Global Restaurant Chain Reduces Emissions Through On-Site Electrification

Challenge

For several years, an international chain of fast-casual restaurants has been making decarbonization progress in alignment with its SBTi-approved goals to reduce Scope 1 and Scope 2 emissions by 50% by 2030 and reduce absolute Scope 3 greenhouse gas (GHG) emissions by 50% within the same timeframe. While 40% of its electricity was purchased from renewable sources in 2022 — achieving a 13% reduction in Scope 2 GHG emissions — additional interventions would be needed in order to maintain progress toward their goal.

The chain continues to grow drastically, planning to double its number of restaurants in North America over the long term. The new restaurants would need to be developed with decarbonization implications front and center, all while continuing to assess the current portfolio for additional emission-reduction opportunities to reach their 2030 goals.

Solution

ENGIE Impact executed on-site and remote energy audits to evaluate energy reduction opportunities, evaluating various aspects of restaurant design, operation and equipment. A major source of restaurant emissions is the heavy reliance on natural gas. Cooking equipment can be replaced with more efficient natural gas versions, but the transition to all-electric equipment running on renewable energy will have the largest impact. There were also potential interventions related to water heating, cooking operation efficiencies, heat pumps, lighting sensors, and upgraded power strips. Considerations needed to be made for both new restaurant locations and retrofitting existing locations.

ENGIE Impact provided multiple strategic recommendations to reduce demand-side energy alongside electrification opportunities — taking into account timeline, CapEx, and other factors — and modeling the potential impact and progress that could be made with each scenario.

Results

The company aligned on a scenario focused on low cost and CapEx efficiency improvements at existing sites and site electrification solutions for new restaurant openings. They began to see some Scope 1 and Scope 2 reductions at existing sites in 2023, but ENGIE Impact estimates they will see:

• Up to 7.2% reduction in Scope 1 emissions by 2030 for existing sites
• Up to 4.0% reduction in Scope 2 emissions by 2030 for existing sites
• Up to 99.6% reduction in Scope 1 emissions by 2026 at new sites (up from 17.4% in 2023)
• Up to 66.9% reduction in Scope 2 emissions by 2026 at new sites (up from 12.3% in 2024)

An estimated 25% of new restaurants in 2024 will follow the new site electrification recommendations, 75% of new sites in 2025, and 99.6% of sites thereafter.