Restaurant franchising – going green

August 4th, 2009

Environmentally sensitive practices are becoming increasingly important for many businesses and restaurant franchising is no exception. The environment is a hot topic and the public is becoming more vocal about what they expect from retailers, manufacturers and service providers alike. Environmental issues which are foremost in the public’s mind, and which restaurant franchises must now take into account, include energy conservation, recycling and organic locally sourced food.

In Britain, a government sponsored “Green Achiever Scheme” has been created to enable companies to demonstrate their environmentally friendly credentials to suppliers, customers and other bodies interested in green business. In the United States, federal tax incentives and recycling programs have been set up to facilitate those companies wanting to improve their green credentials. The number of restaurant franchises opting into such schemes in both countries has been steadily growing, as business owners take note of the public’s demands when it comes to the environment.

Consumers are becoming more aware of the environmental impact of their personal choices and, when it comes to opting where to spend their cash, are increasingly influenced by ethical business practices. Restaurant franchises have started to realize how important green credentials are to customers and investors alike. Environmentally friendly practices are gradually being introduced into every aspect of the restaurant franchising businesses. These practices range from installing solar panels, reducing carbon emissions and using non-toxic cleaning products to eliminating non-recyclable packaging and reducing the amount of all packaging used, filtering cooking oil for reuse and sourcing local, fair trade or organic produce.

Franchise Legislation Update

July 16th, 2009

Reaction to the new legislation has been mixed, but positive overall on the part of the restaurant franchises and the National Restaurant Association, the industry’s trade group and the National Franchise Association. In the end, the bill is a compromise between a stricter version backed by health industry organisations and one which the restaurant industry supported that would not have required calorie counts to be displayed. Most restaurant franchise chains have said that they are pleased with the compromise, which appears to be a workable solution, and are pleased that a national standard is to be implemented.

As for the consumers, they mostly appear to be in favour of the new legislation, with many people stating that seeing nutritional information in print next to the menu items will help them opt for healthier choices. However, others admit that it will make no difference to their menu choices.

Meanwhile, in the UK, the government has announced that it will trial calorie counts for food sold in takeaways, restaurant franchises and canteens. It is seeking volunteer companies to display calorie content listings and believes that the rest of the industry will quickly follow suit once a standardised guide is agreed. However, unlike the American scheme, it is not believed that the British plan will be backed by legislation.

With obesity growing at an alarming rate on both sides of the “Pond”, maybe these standards will encourage the restaurant franchises industry to develop healthier dishes.

Restaurant franchising – new legislation

July 3rd, 2009

In the future, when you eat out at a restaurant franchise in the United States, you may find some unpalatable figures printed next to the mouth-watering descriptions – the fat, sodium, cholesterol and calorie content of every choice on the menu. Will you still fancy that burger and fries if you know that it is going to “cost” you 850 calories as well as over half of your daily fat or sodium allowance?

With obesity a major health concern in the United States, maybe Americans need the truth about what they eat at restaurant franchises. After all, shouldn’t restaurant food have the same labelling standards as the food we cook in our own homes? Nutritional information on packaged foods is required under law by the Nutrition Labeling Education Act (NLEA) and much in the same way, the new Labeling Education and Nutrition Act (LEAN) will create a national standard for the restaurant industry. Up until now, various states have enforced their own standards, which has created an inconsistent, patchy and confusing set of local laws. The LEAN Act will provide a national standard through the United States and will compel restaurant franchises and other eaterie chains with at least twenty locations to display the calorie count of its food items. Chains would also be required to give customers additional nutritional information, including fat, sodium and cholesterol content. It is, however, expected that there will be some exceptions. For example, many restaurant franchises have self-serve buffets and, in such cases, the nutritional information disclosed is likely to be based upon an “average” serving. The nutritional content of multi-serve items (such as pizzas intended for two or more persons) would be on a per-serving basis.

Restaurant franchise- targetting the middle classes part 2

June 26th, 2009

A recent survey has found that approximately one in three British adults eats takeaways at least once a week, and more than three million people eat takeaways at least twice a week. Three factors drive this trend. First, human beings are fundamentally lazy and no, we haven’t become a nation of cooks, despite our obsession with TV chefs and cookbooks. Second, greater availability of quick-food outlets drives its own demand. We can’t say no when it comes to food. And third, much fast food actually tastes rather nice, often better than the stuff we cook for ourselves.

This all adds up to big business for restaurant franchises, with the potential for an even greater volume of sales. However, takeaway food typically served by restaurant franchises is notoriously unhealthy. The average takeaway contains high levels of salt, sugar, fat and monosodium glutomate – cheap and potentially addictive ingredients. As an occasional treat, this should not be a problem but when eaten regularly, such high levels of fat, salt and sugar can have a significant health impact. It can be argued that there is no reason for take away food to be so unhealthy, apart from profits from cheap ingredients. For example, healthy olive oil is expensive but unhealthy oils are cheap. The fact remains, however, that when one restaurant franchise outlet starts selling cheap to corner the market, the others have to follow suit or go out of business..

Some takeaway restaurant franchise chains are making an effort to add healthier options to their menus, but these are in the minority in the UK. So it seems there is a gap in the market for healthy fast food restaurant franchises in Britain. The middle classes have traditionally been regarded as more health-conscious and, with the number of takeaways they are consuming rapidly increasing, the time may be right for quick-food restaurant franchises to exploit this demand by offering healthier menus.