Journal of Foodservice Business Research

ISSN: 1537-8020 (Print) 1537-8039 (Online) Journal homepage: http://www.tandfonline.com/loi/wfbr20

Measuring, monitoring, and managing the green

practices in mid-sized restaurants in China

Jing Ma & Richard Ghiselli

To cite this article: Jing Ma & Richard Ghiselli (2016) Measuring, monitoring, and managing the
green practices in mid-sized restaurants in China, Journal of Foodservice Business Research,
19:1, 64-76, DOI: 10.1080/15378020.2016.1129221

To link to this article: http://dx.doi.org/10.1080/15378020.2016.1129221

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 JOURNAL OF FOODSERVICE BUSINESS RESEARCH
2016, VOL. 19, NO. 1, 64–76
http://dx.doi.org/10.1080/15378020.2016.1129221

Measuring, monitoring, and managing the green practices

in mid-sized restaurants in China
Jing Ma and Richard Ghiselli
School of Hospitality and Tourism Management, Purdue University, West Lafayette, IN, USA

ABSTRACT KEYWORDS
This study explored the economic feasibility of adopting green China; economic saving;
energy usage; green
practices in medium-sized restaurants in China. In particular, the practices; mid-sized
short-term and long-term savings and environmental impact of restaurant; sustainability;
adopting changes that do not require large investment were waste management; water
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examined. Concepts from waste hierarchy and lean manufactur- usage

ing served as the basis. Two mid-sized restaurants that were
similar in terms of sales revenue, number of customers served,
and payroll were selected. A number of incremental interventions
were implemented and tested to identify the costs and/or bene-
fits of sustainable management. Finally, this study made recom-
mendations to restaurant owners, managers, and stakeholders.

Introduction
The term “Green Revolution” was used by Thomas Friedman in his book
Hot, Flat, and Crowded (Friedman, 2008) to describe the solution to a
number of energy and environmental concerns. To the extent that the
hospitality industry has reduced its environmental impact, it has been an
active participant in this revolution.
Many of the research efforts examining the environmental impact of hospi-
tality businesses have focused on sustainable tourism. However, according to
an interview published on National Public Radio’s Website, the Environmental
Protection Agency claims that, “Food waste is now the No. 1 material that goes
into landfills and incinerators” (Barclay, 2012). The huge amount of food waste
produced by restaurants and the fact that most of the waste is still usable when
disposed suggests that restaurants should be making efforts to reduce this type
of waste. Furthermore, according to the Green Restaurant Association (GRA),
close to 95% of the garbage produced by an average restaurant every year could
be recycled or composted (Green Restaurant Association, 2013a). Even just
small steps could have significant savings.
In general, restaurants in China operate on a much smaller scale than their
counter parts in the United States. Most of the companies are still private and

CONTACT Jing Ma [email protected] School of Hospitality and Tourism Management, Purdue University,
900 W. State Street, West Lafayette, IN 47906, USA.
Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/wfbr.
© 2016 Taylor & Francis
 JOURNAL OF FOODSERVICE BUSINESS RESEARCH 65

—unlike public firms—are not under public scrutiny. Because of this, restau-
rants in China may be less motivated to embrace green practices. Yet,
increased competition in the marketplace coupled with changes in consumer
demand justify even smaller restaurants’ efforts to go green (DiPietro,
Gregory, & Jackson, 2013).
There is a considerable amount of evidence suggesting that reducing, reus-
ing, and recycling waste are beneficial to both the environment and business.
However, we must keep in mind that useful and executable solutions are not
based on a single initiative; they are a combination of efforts incorporated
under an integrated waste management system. It would be overwhelming to
try to establish an exhaustive model that subsumes all the interrelated factors.
The purpose of this study was to examine the costs and financial and environ-
mental benefits of a number of incremental interventions, and to develop
recommendations for restaurant owners, managers and stakeholders.
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Literature review
Many of the research efforts in hospitality have focused on the tourism
industry (Ashkin, 2007; Han, Hsu, Lee, & Sheu, 2011; Inoue & Lee, 2011;
Kang, Stein, Heo, & Lee, 2012; Kim, Njite, & Hancer, 2013; Teng, Horng, Hu,
Chien, & Shen, 2012). There are a number of studies examining consumers’
acceptance of and engagement in environmental behavior, the effects of
restaurant green practices on brand equity formation, and green manage-
ment standards for restaurant development. (Kim et al., 2013; Namkung &
Jang, 2013; Wang, Chen, Lee, & Tsai, 2013). Few studies have investigated the
effect of green practices in restaurants. Moreover, there are few—if any—
studies on green practices in Chinese mid-sized restaurants (independent
restaurants with annual revenue under 5 million renminbi (RMB) or
approximately 820,000 USD).
“Green” is a rather fresh concept for the Chinese. Not until the beginning
of the new millennium was the “growth first” theme challenged due to
increasing environmental concerns (Ashkin, 2007). The closest studies were
done in Taiwan (Chou, Chen, & Wang, 2012; Hu, Parsa, & Self, 2010; Wang,
2012) and large or chain restaurants were investigated. However, the data
suggest the need for green practices and effective waste management in
restaurants. Currently in China over 200 billion Yuan’s (US$32 billion)
worth of food is thrown away annually—70% of all waste nationwide—
even as 128 million Chinese live below the poverty line and often lack
sufficient food (World Watch Institute, 2013). Food loss rates are much
higher in restaurants: 19% compared to 5–7% in canteens and homes. This
reflects Chinese traditions—being economical with everyday food, but show-
ing largesse on special occasions (Vermeulen, 2014). To put things in per-
spective, edible food thrown out by just restaurants each year is equivalent to
 66 J. MA AND R. GHISELLI

nearly 10% of China’s annual crop production—or enough to feed 200

million people (World Watch Institute, 2013).
There is evidence suggesting that green practices in hospitality contribute
positively to the bottom-line (Kang et al., 2012). In the commercial sector—
which uses one-quarter of the total energy in the country—restaurants are
the biggest users of energy; they use about 2.5 times more energy per square
foot than other commercial buildings (General Electric, 2012; Jiang et al.,
2007). In a typical restaurant, cooking, heating water, refrigeration, and
lighting represent between 69 and 81% of total energy use with refrigeration
accounting for 19% alone (Consortium for Energy Efficiency, 2006; National
Grid, 2002). What’s more, energy consumption for the food service sector
has increased 18% from 1990 to 2004, and most of this energy is generated by
burning coal on a vast scale (Energy Information Administration, 2006).
While a restaurant’s profit is typically 3–9% of total revenue (General
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Electric, 2010), increased energy efficiency could yield huge returns while
reducing the negative environmental impact.
An average restaurant uses 300,000 gallons of water per year (Green Restaurant
Association, 2013b). In restaurants, food production on average requires 2 gallons
of water per meal (Scriven & Stevens, 1999). It is clear that operating costs and the
environmental impact are influenced by water usage. Industry estimates suggest
that implementing water-efficient practices in commercial facilities could decrease
operating costs by approximately 11% (Environmental Protection Agency,
2012b). In addition to reducing operating costs, water conservation has a number
of environmental benefits such as reduced polluted runoff and decreased demand
for reservoir construction with associated habitat alterations (Hackes & Shanklin,
1999). Reducing water use can provide real benefits by decreasing energy bills and
protecting the environment at the same time.
Green practices from other disciplines have influenced the hospitality indus-
try. The basic concept of recycling comes from the waste management hierarchy.
The waste management hierarchy indicates the order of preference for actions
on handling waste. Reducing the amount of waste produced is the most pre-
ferred approach while disposing of waste is the least desirable (Environmental
Protection Agency, 2012c; UK Parliament, 2007; see Figure 1). The underlying
principle is to improve resource efficiency with utilization, reduction, and reuse
of resources given priority over recycling and waste disposal.
Similarly, lean manufacturing is the concept of reducing waste, and
improving working efficiency by creating and maintaining an orderly work-
place (Environmental Protection Agency, 2012a). The application of lean
manufacturing in hospitality is not commonly seen because it is usually
targeted toward firms that produce products instead of services. Using con-
cepts from the waste management hierarchy and lean manufacturing, the
impact of adapting green practices in mid-sized Chinese restaurant was
examined.
 JOURNAL OF FOODSERVICE BUSINESS RESEARCH 67
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Figure 1. Waste management hierarchy (EPA, 2013).

Methodology
An integrated approach to environmentally friendly actions in restaurants
involves measuring, monitoring, and managing green practices. Green prac-
tices can be grouped into the following three categories: solid waste manage-
ment, controlling energy usage, and reducing water usage. In this study, a
comparison group approach was used to examine the costs and benefits of
incremental sustainable practices. First, four interventions were identified to
be tested in the two restaurants (see Table 1). Second, two mid-sized restau-
rants similar along three dimensions—sales revenues, number of customers
served, and number of employees—were selected (see Table 2). All four
interventions (1, 2, 3, and 4) were introduced in restaurant B for a 2-week
period while two interventions (1 and 2) were introduced in restaurant A (see
Table 3). Third, comparable process data were collected daily in both restau-
rants. Fourth, costs and savings were calculated and results compared.
Essentially, this study: (1) compared “normal” and “after” in each restaurant
(BN versus BA and AN versus AA); (2) Compared “with” and “without” (BA
versus AN) for intervention 3 and 4—so the effect of interventions could be
examined; (3) contrasted the differences between the two restaurants for inter-
ventions 1 and 2 in order to check the consistency/reliability of results. For this
study, two hourly employees were hired to coordinate the processes and assist in
collecting data. Their salaries were considered direct costs of implementation.

Results
The incremental interventions that were introduced generated savings that
flowed directly to the bottom line and at the same time reduced the environ-
mental impact of restaurant operations.
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Table 1. Interventions and descriptions.

Associated
68

Interventions Description Data collecting process direct costs Recommendations for restaurants
I. Solid waste management
1. Adopt “rescue A new menu item was designed to utilize 1. When a fish came in, the weight was 1. Labor costs Creatively design new ways to utilize
recipes”* fish. Before, only the fish filets were used. recorded. in training food scraps
After the intervention, almost everything 2. The fish was then carved up into pieces and and
(mainly head and bones) was used. divided into groups—fillet, head, tail, and processing;
bones—according to intended uses. 2. Costs of
3. Each group was weighed and recorded. seasoning
4. Different group was stored and later used
in cooking for different dishes.
J. MA AND R. GHISELLI

2. Reutilization of Cooking oil normally comes in plastic bottles, 1. Use a separate container to collect oil left 1. Costs of Collect oil left in bottles before
cooking oil* there are leftovers that cannot be easily (portion cannot be easily poured out) in the supplies; disposing of finished bottles
poured out of the bottle when using. This bottles finished. Put oil bottle “head down” 2. Labor costs
intervention proposed to collect and utilize (opening facing down) in the new container; associated
remaining oil in finished bottles. wait until all oil dripped down into the new with setting
container. up and
2. Weigh the oil saved and record the data. training
3. Use the oil collected.
4. Store oil bottles used during the day safely
for next day’s use.
II. Controlling energy usage
3. Energy usage Train employees to plan ahead and minimize 1. Installed an ammeter on the walk-in 1. Costs of Keep logs outside the refrigeration
reduction—increase number of times and length of time refrigerator; move logs/records of items in the supplies house and train employees to plan
energy efficiency refrigerator doors have to be opened. refrigeration storage area outside the equipment ahead before going in
refrigeration house (stick records/locations of (e.g.,
items on the door). ammeter);
2. Require and train employees to plan ahead, 2. Labor costs
read the log, and know where to get the for
items. installation
3. Record readings from the attached
ammeter before and after each opening.
4. Check security camera and record times
when the doors of “walk-in” are opened.

(Continued )
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Table 1. (Continued).
Associated
Interventions Description Data collecting process direct costs Recommendations for restaurants
III. Controlling water usage
4. Standardization of Standardize the processes of using water and 1. Find out the recommended level of 1 Costs of Use simple ways such as mark desired
processes using chemicals by controlling the concentration. concentration. supplies; water level and use pre-marked
water and chemicals 2. Measure and calculate the dishwashing 2. Labor costs measurement cup in mixing washing
liquid needed for one sink at a time, based on of setting up solutions to standardize the
the volume of the sink and desired and training concentration thus reduce usage of
concentration level. both chemicals and water.
3. Stick a water level line in the wash sink to
mark the desired water level and mark the
level of dishwashing liquid designed on the
measurement device (the cup).
4. Train employees to fill the wash tank to the
desired water level line and use desired
amount of dishwashing soap every time.
5. Record amount of dishwashing liquid and
water used and the approximate numbers of
tableware cleaned per meal period.
*In a safe and sanitized way.
JOURNAL OF FOODSERVICE BUSINESS RESEARCH
69
 70 J. MA AND R. GHISELLI

Table 2. Summary of restaurant information.

Per year (RMB) Per year (USD)
2013 Restaurant A Restaurant B Restaurant A Restaurant B
1. Sales
Sales revenue ¥18,227,401 ¥19,590,052 $2,988,099 $3,211,484
2. Customers
Number of customers served 254,252 246,526 254,252 246,526
36,346 32,593 36,346 32,593
Average sales per customer ¥72 ¥79 $11.75 $13.03
3. Employees
Number of employees 1,445 1,730 1,445 1,730
Payroll ¥3,325,775 ¥3,804,887 $545,209 $623,752
Exchange rate: 1 USD = 6.1 RMB (November 2013)

Table 3. Type of data collected and type of comparisons made.

Data collected
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Restaurant B Restaurant A
Normal After Normal After
operation data treatment data operation data treatment
(BN) (BA) (AN) data (AA)
Treatment 1 × × × ×
Treatment 2 × × × ×
Treatment 3 × × ×
Treatment 4 × × ×
Comparisons made
BA versus BN AA versus AN BA versus AN
Treatment 1 Table 4 Table 4
Treatment 2 Table 5 Table 5
Treatment 3 Table 6 Table 7
Treatment 4 Table 8 Table 9

Solid waste management

The practices described in this category were implemented in both restau-
rants in order to examine the reliability of results. Similar results from the
two restaurants indicate that the results are consistent.

Adopting “rescue recipes” using fish

One of the benefits of adopting “rescue recipes” is reduced purchasing costs.
Greater utilization of fish “scraps” could result in greater yields because the
parts that are traditionally thrown away were used to process a new dish. In
this case, an estimated 42.44 and ¥46.2 were generated per fish, respectively,
in restaurant B and restaurant A (after considering the incremental costs
associated with further processing; see Table 4). This benefit should be
treated as revenue instead of direct profit because general operating costs
 JOURNAL OF FOODSERVICE BUSINESS RESEARCH 71

Table 4. Economic values generated by adopting “rescue recipes” when using fish—Comparison
between restaurants A and B.
Restaurant B Restaurant A
Total per Per Per customer Per sales Total per Per Per customer Per sales
day fish served unit day fish served unit
Average ¥1754.7 ¥42.4 ¥3.37 ¥0.04 ¥1916.3 ¥46.2 ¥3.15 ¥0.04

such as rent and utilities were not yet accounted for. On average, one
restaurant used between 40–100 fish per day, so adopting this intervention
could generate 1684 to ¥4152 of additional revenue daily, and 620,712 to
¥1,551,779 annually. At the same time, this intervention helped reduce the
amount of solid waste produced and thus lessened the negative environmen-
tal impact.
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Reutilization of cooking oil

A concerted effort to collect and use the oil left in “finished” bottles led to
greater utilization—resulting in both financial savings and a reduced
amount of solid waste. On average, 99.31 g (0.541%) of oil were saved per
bottle; this would result in savings of ¥0.88 and solid waste reduction of
99.31 g per bottle used (see Table 5). For restaurants using smaller bottles
(using more bottles per day), the effect can be greater both financially and
environmentally.

Controlling energy usage—Increasing energy efficiency

By minimizing the number of times, and length of time refrigerators were
opened, temperature losses were reduced—resulting in greater energy effi-
ciency. This intervention appears to have reduced operating costs: Restaurant
B saved approximately 1.83 kWh of electricity, and ¥2.15 in operating costs
per day (see Table 6).
The costs to buy and install ammeters, and to train employees were 47 and
48 RMB, respectively. (Note: an ammeter is a device used to measure the
electric current, which is an indicator of electricity usage). The installation of
an ammeter for study purposes should be excluded in calculating the direct
implementation costs; thus the direct cost of this intervention was just the
labor costs for training, ¥48. This amount took restaurant B around 22 days

Table 5. Savings from greater utilization of cooking oil—Comparison between restaurants

A and B.
Restaurant B Restaurant A
Oil Oil
collected/ Collected as Savings Savings collected/ Collected as Savings Savings
bottle % of whole per bottle per day bottle % of whole per bottle per day
Ave. 99.31 0.541% ¥0.879 ¥1.976 99.01 0.540% ¥0.753 ¥1.837
 72 J. MA AND R. GHISELLI

Table 6. Energy usage reduction—Comparison of “before” and “after” for restaurant B.

Number of times doors Average electricity
opened per day usage per day Average electricity usage per day
Per customer Per sales
Average kwh Costs served unit
Before 209 4.52 ¥5.28 ¥0.0041 ¥0.000047
After 113 2.68 ¥3.14 ¥0.0028 ¥0.000033
Absolute (96) (1.83) ¥(2.15) ¥(0.0013) ¥(0.000015)
reduction
% Change −45.93% −40.62% −40.62% −31.47% −30.86%

Table 7. Energy usage reduction—Comparison between restaurants A and B.

Number of times doors opened Average electricity Average electricity usage per
per day usage per day day
Per customer Per sales
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Average kwh Costs served unit

Restaurant A 158 5.10 ¥5.97 ¥0.0040 ¥0.000044
Restaurant B 113 2.68 ¥3.14 ¥0.0028 ¥0.000033
Absolute (46) (2.42) ¥(2.83) ¥(0.0012) ¥(0.000012)
reduction
% Change −28.78% −47.42% −47.42% −29.21% −26.18%

to recoup (for the first 22 days, the savings were used to recover costs, and
starting from day 23 the savings flowed to bottom line). On an annual basis
restaurant B could save ¥785.
The actual test was done on one of the refrigerators. Extending the results
to all three refrigeration units, the savings could be 5.52 kWh or ¥6.4584 per
day (The savings per cubic meter is around 1.55 kWh or ¥2 per day).
Compared to restaurant A, restaurant B used 47.42% less electricity on
average, saving ¥2.83 per day (see Table 7). The financial savings as well as
reduced environmental impact are evident.

Reducing water usage—Standardization of processes using water and

chemicals
Controlling the concentration of chemicals helps maximize the effectiveness of
the solution and reduces the amount of water and chemicals required in
cleaning. Restaurant B saved 0.8 ton of water (40% reduction), and 0.14 kg
dishwashing liquid (9% reduction) per day, translating to ¥3.494 in daily savings
(see Table 8). Compared to restaurant A, restaurant B used 1.42 tons less water
(54% reduction) per day; this would result in ¥5.82 of daily savings (see Table 9).
There is a one-time set up cost for supplies and labor; the cost of supplies is
marginal. It took two employees approximately 1 hour to set up and another 1
hour in training (4 hours in total) in order to implement this intervention. Since
 JOURNAL OF FOODSERVICE BUSINESS RESEARCH 73

Table 8. Standardization of water and chemicals usage—Comparison of “before” and “after” for
restaurant B.
Water usage per day (4.1RMB/ Dishwashing liquid per day
(Ton) (1.72RMB/Kg) Average cost per day
Average water usage Average Average volume Average Total per Per
(ton) cost (kg) cost day tableware
Before 1.99 ¥8.14 1.66 ¥2.86 ¥11.004 ¥0.006
After 1.19 ¥4.89 1.52 ¥2.62 ¥7.509 ¥0.004
Absolute (0.79) ¥(3.25) (0.14) ¥(0.24) ¥(3.495) ¥(0.002)
reduction
% Change −40% −40% −9% −9% −32% −26%

Table 9. Standardization of water and chemicals usage—Comparison between restaurants A and

B.
Water usage per day Dishwashing liquid per day
(4.1RMB/Ton) (1.72RMB/Kg) Average cost per day
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Average water usage Average Average volume Average Total per Per
(ton) cost (kg) cost day tableware
Restaurant A 2.61 ¥10.70 2.22 ¥3.82 ¥14.528 ¥0.009
Restaurant B 1.19 ¥4.89 1.52 ¥2.62 ¥7.509 ¥0.004
Absolute (1.42) ¥(5.81) (0.70) ¥(1.20) ¥(7.019) ¥(0.005)
reduction
% Change −54% −54% −31% −31% −48% −50%

the current wage rate is 12 RMB per hour, the total labor cost would be 48
RMB. On average, restaurant B could save ¥3.495 per day (see Table 8). In 14
days, restaurant B recovered the initial costs, and all the savings starting from
day 15 went directly to the bottom line. This means that restaurant B could save
approximately ¥1275.31 annually. Clearly, this intervention helped reduce
usage of both water and dish washing liquid. Shockingly, for each day, the
reduction in water usage could be as much as 40%, and on a per tableware basis,
the water usage could be reduced by close 50%. This demonstrated the effect
simple measures could have in reducing negative environmental impact.

Additional benefits
As a result of implementing these interventions, the operating environment
is cleaner, more organized and efficient, and food safety improves. Some of
the other benefits include:

● Frequent refrigerator door openings and the resulting rise in temperate

pose risks (time–temperature abuse) to food in storage (Tyrewala, 2009).
Minimizing the time refrigerators are open helps to reduce temperature
losses, and reduces the risks of foodborne illness.
 74 J. MA AND R. GHISELLI

● The concentration of the mix of chemical and water is critical. Too little
chemical makes the mixed solution weak and useless, too much may
make the solution too strong and unsafe (National Restaurant
Association, 2012). Concentration test kits were used to test the con-
centrations of washing and sanitizing solutions.

Conclusions
Clearly, green practices can contribute to the bottom line and reduce negative
environmental impacts. Small daily reductions can result in huge savings
over the course of a year. Based on the information in this study, one
restaurant could save ¥1706 ($280) per day on average, and ¥622,849
($102,106) annually. For this company, which has 22 units, the proposed
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interventions could result in savings of ¥13,702,681 ($2,246,341) annually,

and substantial reductions in the environmental footprint. Also, since con-
sumers react positively to restaurants using green practices (Namkung &
Jang, 2013), some competitive advantages may accrue in the long run.
Although this study was conducted on a relatively small scale, if we think
in aggregated terms, the impact can be tremendous. In 2010, China’s food
service industry generated 3,300 Billion RMB in sales, and employed approxi-
mately 25,000,000 employees in 5,000,000 establishments (China Industry
Research Reports, 2015). If every single restaurant adopted the interventions
proposed, the aggregated savings and environmental benefits would be
tremendous.
Future generations should be kept in mind when using limited resources.
As suggested in this study, going green can be rather easy, and financially
and operationally beneficial. There are numerous other creative ways to go
green. Given the size of its population, China is definitely facing a huge
challenge in sustainability.

Future studies
This study is just a start. A more comprehensive energy, water and solid
waste audit, analysis, and tracking should be conducted to identify other
energy and water users. Units/processes producing the large amounts of food
waste should be identified as potential areas for improvements.
Future research should expand the scope of this study and implement
similar interventions in different types of foodservice establishments. Also,
additional interventions such as changing lighting systems, buying “green”
equipment, adopting advanced temperature control, installing better insula-
tion, using reusable wares, recycling and composting garbage, etc., could be
tested and analyzed.
 JOURNAL OF FOODSERVICE BUSINESS RESEARCH 75

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