Taylor. “The restaurant also relies on ‘green power,’ which means that at least 35 percent of the building receives electricity from renewable resources.”

The building’s exterior has a thermoplastic membrane roof to reduce the heat-island effect, which can increase summertime peak energy demand, air conditioning costs, air pollution, greenhouse gas emissions and water quality. The company also used solar glass and thermally broken aluminum storefront materials to improve energy efficiency and drought-tolerant landscaping native to the area, which helps save water.

Energy Management System Monitors Use

WAG has implemented energy management systems in its company-owned Wendy’s restaurants, which has reduced overall energy consumption. These systems enable the company to monitor various items within the building as well as exterior lighting.

“We can monitor and evaluate the temperature in our dining areas, water heaters, walk-in refrigerators and freezers, and make adjustments accordingly,” explains Taylor. “Using these systems has helped us see a significant reduction in our overall consumption, both in electricity and gas.

“We can drill down our energy-usage data to the least common denominator, for example, kilowatt-hours per day or therms per square foot. Getting this type of information into our operators’ hands is the key to making our energy plan successful.”

Start with Design

Taylor says one of the best ways to manage energy use and cost is to factor sustainable elements into a building’s design from the onset.

“We work with our design and engineering teams on the front end in order to determine the most efficient—and operator friendly—equipment into the building plans,” he says. “In the typical quick-service restaurant, HVAC and lighting are the biggest energy users, so restaurants should consider high-efficiency HVAC systems with positive pressure, humidity control, and the appropriate hood systems and make-up air. They should also incorporate preprogrammed thermostats with setback and limited adjustability.

“Automatic lighting controls and LED and other high-efficiency lighting should also be included. Often parking lots have more lighting than necessary, so operations should consider if they could reduce the average foot-candles on their site.”

Negotiating Lower Rates

In addition to energy-efficient equipment and sustainable practices, Taylor recommends working with energy providers to negotiate lower rates.

“It sounds simple, but one of the easiest ways for foodservice operations to reduce their energy spend is to pay less for the energy they use,” he says. “Large foodservice operations that have multiple locations across the country, should identify which of their sites are in states that are deregulated, and then negotiate better prices in those states.

“In regulated states, they can work with their utility providers to make sure that each site has the lowest possible rate.”

Taylor says foodservice operations should also work with their state’s Public Service Commission and their utility provider to determine if there is a way to develop a rate that is better suited for their sites.

He says the most important advice he can pass on to foodservice operations to help lower energy consumption and cost is to remember it’s a team effort.

“Foodservice operations have to get help from every facet of the organization, including operations, executive-level management and facilities,” he says. “It’s also important that employees are aware of the need to save energy. Foodservice operations can do this via newsletters, intranet sites, contests and lunch-and-learn programs. Working together is the only way to tackle sustainability.”

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