Businesses Going Lean and Green

  • Marco's Pizza changed the size of its boxes to fit more on distribution trucks. It's also switching to recyclable plastics for chicken wings. (Photo by Julie Grant)

Times are tough for the economy,
so lots of headlines tell us that the
end is near for the burgeoning green
market. But some analysts say the
economic downturn could encourage more
companies to be environmentally friendly.
Julie Grant reports:

Transcript

Times are tough for the economy,
so lots of headlines tell us that the
end is near for the burgeoning green
market. But some analysts say the
economic downturn could encourage more
companies to be environmentally friendly.
Julie Grant reports:

When stock prices plummeted this year for Whole Foods
Market, a lot of people saw that as a sign that green
companies were wilting during this dark time in the economy.

Whole Foods has one of the best known names for natural
and sustainably made products and caters to people who
are willing to pay more for them.

“You know, it’s really easy to look at stores like Whole
Foods, or companies selling green products, and see that
they’re not doing as well as last year and saying, ‘oh, the
green economy is tanking.’”

Author Joel Makower has chronicled the rise of the green
movement in corporate America through many articles, and
in his recently published book “Strategies for the Green
Economy.”

“The fact is that no retailer, except for Wal-Mart, is doing
better than last year. They’re all doing much, much worse.
So green products sink and swim along with the overall
economy. The economy is really bad right now, so a lot of
these products aren’t doing as well.”

But Makower says the green movement has a leg up on the
rest of the economy – because what consumers are buying
is only part of the story.

(sound of Marco’s Pizza Shop)

The smell of garlic and cheese and dough baking at Marco’s
Pizza is enough to make anyone hungry when they walk in.
While some of the biggest names in the pizza biz are closing
down stores, this relatively small Ohio-based chain is
growing like gang-busters, tripling the number of stores and
franchising in 14 states.

Purchasing manager Don Vlcek says, earlier this year,
prices of everything from the mozzarella to the plastic cups
were on the rise.

“When all of the costs going into restaurants started going
up, like I’ve never seen, and I’ve been in this industry since I
was 17 years old, we wanted to keep our prices the same to
our customers. So we looked at cost cutting – mainly at the
packaging end.”

Vlcek stresses: they’re not skimping on the pizza.
Marco’s has started doing things like using paper cups
instead of plastic. The new ones are cheaper and
biodegradable. Their pizza boxes used to be colorful,
glossy, and not very recyclable.

“Now our boxes, which the industry has said is the most
impressive and highest cost box in the industry, we’ve taken
that and we’ve put new messages on it, with a non-
varnished look.”

Marco’s also slightly reduced the size of its pizza boxes, so
more fit on its distribution trucks. That’s saved transportation
costs – and lots of polluting truck travel. None of this sounds
too sexy. But these efficiencies have saved Marco’s 2.5
million dollars this year.

The cuts they made have been good for the bottom line –
and for the environment.

Industry strategist Joel Makower says there are thousands of
stories like this.

“Once companies squeeze out the waste and inefficiency
and the water, carbon, and energy intensity and the toxicity
of their products, that’s not going to come back as soon as
oil prices drop, as we’ve seen them do, or when the
economy goes bad, as it has. This is a fundamental change
in how business is being done, and this is just the
beginning.”

Makower predicts that companies will continue to innovate
new ways to save money, and that is going to benefit the
environment.

For The Environment Report, I’m Julie Grant.

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