How Franchise Brands Can Navigate Sustainability

In an era where environmental concerns are at the forefront, sustainability has become an important aspect of business operations across all industries — including franchising. Incorporating sustainable practices can not only enhance a franchise brand’s reputation but can also drive operational efficiency and cost savings.

Notably, sustainability is not exclusive to businesses inherently associated with eco-friendly products or services. It is a goal achievable by all franchises willing to commit to making strategic changes.

1851 Franchise recently spoke with Nancy Landrum, professor of sustainable business transformation at Munich Business School, for some insights on operating sustainably as a franchise brand.

“You don't have to be a franchise known for sustainability in order to operate sustainably,” said Landrum. “The top three sustainability goals of all companies are to reduce energy usage (and greenhouse gas emissions), reduce water usage, and reduce waste.”

Landrum noted that  all three sustainability goals should always begin with an audit to determine the starting levels of usage so franchises can track their progress. This will help identify target areas for the best return on investment. Additionally, the three sustainability goals should include a plan for employee education and customer awareness.

Reducing Energy and Emissions

Energy consumption is a significant area where franchises can make impactful changes. Transitioning to energy-efficient lighting and equipment can dramatically cut energy use. This includes swapping out incandescent bulbs for LEDs and upgrading to ENERGY STAR-rated appliances, which consume less power while providing the same output. 

“To reduce energy and emissions, franchises can switch to energy-efficient lighting and equipment, switch to a renewable energy supplier, identify ‘vampire energy’ devices that consume energy even when not in use, use programmable thermostats and use power strips to turn off equipment at the end of the day,” said Landrum.

Reducing Water Usage

Water conservation is another critical area where franchises can implement sustainable practices. Addressing leaks promptly is essential, as even minor drips can result in substantial water wastage over time. Landrum suggests investing in low-flow faucets, toilets, aerators and showerheads. She also recommends conserving water on landscaping by collecting rainwater and incorporating native plants.

Reducing Waste 

One time-tested strategy for reducing waste is to find a second life for used items rather than discarding them in the trash. “Franchises can implement recycling and composting programs, switch to reusable items and reduce use of plastic and single-use items,” said Landrum. “Adopt electronic or paperless systems, and focus on repair instead of replacement.”

Franchises can take additional steps to reduce waste by conducting audits to identify the main sources of waste and developing targeted strategies to address them. Partnering with suppliers to minimize packaging and opting for bulk purchasing can also significantly cut down on waste. 

Franchise brands have a unique opportunity to lead by example in the sustainability movement. By reducing energy usage, water consumption, and waste, franchises can significantly lower their environmental impact while simultaneously benefiting from cost savings and enhanced brand loyalty. 

To learn more about sustainability in franchising, check out these related articles: 

• Eco-Friendly Franchises: 8 Green, Sustainable Businesses
• Green Franchising: Embracing Sustainable Business Models
• Current Trends in the Fast Food Franchise Landscape