The Lean Green Machines

Energy Efficiency in the Restaurant Franchise Model

Good Burger

• Quick service restaurant chain• 8,000 locations• $750,000 in annual sales• 3-4% of overall costs is energy consumption• 25% of energy cost accounts for cooking

The Challenge

• Achieve a 10% reduction in all energy consumption by 2020‐ ↓Lighting by 2%‐ ↓Cooking by 4%‐ ↓Refrigeration by 2%‐ ↓Ventilation by 2%

Management - Incentives

Upgrade Incentives

• Energy STAR purchase rebates– Qualifying Energy STAR appliances– Mail-in rebates offered by local utility

companies• Federal tax incentives

– Tax Credits– HVAC, insulation, water heaters, stoves,

windows & doors

Management - Incentives

Participation Incentives

• Energy STAR participation– Cover 5% of purchase price

• Annual franchise fee– Reduction of 50 kBTU/yr = 0.25 % reduction– Reduction of 100 kBTU/yr = 0.50 % reduction

• Best Franchise Award– Based by region– Most improved year over year– Choice of restaurant upgrade

Management - Education

Education of:

• Good practice savings• Software applications

– Portfolio manager– Siemens EcoView

• Optimal facility design

Optimal Facility Design

• Hot water delivery system– California model– Minimize piping distance– Mirror bathrooms– Centralized heaters

Optimal Facility Design

Technological Improvements - HWM

• Pre rinse Spray valve‐ Removes initial debris‐ Decrease dishwasher cycle times

• Aerator‐ Increasing oxygen content in water‐ Decreases water flow rate

• Temperature‐ Optimal hot water temp: 120⁰F‐ Optimal dishwasher water temp: 145⁰F

Management

Technological Improvements - HVAC

• 60% electricity used by HVAC system• 25% of HVAC system are oversized • Light commercial HVAC

– More energy efficient– Save up to $350 annually and $4,200 lifetime

Conclusion

•Improving long term franchise viability

–Upgrade incentives

–Participation incentives

–Portfolio manager

–Siemens EcoView

–Hot water delivery system

–HVAC

Questions