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Though he majored in international business at GW,  Simons says he realized early on that the restaurant business was for him. After working at the Exchange, Simons joined the local T.G.I. Friday’s his junior year and worked his way up to the company’s corporate training program by graduation. In 1994,  Simons moved to California to work at the then-relatively unknown chain the Cheesecake Factory, where he met his mentor and future business partner Vucurevich. After a move to Dallas to help Vucurevich manage eatZi’s Market and Bakery,  Simons returned to D.C. in 2004 to launch their consulting firm, Vucurevich Simons Advisory Group.

Coming back to Washington and opening Founding Farmers near campus was like returning home for Mr. Simons. “When I first visited D.C. in eighth grade, I was amazed by the city, and knew I wanted to go to school here,” says Mr. Simons, who now lives in Garrett Park, Md., with his wife, three children and two dogs. “GW really made the city home for me, and it’s been great to return. I cannot imagine living anywhere else.”

The success of Founding Farmers has truly been a “dream come true” for Mr. Simons. “To have a hit like Founding Farmers requires a blend of many things, including good food and hardworking people,” says Mr. Simons. “But you also have to have a healthy dose of luck.”

Turning Green to Gold

It’s only fitting that the first LEED Gold certified full-service, upscale-casual restaurant in the country, which is also the first LEED certified restaurant in the nation’s capital, is owned by a collaborative representing farmers, the North Dakota Farmers Union.

Founding Farmers, which celebrates America’s culinary tradition in its menus and promotes sustainable agriculture and seasonality, received the U.S. Green Building Council (USGBC)’s LEED for Commercial Interiors certification, raising the bar for foodservice operations seeking higher levels of accreditation.

“We have set a new benchmark for restaurants to be more environmentally friendly,” says Dan Simons, principal of Vucurevich Simons Advisory Group (VSAG), the management and operations group for the restaurant, as well as foodservice consultant on the project.

“This is an important achievement not only for the hospitality industry but for the ownership collective of more than 42,000 American family farmers whose food we bring directly to the restaurant,” adds VSAG principal, Michael Vucurevich.

Achieving LEED Gold, VSAG took a decision. “To reach the most points…would’ve cost $200,000 more. We couldn’t do that, so we looked at things that we could do to get the points. We expect to do this again,” he adds. “There are other restaurants pursuing this and we get calls for advice. There’s a high level of chatter.”

At Culinary Options in Seattle, consultant Karen Malody, FCSI, expects “we are definitely going to see more and more of this. At FCSI, we’re already seeing more design consultants being LEED accredited and this can bring far more knowledge about the issue to projects.”

However, she continues, “Consultants will be fighting for more points to be associated with efforts in the kitchen. The energy hog center of the facility is the kitchen and it doesn’t contribute more than a few points (in the certification ratings). You need as many sustainable extensions from the kitchen such as waste reduction or energy conservation and very few total points are gained. You can buy Energy Star equipment and low-flow faucets and reduce the carbon footprint. From my perspective as a management advisory consultant, you try to reduce waste through strategic menu development engineering, but those things don’t contribute heavily to points.”

At Fisher Nickel Inc. Food Service Technology Center in San Ramon, CA, Richard Young says LEED projects create positive public relations and are seen by USGBC as “honoring the best of the best. But it’s not necessarily for every building out there. It’s great that (Founding Farmers) did this and I applaud it. It’s not an easy walk. For each one that moves forward, it helps others do it. With each certified restaurant, it gives lessons, opens the door to the next one and helps tailor LEED so it works better for restaurants. LEED is the ‘yellow brick road.’ The guidelines are a pathway.”

The leverage that certification provides, he adds, can help a restaurant. “The real benefit is you learn a lot. Is there payback? The extra money equals an incredible education and that’s really important. Green buildings are typically better and it helps the staff too. Increase the comfort for guests and employees and your return goes up.”

“We’ve proven it’s possible,” says Simons, “and the public does appreciate it. Our sales have been up every week and we have plans for creating more sister restaurants and growing the brand. In a city like Philadelphia, it could be ‘Liberty Farmers.’ We just put a strategy in place to explore this and capitalize up for growing locations.”

Behind the Founding Farmer project and others, Simons says, are “people caring. That’s the principal driver, along with the public relations value, and lower utility bills. But, it’s about the guest loyalty that this creates. We’re aligned with our guests’ principles and it feels like we’re on the same team.”

Reaching Gold, he adds, “was not fundamentally more expensive. The myth is that it costs more money. It’s about education, state of mind and commitment to doing the right thing. I spent more money on research time – choosing paint, for example. We spent less on some materials –  salvaged, re-claimed woods from old barns. You’re not paying to have something made. This pushes you to innovate. We loved the thought of ‘naturalizing’ the usual suspects and it focused us to be better, more compelling.”

The group recycled “north of 70 percent of our construction waste. If everybody did that, it would be a different world.”

Actually operating the restaurant they consulted on, Simons adds, “keeps us reality-based. It reminds us how hard it is to deliver on the vision.”

The 250-seat restaurant was also certified by the Green Restaurant Association whose founder, Michael Oshman, says, “Those of us following the environmental world for 20 years know that the world is just waking upto this. It’s an exciting time.” He calls Founding Farmers’ LEED certification “a milestone and the start of a process.” But he points out, “Environmental responsibility is a direction, not a destination. There is always room for improvement.”

Some design consultants see USGBC’s current guidelines as weak in giving few points for energy reduction in the kitchen through more efficient equipment. At Robert Rippe Associates in Minneapolis, Steve Carlson, FCSI, a consultant who was recently LEED certified, notes that USGBC recently drafted a “prescriptive path” that is currently “the closest thing to guidelines for commercial kitchens” and addresses gas, water and electrical use.

“I think we’re getting there,” Carlson says. “This is probably the first step.” The new criteria are, for the first time, specific to kitchens both in operations and design, and reward water savings through use of more energy-efficient dishwashers with more points. Projects are required to show a minimum of 20 percent energy savings, and energy efficient equipment is required.

The new “prescriptive guidelines” are currently up for consideration and a vote by USGBC membership. “The number of credits were changed to create a commercial kitchen baseline,” says Mark Heisterkamp, director of commercial real estate. “Now, we better capture the energy coming out of the kitchen. The rating system still needs approval and we’re working for August or September. It’s been in use from a pilot perspective for the past couple of years, and some restaurants have been in the pilot.”

At RSA Food Service Consulting in Portland, OR, Ray Soucie, FCSI, also calls the guidelines a step forward.

“Commercial kitchens consume more energy than the rest of the building and different uses have different consumption. The LEED program became so popular so fast. It’s an evolving process. The nice thing is points for innovation that are now included, because they encourage people to think outside the box. LEED ’09 is a combination of all the building blocks that went before it.”

For Founding Farmers to achieve Gold certification under Commercial Interiors, he adds, “is a feather in their cap. It’s not easy and my hat’s off to them.”

Consumers appreciate efforts to reduce the carbon footprint. But most agree that LEED certification doesn’t give a restaurant license to be anything more than a great restaurant. In the case of Founding Farmers, the idea behind the restaurant is that “everyone benefits from knowing about the source of our food and its journey from seed to harvest to table,” says Simons. The design elements celebrate the farm with a playful custom carved lamb atop the welcome station, and agricultural botanical drawings. All tabletops and chairs were made from walnut extracted by Harrisburg, PA and manufactured in High Point, NC, all within 500 miles.

Energy Star appliances and a higher efficiency HVAC system which has carbon dioxide sensors to monitor indoor air quality, waterless urinals, lowflow lavatories and the use of reclaimed construction materials (more than 15 percent) contributed to credits for certification. Ninety percent of construction waste was recycled. The restaurant is expected to save 192,168 gallons of water annually compared to conventionally designed counterparts.

Meals are homemade/’scratch’-made American classics inspired by the heartland with sustainably farmed products.

Guests can choose to eat at one of two communal tables in a farmhouse atmosphere. Chicago-based restaurant consultant Darren Tristano at Technomic, Inc. believes the industry will become more “ecologically and environmentally friendly as consumer pressure and operator passion fuel the efforts…Founding Farmers has set the standard and raised the bar. This will compel other upscale restaurants to seek certification.”

How Founding Farmers earned the necessary assessment points to achieve its Gold Commercial Interiors LEED certification

Energy Star

• Installed Energy Star rated appliances for more than 80% of all eligible appliances (for rated power), including freezers, refrigerators, the main dish machine, glasswashers and eligible cooking appliances such as a hot food holding cabinet, fryer, steam cooker and four LCD TVs installed in the bar
• Installed higher efficiency HVAC system with heat pumps that exceed the Advanced Buildings Energy Benchmark and ASHRAE 90.1. Heat pump efficiencies exceed ASHRAE by 5-30 percent. Carbon dioxide sensors were located throughout to constantly monitor indoor air quality. Ventilation rates (fresh outside air) are at least 30 percent above code requirements.

Materials and Finishes

• Reclaimed flooring from an old textile mill and de-nailed salvaged beams, cutting them into blank pieces of lumber that were then kiln dried and molded into tongue and groove flooring.
• Reclaimed barn door from West Virginia
• Reclaimed brick from Vintage Brick Salvage
• More than 15 0ercent of all construction materials are reclaimed, which earned a LEED innovation point
• Wood furniture (walnut tables, custom bar stools and side chairs) were harvested from PA and OH forests and manufactured by Dunbar Furniture in Greensboro and High Point, NC
• Metal disks were sourced from Follansbee Steel in West Virginia
• PaperStone countertops in restrooms were made from 100 percent recycled content paper. PaperStone is made from cellulose fiber and non-petroleum based phenolic resin derived in part from natural phenolic oils in cashews
• 45 percent of materials manufactured within 500 miles
• Recycled or diverted 90 percent of construction waste
• 3Form Acrylic Screen is made from 40 percent post-consumer recycled paper
• Graphic wall coverings are on Durapene, composed of 50 percent wood pulp from sustainably managed forest, 40 percent post-industrial waste and 10 percent recycled post-consumer waste
• Carpet on the mezzanine level is certified as an environmentally preferable product
• Paints, coatings and varnishes all have low VOCs which helped earn points for indoor environmental quality

Plumbing Fixtures and Water

• Waterless urinals and low-flow lavatories in restrooms
• Water efficient Energy Star dishwasher and spray valve. The restaurant will save at least 192,168 gallon of water a year compared to convention design restaurants (not including the dishwasher and spray valve).

Operations

• The restaurant recycles to the maximum capacity possible in Washington, DC and has a waste, recycle and compost area that separates all waste
• Through a partnership with CarbonFund.org, Founding Farmers (and other VSAG managed restaurants) purchase carbon-offsets to help eliminate the operating Carbon Footprints of these businesses

VSAG Vice President Lara

As the first VSAG employee to earn the LEED AP title, Hardcastle joins more than 75,000 professionals across the country that have earned the LEED AP credential since the USGBC program was launched in 2001.   Hardcastle’s appreciation and understanding of the importance of green design inspired her to achieve LEED accreditation, achieved in Commercial Interiors.

“It is my belief that due to increased global awareness, construction and design practices are moving towards sustainable practices across all industries,” says Hardcastle. “I aspire to influence change within the restaurant industry, where VSAG has established itself as an expert in the field.”

LEED Professional Accreditation is managed by the Green Building Certification Institute (GBCI), established with the support of the USGBC. According to the USGBC web site, LEED Professional Accreditation distinguishes building professionals with the knowledge and skills to successfully steward the LEED certification process, as LEED AP’s have demonstrated a thorough understanding of green building practices and principles and the LEED Rating System.

VSAG Founder and Principal Dan Simons praised Hardcastle’s accreditation as an “…amazing accomplishment that bolsters VSAG’s credibility for future green products.   Lara’s firsthand LEED knowledge is invaluable for VSAG, for our clients that are pursuing LEED, and for improved green practices on all of our projects.  We now have a more effective way to interface with engineers, architects, and other green industry members, but we are also leaders for the restaurant industry as a whole, in green and sustainable practice. ”

LEED certified places use key resources more efficiently when compared to conventional places, which are simply built to local building codes – but it didn’t stop there for Founding Farmers. The restaurant has proven to be a healthier working and dining environment, with staff committed to implementing energy efficient concepts, sourcing locally, emphasizing reclaimed and recycled products, and operating sustainably – all without sacrificing the comfort of guests.

Founding Farmers’ sustainable-minded focus celebrates the rich history of American cooking and American’s independent family farmers as the foundation of our land. Believing that everyone benefits by knowing the source of our food and its journey from seed to harvest to table, Founding Farmers promotes the products and services of farm families, ranches, and fisheries, and buys ingredients directly from local, sustainable farms. In doing so, the forward-minded restaurant delivers the highest-quality classic American fare and takes its place at the forefront in transforming the food industry.

According to VSAG Vice President of Implementation Ray Camillo, “We’re very proud of our client, Positive Pies.  By clearly defining their brand, they were able to see where they were in the marketplace, and where they wanted to be with plans for growth.   With that perspective, adjustments were made very easily, which has led them to this new level of success.

Positive Pie restaurants owner Carlo Rovetto selected VSAG for a full review of the restaurants’ operations, finances, brand management, production and execution, measurement, and control. VSAG’s expertise in top-to-bottom enterprise and operations review and full systems implementation allowed Rovetto to focus on employing tighter management controls. VSAG worked with Rovetto to dissect the restaurants from a guest perspective and advise Positive Pie on brand identity, public image, and produce placement.

VSAG also developed execution procedures for procurement and production, including an order guide system, best practices recognition, prep-to-shelf-life philosophy, and product validation.  Additionally, VSAG helped streamline Positive Pie’s electronic information flow from cashier and server to kitchen stations, leading to maximum efficiency.  The company’s financial operations were closely monitored and analyzed, as VSAG performed a full profit and loss scrub and then taught six weeks’ worth of profit and loss review classes with the Positive Pie team.

“VSAG helped get all of our operational systems in order,” says Rovetto. “Before they came to our business we virtually did not have any systems. With VSAG’s help, we were able to develop sound systems from ordering to kitchen systems to labor management and beyond.”  Rovetto continues, “I feel that our employees really felt the true and authentic desire to make positive changes to our restaurant, and that feeling that they got started with VSAG’s ability to connect with each individual.”

VSAG developed a new system for inspecting the business through information tracking, and with a new chart of accounts and profit and loss statement structure, VSAG advised Positive Pie to use that information in order to drive results. “By getting everyone rowing in the same direction, execution thrived and Positive Pie’s ambience and décor told a clear and united story,” says Camillo. “The staff knew their role and the chef was able to focus on refining existing recipes and presentations.”

QSR tapped the best minds in the business to come up with a realistic list of ways operators could save thousands of dollars in less than one year. There’s no advanced logic or restaurant expertise needed—just a willingness to try new systems or make a few adjustments to existing protocols. From the bathroom to tax forms, QSR found the easiest ways operators can immediately boost the bottom line.

1. Workman’s Comp / Savings: $150 a month

One great hidden gem in an operator’s budget is workman’s compensation insurance, says Dan Simons, principal at Vucurevich-Simons Advisory Group. Although restaurateurs cannot forgo the cost all together, they can easily reduce it.

Workman’s compensation is figured annually based on a forecast of the upcoming year’s labor costs. When the economy slows and crew sizes are reduced, often that insurance figure is not recalculated. Furthermore, when insurers go to resign a business for another year, operators often do not update their labor figures. As a result, workman’s compensation insurance is often based on outdated and inflated labor figures.

Savvy operators will update those figures regularly with insurance providers and receive rebates immediately rather than waiting until the end of the year.

2. Shrink / Savings: up to 6 percent of sales

When you talk to restaurateurs about shrink, most of them don’t even know what that is,” Simons says. “It’s a sure thing that if a restaurateur isn’t actively managing loss prevention, they’re losing money—totally 100 percent guaranteed.”

According to Simons, the best way to prevent theft is to watch the back door. Operators can catch both intentional theft and waste, which Simons categorizes as unintentional theft, by simply using clear trash bags and performing trash audits.

“It’s not waste, it’s theft,” he says. “We bought the product and you threw it away when it wasn’t yours to throw away.”

Employees often smuggle goods in trash bags that are taken out to the dumpsters then steal the hidden products once they are out of the building. Other popular concealers include cardboard boxes and backpacks. Simons advises operators to breakdown all boxes before they are taken to the dumpster to prevent employees using them for smuggling and to not allow employees to bring duffel bags or backpacks into work.

“Trust is not a lost prevention strategy,” he says.

3. Menu / Savings: 2–3 points of food cost

The general rule in the restaurant industry is that 20 percent of your menu represents 80 percent of your food budget. Ensuring that your top items aren’t cannibalizing more of your budget is essential.

The first step to getting your menu spending under control is to request a velocity report from your food vendor. Have the company give you a list outlining from the most expensive to the lowest-priced items. “Those top 15 percent are the ones you need to be going over with a fine-tooth comb,” Simons says.

Operators should follow those items in terms of frequency and price all the way to the back door, where all items should be weighted.     “If a driver has 10 clients that he drops off blocks of cheese to, and one owner doesn’t weigh them, you take a pound off each block, and you’re in the cheese business,” Simons says.

For operators overwhelmed by the thought of weighing every food item, Simons advises to at least ensure that all meat is weighed.

Read the full article for additional cost-saving measures.