UK hospitality industry long way to go on the green road says new report

Hotels beat restaurants and pubs but still miss lots of profit opportunities

The latest Gram Green report shows that all hospitality sectors are doing better than before but there are still many missed opportunities.

Top of the hospitality sector (3rd overall after universities and schools) comes the hotel sector followed by restaurants and lagging at the back of the field…pubs.

Here are the stats:
UK HOTELS  3rd on the green scale

• The willingness of hotels to pay a small increase in costs to be greener… (average 37%) Hotels 33%
• 79% of hotels would describe their business as green
• 83% would like their business to be greener
• 47% think that they can afford to be as green as they would like

Hotel respondents were most likely to have personally introduced some form of energy saving initiatives. For 2008, 2010, and 2012, they have remained the sector with the highest number of respondents having personally introduced green initiatives at work, however this has been reduced from 72% in 2010 to 56% in 2012. Almost half of respondents cited using low energy equipment as the best way to save money.As the third keenest sector in the bid to be greener, the majority of hotels also believe that they do not have the financial capacity to realise this ambition.

25% of respondents cited some form of energy saving as a personal green initiative they had introduced, but there were no specific mentions of large equipment purchasing. Of the 62% of hotel respondents that identified a barrier, budget restrictions were cited by 53%. This may reflect the reluctance to buy energy efficient, capital equipment.

Said John Firrell Director of Considerate Hoteliers "I am not surprised by the overall findings of the report. They reflect the feelings we hold at Considerate Hoteliers, that much more effective communication must be carried out and training of staff undertaken to dispel the myths that exist about "being green". Making savings, establishing strong environmental and CSR policies, making operational changes, training staff in the art of being sustainable and informing guests of the hotel’s ethos does not have to be an expensive or costly business. Most can be achieved at little or no cost."

"Investing in more energy efficient equipment may in the short term require an investment but the return is quick, and will often represent a substantial saving in the long-term. The myth that embracing green technology and policies represents an inevitable price to pay by the guest must be exploded. It may often give the hotelier the means to be more competitive."

UK RESTAURANTS 4th on the green scale

• The willingness of restaurants to pay a small increase in costs to be greener… (average 37%) Restaurants 41%
• 59% of restaurants would describe their business as green
• 79% would like their business to be greener
• 53% think that they can afford to be as green as they would like

Restaurants were the least likely to describe themselves as green, had the lowest number of respondents able to cite an important green initiative their establishments had in place (62%),and were also the lowest personal introducers of green initiatives (33%). For restaurants, the financial barrier proved to be a particularly significant one. 49% of restaurants cited a barrier, and of these, almost half mentioned costs.

The majority of restaurant respondents displayed aspirations to be greener and were also confident in their financial capacity to do so. Restaurant respondents were the third most willing (41%) to pay a small increase to be greener. In keeping with this, the purchasing of more expensive, energy efficient equipment such as refrigeration and cookers were among a list of initiatives individuals had introduced.

"The fact that almost two thirds of restaurants describe the sector as a green one is encouraging. Even more encouraging is the fact that four out of five would like to be greener. An increasing number of restaurants are recognising that the vast majority of their customers want them to match their own values. Inevitably, businesses will cite cost as a barrier. But the current period of austerity could prove to be the best time for restaurants to adopt more sustainable practices. Reducing waste, saving water and making more efficient use of energy can have a hugely positive impact on the costs of running the business. With seven out of ten consumers saying they would choose a sustainable restaurant, given the choice, making that switch also gives the restaurant a competitive edge in a challenging market."

"Restaurants also need reminding that they don’t have to embark on this journey alone.
Organisations like the Sustainable Restaurant Association can guide them along the way, as well as promote the good things they are doing."  Mark Linehan, Sustainable Restaurant Association

PUBS 7th on the green scale

• The willingness of pubs to pay a small increase in costs to be greener… (average 37%) Pubs 24%
• 77% of pubs would describe their business as green
• 63% would like their business to be greener
• 43% think that they can afford to be as green as they would like

Pubs had the lowest number of respondents wanting their business to become greener. They were also the channel most unwilling to pay an increase to become greener (36% scored 0, indicating total unwillingness), and the least likely to say that it is easy to be green at work (55%)

Over recent years, pubs have been challenged by increasing operational burdens with the introduction of new legislation, from extended licensing laws to the smoking ban. In addition, the 2% increase above the rate of inflation applied to beer duty every year, means the financial difficulty pubs face due to the economic climate, has worsened. The UK pub sector is largely dependent on the performance of the UK economy as a whole and the tightening of consumer spending, cost inflation and competition experienced by pubs has also taken its toll on their financial stability. Consequently financial inefficiencies have had a bearing on their ability to be green. This was exemplified when 48% of respondents that cited barriers preventing their green initiatives, specified cost. Similarly, only 26% of pubs were confident in their ability to pass on a small percentage of costs to their customers, which was down on the 48% in 2010.

Now in its third edition, the Gram Green Report is a quantitative research project reviewing the UK foodservice industry’s attitude and behaviour towards a greener and more environmentally responsible future.

Gram has now teamed up with the leading channel associations within the industry, CHA (Considerate Hoteliers Association), LACA (Local Authority Caterers Association), NACC (National Association of Care Catering), SRA (Sustainable Restaurant Association), and TUCO (The University Caterers Association), to produce the report,.

To download your free copy of The Green Paper 2012, simply visit http://www.gogreenwithgram.co.uk.

Valere Tjolle

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