the future of green business strategy

1. the future of green business strategy A SIDE OF SAVINGS BETTER BUILDINGS CASE COMPETITION

2. Contents GOOD BURGER CASE 2 THE REAL ISSUES 3 STRATEGY & SOLUTIONS 4 ENERGY MANAGEMENT ARRANGEMENT 5 WASTE MANAGEMENT 10 CONCLUSION 12

3. Project Background • The Good Burger portfolio totals 8,000 limited locations in the continental United States and is about 90% franchised and 10% corporate-owned • The nature of the quick-service franchise restaurant business is to rapidly process food to meet consumer demand • Many restaurants keep energy intensive cooking equipment running in anticipation of customer orders. In addition, many quick-service restaurants are moving to 24-hour operation, where lights, HVAC, and equipment are rarely turned off at all • Complicated ownership, investment, and management structures present obstacles to instituting standardized energy conservation measures (ECMs) across franchise locations • Furthermore, while company-owned restaurants can be wholly integrated into corporate energy efficiency programs, franchised stores must voluntarily opt in • Team Proteus proposes a viable solution to this technical and business problem

4. Incentives for Energy Efficiency? (or lack there of) FRANCHISOR FRANCHISEES EMPLOYEES • 90% of Portfolio is Franchisee Owned • Energy Savings of Franchisee Restaurant Not Realized by Good Burger Corporate • Energy Data of Franchisees Not Shared with Good Burger • Franchisor Controls All Equipment the Franchisee Uses • Low Profit Margins • Energy Costs Are Only 3-4% of Overall Costs • Energy Efficiency Improvements Require Equipment Upgrades • Upgrades are Expensive! • Have High Payback Periods • Equipment is Complicated • Training Employees About Energy Efficiency is Expensive • High Employee Turnover • Temporary Job • Not Provided Training on Energy Efficiency • Pay not Linked to Energy Savings • No Incentive to Participate • Ignorant about Energy Efficiency Best Practices

5. Our Solution Energy Management Agreement(EMA) Food Waste Management • Crowd Collection of all Restaurant Food Waste in Region • Localized Third Party Waste Management Service Provider • No Employee Involvement • Centralized Third Party Energy Management Service Provider • No costs to Franchisor or Franchisee • No Employee Involvement

6. What is EMATM ? • Project Financing Arrangement for Distributed Electricity • Percentage of $ Savings to Buyer Goes to Seller • Everyone Wins Power Purchase Agreement(PPA) • Third Party Energy Management Expert Service Provider • Bears All Upfront Financing and Ongoing Overhead Costs • Percentage of Restaurant Energy Savings Goes to Provider Energy Management Agreement(PPA)

7. What Will EMATM Provider Provide? Voltage Stabilization Join the Smart Grid! Threshold Management Power Sines ComEC • Centralized Electronic Limits on Temperature by Weather Forecast • Lighting Output Controls by Proximity to Natural Light • Limits on Cooking Heat • Refrigeration Ambient Sensing • Ventilation Monitoring • Discounted Electricity Pricing by Time of Use (varies by utility) • Compensation for Demand Response Participation • More Reliable Power • Efficient Renewable Power • Cloud Based Monitoring

8. Energy Management arrangement will be based on the principle of a 75-25 split between Good Burger and the service provider ENERGY MANAGEMENT ARRANGEMENT • Performance based revenue sharing model • Contract length: 5-10 years • Continuous monitoring • Centralized cloud based management • Remote software upgrades 75% 25%

9. Savings generated annually to the scale of millions of dollars ENERGY MANAGEMENT ARRANGEMENT

10. Service provider will have a short payback period and can translate into a global billion dollar industry ENERGY MANAGEMENT ARRANGEMENT 3 X Good Burger Savings

11. Waste Management: generating Bio-gas from waste WASTE MANAGEMENT • America’s per capita food waste has increased to 50 percent since 1974* • It is approximated that 40% of the food in a restaurant goes to waste* • 135 million tons of green house gases are released into atmosphere because of gases produced from food waste* • Current Situation • Anaerobic digestion • wastewater treatment plants (WWTPs), dairy digesters, or dedicated digesters for the organic portion of municipal solid waste • Biogas can be used for electricity generation, as a natural gas substitute, or for vehicle fueling. • Solutions *Source:foodwastestats.com

12. Common waste handling system and power generation WASTE MANAGEMENT • Common food waste handling system to collect waste across all the fast food franchises and restaurants in a locality. • If 50% of the food waste is anaerobically digested it would generate enough electricity to power 2.5 million homes every year* • How ? • Avonmouth - first food waste anaerobic digestion plant opened in UK and can treat 40,000 tonnes food waste from homes, supermarkets and businesses. • The plant can produce 10 GWh of energy a year from biogas generated. • Feasible ? Alternatives • Relief organizations – if the quality is good and pig feed *Source:foodwastestats.com

13. end THANKS QUESTIONS?