Greenwashed!

Can restaurant chains sell Las Vegans on their new eco-cred?

by JASON WHITED


IN the last eight years, Americans have grown accustomed to industrial-scale spin. Spin from a president and his corporate bosses to justify a greed-driven oil war. Spin from the scores of American corporations insisting they only way they can turn a profit is to ship ever more American jobs overseas, to Third-World workers willing to labor for pennies an hour. In 2008 America, government and corporate spin has become almost as inherent to the national zeitgeist as bitching about high gas prices and worrying about more war in the Middle East.

So perhaps it comes as little shock that in an environmentally paranoid time of $4 gallons of gasoline and the looming specter of long-term climate catastrophe, more national chains than ever are scrambling to tout their eco-friendly credentials and gain more market share. Increasingly, media reports and university research show these companies fail to display the transparency and facts to back up their claims. And business experts warn Las Vegas consumers to remain hyper-vigilant amid this latest wave of environmentally conscious marketing - lest their disposable income be swept away through what they call corporate "greenwashing."

In the Las Vegas market, the latest national chains to elbow their way into this greening trend? Among the most popular restaurants in the valley.

Within weeks of each other, both Denver-based Chipotle Mexican Grill and fast-food giant Domino's Pizza came out with two new programs that the companies say will squeeze their collective carbon footprints while expanding their bottom lines.

Chipotle was first out of the green gate with a plan to buy locally grown produce "on a significant scale." With thousands of variations on burritos and tacos, the nine Chipotle restaurants here in the valley serve massive amounts of produce in their salsa, guacamole and fajita vegetable medleys. But a closer examination of the nuts and bolts of their marketing plan could leave local Chipotle devotees hungry for a deeper environmental commitment.

One big problem? Nevada isn't exactly known for its locally grown agriculture; in fact, the state's chief economic moneymakers are precious stones and metals - by a mile. A quick check with the state turned up only three local grow operations that could possibly meet the kind of large-scale demand that a nation chain like Chipotle would need, none of whom had yet been contacted by the chain.

After Chipotle spokesman Chris Arnold revealed that, in fact, Chipotle restaurants here would look for farms within a 200-mile radius to supply just 25 percent of one produce item on their menu, the questions piled up pretty quickly.

"For some people, it's not local if it comes from another county, but the reality is that we deal with farms that are now less than 120 miles from the distribution center, and about 200 miles to the restaurant," says Arnold. "Contrast that with the industry average, which is about 1,500 miles."

Arnold says that Chipotle has bought from local farms for the past eight years, starting with pork before expanding to chicken, 60 percent of the beef they serve and assorted vegetables.

"Today, we have 750 restaurants and more than 600 farms participating in the (hog) program. It started small and has really grown up. Our local produce program, we hope, will follow a similar trajectory," he says.

Still, whether the tomatoes and avocados and peppers served in area Chipotle outlets come from Nevada or California, Arnold says Las Vegas customers can rest easy knowing that Chipotle will never "work with anyone who uses any sort of enhancement or pesticides. That's not our philosophy. Our whole concept is food with integrity," he says.

Certainly, smaller farms don't operate on economies of scale, and locally grown produce will likely cost Chipotle more. Will these eco-enhancements result in higher prices for customers? "Yes and no," says Arnold. "Often, when we move to these more expensive ingredients, there is the possibility, but consumers are willing to pay a little more. With locally grown produce, we're not sure that's going to be necessary," says Arnold.

Next, the folks at Domino's Pizza also tried to boost their green résumé by announcing earlier this month that they've bought 27 brand-new Toyota Yarises - one for each corporately owned Domino's joint in the valley. With an average government fuel economy rating of 32 miles per gallon, Domino's says this is a good start to curb the carbon emissions incurred by nearly 45,000 miles each of their drivers logs here each year.

Rated as the seventh most fuel efficient car in the American market - far behind the 46 mpg of the Toyota Prius or the 42 mpg of the Honda Civic Hybrid - the Yaris is still a smart move, says Amanda Robbins, the chain's regional spokeswoman. Still, Robbins is more willing to talk openly about how the move will affect the company's bottom line.

"We felt it would help us attract more drivers, since we're also paying for the gas in these cars. It helps in a time when gas prices are sky high. And, honestly, it's really good advertising for us," she says.

Domino's wouldn't say how much the 27 cars, all of them covered in shiny new Domino's banners, cost them, but calculations based on a Yaris' $12,000 sticker price means the chain shelled out about $324,000 on the fleet.

Robbins says the chain won't try to offset costs by pumping up menu prices. Domino's pizzas across the valley will cost the same for now - and could actually go lower once Domino's, in a test case here next month, further reduces prices.

"Obviously, with the economy the way it is, we want to try a new pricing strategy. So, prices will actually go down a little bit," she says.

Of course, say professional market watchers, there's no reason why green initiatives can't benefit both customers and shareholders. But Vegas consumers need to do their homework before buying into the hype. Whether it's Exxon preaching a newfound environmental gospel or companies like Patagonia providing consumers with a nearly transparent look at their supply chain and energy consumption, green marketing is a classic example of caveat emptor, or let the buyer beware.

"Most definitely, there's been a green tidal wave in marketing claims," says Valerie Davis, CEO of Austin, Texas, -based Enviromedia Social Marketing, a national firm that tracks such claims. "Some are wonderful news to us. Others are really a little dubious."

Davis says companies need to be careful not to bombard consumers by touting their eco-cred. Oversaturation can have an opposite effect of addling customers to the point where they don't know whom to believe.

"We're seeing more and more reports of how the crush of green marketing is confusing consumers. It's great that the environment has become so front-and-center in the corporate world, but if it's too much, consumers will tune out," she says.

John Nacarrato, UNLV professor of advertising and public relations, worked in corporate marketing for years and says consumers should protect themselves by doing their own research. Despite warnings, Nacarrato says he thinks American consumers today are more savvy and sophisticated than corporate spin-meisters think.

"I think people are paying more attention because they have more sources of information. The (local) newspaper used to be our source of information, but now I can call up 100 different newspapers from my computer," he says.

Plus, says Nacarrato, if a company blatantly lies, word gets around. People will know. "People see through it. It's patently transparent. If it's too egregious we know it."

Still, in keeping with a May 2008 Wall Street Journal study that found consumers willing to pay extra to companies with bona fide environmentally conscious practices, many local consumers tell CityLife they'd do likewise.

Standing outside a local Chipotle with friends, 43-year-old Bernice Livert says she'd pay a premium for better quality food. "I'd be willing to pay a little more ... if I knew (Chipotle) was buying produce from farmers who don't use pesticides. Maybe 5 percent more. Maybe even 10 percent more. It depends," she says.