David Klemt | KRG Hospitality

Take Steps to Become a More Sustainable Operation this Green Monday

by David Klemt

You’re probably being inundated with emails about Green Monday today.

Given how the meaning of the word “green” has evolved over the past couple of years, many people may think Green Monday is similar to Earth Day. In reality, it’s about the color of money.

Green Monday, a term coined by eBay, is sometimes called Cyber Monday 2. It’s the busiest online shopping day of December and second only to Cyber Monday in terms of online sales.

eBay and other retailers often promote the idea that shopping online is greener than shopping in person since people aren’t driving to and from stores. The reality is likely closer to the meaning of Black Friday—businesses are trying to boost revenue.

We’ve decided to take a different approach to Green Monday. Sustainability and responsible business practices are important to today’s consumer, including restaurant and bar guests. Significant swaths of people want to know they’re supporting businesses that share their values.

This Green Monday, take a look at the sustainability of your business. Evaluate what can be changed to make operations greener and implement those initiatives for 2021.

Go local. Source produce and other ingredients from local farmers and suppliers to reduce carbon emissions.
Go hyper-local. Grow produce using a restaurant garden or containers. Garnishes, items for salads, veggies for entrees… Get creative.
Reduce and reuse. Inventory software can help reduce food waste by sending alerts when items are nearing their expiration dates. Reconsidering portion sizes can also help avoid food waste, as can cross-utilization: use as much of an item in as many ways as possible, such as tying food and beverage together with the same ingredients. If you can do so safely and legally in your area, donate excess food items before they expire.
Recycle and compost. Getting in the habit of recycling can be as easy as placing dedicated bins in strategic locations throughout the back of house and bar. Composting can be more complicated, particularly for venues with limited space, but there are local organizations and farms that will pick up compostable items.
Be efficient. The more energy-efficient pieces of equipment you can use, the better. Flow restrictors and low-flow toilets can save millions of gallons of water. Eco-friendly cleaners and sanitizers are safer for people and the environment.
Audit your packaging. Are you using recyclable or compostable packaging?
Audit your suppliers’ packaging. Many brands have committed to reducing packaging or opting for more sustainable materials. Speak with your suppliers and request reduced packaging.

Image: Bon Vivant on Unsplash

Significant, Permanent Restaurant Closures Expected to Rock Canada Unless Situation Improves

by David Klemt

Industry surveys continue to reveal how dire the situation is for operators.

On December 8, Restaurants Canada, a non-profit that represents and advocates for the Great White North’s restaurant industry, shared the results of a survey they had conducted between November 26 and December 4. A total of 511 surveys representing 3,000 restaurants were completed.

According to Restaurants Canada, the nation’s foodservice industry consists of 97,500 establishments ranging from QSRs to bars and full-service venues.

More than eight out of ten survey respondents answered that they are either barely staying afloat or are operating at a loss. Drilling deeper, significantly more restaurants are operating at a loss—65 percent of survey respondents fall into this category. Just 19 percent of restaurants represented by survey respondents are able to break even.

That’s 2,400 restaurants of 3,000 struggling to survive, and 78,000 restaurants out of 97,500, assuming the survey sample size accurately represents the overall industry in Canada.

To understand the long-term effects of government-mandated restrictions and shutdowns, one has only to digest another startling statistic: Restaurants operating in the red aren’t expecting to return to profitability for a minimum of 12 months.

Under optimal conditions, the average Canadian restaurant operates on razor-thin margins. Per Restaurants Canada, restaurants keep just five percent of every $10 in sales on average, or 50 cents. The industry is Canada’s fourth-largest employer (it’s number five in the United States, for comparison), accounting for 1.2 million jobs, 58 percent of which are held by women. Over thirty percent of owners, operators and staff belong to a visible minority, further illustrating how important restaurants are to diversity and the economy; half of all restaurants in Canada are operated by immigrants. Just like in the America, restaurants are the first employer for most Canadians.

The industry is crucial to Canada, but this vital resource is under serious threat. One of those threats comes from lawmakers whose restrictions are making it much more difficult for operators to wring any profits out already miniscule margins. Much like the situation afflicting the industry in the United States, the situation is going to get worse in short order without government relief.

Restrictions are simply nails in coffins unless they’re accompanied by relief.

“Our members are seeking a new year’s resolution from government, not only to support their survival but our industry’s vital role building back a stronger, more resilient Canada,” said Todd Barclay, president and CEO of Restaurants Canada. “Restaurants Canada is calling for a national working group to pave the way for the foodservice sector’s revival, building on the commitment in the federal government’s 2020 Fall Economic Statement to provide targeted, sector-specific support to restaurants and other hardest hit businesses.”

That national working group, according to Restaurants Canada, should focus on providing businesses being affected by government-mandated restrictions with “sufficient, efficient and effective aid”; developing campaigns that make it clear to Canadians that restaurants are capable of safely and reliably providing safe meals; promoting delivery and takeout as a viable way for the public to support restaurants; connecting with operators to understand the industry’s needs and pain points to ensure they’re in as strong a position as possible when entering the post-pandemic economy.

The next six months are crucial to the survival of Canadian restaurants. If things don’t improve, should the government not address the industry’s situation and provide relief, 48 percent of single-unit operators surveyed by Restaurants Canada indicated they expect to close within six months. That number jumps to 56 percent for multi-unit operators, who expect to close at least one of their locations (also within six months).

Restaurants Canada is asking for anyone who supports the formation of a dedicated national working group to contact their Member of Parliament via this link.

Photo by Marcus Urbenz on Unsplash