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. -------------- GREASE TO GAS -------------- ¶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. -------------- COMPANY BACKGROUND -------------- ¶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