The Fast Food Industry Analysis
University of Dallas
Business and Society: Spring 2016
Hans Montoya | Presider/ File Manager
Issues
Greenhouse Gases and Carbon Footprint
One of the major issues identified in the general human activity is the production of greenhouse gases and its impact related to the global warming effect. As stated by Chris Anzalone, from Demand Media (2016), “A carbon footprint is a general term to describe a business or person's impact on the environment based on carbon emissions released into the atmosphere”. The unit of measure of this trace is the tonne of carbon, “this term helps to understand the carbon dioxide equivalent (CO2 e) of the seven different greenhouse gases (GHGs) released into the atmosphere” (Climate Smart, 2014). It has been estimated that “there are 2,989 billion tonnes of CO2e in Earth’s atmosphere where 22% of this amount has been added by human activity” (CS, 2014) which makes us very responsible. Now, considering that at least 15% of this footprint is related to the action of people feeding themselves (Kling & Hough, 2010), a concern arises on how to understand the sources of this percentage and how to control them to reduce the impact.
It has been identified that the sources of the carbon footprint in the food industry are distributed all along the value chain, highlighting the food production itself, transportation of raw materials, packing, to go accessories, cooling and heating the food and the environments where it is served. According to the document by KohalaCenter.org, we can directly relate the harm to the environment from the fast food industry activity in the production and consumption of red meat, fat & sugars, grains and dairy products that added sum up to 60% of the total “Foodprint” (K&H, 2010), also, considering that “approximately 40 percent of food in the U.S. goes to waste” (Waste Wise Products Inc., 2016, March 14), and at least 21% of the total waste going to municipal landfills (US Environmental Protection Agency, 2010)is unconsumed food (US Environmental Protection Agency, 2010), the situation should raise a huge concern within the stakeholders to encourage everyone to watch their actions acting responsibly by lowering the effect.
Poor working conditions and low wages
The working conditions in the fast food industry have become a very hot topic as years go by because problems mainly related to low wages and very limited benefits (if any exist) keep raising awareness and generating concern within the stakeholders. There’s an initiative originated from groups of employees that is actually pushing employers of the major fast food chains in California to raise the minimum wage to $15 per hour and as an example of nonconformity (Essif, A., 2014). As stated by Michelle Chen from the Washington Post, there are 5 common myths around working on the fast food business, like “most of the employees are teenagers, employees can work their way up and eventually even own a franchise, Fast-food companies can't control franchise wages or working conditions, Flipping burgers is an easy job, and Paying workers $15 an hour would make burgers prohibitively costly and hurt the industry” (Chen, M., 2015), that all together summarize the hard conditions that employees face considering that most of them are adults trying to support a whole family, paying for groceries, purchasing gas and most of the times without the chance to afford medical coverage. On the other hand, as most of the chains are franchise-based businesses, the brand owners don't seem to be interested in controlling the details regarding the employee’s bad treatment because, in their defense, that’s out of reach.
Health impact and effects
One of biggest constrains faced by the industry is the most of the times irreversible health effects caused by the low nutritional value, saturated-fat, hi calorie carbonated drinks, contained in the menus. Overweight is the most common and visible symptom that has triggered the alarms in in the US since the early 80’s (Nat Institute of Diabetes and Digestive and Kidney Diseases, 2016) and it is the first stage of cardiovascular and kidney diseases. Stroke, hypertension, diabetes and kidney failure are just a few of problems faced by recurrent customers of fast food menu options. One of the main problems is the low price of the menus offered by this restaurants and its relationship with diseases that cost high amounts of money to the healthcare system in treatments including surgical procedures and high cost drugs. The situation, in general, is very concerning due to the vicious circle of people with very low incomes, a family to feed and lack of education to understand the value of a balanced nutrition that won’t be easily found in fast food chain restaurants.
Recommendations
In an increasingly eco-conscious world, to run a restaurant in the fast food business needs, a high awareness of the footprint of the actions and decisions made is needed, there different fronts to approach to in order to stablish green initiatives to benefit the environment and why not to build a competitive advantage in the sustainability area. The following are the main and most evident aspects to consider in order to avoid the harm produced by the activity in the industry:
· Green constructions: As stated before, heating and cooling have a high impact in the carbon footprint, so if there’s any kind of control over the construction of the restaurant facilities, there’s a huge opportunity to take advantage of more efficient energy. White roofs are a successful action to reduce heating needs.
· Buy local: Buying local could significantly reduce greenhouse gases emissions by lowering the dependence on transportation that is the second major cause of GHG production.
· Recycle, Reduce Waste: Reducing waste will lower the bulk delivered into the landfill lowering the gases produced by decomposition and composting. Choose using recycled condiments bottles, reusable plates and silverware over plastic and disposable accessories.
· Use Energy-Efficient Appliances: The Energy Star logo will help on selecting the appliances and kitchen accessories that will require less energy to operate, improving efficiency and also lowering electrical bills.
In regard to the low wages issues, the clearest way out is to gradually increase the pay per hour standard which the state of California has the lead by agreeing on a deal to reach the target by 2022. The other front to counter in this matter is the difficulties of access to medical and dental coverage for the employees and their families that usually ends up in unpaid medical leaves. Also complying with a better wage for holidays and overnight shifts will encourage people to go to work as the extra income could help covering their needs.
Many well-known brands have already answered (or are in the process of answering) the wake-up call from health stats that make their food responsible for the poor nutritional habits and ease of access to junk food by the community. There’s a growing interest within the industry in improving the menu offer, portions, and even more the nutritional value because customers are now aware of the effects caused by fast food and companies need to keep up with the change of interest of their users. Fast food companies have understood that developing better menu options according to the growing interest in healthier options, represents a competitive advantage compared to other price-driven businesses. The strategies followed usually tend to lower hi carb load, saturated fat, and sodium in the ingredients.
References
· Anzalone, C. (n.d.) How to Decrease the Carbon Footprint in the Restaurant Industry. Retrieved March 17, 2016, from http://smallbusiness.chron.com/decrease-carbon-footprint-restaurant-industry-36327.html
· Chen, M. (2015, April 19). Five huge myths about working in fast-food. Retrieved March 31, 2016, from http://www.businessinsider.com/five-huge-myths-about-working-in-fast-food-2015-4
· Climate Smart Inc. (2015). Carbon Emissions In The Food And Beverage Sector A Climate Smart Industry Brief. Retrieved March 17, 2016, from https://climatesmartbusiness.com/wp-content/uploads/2014/06/CS-Food-and-Beverage-Sector-Industry-Brief-digital.pdf
· ESSIF, A. (2014, September 4). Fast-Food Workers Turn Up the Heat - Working In These Times. Retrieved March 31, 2016, from http://inthesetimes.com/working/entry/17139/fast_food_workers_turn_up_the_heat1
· EndFoodWasteNow.org. (2013). Facts. Retrieved March 31, 2016, from http://www.endfoodwastenow.org/index.php/resources/facts
· Environmental Impact - Food Waste in American Fast Food Restaurants. (n.d.). Retrieved March 17, 2016, from https://sites.google.com/site/foodwasteatmcdonalds/home/environmental-impact
· Geer, A. (2014). 10 Ways Fast Food is Destroying the World. (n.d.). Retrieved March 17, 2016, from http://www.onegreenplanet.org/animalsandnature/10-ways-fast-food-is-destroying-the-world/
· Kling, M. M., & Hough, I. J. (2010). “The American Carbon Foodprint: Understanding your food’s impact on climate change,” Brighter Planet, Inc. Retrieved March 17, 2016, from http://www.kohalacenter.org/HISGN/pdf/carbofoodprint.pdf
· Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures. (2015). Retrieved March 30, 2016, from https://www3.epa.gov/epawaste/nonhaz/municipal/msw99.htm
· North Carolina Solid Waste and Materials Management (2011). Environmental Impact. Retrieved March 17, 2016, from http://foodfwdnc.com/statistics-2/
· The National Institute of Diabetes and Digestive and Kidney Diseases. (2016). Overweight and Obesity Statistics. Retrieved March 31, 2016, from http://www.niddk.nih.gov/health-information/health-statistics/Pages/overweight-obesity-statistics.aspx
· Waste Wise Products Inc. (2016, March 14). Would you believe up to 40% of U.S. food never reaches tables? Retrieved March 30, 2016, from http://www.wastewiseproductsinc.com/blog/food-waste/would-you-believe-up-to-40-of-us-food-never-reaches-tables/
