Going Green in Franchising

Going green
Sustainable building practices deliver savings
By Beth Mattson-TeigAs published in: Franchise Times - February 2007
What do waterless urinals, energy sensors and recycled carpet have in common? They are all elements commonly incorporated in green building.
The premise behind green or sustainable building is to minimize the environmental impact and reduce energy consumption. Green building also has proven to have a positive impact on lowering operating costs, and some studies even show that green buildings contribute to the health and productivity of its occupants.
Green building techniques have been in use since the 1980s, but practical applications are gaining momentum in large part due to rising energy and fuel costs, as well as mounting concerns about global warming. In fact, some industry observers believe that green building will become part of mainstream real estate construction within the next decade.
“We believe that sustainable business practices are the way of the future, and five to 10 years from now, sustainable business practices are going to be extremely important to be able to capture market share from the public,” says Phil Baugh, vice president of Chicago-based Baum Realty Group.
Just Fresh is among a growing number of national brands ranging from Target and Gap to Chipotle and Starbucks that are incorporating green building elements into its stores. Just Fresh began to utilize green building in 2004 with new restaurants such as its Just Fresh store in Mt. Pleasant, S.C.
The restaurant includes green building elements that range from waterless urinals and energy-efficient lighting to the use of natural products such as wheat board in its millwork. Just Fresh also purchased materials from local suppliers to save on fuel consumption in the transportation of those building supplies.
Just Fresh plans to continue to incorporate green building into future stores wherever possible in both ground-up construction and improvements to existing stores. “It ties into our overall business philosophy. Our concept is really focused on being clean and green,” says Dana Sinkler, CEO of Charlotte-based JF Restaurants. Yet Just Fresh also was motivated by the cost savings of features such as automated HVAC and lighting controls.
“It’s really a win-win, because we also save on energy costs going forward,” Sinkler adds.
Exploring green options
Traditionally, the push for green building has been backed by a desire to create a healthier environment and a better planet, notes Taryn Holowka, a spokeswoman for the U.S. Green Building Council. “Now we’re seeing more companies going green because it’s a smart business move for them,” Holowka says.
Green building techniques produce tangible results in using less electricity, which translate to lower utility bills and water bills. In addition, some studies have shown that green building environments also have a positive impact on worker productivity, which in theory translates to fewer sick days and lower employee turnover.
Companies interested in adding green building elements to existing or new stores have a larger selection than ever before. The laundry list of green building products is growing to include everything from less toxic paint and varnishes to recycled steel, tile or carpeting. The top two features for most businesses interested in green building are to reduce the amount of toxins in their environment and reduce energy costs.
One popular product is paint with low levels of volatile organic chemicals (VOC). The low-VOC paint doesn’t produce as much off-gassing or paint fumes, which leads to a cleaner environment. In addition, there are more cabinetry and finished wood products, such as furniture, that are not finished with toxic lacquers and adhesives. Businesses also can reduce energy use with products such as energy sensors, solar heat panels and more efficient light bulbs.
Although the cost of green building materials varies depending on the specific product, many sustainable products are comparable in cost to traditional materials. Recycled drywall, for example, costs about the same as standard drywall. Other items might carry a higher upfront cost, such as energy-efficient light bulbs, but the overall cost is less considering total savings in energy use and the longer life of the bulbs. “Oftentimes you will pay a little more to make it happen, but in the long run I think it will come back to you in energy savings and efficiency,” Sinkler says.
Growing momentum
Other companies that are embracing green building products and design techniques include Rapid Refill, which has taken its corporate recycling philosophy and applied it to its own retail space. For example, the store’s trademark countertops are made from sunflower seed husks that are glued together to create a wood top that also has a distinctive look.
“We like that because it plays into the whole proposition of recycle and reuse,” says Steve Hockett, president of Rapid Refill Ink in Chanhassen, Minn. Rapid Refill reconditions, remanufactures and refills used inkjet and laser toner cartridges for printers, copiers and fax machines.
Total Resource Group is another firm that promotes green building efforts. The company has offered sustainable building materials in the turnkey stores it provided for the last five years. But the company recently decided to go exclusively in that direction and hopes to offer an entirely sustainable store within the next six months. Total Resource Group provides a complete “store-in-a-box”—basically outsourcing everything a franchise needs to create a store from carpeting to furniture.
“We made a corporate decision over the last few months that wherever we can, we are going to encourage our clients to allow us to build out their retail environment as a green store or a sustainable store,” says Bruce Olans, a principal at Total Resource Group in Lincolnwood, Ill. The list of sustainable products runs the gamut from floor to ceiling with items such as sheetrock, carpeting, laminates, paint, lighting, windows and furniture, among others.
“More than anything, we decided to take this particular direction because we feel this is the way of the future,” Olans says.