Sell More. Save More. Food Service Goes Green

Posted on May 7, 2013 by Bill Roth

The “fast food” formula for growing revenues through promotional pricing of fries, burgers, tacos and sugary soda is in crisis. Sales are not going up and margins are eroding. This revenue crisis is being driven by the Millennial Generation and their moms, Concerned Caregivers, who are questioning what to buy and who to buy from. Their combined $9 trillion of annual buying power is reshaping the food service industry.

In search of the business opportunity in this mega-trend I conducted three years of interviews with restauranteurs, caterers, bakers and food industry leaders who were growing sales and profits. Some of those interviewed were from large corporations. Many were local entrepreneurs. The interview focus was upon their “secret sauce” for making money. Their answers are best practices that are proven to win customers and save money.

Common among those interviewed was a focus upon human and environmental health. Their commitment went beyond expanding their menus to include lower calorie options. Their businesses and products were structured to be solutions sought by the Millennial Generation and moms. By doing so they won a level of authenticity with these customers (and work associates) that competitor advertising or dollar value promotions could not overcome.

This level of authenticity also allowed these businesses to price their foods higher than competing dollar price promotions and still win a growing number of customers. Their authenticity has attracted a core group of loyal customers which are a food service company’s most profitable customers. The authenticity of their food has won them new customers attracted by the social media messages and ratings posted by customers.

These food service businesses are also winning profit margin advantages. Yes, their food often costs more. But this cost disadvantage is mitigated by their focus upon reducing costs tied to emissions and waste. They compost because it is green but what they have found is that composting reduces the cost of waste disposal and pest control. They install LED lights because they use less energy. But the financial results are reduced electricity costs including less A/C use because LED lights generate little heat. And LED lights reduce costs because they typically have a five year failure horizon. LED lighting is also proving to grow sales because dining spaces are more attractive.

On May 14, 2013 I will be conducting two coaching sessions hosted by SDG&E to profile my research findings. I will also be working with attendees to develop their project for implementing at least one of the profiled best practices within the next 90 days. Below is the link to sign up: click on “Seminars Calendar and Registration, then find May 14-there are morning and afternoon sessions-click on the time you want and register to attend:

http://www.sdge.com/energy-innovation-center/seminars

If you are unable to attend then please revisit Earth 2017 in the coming weeks as I will begin posting case studies profiling selected food service industry interviews on pricing, marketing, branding and operational best practices that make money by being green.

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017

Posted in Best Practices | Tagged , , , , , , , , | Leave a comment

First Green Dentistry Conference

Posted on April 17, 2013 by Bill Roth

A grassroots-developed set of best practices has now emerged among practicing dentists that increases customer satisfaction and customer health while reducing a dental practice’s environmental footprint. To advance this trend the first ever Green Dentistry Conference is being held on May 3 and 4 to share these green dentistry best practices with attending dentists from around the world.

An Idea From U.S. Bank!
The idea that sparked this conference came from U.S. Bank. One of their officers had attended a U.S. Hispanic Chamber of Commerce Green Builds Business coaching session I conducted in Miami. From this first introduction a dialogue evolved with various bank officers where we exploded how the bank’s financing capabilities could accelerate the adoption of green business best practices by local businesses. One bank officer suggested dentists as a target for this outreach effort. This suggestion propelled the development of the first ever Green Dentistry Conference. In support of this effort U.S. Bank is the conference’s lead sponsor.

Hosted By The Eco-Dentistry Association
As soon as I heard this idea by U.S. Bank I thought of Ina and Fred Pockrass. Fred is a pioneer in green dentistry with a practice in Berkeley California. His wife Ina is a co-founder of the Eco-Dentistry Association that was formed as a platform for likeminded dentist to share their green best practices. Their advisory board consists of practicing dentists from across the country that have greened their own practices. Ina and Fred immediately seized upon the idea and went to work developing an agenda that their experience told them would be helpful to dentists, their associates and patients.

Topics: Finance, Emerging Technologies, Attracting The Millennial Generation
The conference offers an impressive array of “A-listed dental experts” with real world experience and proven best practices to share.

Early arrivers for the first day will have the opportunity to participate in “Yoga Flow for the Dental Pro” conducted by Dr. David Hennington. Dr. Hennington is a practicing dentist that has developed a yoga routine designed for dentists.

The program will kick off with Ina and Fred introducing the concepts of green dentistry based upon the experiences of actual dentists. They will host an open dialogue with attendees on their experiences and surface questions attendees may have about green dentistry.

I will then outline the business case for going green. I will review how green builds business by profiling best practices in pricing, marketing, branding and operations that are proven to win customers and reduce costs. One key area of focus will be the opportunity for winning Millennial Generation customers searching for businesses that align with their human health and environmental concerns.

The next panel builds upon this theme that green builds business by profiling best practices in dental office design that are cost effective, customer centric and environmentally responsible. The speakers on this panel will be James Kuester, a LEED Green Associate and noted specialist on dental office interior design, Patrick Crowley the author of Dental Office Design: 1001 Practical Tips For Creating Your Ideal Dental Office that has designed and built over 650 dental offices and Derek Lamprecht from U.S. Bank who will outline the tax benefits and financing options available for building a green dental office.

Several panels and presentations will be made on the technologies, including digital office technologies, now available to dentists that offer a path to reducing a practice’s costs, enhancing the customer experience while also reducing the practice’s environmental footprint. Noted presenters and panelists include Drs Mark Abramson, John Flucke, Marty Jablow and Paul Feuerstein.

The program will then shift to a focus upon the customer and work associates. Gary Takacs and Jack Hadley will present best practices on “Social Media and Marketing the Green Dental Practice.” Mary Govoni, RDH, will present on “Creating A Thriving Green Hygiene Program” to be followed by Tom Mitchell and Kevin Henry on “Leading the High Performance Team.”

All This Plus Sundance (And Maybe Robert Redford?)
I like working with green dentists. They truly have a sense of nature and a spiritual component in their lives and dental practices. While practical-me was thinking of hosting this event in a major metropolitan conference center the interest of the group was to host it in a location that embodied a passion for people and the preservation of the environment. They chose to host the Green Dentistry Conference at the Sundance Resort developed by Robert Redford. I am looking forward to conference breaks to enjoy a location that represents how mankind can conduct business in a manner that is respectful to the environment and embraces customers as human beings. And who knows, maybe Mr. Redford and I will bump into each other while walking the trails. Just in case I will have a copy of my novel, Electric Knights, that would make a great movie thriller staring Robert Redford (can’t help myself, I do live only a 90 minute drive south of Hollywood!). But if you are a dentist, and even if you don’t have a movie idea, do consider attending the Green Dentistry Conference on May 3 and 4 to learn proven best practices developed by your peers for winning customers and reducing costs through making a difference.

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017

Posted in Best Practices | 1 Comment

Tulsa Entrepreneurs Proving Green Builds Business

Posted on April 14, 2013 by Bill Roth

Tulsa entrepreneurs are proving with their success that green builds business. They are winning customers, most especially the Millennial Generation, by offering sustainable products and services that are healthier, local and cool!

Sustainable Tulsa
I was invited to Tulsa by Sustainable Tulsa, a volunteer organization of liked-minded citizens who are dedicated to Tulsa’s success defined by a triple bottom line of people, profits and planet. They are using their collective knowledge and buying power to support the growth of businesses that are contributing to Tulsa’s economic development, community development and improved human/environmental health. Sustainable Tulsa’s Executive Director is Corey Williams. She is a values-driven dynamo of energy, ideas and smiles motivated by a mother’s determination that her two daughters will live in a vibrant Tulsa that nurtures the wellness of people and the planet.

Farm To Fork To Farm!
What I saw in Tulsa was rejuvenating to my hopes that sustainability will become a lynchpin of America’s future success. Two of my favorite entrepreneurs were Libby Auld and Rufus Newsome. Libby owns the award winning Elote Cafe located in the heart of Tulsa’s Deco District of fantastic Art Deco buildings that are now beginning to be given a renewed purpose after years of under use by business owners like Libby. Rufus is a testament of the American spirit. He and his wife Demalda started Newsome Farms to help their African American community develop food self sufficiency and to improve the community’s health by teaching their neighbors how to grow fresh food as a diet alternative to fast foods. Libby, Rufus and Demalda have formed a pioneering sustainable relationship where the food waste from Libby’s restaurant is used as composting by Newsome Farms where LIbby buys fruits and vegetables! Through their efforts the practice of Farm to Fork is being advanced toward its truly sustainable solution of Farm To Fork To Farm.

Green Builds Business Success Stories
I was also able to catch up with two business owners that won one-on-one coaching with me through the Green Builds Business program sponsored by the U.S. Hispanic Chamber of Commerce with funding by Walmart. Vicente Ruiz is the owner of VR Electric. His project was to win customers by offering LED lighting solutions that would reduce electric bills and emissions. While visiting his business he proudly pointed out his front window at a bakery across the highway where he had installed a LED lighting system that was cost competitive with high efficiency fluorescent lighting, was saving money on the bakery’s electric bill and carried a five year warranty!

The other business that won one-on-one coaching was Pancho Anaya Bakery. Katia Anaya is the fourth generation of this bakery’s family ownership. We worked together to develop a sustainable alternative to offering their customers “paper or plastic.” The solution was the design of a reusable container with their bakery’s name on it that provides their customers with a better way for maintaining the freshness of their mouth watering bakery goods. Building upon this success the bakery has also begun recycling and has installed energy saving features at their three bakery locations.

I truly wish I had the space to recognize all the businesses and business owners in Tulsa that are making a difference. But what you should do is visit Tulsa and see for yourself the cool vibe being created by Tulsa’s merchants. They are proving at their cash registers that green does build business by making a positive difference on behalf of their community and human health.

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017

Posted in Best Practices, Business | Tagged , , , , , , , , , , , , | Leave a comment

How Commercial PACE Reduces Electric Bills And Emissions

Posted on March 23, 2013 by Bill Roth

Property Assessed Clean Energy (PACE) financing of clean technologies is making a comeback by targeting commercial properties. At the end of 2012, San Francisco became the first city to finance a project using commercial PACE. In conjunction with San Francisco’s milestone financing, 14 California counties and 126 cities have launched the nation’s largest commercial PACE program called CaliforniaFirst.

PACE is a financing program where cities or counties allow property owners to pay the financing cost for upgrading their building with clean technologies through property taxes. Qualified improvements covered by PACE include installation of efficiency lighting retrofits, energy/water saving systems and clean tech onsite generation including solar and fuel cells.

PACE was a hugely successful residential program before it was stopped in its tracks when the Federal Housing Financing Authority, along with the Office of the Controller Of The Currency, issued guidance that a PACE program was an involuntary subordination of a mortgage. This guidance effectively threatened the mortgages underwritten by the FHFA for homes that also had PACE financing.

Commercial PACE
Commercial PACE can be successfully financed because commercial buildings do not rely upon the FHFA when financing their mortgages. Through a commercial PACE program, a property owner can obtain a low-cost loan that can be transferred to a new owner if they sell their building. For a city or county, PACE is proven to create economic development including sorely needed construction jobs. A community using a commercial PACE program will benefit from reduced greenhouse emissions and, depending upon the type of investment, improved water conservation.

How commercial PACE is implemented
To learn more about how commercial PACE is being implemented, I interviewed Mahesh Shah, CEO of Fig Tree Energy Financing, just after his company won approval by the City of San Diego to implement a commercial PACE program. Fig Tree’s commercial PACE program provides an approving city like San Diego with a turnkey commercial PACE program. There are no administration costs charged to the city by Fig Tree for implementing the PACE program. All PACE financings are done through non-government sources so the city incurs no PACE-related debt. Fig Tree obtains enabling financing from banks and investors. The company also secures judiciary validation of the program that protects both the city and participating property owners.

For property owners, this is a voluntary program. If one property owner uses PACE it will have zero impact upon the taxes of other property owners. Fig Tree manages the process from application to financing for participating property owners at zero cost to the property owner. Most importantly, Fig Tree obtains approval from the property’s mortgage lender before entering into a commercial PACE loan. One of the innovations being pioneered by Fig Tree is the use of a portfolio loan financing approach that aggregates several commercial PACE transactions into one financing. This portfolio approach enables Fig Tree to offer commercial PACE to smaller businesses seeking financing as low as $5,000.

Exclusive Interview: Mahesh Shah, CEO Of Fig Tree Energy Financing
The following 3-minute video interview with Mahesh Shah, CEO of Fig Tree Energy Financing further explains the implementation details of the commercial PACE program:

YouTube Video Interview Of Mahesh Shah On California Commercial Pace

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.

Posted in Best Practices, Energy Savings | Tagged , , , , , , , , , , , , , | Leave a comment

Exclusive Interview: Clean Tech Investing Best Practices

Posted on March 16, 2013 by Bill Roth

How to make money investing in clean tech is still a work in progress. Numerous publications have recently pronounced clean tech investing in renewable energy, bio-fuels and green chemistry to be dead due to a 34% decline in venture capital investments in solar and clean tech. But the growing price competitiveness of clean tech suggests that such declarations are off base. If the price of oil had dropped in price at the same rate that solar panel prices have fallen since 2007 then we would be paying $10 per barrel of oil! Similarly, higher efficiency lighting continues to win price competitiveness due to manufacturing economies of scale and technology improvements. Re-lamping a building with higher efficiency lights offers returns on investment of two years or less. But even with clean tech winning price competitiveness the investor path to monetizing clean tech investments remains challenging. The successful IPOs of ENOC, Tesla and Solar City are still more the exception than the norm.

Three “800 Gorillas In The Room” Confronting Clean Tech Investors
There are three “800-pound gorillas in the room” that dominate the clean tech investor’s path to profit. One is China. China’s thirst for manufacturing exports can overwhelm their own economic good sense. In terms of solar panels, China’s manufacturing strategy has resulted in a panel surplus that has driven price competition to levels that are unprofitable for most or all solar panel manufacturers. This price competition has greatly benefited end use customers, solar panel installers and the environment but it has ruined the economics for most investors in solar technology and manufacturing.

The second 800-pound gorilla is natural gas prices. Natural gas fracking has created a massive new supply that has driven prices from their $15 per mmbtu peak at the time of Hurricane Katrina into the $3 price range. The good news for consumers and the environment is that natural gas is displacing coal as the preferred fuel for generating electricity. This is keeping meter prices in check and reducing emissions. The challenge for renewable energy is that natural gas fired generation is setting a lower price bar for winning on price.

The third 800-pound gorilla is the electric utility regulatory system. Revenue erosion is the economic reality for a utility if their customers shift to non-utility owned clean tech generation and/or adopt energy efficient smart buildings and factories. The solution for the utility industry is to control the process to insure their continued ability to financially support their capital investments in power plants and lines. For consumers and clean tech investors the utility’s controlling actions can slow or negatively alter the economics of a clean tech investment.

Clean Tech Investing: A Lot Of Money Looking For Commercially Viable Deals
At the recently held Clean Tech Investment Summit I talked to investors and investment managers about their appetite for clean tech investment. What I heard was that they had money to invest in clean tech but that the deal flow was not meeting their investment criteria. What I also saw was a growing number of angel investors who demonstrated a level of sophistication comparable to venture capitalists but with investment criteria more conducive to clean tech investing. Among all attending investors the focus was shifting toward the smart grid in a “if you can’t beat them (the utilities) then join them” strategy.

Kiki Tidwell: Clean Tech Angel Investor Interview On Investing Best Practices
The clean tech investment community now has almost fifteen years of intense experience. There are now proven best practices. To learn more I interviewed Kiki Tidwell, experienced clean tech angel investor. As a women investor Tidwell is also part of an important investment trend. In the U.S. women control or influence 80% of economic decision-making. Tidwell’s interview offers insights on clean tech investing best practices and provides a quality example of the emerging role women are playing in clean tech investing.

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.

Posted in Best Practices | Tagged , , , , , , , , , , , , | Leave a comment

Electric Cargo Van Solution To Business Pain At The Pump

Posted on February 10, 2013 by Bill Roth

While the horsepower buzz at the North American International Auto Show was the absolutely stunning Corvette and the Cadillac ELR all-electric coup was standing room only for the press I thought the most important vehicle was hidden in the far corner. It was Via Motors’ cargo van built for Verizon Wireless. What made this van unique was that it is an electric plug-in with extended range achieved through a gasoline motor that is a generator to the van’s battery system. Think Chevy Volt for a business van that is primarily driven in a lot of stop and go urban traffic.

Business Van Solution To Higher (And Higher) Diesel and Gasoline Prices
At EVERY business coaching session I have done over the last two years at least one business owners has asked me for a sustainable solution to higher pump prices. There are two ways this van can save a business owner money:

Lower Fuel Cost. It is estimated that this van technology will deliver up to $600 to $700 per month fuel savings! Now here’s the typical caveats: fuel savings depend upon how you drive the van, the price you pay at the pump and the price you pay your local utility for recharging the van. It does this by running the vehicle on grid supplied electricity or electricity produced through the vehicle’s regenerative braking system or from running the onboard gasoline engine to recharge the batteries. How much you save is now in your hands (and that of your fleet drivers).

Lower Maintenance Cost. This van is estimated to go 300,000 miles without maintenance on its major components. That saves money both in terms of reduced cost of maintenance plus increased van availability. For example, the regenerative braking system is suppose to go four times longer than conventional brakes between maintenance. Because the van uses electricity for much of its energy the need for oil changes on the on-board gasoline engine is four times fewer than a typical van.

Cost More But Saves More Over Vehicle’s Useful Life
The bad news is the purchase price of this van is twice as much as a typical van. But the projected good news is that this van will cost HALF AS MUCH over its useful life. On a “total cost of ownership” metric an average van user is estimated to save $500 per month after the added cost of converting the van into a plug-in hybrid.

Financial Hedge Against Higher Pump Prices And Increased Environmental Regulations
The price at the pump is not going down. The U.S. is producing more oil than anytime in its history. It still is not enough to keep pump prices from rising. As an economist I suggest business owners look at the higher upfront cost for plug-in electric technology as a financial hedge against higher pump prices. And it is a hedge against the considerable potential of increased tailpipe emission regulations now that three-fourths of U.S. citizens view climate change as being real.

Exclusive Interview: Via Motors Plug-In Extend Range Business Van
This 2-minute video interview with Via Motor’s Jeffrey Esteld conducted at the 2013 North American International Auto Show profiles more information on the van’s technology, where to buy them and how to achieve recharging times of approximately three and one-half hours.

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.

Posted in Cars, Energy Savings | Tagged , , , , , , , , , | Leave a comment

Chairman Bill Ford and CEO Alan Mulally On Ford’s Sales Success Built Upon Sustainability and CSR

Posted on February 4, 2013 by Bill Roth

Ford CEO Alan Mulally and Bill Roth Founder of Earth 2017

During the North American International Auto Show, I had the opportunity to meet with Ford’s Chairman Bill Ford and CEO Alan Mulally to discuss Ford’s business strategy and the role sustainability plays in it.

Bill Ford
Ford Motor Company’s business strategy reflects Bill Ford’s passion to continue his grandfather’s legacy of “making people’s lives better.” Before climate change was a national topic, Bill Ford was recognized as an environmentalist. A measure of true leadership is the ability to hold to your values in the face of criticism. In 1988, when he joined the Ford board of directors, Ford received harsh ridicule from his business peers because of his view that business success is linked to environmental and corporate responsibility. Bill Ford has declined any opportunity to say “I told you so” and instead continues to lead from the front by guiding Ford Motor Company to design and sell products that win competitive advantage on value and values.

Ford Setting Sales Growth Records
Bill Ford’s vision and courage to hold to his values has been validated. Ford Motor Company is setting sales records selling cars and trucks designed around fuel efficiency that achieve lower tailpipe emissions while being fun to drive and price competitive. 2012 marked the second straight year that Ford Motor Company sold more than two million Ford branded vehicles in the U.S. Ford is the only automotive brand to top two million U.S. sales since 2007. The Ford Focus remains the best-selling global vehicle nameplate.

Ford CEO Alan Mulally
A mark of a great leader is the ability to recruit outstanding people. The measure of a leader’s strength is their ability to allow others to lead. Bill Ford epitomizes the words of Coca-Cola’s legendary CEO Robert Woodruff:

There is no limit to what a man can do or how far he can go if he doesn’t mind who gets the credit.

Bill Ford demonstrated such leadership when he hired Alan Mulally away from Boeing. Mulally brought to Ford Motor Company strong business skills and global leadership in high-tech manufacturing. Like Ford, he is humble, calling Bill Ford his “supervisor.” But it was Mulally who initiated and led the “One Ford” cultural change inside Ford that is driving down costs while also introducing price competitive products loaded with cutting-edge technologies.

Mulally Ties Sustainability To Business Success
Mulally views sustainability on two levels. Mulally’s big picture for sustainability is defined by how well a company can survive and grow in today’s intense competitive environment. “Continue to serve” is his definition of sustainability on the enterprise level. “Continue to serve” is achieved by offering products that customers want, and will pay for, produced by using fewer resources and that will achieve cost competitiveness through superior productivity.

From his enterprise-scale definition of sustainability, he then defines every resource as “precious.” This “precious resource” perspective drives the enterprise to reduce the use of water, materials and energy in the production, distribution and sale of product. Tellingly, for every company that thirsts to be a Ford Motor Company vendor, Mulally says,

People I like to associate with have that view of sustainability.

Mulally Video Interview On Business Sustainability
The following two minute video captures Mulally talking with me about the role he sees sustainability playing at Ford Motor Company.

This is the first of a four-part case study on how Ford is growing revenues built upon a strategy with sustainability at its core. Their sustainable best practices in product design, operations and marketing can be used by every business to grow revenues and win customers. CLICK HERE to read about my interview with John Viera, Ford’s Global Sustainability Director on how CSR and sustainability anchor Ford’s “Go Further” brand messaging. CLICK HERE to read my exclusive interview with Julie D’Annunzio Ford’s Global Electric Fleet Manager explaining the range of electrification technologies now being offered that will cut our fuel costs and reduce tailpipe emissions. CLICK HERE to read about my test drive of the Ford C-MAX Energi that profiles how the auto industry is using digital technologies to add more fun to the driving experience.

Travel and accommodations to NAIAS in Detroit were covered by Ford. Opinions are my own.

Bill Roth is an economist and the Founder of Earth 2017 He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.

Posted in Business, Cars | Tagged , , , , , , , | Leave a comment