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Model Restaurant Efficiency Report

Prepared for J. Alex Tarquinio of the New York Times

Monday, October 29, 2007

RESTAURANT ASSUMPTIONS

Open 360 days/year

Building is in operation for 15 hours/day

Cooking/serving times is 10 hours/day

Size: 1800 square feet

Capacity: 25 seats

200 customers/day

Approximately 30% take-out business

BOSTON RATE ASSUMPTIONS

Electricity rate = $0.108/kwh

Gas rate = $0.9799/therm

Water rate = $52.10 / 1000 cubic feet

$6.966 / 1000 gallons

Sewer rate = $54.00 / 1000 cubic feet

$7.22 / 1000 gallons

USEFUL CONVERSION RATES

1 therm = 100,000 BTUs

29.299 kWh / therm

3413 BTUs / kWh

~1580 kWh / metric ton of carbon dioxide

DATA POINTS

Pre-rinse spray valve replacement

Faucet aerator replacement

Deep fryer replacement

Charbroiler replacement

Refrigerator replacement

Freezer replacement

Lighting replacements: CFLs / LEDs

Composting/Recycling

Hand dryer installation

In-store reusable mug program

Pre-rinse Spray Valve Replacement Cost Calculation

Purchase a low-flow pre-rinse spray valve retrofit to replace existing, conventional flow pre-rinse spray valve.

Cost: $53.00

Annual savings: $2238.11 (90,720 gallons water)

Payback period: less than 9 days

Annual CO2 Reduction: 18 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement: 971 therms = 28,449 kWh

Assumptions

Old device flow rate = 2.6 gpm (gallons/minute)

New device flow rate (most efficient) = 1.2 gpm

Operating hours/day = 3 hours

Operating days/year = 360

Notes

These calculations do not account for rebates and/or tax incentives.

Faucet Aerator Replacement Cost Calculation

Purchase low-flow faucet aerator retrofits to replace existing, conventional faucet aerators.

Cost: $30

Annual savings: $2832.32 (172,800 gallons water)

Payback period: less than 4 days

Annual CO2 Reduction: 7.2 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement: 388.8 therms = 11,392 kWh

Assumptions

2 kitchen sinks running 2 hours/day each

4 hand sinks running 0.5 hours/day each

Existing faucet aerators: 2.5 gpm

Low-flow retrofit: Kitchen – 1.5 gpm

Hand – 0.5 gpm

Notes

These calculations do not account for rebates and/or tax incentives.

Deep fryer (gas-fired) Replacement Cost Calculation

Choose high-efficiency gas-fired deep fryer over conventional base efficiency gas-fired deep fryer.

Cost differential: ~$3500

Annual savings: $791.75

Payback period: approximately 4.5 years

Annual CO2 Reduction: 15 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement: 808 therms = 23,674 kWh

Assumptions

10 operating hours/day

360 operating day/year

150 lbs. food cooked per day

Conventional, base efficiency fryer = ~$3500

High efficiency fryer = ~$7000

Notes

These calculations do not account for rebates and/or tax incentives.

Charbroiler (gas-fired) Replacement Cost Calculation

Choose high-efficiency gas-fired charbroiler over conventional base efficiency gas-fired charbroiler.

Cost differential: ~$1500

Annual savings: $543.25

Payback period: approximately 2.75 years

Annual CO2 Reduction: 10 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement: 554.4 therms = 16,243 kWh

Assumptions

10 operating hours/day

360 operating day/year

Conventional, base efficiency charbroiler: ~$2500

High efficiency charbroiler: ~$4000

Notes

These calculations do not account for rebates and/or tax incentives.

Refrigerator Replacement Cost Calculation

Choose high-efficiency refrigerator over conventional base efficiency refrigerator.

Cost differential: ~$400

Annual savings:

Tier 1 = $46.12

Tier 2 = $106.83

Payback period:

Tier 1 = over 8.5 years

Tier 2 = approximately 3.75 years

Annual CO2 Reduction:

Tier 1 = 0.27 metric tons of CO2 equivalent

Tier 2 = 0.63 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement:

Tier 1 = 427.05 kWh

Tier 2 = 562.1 kWh

Assumptions

18 cubic foot, solid door refrigerator

California Energy Commission (CEC) standards

Tier 1 refrigerators: equal to Energy-Star rated.

Tier 2 refrigerators: 40% more efficient than Tier 1

24 operating hours/day

365 days/year

Notes

There is so much variability in models of refrigerators that it’s hard to compare “apples-to-apples” with Tier 1, Tier 2 and base models for pricing. In fact, there are Tier 2 models that cost less than Tier 1 models. However, they may be designed for different applications.

Very generally, however, it can be assumed that a Tier 1 or Tier 2 model will cost approximately $1800 and a base efficiency model will cost approximately $1400.

These calculations do not account for rebates and/or tax incentives.

Freezer Replacement Cost Calculation

Choose high-efficiency freezer over conventional base efficiency freezer.

Cost differential: ~$400

Annual savings:

Tier 1 = $33.90

Tier 2 = $135.21

Payback period:

Tier 1 = over 11.75 years

Tier 2 = approximately 3 years

Annual CO2 Reduction:

Tier 1 = 0.2 metric tons of CO2 equivalent

Tier 2 = 0.79 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement

Tier 1 = 313.9 kWh

Tier 2 = 562.1 kWh

Assumptions

18 cubic foot, solid door freezer

California Energy Commission (CEC) standards

Tier 1 freezers: equal to Energy-Star rated.

Tier 2 freezers: 30% more efficient than Tier 1

24 operating hours/day

365 days/year

Notes

There is so much variability in models of freezers that it’s hard to compare “apples-to-apples” with Tier 1, Tier 2 and base models for pricing. In fact, there are Tier 2 models that cost less than Tier 1 models. However, they may be designed for different applications.

Very generally, however, it can be assumed that a Tier 1 or Tier 2 model will cost approximately $1800 and a base efficiency model will cost approximately $1400.

These calculations do not account for rebates and/or tax incentives.

Lighting Replacement Cost Calculations

Decorative Lighting

Replace 20, 50W halogen bulbs with 20, 1.5W LED modules in a standard track lighting system.

Cost: $425.60

Annual Savings: $643.38

Payback Period: 8 months

Annual CO2 Reduction: 3.31 metric tons of CO2 equivalent

Energy Saved - Original Unit of Measurement: 5,238 kWh

Assumptions

Lights operate for 15 hours each day, 360 days per year.

Restaurant has a track lighting system with 20, 50W bulbs.

Notes

These calculations do not account for rebates or other incentives

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Traditional Lighting

Replace 20, 60W incandescent bulbs throughout the restaurant (hallways, office space, sconces) with 20, 14W compact fluorescent lamps.

Cost: $110

Annual Savings: $567.14

Payback Period: 2.33 months

Annual CO2 Reduction: 0.16 metric tons CO2 equivalent

Energy Saved - Original Unit of Measurement: 248.4 kWh

Assumptions

Lights operate for 15 hours each day, 360 days per year.

Restaurant has 20, 60W incandescent bulbs.

Notes

These calculations do not account for rebates or other incentives.

Composting / Recycling Cost Calculation

Implement a comprehensive recycling system, which includes cardboard, paper, plastic, glass, aluminum, and organic food waste.

Cost: Nominal, if any

Annual Savings: $1,380

Payback Period: Immediate

Annual Waste Reduction: 50 tons

Assumptions

The restaurant generates 150,000 pounds of trash per year.

Notes

The only start-up costs are new in-store bins, outdoor containers and signage. Typically, the municipality or waste hauler provides the exterior containers and will often provide in-store bins and signage at no cost.

Hand Dryer Implementation Cost Calculation

Purchase two high efficiency hand dryers - one for the men’s restroom and one for the women’s restroom - to replace paper towel dispensers.

Cost: $1,415

Annual Savings: $2,651.01

Payback Period: 6.4 months

Annual Waste Reduction: 1,620 pounds of paper towels

Assumptions

200 customers per day, half of whom use the bathroom and wash hands.

Restaurant operates 360 days per year.

Notes

The cost includes installation but does not include cost of removing paper towel infrastructure.

These calculations do not account for rebates and/or tax incentives.

Reusable Cup Cost Calculation

Purchase reusable mugs to replace paper cups for dine-in customers.

Cost: $187.50

Annual Savings: $7,372.50

Payback Period: 9 days

Annual Waste Reduction: 1,474.2 pounds of solid waste

Assumptions

Restaurant already has excess dishwashing capacity so an increase in the amount of reusable items used does not have a significant impact on the amount of water and energy used to clean them.

Restaurant is open for 10 hours per day.

Restaurant has 200 customers per day, 30% of which is take-out so the remaining 70% receive reusable cups for beverages purchased.

Restaurant purchases 150 reusable cups.

Reusable cups have a lifetime of 1000 uses.

Store has additional storage space and does not need to pay to build shelves, cabinetry, etc.

All dine-in customers order a beverage in a reusable cup.

Take-out customers do not bring their own travel mugs to house their beverages.

Notes

The data points and assumptions used in this analysis come from the Report of the Starbucks Coffee Company / Alliance for Environmental Innovation Joint Task Force, which can be found at .

There are much larger savings that this analysis does not account for, such as reduced energy use and water and air pollution that result from manufacturing ceramics instead of plastic cups.

This analysis does not account for increased business as a result of increased customer satisfaction when a company institutes environmentally friendly practices.

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