Sustainability is becoming a top priority for companies of all sizes and sectors in the modern world. This trend has also affected franchising, which gives business owners access to a tested business idea. As the market for socially and environmentally conscious companies grows, many franchise brands are adopting eco-friendly programmes and practices. In this blog, we will discuss the value of sustainability in franchising and highlight some green practices and initiatives transforming the sector for the better.
The Rise of Sustainability in Franchising
Customers have higher expectations for sustainable business practices as they become more environmentally conscious. Both franchisors and franchisees are realising that implementing eco-friendly practices can improve their brand’s reputation while also yielding long-term financial gains. What follows are some of the reasons driving the importance of sustainability in franchising:
1. Meeting Customer Demand:
Consumers are more likely to choose businesses that demonstrate a commitment to sustainability. Franchises that offer eco-friendly products or services are more likely to attract and retain customers who prioritise environmental responsibility. Delivery apps like MrD offer consumers the ability to forego plastic cutlery. Kauai provides incentives for customers to buy reusable containers for smoothies.
2. Cost Savings:
Sustainability initiatives often reduce energy consumption, waste, and resource use. These cost-saving measures can directly impact a franchise’s bottom line, increasing profitability in the long run. South African brands have been forced to adopt alternative energy solutions due to ongoing loadshedding. Many brands have to rely on the alternatives available from their landlords, such as generators, and this often comes at an increased cost. To this end, franchisors should continually assess operations to find energy-efficient ways to reduce operational costs.
3. Legal and Regulatory Compliance:
Many countries and regions have implemented strict environmental regulations. Franchises that proactively adopt eco-friendly practices are better positioned to comply with these laws, reducing the risk of legal issues and fines. The banning of single-use plastics is increasing worldwide, and franchisors should ensure that they are ahead of the curve by investigating packaging that meets this requirement.
4. Reputation And Brand Loyalty:
A strong commitment to sustainability can enhance a franchise’s reputation and foster brand loyalty. Consumers are more likely to support businesses that align with their values and ethics. The Body Shop’s positioning was built on sustainable and environmentally friendly products and packaging.
Eco-Friendly Initiatives and Practises in Franchising
1. Energy Efficiency:
Franchises are implementing energy-efficient lighting, HVAC systems, and appliances in their operations. These changes not only reduce energy consumption but also lower utility costs. Where possible, the use of natural light can contribute to energy efficiency.
2. Waste Reduction:
Many franchises are minimising waste by using compostable or recyclable packaging and reducing single-use plastics. Some even actively promote recycling and waste reduction in their communities. The Body Shop gives customers a discount per used product brought to the store for recycling. They have also launched a refill station to help consumers save on plastic packaging.
3. Sustainable Sourcing:
Franchises increasingly source their materials and ingredients from sustainable suppliers. This not only reduces the carbon footprint but also supports ethical and eco-friendly producers. Most supermarket franchises encourage franchisees to buy their fresh produce from local farmers.
4. Renewable Energy:
Some franchises are taking the extra step to invest in renewable energy sources such as solar panels to power their operations. This shift towards clean energy contributes to a significant reduction in greenhouse gas emissions. Yum! Brands, owners of KFC, are committed to reducing emissions by 46% by 2030.
5. Water Conservation:
Franchises are implementing water-saving technologies like low-flow faucets, efficient irrigation systems, and water-recycling processes to minimise water waste. South Africa is a country that experiences water scarcity and declining infrastructure; therefore, franchises must investigate ways of reducing water usage.
Case Studies: Leading the Way in Eco-Friendly Franchising
Several franchises have demonstrated their dedication to sustainability by incorporating eco-friendly initiatives into their business models. Here are a few examples:
The fast-food giant has committed to using sustainable packaging and energy-efficient restaurant designs. They have also set ambitious targets to reduce greenhouse gas emissions throughout their supply chain.
2. Sorbet Group:
Sorbet is a popular beauty and wellness franchise in South Africa. They focus on using eco-friendly and natural products, including vegan-friendly options. Sorbet salons also implement energy-efficient practices, such as LED lighting and water-saving technologies.
3. TCB (The Clothing Bank):
The Clothing Bank is a social enterprise that empowers women to sell clothing discarded by retailers due to seasonality in their communities. They are empowering women to grow their livelihoods and also contributing to reducing the problem of overproduction and waste in the clothing industry.
Sustainability is no longer a trend but a fundamental aspect of business operations. In franchising, embracing eco-friendly initiatives and practises is not only responsible but also essential for long-term success. Franchises prioritising sustainability can attract environmentally conscious customers, reduce operational costs, and contribute to a healthier planet. As sustainability becomes the new norm, franchise brands that lead the way in environmental responsibility will enjoy a competitive edge in the market. If you’re considering investing in a franchise, it’s worth looking into their sustainability efforts to ensure they align with your values and the evolving expectations of consumers.