Finding Hidden Value: Environmental Responsibility Drives Efficiency, Loyalty, and Long-Term Profit

Forty years ago, when Daniel Moos began making his first forays into franchising, McDonald’s environmental footprint was enormous and growing by the day.

The world’s largest fast-food chain was opening a new restaurant every 15 hours in the mid-1980s. Its 7,000 U.S. outlets devoured massive amounts of resources and produced mountains of waste.

At the time, Moos was CEO of a real estate investment company and a passive partner in a group that operated McDonald’s restaurants and other fast-food brands. He remembers the Golden Arches’ polystyrene clamshell packaging for burgers, the plastic toys in Happy Meals, and air-conditioning systems sometimes left running at 65 degrees all night when stores were closed.

Today, McDonald’s is “significantly more environmentally friendly,” Moos says. Biodegradable kraft paper has replaced polystyrene, napkins are made of recycled fiber, Happy Meal toys are primarily fashioned from sustainable materials, and temperatures in the restaurants are often controlled by smart HVAC systems.

Over the decades, the public has become increasingly aware that overconsumption of resources and a throwaway culture are harming the planet.

“Through that education process, we’re seeing more and more people being conscious about doing the right things for the environment,” says Moos, who is now retired from his corporate job and has investments in 14 franchise brands, including three that he directly manages: Batteries Plus, The UPS Store, and NerdsToGo.

Sustainability isn’t just a buzzword. Many Americans have changed their lifestyles to embrace the idea that people need to do their part to ensure that a healthy planet and its natural resources will be there for future generations. And they expect businesses to do the same.

McDonald’s transformation

In the late 1980s, environmental groups, who were acutely aware of the looming problems ushered in by ozone depletion, set their sights on McDonald’s and, specifically, the clamshell styrofoam packaging.

The fast-food giant saw a golden opportunity to change its image in 1989. It entered into a groundbreaking partnership with the Environmental Defense Fund (EDF) with the goal of making its packaging more eco-friendly. The result was stunning. In the first 10 years, the franchisor eliminated 150 tons of waste by changing the material that held its food and drinks, according to the EDF. It also began outfitting its restaurants with products made from recycled material, including booster seats, trays, and tables. Before long, it announced plans to reduce energy use in its restaurants.

Many environmentalists hailed the partnership as a shining example of how business and environmental interests could align.

Last year, McDonald’s, which has grown to more than 44,000 units in 100-plus countries, announced an initiative to commit $200 million over seven years to help promote and accelerate regenerative grazing practices, habitat restoration, and water and wildlife conservation on cattle ranches in dozens of states.

“As a brand that serves more than 90% of Americans every year, we recognize the responsibility we have to help safeguard our food system for long-term vitality,” Cesar Piña, senior vice president and chief supply chain officer for North America, said at the time. “Through our support of this initiative, McDonald’s USA is demonstrating the power of partnership between the public and private sectors and that feeding the population and stewarding our natural resources can coexist.”

Going green

As states, cities, and local municipalities tighten regulations that govern waste and energy emissions, so have franchises.

Bart Casiello and his wife, Theresa, own seven Zips Cleaners in Maryland. While the industry is heavily regulated, he says, “Zips has been very proactive in taking steps to make sure we are in compliance.” He adds that the brand has “done a good job of reading the writing on the wall, sometimes years in advance. This has given us time to make adjustments well before any mandate.” See MVP Awards on page 30.

Zips has focused on minimizing water usage. Franchisees encourage customers to bring back hangers so that they can be reused. That helps reduce waste and saves money for franchise operators. Cleaned clothes are returned in recyclable bags.

The cleaners use hydrocarbon solvent, an eco-friendly alternative that breaks down more easily and has lower toxicity than harsher chemicals.

Sometimes, going greener means spending more, Casiello says. However, he says, the foresight of the corporate office helps to soften the blow. “Giving us a heads up gives us time to implement the changes over time, instead of last minute,” he says. “That breathing room makes all the difference.”

Zips Cleaners is one of the many franchisors that now have system-wide sustainability standards. Franchisees who implement them frequently have seen an increase in customer loyalty as more consumers expect eco-friendly practices and are willing to reward business owners who implement them.

That loyalty could run especially deep for younger generations. According to Deloitte’s “2025 Gen Z and Millennial Survey,” two-thirds of the people questioned say they are willing to pay more for environmentally sustainable products or services.

There are myriad ways brands are demonstrating more environmental responsibility.

Dunkin’ has transitioned from polystyrene foam cups to paper cups and to recyclable hot coffee lids.

At Tommy’s Express Car Wash, water reclamation technology is used to clean vehicles using fewer than 30 gallons of fresh water per car. By comparison, driveway washing can use more than 115 gallons.

Jiffy Lube locations recycle motor oil and accept used oil brought in by people who change their own. The oil is then sent to a recycling center, where it is re-refined and used to make heating oil, asphalt, and other petroleum-based products. According to the American Petroleum Institute, two gallons of recycled oil can generate enough electricity to run the average household for almost 24 hours.

Moos’ brands have their own green boasts.

He has more Batteries Plus stores than any other franchisee in the network. Nationwide, the stores have recycling programs that break down batteries to their raw materials, some of which can then be reused. The stores sell rechargeable batteries, decreasing the overall number of power cells that are discarded. When batteries and lightbulbs are disposed of, according to the brand, it’s in a safe way meant to prevent landfill contamination.

Then, there are his NerdsToGo units. In addition to extending the lifespan of electronics with its services, NerdsToGo offers free recycling for old computers and several other electronic devices.

At The UPS Store, Moos says, energy-efficient lighting is installed when units are remodeled, the amount of waste has been reduced, and more recycled paper is used. He says The UPS Store does “a very good job from a corporate level, making sure that products we use are environmentally friendly.”

Incorporating sustainable practices doesn’t just meet consumer demand. It can drive long-term profitability. Energy-efficient equipment saves money for franchisees even if the initial investment is higher.

“If you have to replace an air conditioner at your business or your home, it’s going to cost you twice what it would have cost you 10 years ago. That’s an enormous inflation,” says Moos. “But, over a period of time, you will use less natural gas or less electricity. It looks like about a six-and-a-half-year payback for us. So, what we’ve had to pay up front for the unit, we’ll recoup from the money we’ll save. If the unit runs 15 years, you’ve done well for yourself.”

In addition, his Batteries Plus stores in Arizona and Nevada have tinted windows and improved insulation to help reduce their air-conditioning needs.

Moos welcomes the changes. From a business standpoint, they make good sense. From a human standpoint, they make even more sense.

“There are limited natural resources on this planet,” he says. “I’m a strong believer that technology will make this planet livable indefinitely.”

For franchisees trying to reduce their environmental impact, there are meaningful steps that can be taken. Among them:

• Use suppliers that embrace sustainable practices.
• Reduce energy consumption by installing energy-efficient equipment and improving insulation. Business owners should look into LED lighting, upgrade to a better HVAC system that can lower the amount of power needed to heat or cool a building, and use programmable thermostats.
• Cut down on waste by recycling and composting, using eco-friendly packaging, reducing single-use plastic such as water bottles, adopting paperless systems, switching to hand dryers, training staff on waste reduction, and repairing equipment when possible instead of buying new items.
• Conserve water by addressing leaks, using water-efficient landscaping, running dishwashers and washing machines only when there’s a full load, and installing low-flow faucet aerators and high-efficiency toilets.

By the Numbers

Sustainability isn’t just good for the planet; it’s increasingly good for business.

• 2 out of 3 Gen Zers and Millennials say they will pay more for sustainable products or services.
• McDonald’s eliminated 150 tons of waste in its first decade of eco-focused changes.
• Tommy’s Express uses less than 30 gallons of water per car, compared to more than 115 gallons for driveway washing.
• Just 2 gallons of recycled motor oil can generate enough electricity to power a home for nearly 24 hours.

Bottom line: Consumers expect it, regulators demand it, and operators increasingly benefit from it.

Sustainability That Scales

Across the franchise landscape, sustainability has moved from a “nice to have” to a business imperative. From reducing waste to improving energy efficiency, brands are finding practical ways to operate more responsibly while also strengthening their bottom lines. Companies like Batteries Plus, The UPS Store, NerdsToGo, Zips Cleaners, and Tommy’s Express Car Wash offer a clear look at how environmentally driven initiatives are taking shape across different sectors.

Batteries Plus has built its sustainability model around recycling and reuse. The brand plays a critical role in keeping hazardous materials out of landfills by collecting and recycling batteries at scale. Its stores serve as convenient drop-off points for consumers and businesses, helping recover valuable materials and reduce environmental harm. Beyond recycling, Batteries Plus promotes rechargeable batteries and energy-efficient lighting, encouraging customers to reduce waste and lower energy consumption over time. The company also supports device repair, extending the life of electronics, and reducing the need for new raw materials.

The UPS Store approaches sustainability through operational efficiency and materials management. Many locations have transitioned to energy-efficient lighting systems and increased the use of recycled paper and packaging materials. The brand has also worked to reduce overall waste within its stores, aligning everyday operations with broader environmental goals. These efforts may seem incremental, but across a large network, they add up to meaningful impact.

NerdsToGo focuses on sustainability through technology life cycle management. The brand extends the usable life of electronics by repairing devices rather than replacing them, an approach that reduces electronic waste and conserves resources. In addition, many locations offer free recycling for computers and other electronic devices, ensuring they are disposed of responsibly. By combining repair services with recycling, NerdsToGo supports a more circular approach to technology consumption.

Zips Cleaners has taken a proactive approach to sustainability in a highly regulated industry. The brand uses hydrocarbon solvent, a more environmentally friendly alternative to traditional cleaning chemicals, which breaks down more easily and has lower toxicity. Zips also focuses on reducing water usage and minimizing waste. Franchisees encourage customers to return hangers for reuse, and garments are typically returned in recyclable bags. These practices reduce environmental impact and create cost savings for operators over time.

Tommy’s Express Car Wash has built sustainability into the core of its operating model through water conservation. The company uses advanced water reclamation systems that allow each vehicle to be cleaned using significantly less fresh water than traditional washing methods. By recycling and reusing water, Tommy’s reduces overall consumption while maintaining high cleaning standards. This approach is especially valuable in regions where water conservation is critical.

Together, these brands demonstrate that sustainability in franchising is not a one-size-fits-all approach. Instead, it reflects the unique demands of each business model. Whether through recycling, energy efficiency, water conservation, or waste reduction, these initiatives show how franchise systems can operate more responsibly while delivering long-term value.

For franchisees, the takeaway is clear: Sustainability is no longer just about meeting expectations; it’s about building a smarter, more efficient business.

Practical Steps To Go Green

Franchisees don’t need to overhaul their entire operation to make an impact. Start with these high-
return moves:

• Upgrade to energy-efficient equipment and smart HVAC systems.
• Switch to LED lighting and programmable thermostats.
• Reduce waste with recycling, composting, and eco-friendly packaging.
• Cut water usage with low-flow fixtures and better maintenance practices.
• Work with suppliers that prioritize sustainability.

These changes reduce environmental impact. They can lower operating costs and improve long-term profitability.