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Three green initiatives that drive
top-line benefits
By André LaRivière
November 24, 2011
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Since coined by British business strategist John Elkington in 1998, the triple bottom line (TBL) has become the standard for gauging success in sustainability, using social, environmental and economic measurements. However, some business leaders involved in TBL initiatives are now identifying the need for a complementary strategy, especially given the top-down commitments that many say are increasingly needed to drive real, meaningful change.
Their new approach has been dubbed the triple top line, defined in the Dictionary of Sustainable Management (sustainabilitydictionary.com) as: the effect that attention to sustainable management of natural, financial, and human capital has to an organization by increasing revenues (by offering more desirable products and services) and reducing costs and expenses (through streamlined operations). While many of these benefits are measured in terms of triple-bottom-line accounting, their effects are more valuable to a company’s top-line financial performance because they typically require less capital investment.
While it’s nowhere near as sexy as the TBL mantra ‘People, Planet, Profit,’ it’s a valid point of view. It’s also one that applies particularly well to the restaurant industry, where bottom-line sustainability is focused on maximizing efficiency, conservation and cost reduction — the majority of actions implemented in the back-of-house and unnoticed by customers.
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On the other hand, the high-visibility green initiatives that currently drive top-line benefits for restaurant operators are also those that invite customer and media scrutiny; when they go wrong, they can quickly get tagged as greenwashing and rapidly reduce all those potential revenues.
However, when coupled with solid TBL measures, some green strategies can deliver a wide range of benefits, from brand recognition to higher average checks. These three areas offering great potential for top-line rewards will come as no surprise:
Commitment to growing a local and sustainable food system
From a single pizza topping or sandwich filling made by a local producer to a certified sustainable seafood menu, great products with good stories and
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measurable, verifiable benefits are still gaining value with diners. Add some bold, innovative steps, such as exclusive supply arrangements with a local farm (or a local artisan distiller), and back them up with a very public statement of your business commitment. You’ve also just empowered every member of your team to maximize these revenue opportunities.
Materials redirected from landfill to recycling or compost
It’s nothing new, but this is an area where community concern (and potential for government regulation) remains high. A comprehensive zero-waste program with clear, measurable targets and plenty of useful consumer information is an effective way to demonstrate leadership and boost brand differentiation, and can also leverage collaboration with your supply-side partners. Tim Hortons’ Making a True Difference program offers an excellent model.
Water conservation and localization
Saving energy with LED light bulbs and solar panels may grab some attention, but preserving fresh water with a variety of conservation and pollution prevention initiatives will reach people where they live. Collateral revenues from a smart water-on-tap (filtered, if necessary) program can more than make up for bottled water sales.
To effectively merge any top and bottom line strategies, be sure to take the following steps:
- review all the environmental aspects and opportunities for change in your operations and supply-chain;
- educate and train your team on sustainability issues, your commitments and solutions;
- track your progress (using triple-bottom-line metrics) and communicate the value and benefits to your customers regularly.
When your top line and bottom line actually align, genuine sustainability and business success meet squarely in the middle.
See more great sustainablity features:
About the author:
André LaRivière is executive director of the Green Table Network, a Vancouver-based organization helping operators, suppliers and diners across Canada to put sustainability on the menu. Find more information at www.greentable.net.
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