In Indonesia, there are 380 Starbucks stores and 180 McDonald's restaurants in 2018. Based on our interviews this week with one Starbucks store at a residential area and 1 24 hours, independent, and big size McDonald's restaurant at public/residential area in Surabaya, there are approximately 300-500 cups waste at Starbucks store each day and 1.100 cups at McD. This cup waste alone is found in waste bin, without the to-go cups considerd.
The data shows us that each year Starbucks Indonesia throws approximately 55.480.000 cups (average 400 cups a day x 365 days x 380 stores) and McD Indonesia throw approximately 72.270.000 cups (1.100 cups a day x 365 days x 180 restaurants) inside their store/restaurant.
The cost for such waste is quite massive. Starbucks cups has high quality material, based on our price estimation by comparing prices on manufacturer e-commerce platform, the price per cup is IDR 2.000 (USD 0.13). While McD use paper cups that usually will be charged to customer who asked for rock ice for IDR 700 (USD 0.05), we assume that their COGS for this cup is IDR 500 (USD 0.033). This means that Starbucks Indonesia throws USD 7.212.400 per year and McD Indonesia throws USD 2.384.910 per year to their stores/restaurants waste bins and still has to pay for it monthly. (We were told by Starbucks assistant local marketing manager that they have to pay around IDR 4 million (USD 267) for waste pick up each month on residential area, stores at mall definitely would pay higher).
(We can not be exact about how much the cup price since we could not access the data).
We have not counted about the carbon footprint that is produced by the manufacturer of such huge amount of plastic as well as the footprint from delivering the disposable cups.
We believe that people can come back to the reusable habit and we are dependant on other stakeholders to make this happen.
We believe Starbucks and McD would love to reduce the negative environmental footprint from their operation. Therefore, Hepi Circle, as a reduce and alternative delivery system company and design consultant, would like to propose the system to eliminate this waste-at-store by simply changing the customer servicing scenario at cashier.
We also had interviewed some customers at Starbucks and McD (students and workers), they will confidently choose to have reusable cups while hanging out at stores even if they are not given any rewards. Due to the massive campaign of plastic pollution, they know they have to do something but they want it as easy as possible, and using cups at store is very easy for them. Unfortunately, they are not used (mostly forget, or because they do not have the habit) to ask the reusable cups themselves and since the store standard is giving the plastic cups, they are just okay with using the disposable cups.
Our main idea focus is on reducing the plastic waste-at-store (cups, lids, cup sleeves) by changing how the cashiers at cafes/restaurants work and give additional rewards for customers who do so.
Customers and Cafe/Restaurant Servers Experience:
First, we add two simple questions on every order to make sure that customers have their right to choose to be more eco-friendly while spending their time at cafes/restaurants. In order to complete this scenario (all the two questions and customer answer), there will be additional 5 seconds to the serving time for each customer.
Those two questions are:
1. Would you like to eat at cafes/restaurant or to go or take away?
If the customers like to take away their order. This scenario stops. But if they like to eat at the cafes/restaurant. The cashier can ask second question:
2. Would like to use reusable cup of plastic cups?
We make sure that we promote about the cleaning standards using other promotional tools.
Second, the rewards system would be an additional advantage if they choose to use reusable cup. We propose to use points that are different than the current point system (Starbucks Indonesia has Starbucks Star as a reward point), we can call it eco-point/eco-star. Customers can combined this point/star with the regular point/star to redeem exclusive eco-merchandise/menu that they can not redeem with money or regular point/star. We will conduct further research on what kind of merchandise that they would love to have as their eco-merchandise/menu. We also would like to propose that the merchandise would be locally sourced from community enterprises, but customers need would be the number one consideration.
So, for dine-in customers, there will be no significant change on their experience at store. Additionally, they can get rewarded with exclusive eco-merchandise/eco-menu.
We had experienced this scenario once when we visited one particular Starbucks cafe at Surabaya International Airport a long time ago, and we share it on our personal facebook page. The response is very positive, they appreciate the cashier and the stores that do this and hope that this will be applicable to all stores.
Cafe/Restaurant Janitor Experience
We propose to have one designated janitor to clean the table and the cups using the current standard. We have the calculation that the saving money from reducing the cups would be enough to pay additional janitor(s) for each store. Since their jobs do not directly engage with customer, all they need is smiling whenever they meet the customers. We suggest to hire a disable with speaking or hearing disability as a janitor. This will benefit the company since there is a regulation in Indonesia requires company to hire at least 1 disable employee in every 100 employees or 1% from total employee (Law Number 13 Year 2003 on Employment and Law Number 8 year 2018 on Disable People).
Hepi Circle x Next Gen Consortium
We will work hand in hand to design the system, including redesign the interior of the cafes (esp serving area) since bigger space to put all the reusable cups might be needed; procurement of the cups, bigger dishwashing in-store facility, and/or eco-merchandises; develop anti-theft system (to prevent the cups from stealing if this case occurs significantly), design co-promotion strategy, hire and educate extra person as janitor, monitor and evaluate the impact of the innovation, develop point calculation system that seamlessly integrate with the current store system, etc.
The eco-points that is generated from customers eco-action from our Next Gen Consortium and Hepi Point can be converted to one another, like the current points system that is used by bank credit cards point with airlines mileage that can be converted.