Environmental Management Strategies for McDonalds and Burger King - Case Study Example

Environmental Management Report Executive Summary The lifestyles people lead in the modern world have changed their eating habits in myriad ways. The lifestyles are characterised by the habit of undertaking daily routines as conveniently as possible and in the fastest possible ways. The fast food industry meets the need for these eating habits and lifestyles. The fast growing globalization of the American fast food industry has been attributed to the fast food giant McDonald’s Corporation. It has over 300,000 outlets in over 100 countries around the world. The operations of these fast food companies impact on the environment in several ways: direct, upstream and downstream impacts. Therefore, they are required to operate in environmentally responsible ways. How well do they uphold this obligation and responsibility to the environment? This paper is an assessment of the environmental management plan for two of the leading fast food giants; McDonald’s and Burger King. Using environmental themes; restaurant operations, corporate operations, sustainable supply, advocacy and partnerships, and communication and culture; used by McDonald’s environmental plan, this paper compares and contrasts the policies of both companies and reviews the efficacy of these policies in light of criticisms by environmental groups and others. Further, the paper judges the truth of the facts, for and against, both McDonald’s and Burger King and offers a conclusion and recommendations on their environmental plans. 1.0 Introduction Food service and food retailing have direct environmental impact mainly in the areas of “energy use, air and water emission and solid waste generation” (Davies and Konisky 2000, p. 4). Major energy uses in the fast food restaurants are for cooking, lighting and refrigeration. The energy uses of this industry should be managed in order to reduce the environmental impact associated with energy use. Using a new institutional marketing effort, fast food giant, McDonald’s is trying to show consumers its greener side. It has set an environmental plan which is accessible to the public through its global social responsibility website. Its plan is to be implemented under five environmental themes; restaurant operations, corporate operations, sustainable supply, advocacy and partnerships and communication and culture. 2.0 Literature Review The food system, according to Gottlieb and Joshi (2010), is described as the “the entire set of activities and relationships that make up the various food pathways from seed to table and influence the how and why and what we eat” (p. 5). Gottlieb and Joshi (2010) assert that environmental justice is linked to food justice. They observe that “the new work on food could be seen as seeking to transform where, what and how food is grown, produced, transported, accessed and eaten.” (p. 5). Currey and Hinote (2011) observed that few people are unaware of the inner working of the food-industrial complexes and the dangers they pose to the environment. According to Currey & Hinote, the primary goal of these fast food producers is profits. The fast food outlets are franchised “chains operating nationally and internationally, each chain having the same food products on the menu, manufactured by identical food production techniques” (Aarnio 2006, p. 24). Most of the food is sold as take away, which implies that the food is ready to eat and is packaged to be eaten at work or at home. Bender and Bender (2001) observe that most of the fast food specializes in sandwiches, chicken, pizzas and hamburgers. Currey and Hinote opines that, “Because our foods are produced at such a high rate, because our foods are produced quickly, and because profit is the primary goal of food production, societies around the world suffer (2011, p. 130). The unintended effects of McDonadization affect the environment, animals as well as humans. One way sales packaging is a primary part in the fast food industry, therefore, most of the packaging waste is disposed in landfills (Aarnio 2006). Packaging materials and food waste generate solid waste. Packaging materials waste includes corrugated cardboard, paper, glass, plastics and metals. Minimizing the amount of generated waste and adoption optimised waste management practices is the primary goal of integrated solid waste management. According to Aarnio (2006), “Integrated solid waste management combines issues of public health, economics, engineering, conservation, public education, aesthetics, and other environmental considerations” (p. 21). Most of the foods are refrigerated; the chlorofluorocarbons (CFC’s) used as cooling agents in air conditioners, chillers, freezers and refrigerators harm the environment. Furthermore, marketing affect consumer preferences and these preferences changes the consumption patterns of these foods. Therefore it has implication on the food markets and the development of products that are environmentally responsible. 3.0 Environmental Themes 3.1 Restaurant Operations McDonald’s is right to admit that its restaurant operations have the greatest impact on the environment. Some of the major areas of include energy use, greenhouse gas emission, water consumption and waste generation. To reduce energy use, McDonald’s cite several initiatives and trials. They include use of low volume Fry Vats in its new restaurant which reduces energy consumption, use of energy saving grills, use of LED technology in external restaurant signage, energy saving lighting system as well as recycling the heat emitted to heat water (McDonald’s Website, 2013). The organization is developing a strategy for waste management. It also recycles cardboard as well as cooking oil. On the other hand, in its 2009 report, Burger King (BK), says that it has introduced a new type of Return on capital (ROC) building which reduces the materials and energy used as well as facilitate lover cooling and heating costs. It also boasts of “high-efficiency air conditioners and T8 lighting, new energy efficient flexible batch boiler, a more efficient fryer, energy star ice machine and refrigeration, digital programmable thermostats and low-flow faucets” (Burger King 2009, Online). BK has the Duke Flexible Batch Broiler (FBB) which cycles energy on an off is able to save a big amount of energy. This FBB is believed to save 52 percent of gas consumption and costs compared to the previous broilers that KB had been using. 3.2 Corporate Operations Under corporate operations McDonald’s has set an example to their outlets by using energy and water saving products in the offices similar to those in the restaurants. The products include water restrictions on taps, sensor lighting in car parks, dual flash toilets and rain water tanks. Other activities in corporate operations could ensure that every member in the supply chain is committed to a greener McDonald’s. For instance the Green Sessions held by BK for all the members of its supply chain, the employees as well as third-party partners. This ensures that every stakeholder understands the importance of the environmental plan and has a commitment to it. 3.3 Sustainable Supply Sustainable supply encompasses all the processes that are involved from when the ingredients are produced in the farms, to packaging, food manufacture, consumption by the customers and waste disposal. It has set guidelines to their suppliers which include minimizing release of wastes and by-products into the environment through water, minimizing the release of harmful by-products into the atmosphere, use of ecologically sustainable and renewable sources of energy, waste management practices, cultivating soil health through erosion control and improving the soil quality and chemical pest management. McDonald’s does this through a score card in which it measures the environmental performance of the suppliers based on energy, emissions, water and waste. BK has a commitment to purchasing beef raised in environmentally responsible easy. Policies have been set in place to ensure that all its suppliers follow the Rainforest Guarantee which prohibits them from selling beef from their cattle if they have been grazed in rainforest designated areas. In addition, BK has enforced it as a requirement for their suppliers and themselves to Use energy Star Refrigeration for most of the under counter refrigerators and ice machines. In addition BK says that its suppliers have removed JCFC from all the products that they supply to them. In packaging, BK says that apart from ensuring that the ink used for printing their packaging are non-toxic, they ensure that each customer receives only the necessary packaging whenever possible. BK uses 100 percent recycled material in the new bags for U. S. Kids Meals. Very importantly, the bags are printed with information on healthier lifestyle choices and recycling (Burger King, 2009). McDonald’s is signatory to the Australian Packaging Covenant which requires its participants to have a recycling target of 65 per cent. McDonald’s Australia (2011), 35 percent of their plastic beverage cups and sundae cups are recycles. In addition, their take out bags contain 50 percent of recycled fibres and the carriers for dessert and drinks is made of 100 percent recycled fibre. They also use the Eco-Filter 2.0 tool which facilitates a “consistent approach to evaluation of packaging design/formats against key environmental metrics” (McDonald’s Australia Limited 2011, p. 13). 3.4 Advocacy and Partnerships To help McDonald’s in improving its sustainability initiatives, it signed up to the Sustainability Advantage Program which is facilitated by the NSW department of Environments, climate change and Water (McDonald’s, 2013). McDonald’s also has partnerships with Sydney water, National Packaging covenant and the Australian government. It is initiatives like Australia Zoo, Earth hour and Clean Up Australia. BK cites several partnerships that show its commitment to its environmental responsibility. For example the Children’s Food and beverage Advertising Initiative and also taking steps in providing and promoting healthy food choices in both adults and children. 3.5 Culture and Communication According to its responsibility and sustainability report, McDonald’s says that its business culture is embedded in a focus on the environment and it seeks to have continuous improvements towards environmental sustainability. It uses its communication channels to inform the people of the environmental initiatives it is involved in and to persuade them to participate in the events. 4.0 Discussion As Schlosser (2002) notes, “Aside from the salad greens and tomatoes, most fast food is delivered to a restaurant already frozen, canned, dehydrated and freeze-fried”. The Environmental Leader (2008), the Dogwood Alliance report called on all fast food companies to stop using a lot of packaging and instead increase the use of recycled paper. The fast food companies were told to stop buying paper made from endangered forests. Statistics show that “300 pounds of packaging waste are generated each year for each person n the U.S. and 32 percent of the entire domestic waste stream consists of containers in and packaging” (Environmental Leader 2008, Online). 20 percent of all litter is attributed to fast food packaging. The degree of recoverability of the packaging waste is highly dependent on the material in which the packaging is made from. The way packaging impact on the environment contributes to product perception, however, it is more likely that the customer will balance the environmental implication against his personal benefits like convenience, an aspect that the fast food industry exploits. According to Tonglet et al (2004a), the disposal of used packaging at households depends on the consumer’s sorting behaviour. Sorting by individual consumers is a voluntary action. This implies that the awareness an individual has will contribute to his disposal and sorting behaviour. Use of informative instruments like promotion, publicity and education would increase the knowledge and awareness the consumers have thereby contributing to more environmentally friendly disposal. McDonald’s current report says that they are developing a solid waste management that is geared towards diverting waste from landfill, reducing the materials used, increasing recycling and creating cost savings. The organization has existed for several decades and it does not seem genuine to say that for all those years that it has existed, it has not been able to create such a strategy. “Although McDonald’s and Burger King only showed their “better-for-you” food in child-targeted marketing, their ads did not encourage consumption of these healthier choices. Instead, child-targeted ads focused on toy giveaways and building brand loyalty.” (Fast Food Facts, Online) 5.0 Conclusion and Recommendations BK cites that in Germany, it follows best practices in waste management by sorting its waste in categories which include transparent and clean plastic foils, cardboard, paper plastics among others. However, recovery of packaging waste can be enhanced by shifting the focus of waste management from high volume operators like the municipalities and collectors to “to operationally easy waste producer-oriented practices that are available for waste producers regardless of the generated volumes” (Aarnio 2006, p. 161). Davies and Konisky (2000) point out that, foodservice retailers have the option of retrofitting equipment for CFC free compounds or replace the equipment they already have with CC-free equipment. At the same time, “Legislation identifies the contents of the labelling that must inform the end user of the contents of the packaging, materials, quality, price, operating instruction and warnings” (Aarnio 2006, p. 23). In the same way global promotion and advertising has popularised fast foods, the fast food industry should use these avenues to promote high quality food and draw the boundaries between fast and slow foods (Wilk 2006). Further still, Environmental responsibility is a practical issue for every person involved in the fast food industry supply chain. Therefore, it is important for both companies to create and integral program that requires all employees to participate in their efforts to more environmental friendly operations through a concerted efforts on waste reduction and energy saving. Setting guidelines that are not monitored to suppliers is not enough. The two companies and others like them should maintain a supplier database that captures their sustainable programs so that monitoring is easy. The packaging policies should be revised to be more environmentally friendly. BK should adopt programmes like the McDonald’s Australia’s Australian Packaging Covenant which requires its participants to have a recycling target of 65 per cent. References Aarnio, T. (2006), Challenges in Packaging Waste Management: A Case Study in the Fast Food Industry, Lappeenranta University of Technology, ISBN 952-214-238-7. Bender, D. A. and Bender, A.E. 2001. Bender’s Dictionary of Nutrition and Food Technology. Cambridge: CRC Press Woodhead Publishing Ltd Burger King Corporation (2009) BK Positive Steps: Fiscal 2009 Corporate responsibility Report, Available online at: http://www.bk.com/cms/en/us/cms_out/digital_assets/files/pages/BK_CR_Report.pdf Currey, A. D. and Hinote B. P., 2011, The Evolution of Industrial Food Production: McDonaldization and Population Health, Middle Tennessee State University. Available at Davies, T. and Konisky, D. M., 2000, Environmental Implications of the Foodservice and Food Retail Industries, Resources for the Future Discussion paper 00-11, Available online at Environmental Leader, 2008, Fast Food Packaging Target of Dogwood Campaign, May 18, 2008. Available online at: Gottlieb, R & Joshi, A 2010, Food justice, MIT Press, Cambridge, MA; London, Eng. MIT Press McDonald’s Australia Limited, 2011, Australian Packaging Covenant: Action Plan 2011 to 2012, Available online at: http://McDonald’s.com.au/sites/McDonald’s.com.au/files/images/McDonald’sAU_AP_1112.pdf McDonald’s Corporation, 2012, McDonalds’s Corporate Responsibility and Sustainability Report, Available online at: Schlosser, E., 2002, Fast Food Nation; What the All-American Meal is Doing to the World, Penguin Group: London. Tonglet, M., Phillips, P.S., and Read, A.D. 2004a. Using the Theory of Planned Behavior to Investigate the Determinants of Recycling Behaviour: A Case Study from Brixworth, UK. Resources, Conservation and Recycling, 41: 191-214 Wilk, R (ed) 2006, Fast food/slow food: the cultural economy of the global food system, Altamira Press, Lanham, MD. Read More