GREASE TO GAS: COSTA RICAN FAST FOOD FRANCHISOR DISTILLS

UNCLAS SAN JOSE 000586

SIPDIS

DEPT FOR WHA/CEN, WHA/EPSC, OES AND EEB/ESC/IEC/EPC

E.O. 12958: N/A
TAGS: ENGR ECON SENV CS
SUBJECT: GREASE TO GAS: COSTA RICAN FAST FOOD FRANCHISOR DISTILLS
BIODIESEL


1. SUMMARY: A Costa Rican fast food franchisor firm, The Aizenman
Group, has successfully converted the majority of its delivery fleet
from diesel to 100 percent biodiesel fuel. The company internally
transforms refuse cooking oil into biodiesel. The project started
small, but demonstrated the positive impact of a creative idea,
growing from two to twenty vehicles. We offer this as a case study
that may find resonance not only in environmentally-conscious Costa
Rica, but elsewhere in the region. End Summary.

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GREASE TO GAS
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2. The Aizenman Group, owner of Burger King, Papa Johns, Churches
Chicken, and Schlotzsky's fast food franchises in Costa Rica, powers
its fleet of distribution vehicles on the spent oils from its 54
fast food restaurants. The company started the project in November
2008 and launched it in January 2009. The company wanted to
demonstrate corporate social responsibility by protecting the
environment from some of its cooking oil by-products. (Prior to the
biodiesel project the residual oil was hauled away and dumped.)


3. At the outset of the project, the company used a 10/90 percent
blend of biodiesel/diesel in two trucks. Very favorable results
prompted the company to gradually increase its ratio of
biodiesel/diesel. Currently, The Aizenman Group runs 20 of their 35
trucks using 100 percent biodiesel, up from 10 percent in June 2009.
The company saves approximately USD 2,000 per month (However, the
company would not divulge its total monthly fuel costs). The
franchises process/produce about 12,000 liters of biodiesel per
month and use roughly 7,000 to 8,000 liters for transportation. The
company plans to purchase more equipment in order to process more
biodiesel from their own and other franchisors such as Demasa,
Walmart, and Pipasa, turning the endeavor into another separate
revenue generating unit of their business. As the forerunners in
this biodiesel initiative, The Aizenman Group is seeking
international training due to a lack of specialists in Costa Rica.
The project moved ahead as a result of The Aizenman Group studying
laboratory essays and internet web pages, demonstrating the
company's commitment to reducing costs.

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COMPANY BACKGROUND
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4. The Aizenman Group owns and/or operates automobile dealerships,
fast food chains, food and beverage distribution centers, a meat
processing facility, and a car rental agency (Avis). Its
distribution center carries a number of U.S. brand items such as
Kettle, Otis Spunkmeyer, Arizona, Atkins, Jolly Time, Walden Farms,
Mrs. Fields, and others. Its fast food outlets include 32 Burger
Kings, 11 Papa Johns, 10 Churches Chickens, and 1 Schlotzsky's
distributed throughout Costa Rica. The Group's meat processing
facility exports USDA-approved hamburger patties to the United
States.

BRENNAN