MGMT8420 - Sustainable Plan: Grand River Restaurant Case Study

This case study provides an overview of the hospitality industry with a focus on The Grand River Restaurant and its sustainability challenges. It identifies high energy consumption as a key issue, particularly in terms of electricity and gas usage, and suggests strategies for cost reduction through energy efficiency. Recommendations include increased use of natural gas, solar energy adoption, water conservation measures, and improved waste management practices, such as staff training in waste separation and contract revisions with waste service providers. The study benchmarks The Grand River Restaurant against competitors like Sammy's Family Restaurant and Paris Ontario Restaurants, highlighting the importance of motivated staff, efficient waste disposal, and the use of renewable energy sources. Despite a decline in sales, the report concludes that The Grand River Restaurant can achieve sustainability by implementing these recommendations and adapting to the competitive market.

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Executive Summary
In this report, we had a brief overview of the hospitality industry; during the research, we
found out that there is high consumption of energy in this industry especially in terms of fuel,
maybe gas, or electricity. However, we noted that this energy consumption could be reduced to
reduce the production cost so that a hotel can maximize their profits. Some of the
recommendable ways to reduce the high consumption include using more of natural gases than
electricity as a source of energy, using solar systems, digging boreholes, always ensure no
machine is on while not in use, using more heat absorbent utensils and reducing wastage within
the hotel. We also recommended ways on how the hotel would be able to handle their waste
correctly, we suggested that they train their staff on separating organic and inorganic waste,
practice proper waste disposal and revising their contract with their service provider so that they
can rectify any terms they feel are bringing up restrictions or disadvantages. In the comparison
section, comparing the notes from each group member, there was an analysis of different
restaurant in the same area. Although there has been a reduction in sales in the hotel, we still
believe that the hotel can still be sustainable in its business and remain relevant in the market but
for them to succeed they have to undertake and consider some of the recommendations given in
this report.

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Introduction
The hospitality industry is a susceptible industry and requires a little more concentration
comparing with other kinds of business. In food and beverage industry, there is high
consumption of energy in terms of fuel, that is gas and electricity water is also consumed at a
very high rate, and a lot of waste especially organic is produced. For a business operating in this
sector to be efficient and maximize on their profits they should ensure that they could manage all
the resource (Brotherton, 2012). It is also important to note that this sector handles perishable
goods; therefore, they should be treated with care because if they are mishandled, they may
become a threat to human health; hence, they should have proper ways to manage their waste. In
any business, the motive is to undertake, cost-saving activities, which in the end help them
increase their profit margin.
With this overview about food, the industry we can now look at some of the strategies,
which any organisations apply during its market penetration and sustainability (Reihanian et al.,
2012). Like any other organization, hotels and other hospitality industry must conduct a SWOT
analysis for them to remain in a very competitive market. SWOT involves analyzing both
internal and external environment, and it means to study an organization’s strengths and
weaknesses, this refers to the internal environment, opportunities, and threats, which relates to
the external environment. A SWOT analysis helps an organization to know what they need to do
to be on par with its competitors in the market.
In the hospitality sector, some of the strengths could include the type of food they serve,
using attractive decor, and excellent customer service and minimized utility bills. Some
weaknesses would consist of lack of adequate employee training, improper waste management,

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and bad customer service. Opportunities could include in traducing new items in their menu, an
introduction of organic dishes and cooking healthier foods. Some of the threats include new
restaurants, other restaurants selling at lower prices, and tidiness of the hotel (Radojevic,
Stanisic, & Stanic, 2015). With these factors both internal and external, we will be at a better
position analyzing The Grand River Restaurant case and conducting a benchmarking in some of
the newly opened restaurants in the area hence we can have a conclusion why The Grand River
Restaurant is at its current situation.
Baseline
Using the information provided from The Grand River Restaurant utility bill in the year
2017 we can draw some meaningful information, which can act as the baseline for helping the
hotel minimize on their costs. From the utility bill, we can see that natural gases are much
cheaper than using electricity as a source of energy, and the electricity bill is the highest among
the three. Therefore, from this information, we could advise that the hotel use more of the natural
gases as their primary source of energy than electricity (Neubauer & Lank, 2016). The utility
bills are among the weaknesses that the hotel should deal with so that they can be in a better
position to compete with their new competitors. A reduction in all these utility bills will, in the
end, reduce the production cost incurred; hence, the hotel could also be in a position to lower the
prices of their products, therefore, attract more customers. Such a reduction of the cost will help
increase the hotel's profit and the profit margin and will earn them a larger market share.
Analyzing the utility bills, we noted that for natural gases between January and April
among the hotel staff, such conclusion is drawn because the same hotel records very low
consumption of $547. If the wastage is reduced, then the hotel can cut the natural gas bills. For

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electricity bills, they seem to be high throughout the year, and this leaves us wondering why the
hostel is consuming such a high amount of electricity while they have an alternative source of
energy. For water bill, it has been relatively low throughout the year except for three months
where a rise in the amount spent on water was noted. These utility bills are among the significant
weaknesses that the restaurant has, and they must come up with ways on how to reduce them so
that they can be able to compete in the market (Bansal & DesJardine, 2014).
A quick and short SWOT analysis for this hotel can be conducted so that they can be
aware of their environment and factors that that can help them gain a competitive advantage
(Legrand, Chen & Sloan, 2013). First, some of the strengths include, been in operation for an
extended period, having competent staff. Secondly, the weaknesses include high utility bills.
Thirdly, the opportunity consists of introducing new dishes in their menu, lowering prices,
introducing organic food in their list and introducing different cultural cuisines. Lastly, the
threats include the new restaurants in the area, the introduction of new menus by these hotels.
Business Case for Action
Basing from our research, The Grand River Restaurant should incorporate some practices
in their operations to enhance their efficiency and avoid wastage in terms of energy and water;
they should also ensure that there is proper water management in their organization to maintain
high levels of hygiene. Reduction and adequate management of these significant items especially
lowering the bills will the help the hotel cut on production cost and reducing some of the utility
bills costs hence leading to increasing in return on investment (ROI) since they will earn more
profits (Hofmann et al., 2014). Here are some of the strategies that the Grand River should

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borrow from its competitors so that they can improve on their efficiency, increase productivity,
and cut costs. Some of the recommendations we gathered for each of these three items include;
Energy
Energy combines both electricity and natural gases they should both be used together to enhance
each other, but from our research, more dependency on natural gases will help lower the high
electricity bills (Teng, 2012). Here are some of the recommended techniques that may improve
the restaurant cut on the cost of energy they spend each month. Switching off idle machines and
lights, use more heat absorbing utensils, and presoak food before cooking.
Water
Water is an essential commodity especially in the food and beverage industry; therefore, they
should ensure that it is preserved and there is no wastage so that they can cut on costs and ensure
the hotel never lacks this precious commodity (Hu,et al., 2013). Some of the recommendations
we give the hotel on ways to reduce water wastage are repairing any leaking pipes, use of auto
shut taps, and digging their borehole within the restaurant compound.
Waste
Failure to handle and manage waste properly in any food handling business would lead to
unhygienic practices hence risking the health of the food consumers. Some of the
recommendations we gave The Grand River Restaurant on waste management are, ensure proper
disposal of waste, train the staff on separating organic and inorganic waste, and revise the
contract with their service provider.
Sammy’s family restaurant

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In my research on what enables this restaurant to retain its sustainability during a very
competitive hospitality industry, I realized that at Sammy's family restaurant they believe that
their staff means everything for their restaurant. The restaurant believes in motivating their staff
members so that they can get work done in the best way possible, their team of staff consist as
highly motivated individuals who feel that they must give their best so that their hotel can remain
relevant in the market. This is a perfect strategy since, with such a team, they will always want
the best for their business; therefore, they work in a coordinated manner and help each other, and
this is one of the best strengths to keep any company in operation (Prud’homme & Raymond,
2013). A motivated team as the one I saw at Sammy's Family restaurant will be able to establish
any weaknesses and threats and handle them accordingly, and they can identify possible
opportunity and find ways how they can venture and introduce at work for better performance of
the business.
Another strategy, which I noted that the Grand River should borrow from their
competitor, is that they have a borehole within their premises. The borehole acts as the primary
source of water for the hotel; therefore, they can cut on the water bill; this reduction of cost helps
the hotel on cost-saving hence reducing the production cost (Hitchcock & Willard, 2012). A
reduction I production cost means an increase in profit earned, it also increases their sales
because their products are at affordable prices; hence there is increased return on investment. I
think this is a good strategy that Grand River should also try.
Paris Ontario Restaurants
In my research, in an attempt to know how other restaurants are trying to achieve their
sustainability and relevance in the market I took a keen study of the operations of Paris Ontario

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Restaurants. The restaurant is based in the same location with the Grand River; therefore, most
of their external environment is the same, and they share the same competitors, but the reason
why this restaurant does not seem to struggle so much to maintain its sustainability is that their
operations are more efficient (Mihalič, Žabkar, & Cvelbar, 2012). Among the many advantages,
that they have over Grand River is that they have proper waste disposal methods. In POR, their
waste is disposed of in a way that they pose no hazard to the human in the area, and I noted that
they have different bins with different colors, this helps the hotel staff dispose of the waste
differently. Both organic and inorganic are not mixed thus making it easy for any recycling; for
instance, their food waste is used for feeding some animals.
Another strategy that I noted that helps POR maintain their sustainability is the ability to
save on electricity bills, and the hotel uses minimum electricity since they only apply in
machines, which cannot work with solar (Gbadamosi, 2013). The hotel uses solar energy in
most of their lighting in the hotel, and they have a hot water system installed instead of using
electricity to heat the water. Such a strategy helps them save so much on the electricity bill that
they can reduce their production costs, hence earning more profits.
Brennan's Fish House
Business sustainability is, and at Brennan's Fish House, they value this more than
anything else to retain it one must ensure customer satisfaction through your services and other
ethical practices (Schaltegger, Lüdeke-Freund & Hansen, 2012). During my research in noted
that Brennan's Fish House ensure that their customer is satisfied through providing that they take
advantage of their strengths and opportunities and handle their weaknesses and threats with the
best strategies possible. Tasty and healthy food is among the strengths that this hotel has heavily

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invested in; this makes them have an added advantage over the Grand River and other
competitors in their market. Despite having bills to carter for just as in the case of the Grand
River, this restaurant can manage because their sales are earning them enormous profit.
However, they believe that business is all about profit maximization; therefore, they ensure that
the bills are not too high by introducing some energy-saving strategies in their hotel (Kim, Vogt
& Knutson, 2015).
One way that the hotel ensures that, they save on money used on energy by using natural
sources of energy such as solar. The hotel depends little on electricity especially in their cooking
because they use more gas than electricity. In other parts of the hotel, they use solar energy to
carry out some functions which in the case of Grand River they use electricity. Comparing these
two bills, they can never be the same because one has perfected on the art of reducing the
amount of electricity used and replacing it with other sources of energy (Idris & Abdul 2015).
Another strategy I noted is that at Brennan's Fish House, they soak their food before they cook
food such as cereals, this reduces the amount of time the food is cooked, and hence this adds up
in the energy saving strategies
Conclusion/ Summary
Although the sales have reduced over the years, The Grand River Restaurant still has a
chance to maintain its stability in the market even with new restaurants coming up. For its
business to be sustainable and regain its market share, then they have to deal with their
weaknesses and the threats that are facing them. As we recommended if the restaurant applies the
measures, we proposed to them in the recommendation section them, and they will be able to
gain a competitive advantage against their competitors. For instance, digging their won boreholes

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will help them reduce the water bill also using more natural gases than electricity will help them
cut the electricity bill. Dealing with its weaknesses and putting the necessary measures in place
will help them remain relevant (Wheelen et al., 2017). Their being in the market for a longer
period is one of their major strength, and if they deal with other factors then they can have their
customers back hence their sales will be back to normal and more profit will be realized. It is
important to note that the restaurant is putting efforts to ensure its sustainability in the industry
and that it remains relevant in the market (Giovannoni & Fabietti, 2013). From the
benchmarking, we were able to recommend some of the strategies that the Grand River
Restaurant can put in place to ensure they maintain their competitive advantage over their
competitors.

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