Feeding the Landfills: How Fast Food Restaurants are Unnecessarily Creating Mass Amounts of Waste Brian Gamgort Management 302: The Stakeholder Organization 12/18/14 (Image from Ken Loyd) Gamgort 2 Executive Summary In the United States packaging and containers account for approximately 30% of all municipal solid waste, and the problem is growing bigger every year. There are many sources of this packaging and container waste, but one of the biggest culprits are fast food restaurants who aim to provide convenience and food “on the go” but end up indirectly creating mass amounts of waste in the long-run. Although the fast food restaurants often produce and distribute this packaging which ends up as waste, they are not legally responsible for where it ends up and the duty is placed upon the customers to determine whether or not it is properly disposed of. With so much dependency on customers in the current system to dispose of waste, whose responsibility is it really and how can fast food restaurants encourage their customers to value environmentalism more? There are five core steps that can be implemented by every fast food restaurant to answer these questions and create solutions. 1. Integrating corporate responsibility into company values 2. Removing any unnecessary food packaging 3. Reducing the environmental impact of essential packaging without compromising its role 4. Creating cost savings for both the businesses and customers 5. Sharing environmental information with and values with external parties Based upon these core steps are also specific, realistic solutions that fast food restaurants should implement in order to reduce the amount of packaging waste they generate as well as their impact on the environment as a whole. Gamgort 3 Table of Contents Introduction…………………………………………………………………………………..…..4 Statistics………………………………………………………………………………………...….5 The Role of Food Packaging and Containers ……………………………………….5 The Role of Customers in the Issue …………………………………………………….7 Benefits of Source Reduction……………………………………………………………...9 Financial…………………………………………………………………………………………………..9 Environmental………………………………………………………………………………………..10 Universal Steps Towards a Solution……………………………………………….....11 Integrating corporate responsibility……………………………………………….………..11 Removing unnecessary packaging…………………………………………………………...12 Reducing the environmental impact of essential packaging……………………....13 Creating cost savings for business and customers…………………………………….13 Sharing environmental information with external parties…………………………14 Proposed Solutions for Fast Food Restaurants…………………………………..15 Conclusion………………………..……………………………………………………………..18 Works Cited…………………………………………………………………………………….19 Gamgort 4 I. Introduction When people think of waste minimization they tend to look towards the bottom of the supply chain: waste management facilities. Waste management and recycling facilities are important for collecting and handling waste that has already been created, but in order to truly make change towards reducing waste production it is essential to look upstream and towards the source. In 2009, containers and packaging accounted for approximately 30% of all municipal solid waste in the United States, approximately 72 million tons (The Wicked World of Packaging, Perullo). Figure 1: The Wicked World of Packaging, Perullo Of that packaging and container waste one of the main culprits are food businesses, specifically fast food restaurants. In a society “on-the-go”, convenience has taken precedence over sustainable business practices and caused this great increase of food packaging waste production. With so many stakeholders contributing to the issue along the food supply chain, who is responsible for these problems and how can they be solved? Gamgort 5 II. Statistics As stated before, containers and packaging accounted for approximately 30% of all municipal solid waste, or 72 million tons, in the United States. Of that 72 millions tons of waste, food packaging accounted for almost two-thirds of the total volume (Food Packaging and Its Environmental Impact, IFT). Each day approximately 570 million pounds of food packaging is discarded in the United States alone. A very visible demonstration of the mass amount of waste produced through food packaging can be seen in local schools across the country. The typical American child creates 67 pounds of packaging waste due to school lunches per year, culminating into approximately 18,000 pounds of food packaging waste per average elementary school (The Wicked World of Packaging, Perullo). This problem is not getting any better either. From 2005 to 2010 the total amount of packaging waste has grown 1.8% per year (Facts About Packaging, Nunnery). Unnerving statistics like these display that there is a big problem in regard to waste from food packaging, and that there is a need for change. III. The Role of Food Packaging and Containers Food packaging and containers may be a waste issue, but they serve a few essential purposes as well. On the basic level, packaging is essential to protecting and preserving food items. Food is often transported across far distances and multiple destinations before reaching the final consumer, and in order for this to happen it must be well protected from damage and spoilage. Figure 2: What is the Food Supply Chain?, Harvard School of Public Health Gamgort 6 Food packaging protects the food from chemical, biological, and physical external factors that could compromise the contents. Chemical factors such as gas, moisture, and light are controlled by packaging to prevent and reactions that could compromise the contents. Biological factors such as microorganisms and animals must also be kept out by packaging as they could cause the food to spoil or become unsanitary. Finally, physical factors such as the food product getting crushed in distribution are also protected by the packaging which provides stability (Food Packaging- Roles, Materials, and Environmental Issues, Marsh and Bugusu). In the end it is crucial that food delivered maintains its quality and is safe for consumers to eat once it reaches them, which is why food packaging must exist in some form. Food packaging is also very important for advertising and nutritional purposes. In terms of advertising, packaging is often where companies are able to establish their brand identity and “sell” a product to a customer. Creating a product’s package is a heavily thought out process that includes taking into account the factors of color, shape, and images all with the goal of being appealing to customers in a selling environment (The Wicked World of Packaging, Perullo). Packaging is also where all of the nutritional facts for the food product are put. Besides being important to customers who are interested in the nutritional information of the food that they may consume, the United States government has also made nutritional facts labels mandatory on any processed foods at grocery stores and many restaurants (Food Labeling Guide, FDA). Food packaging and containers can not be eliminated entirely, and so the focus of reducing food-serving Gamgort 7 waste must be aimed at designing more environmentally-friendly packaging and changing the attitudes of users. IV. The Role of Customers in the Issue While customers may not have direct influence over how much packaging is used by food companies, they can affect how much packaging ends up as waste through two different ways. The first is in their role as an “intermediary” between the food companies and the waste facilities themselves. After a customer has purchased a food product, the packaging and its ultimate destination ends up as his or her responsibility. Many of these packaging materials, such as paper and glass, are recyclable. Also much of this packaging and containers could be reused multiple times around the house instead of being discarded, such as plastic water and soda bottles. When customers are given the responsibility of trying to reduce the amount of packaging they discard, they often do not do well. From 2005-2010 approximately 30 million tons of packaging was recycled per year. However, in 2006 alone, 27.5 million tons of plastic products, 2.6 million tons of aluminum products, and more than 10.3 million tons of glass products were not recycled and instead ended up in landfills (Facts About Packaging, in.gredients). Approximately 90% of plastics single-use disposable items (SUDs), including plastic bags and soda bottles, end up either in the garbage despite being recyclable or are littered (Source Reduction & Reuse, Upstream). Disposing of packaging waste straight into the environment by littering is even worse than incorrect disposal of recyclable waste. Instead of decomposing in an environment designated for waste, litter decomposes (often slowly) in nature where it can affect wildlife and even Gamgort 8 humans. According to a study in the United Kingdom, fast food packaging and containers make up a quarter of all litter that is collected (McDonald’s waste makes up largest proportion of fast food litter on streets, Gray). Businesses can source reduce as much packaging as possible, but it is still critical for the customers to properly dispose of the packaging after they are done using it in order to make a positive change. Part of the reason that food has become so highly packaged is because of customers’ personal purchasing preferences. Businesses work to match their customers’ desires, and many of the heavily-packaged food products are aimed at customers’ desires for food that is more convenient and portable. As society has become more “on the go” in regard to eating, food businesses have filled these needs with products such as individual packaged snacks and “to go” meal containers. As long as customers continue to pay for these heavily packaged products, businesses will continue justifying the production of them. However, if customers were willing to sacrifice this insignificant amount of convenience in their food products by buying normally packaged goods and/or eating at a restaurant, they could reduce the amount of packaging that food businesses use. Purchasing power is a crucial tool that customers often fail to utilize, and if they truly wished to make a difference in the amount of packaging waste that is produced they could display it with their purchasing habits. In order to truly make improvements on the amount of packaging waste that is produced, customers must make improvements upon their own life practices regarding waste. Gamgort 9 V. Benefits of Source Reduction Food businesses, customers, and even all world citizens benefit from source reduction and a change in the amount of food packaging usage that eventually ends up as waste. The two most obvious types of benefits are financially and environmentally. Financial Food companies have benefited in the past from reducing the amount of food packaging that they use. One strong example of this was McDonald’s who teamed up with the Environmental Defense Fund (EDF) with the objective of reducing how much disposable food packaging the company was using. With simple changes such as switching from polystyrene foam food containers to sandwich packaging, switching carry-out bags, coffee filters, and Big Mac wrappers to unbleached paper, and incorporating recycled content into paper napkins, McDonald’s was able to both eliminate more than 300 million pounds of packaging and save approximately $6 million a year due to these changes (McDonald’s: The First Corporate Sponsorship, EDF). The financial benefits of reducing food packaging use are not just limited to businesses. When customers purchase food products they rarely consider that packaging has been calculated into the cost that they are paying, and so often heavily packaged food items aimed at “convenience” can lead to inflated product prices for customers. Packaging usually is responsible for 10-20% of a product’s cost, meaning that the average U.S. family spends approximately $500 of its income a year simply for packaging (The Wicked World of Packaging, Perullo). When Gamgort 10 manufacturers use less packaging they use less raw materials, and so cost is reduced and these savings can be passed on to customers (Reducing and Reusing Basics, EPA). A prime example of excess packaging leading to heightened costs for customers are 100-calorie snack packs. These packs are advertised to customers as being more convenient and portable and often cost less then a standard snack container. However, these 100-calorie packs cost much more per ounce and are a way that companies can “charge consumers more for less” through extra packaging (The Wicked World of Packaging, Perullo). Reducing packaging consumption at the source does not have to be a costly endeavor. In fact, it can be a financially beneficial one for both customers and food businesses. Environmental When thinking of the benefits of food packaging reduction the most obvious which come to mind are the environmental benefits. The primary environmental benefit that comes with source reduction of food containers is a reduction of the amount of waste material that ends up in landfills. Single-use disposable items, such as Styrofoam containers and plastic bags, are the worst types of packaging waste because they are extremely difficult to break down in a landfill and are often only used by a consumer once before being thrown away. As a result, reducing the amount of packaging material used reduces the amount that could possibly end up in landfills, helping the environment by preventing long lasting landfill waste (Source Reduction & Reuse, Upstream). Source reduction of food packaging also indirectly benefits the environment by reducing the amount of pollution caused by the processes that harvest the raw materials needed for the packaging, and those Gamgort 11 connected to the manufacturing and transportation of these packaging products (Reducing and Reusing Basics, EPA). In addition to the ethical benefits of conducting business practices that protect the environment, reducing the amount of food packaging materials and/or making them more environmentally friendly is a point that businesses can use to appeal to customers. One example of a brand that implemented environmentally friendly packaging into its advertising was SunChips from Frito Lay. SunChips’ bags were innovative in that they were 100% compostable and constructed with 90% plant-based materials. The plant-based material used in the construction of the bag was called polylactic acid, which created a different sound than traditional chips bags that Frito Lay advertised as “the sound of green”. The focus of the innovative bag was reducing the environmental impact of the company according to Frito Lay Canada President Mark Guay (New SunChips Bag: 90% Plant-based, 100% Compostable, Siranosian). Reducing the environmental effect that a company’s packaging has can not only help the world, but also business success. VI. Universal Steps towards a Solution There is no one universal fix that would solve the packaging waste problem of every fast food restaurant. However, there are a few core steps that all of these organizations could integrate that would help reduce their effect: 1. Integrating corporate responsibility into company values This principle is based upon Ed Freeman’s emphasis in stakeholder management of the importance of considering the interests of all stakeholders in a company’s decision and policy making (Business Ethics at the Millennium, Freeman). Gamgort 12 The United States currently does not have laws designed to encourage package reduction, and so food businesses must take it upon themselves to initiate the change (Facts About Packaging, in.gredients). For the issue of food packaging waste creation, the primary responsibilities that companies need to integrate is product stewardship. Product stewardship is the “act of minimizing the health, environmental, and social impacts of a product and its packaging through its life cycle,” (Product Stewardship & Extended Producer Responsibility, Upstream). Although it is not a legal requirement, companies that have an interest in operating sustainably must consider how their business actions affect all stakeholders in order to follow product stewardship. 2. Removing any unnecessary food packaging The first and most obvious move is to remove any food packaging that is unnecessary. If a type of food packaging does not serve an implicit purpose, then there is not a need for it to be used. Every container uses some amount of raw materials and energy to produce, and so if it is not necessary it should be eliminated. In addition to reducing types of food packaging that is not needed, businesses can also reduce the amount of raw materials that their current packaging is using. Plastic products specifically can be “light-weighted”, meaning that the amount of plastic used in packaging and containers can often be lowered while still leaving the packaging able to perform its task. Compared to other packaging and container materials, two pounds of light-weight plastic can deliver approximately 10 gallons of beverage compared to the three pounds of aluminum needed to complete the same task (Plastics and Sustainability, Plastic Packaging). By effectively choosing the Gamgort 13 materials that go into food packaging, businesses can eliminate the quantity of packaging that they need to transport and protect their food products. 3. Reducing the environmental impact of essential packaging without compromising its role Some form of packaging or container is essential in order to safely deliver food products to customers, and so this essential packaging should have its environmental impact reduced as much as possible without compromising its protection. Fast food restaurants should design their packaging and containers with the concept of product stewardship in mind, meaning that businesses should work to make all of their packaging recyclable at the least in order to minimize its impact. Even more ideal would be if companies were able to design their products to be biodegradable like the SunChips’ packaging. Biodegradable packaging is beneficial because it takes away the responsibility of correctly disposing of waste from customers by making it so that the container can naturally decompose in a short period of time in a landfill. 4. Creating cost savings for both the businesses and customers As mentioned before, a reduction in the use of raw materials used by food businesses as a result of the elimination of unnecessary packaging and containers can result in cost savings for a business. These savings are extremely enticing for these companies, but they can also be used to entice customers. By sharing some of this cost savings with the customers via reduced product prices, businesses can make customers more open and accepting towards environmentally friendly Gamgort 14 product change by displaying a financial benefit that comes with source reduction and green business practice. 5. Sharing environmental information and values with external parties Businesses have direct control over how much packaging and containers they use in their practices, but in order to truly create societal change they need to spread their environmental values up and down the supply chain with their customers and suppliers. As mentioned before, customers currently have the important role as “intermediary” between food businesses and waste facilities. For businesses to truly practice product stewardship, they need to emphasize the importance of proper waste disposal to their customers to ensure that the waste reduction impact is attained on as large a scale as possible. Suppliers are another external group that food businesses can influence to help expand packaging and container usage on a greater scale. Food businesses do not have direct control over the packaging methods of their suppliers, but larger ones can use their status as a way to influence their suppliers to change their habits to better follow the company’s environmental values. As part of McDonald’s waste reduction partnership with the EDF, the company asked their suppliers to use at least 35% postconsumer recycle content into all shipping boxes that were being sent (McDonald’s: The First Corporate Partnership, EDF). Wal-Mart is another example that has taken this a step further by establishing environmental standards that they make all suppliers meet (Responsible Sourcing Standards for Wal-Mart Suppliers, Wal-Mart). By extending corporate values to the external groups that they interact Gamgort 15 with most, food businesses can expand their scale and create even greater environmental change. VIII. Proposed Solutions for Fast Food Restaurants Using Durable, Reusable Cutlery and Serving Plates for Sit-In Diners For customers who are eating their meals within the restaurant there is no need to serve them their food in “to go” containers. An average fast food restaurant meal of a burger, fries, and a drink results in the use of a paper bag, cardboard fries box, cardboard burger box, and paper cup. Many of these “to go” containers are designed as single-use disposable items for customers who will be leaving the restaurant and taking the packaging with them, but for those who are staying within the restaurant reusable utensils, plates, and cups should be a must. In China reusable plates have already become the standard for fast food restaurants in order to reduce the amount of packaging waste produced, and many of these fast food restaurants are the same ones that are currently operating without this practice in the United States (Egregious Packaging Hall of Fame: Fast Food Restaurants That Defy Waste with Savvy, Sustainable Packaging, Vartan). While there is an initial cost for fast food chains that comes with purchasing the reusable items and adding the jobs and machinery to clean them, this cost can be outweighed by the amount saved in packaging cost over time. Eliminating all non-recyclable and non-biodegradable SUDs For diners who are in a hurry and can not eat their meal within the restaurant, single-use disposable items may be the only way to serve them their food. While this is not ideal, the world is not perfect and fast food restaurants must Gamgort 16 meet the needs of these customers on the go. When meeting these needs though, restaurants must still keep the environment in mind. To do this, fast food restaurants must eliminate all single-use disposable items that can not be recycled or are not biodegradable. The specific target in this solution is Styrofoam, which can not be recycled and takes at least a million years in order to break down in a landfill (Fun Stuff and Fast Facts, Cleveland State University). Styrofoam cups and containers are frequently used at fast food restaurants despite being one of the most negative materials that a business could use in terms of reducing the amount of landfill waste produced. Although paper cups and plastic bottles are still not the best solution, they should be substituted for Styrofoam because they are at least recyclable and will have less of a negative effect on the environment. Reduction in food price for customers who eat in Financial benefits are a large incentive for everyone as discussed with the benefit of cost saving that comes from packaging and container reduction. One idea that would incentivize customers to use less food packaging would be to give customers who choose to eat their meal in-restaurant a slight discount. While at first this may seem like a loss for fast food restaurants, it can instead be seen as the offset reduction that comes with the cost savings from reduced packaging purchasing and manufacturing. In collaboration with the implementation of reusable cutlery and plates, monetarily incentivized customers would more likely eat their meals in fast food restaurants and lessen container usage, waste creation, and any environmental impacts. Giving the option of purchasable, reusable hard plastic cups Gamgort 17 This concept is inspired by the practice implemented frequently at coffee shops where customers can purchase reusable, branded coffee mugs and get a discount on all future purchases when they use their refillable mug. A small discount with each drink purchase and owning a durable cup of a brand they like alone would be attractive to a customer, and tying the product into the company’s business objectives of reducing waste and helping the environment could only make it even more appealing. Placing recycling cans within the restaurant Although many fast food restaurants emphasize the importance of recycling and environmentalism, they frequently lack recycling containers. Often at a fast food restaurant there are simply containers labeled “Trash” where all customer waste is put to most likely end up at the same destination: a landfill. The average customer is not be willing to take their packaging waste with them from the restaurant in order to properly recycle it, and so a restaurant’s efforts to make their packaging recyclable will be for naught if they do not provide customers with a recycling receptacle in the restaurant. Simply converting a few of the trash containers to clearly marked recycling containers, while providing information on what can and can not be recycled, would greatly encourage customers to recycle any possible packaging they have. Emphasizing recycling and source reduction effort on bags/advertising Fast food restaurants are unable to follow their customers to ensure that they properly dispose of their food packaging, but they can spread the message and remind them by including information on the containers themselves. This additional Gamgort 18 information on the containers that customers use will help educate them on how to dispose of waste, emphasize the corporate focus on helping the environment, and overall hopefully help the customer realize the importance of reduction and recycling by reminding them of their responsibility in the waste process. IX. Conclusion Packaging and containers are the largest sources of municipal solid waste in the United States and there is an obvious need for change. It is essential that fast food restaurants perform source reduction to reduce the amount of packaging that they use in their daily business activities, but physical change is not enough. In order to truly help the environment and create large-scale benefit fast food restaurants need to help push for philosophical change as well with both their customers and their suppliers. No remedy is better for solving this waste problem than a shift in attitudes to combat the current “throw-away society” mentality that much of the United States has towards their disposable items. This is why fast food restaurants must make changes, both physically through source reduction and philosophical with their corporate policies, in order to combat the growing food packaging waste problem in the United States. Gamgort 19 X. Works Cited "Fun Stuff and Fast Facts." Cleveland State University. Web. 14 Dec. 2014. "Food Labeling Guide." U.S. Food and Drug Administration. U.S. Department of Health and Human Services, Jan. 2013. Web. 12 Dec. 2014. "Food Packaging and Its Environmental Impact." IFT. 1 Apr. 2007. Web. 13 Dec. 2014. Freeman, R. Edward. "Business Ethics at the Millennium." Business Ethics Quarterly 10.1 (200): 169-80. Philosophy Documentation Center. Web. 12 Dec. 2014. Gray, Louise. "McDonald's Waste Makes up Largest Proportion of Fast Food Litter on Streets." The Telegraph. Telegraph Media Group, 13 Jan. 2009. Web. 14 Dec. 2014. Loyd, Ken. "Local Litter Revisited." Weblog post. Blogspot. 28 May 2010. Web. Marsh, Kenneth, Dr., and Betty Bugusu, Dr. "Food Packaging- Roles, Materials, and Environmental Issues." Journal of Food Science 72.3 (2007): R39-55. Wiley Online Library. Web. 12 Dec. 2014. "McDonald's: The First Corporate Partnership." Environmental Defense Fund. Web. 12 Dec. 2014. Nunnery, Brian. "Facts About Packaging." In.gredients. 12 Oct. 2010. Web. Perullo, Yvette. "The Wicked World of Packaging." Re-nourish | Design Sustainably. 10 Dec. 2011. Web. 12 Dec. 2014. "Plastics and Sustainability." Plastic Packaging Facts. Web. 12 Dec. 2014. "Product Stewardship & Extended Producer Responsibility." Upstream. Web. 13 Dec. 2014. Gamgort 20 "Reducing and Reusing Basics." EPA. United States Environmental Protection Agency. Web. 13 Dec. 2014. "Responsible Sourcing Standards for Walmart Suppliers." Walmart. Web. 15 Dec. 2014. Siranosian, Kathryn. "New SunChips Bag: 90% Plant-based, 100% Compostable." Triple Pundit. 21 Feb. 2010. Web. 12 Dec. 2014. "Source Reduction & Reuse." Upstream. Web. 13 Dec. 2014. Toolkit: Reducing the Food Wastage Footprint. EPA, Epa.org. Epa. Web. Vartan, Starre. "Egregious Packaging Hall of Fame: Fast Food Restaurants That Defy Waste with Savvy, Sustainable Packaging." Inhabitat. Web. 14 Dec. 2014. "What Is the Food Supply Chain?" Harvard School of Public Health. Harvard University. Web.