From convenience to consciousness: how ‘drive-throughs’ can drive ESG compliance and regenerate areas
Since McDonald's opened the UK’s first drive-through in Manchester in the 1980s, the £2.8 billion market has grown considerably with now over 2,200 outlets selling of food and drink ranging from coffee and cakes to smoothies and sausage rolls. McDonald’s and Costa are the established market leaders, but with the drive-through restaurant industry now undergoing a post pandemic renaissance, we’re now not only seeing the likes of Greggs investing heavily, but upmarket chains like Gail's, Leon, and Five Guys entering the market.
In this article, we’ll explore the potential benefits of drive-through retail units while emphasising the importance of ESG considerations for organisations aiming to maintain a sustainable and responsible approach.
Opportunities and challenges for businesses
Drive-through retail units offer numerous advantages and it’s perhaps not surprising that analysts have described the demand for drive-through locations as "going crazy," with brands looking for more than 300 sites a year.
Drive-throughs are after all an attractive proposition for franchise and non-franchised businesses, providing customers with convenience, speed, and accessibility. By leveraging the growing demand for quick and efficient services, businesses can enhance customer satisfaction, increase footfall, and ultimately drive revenue growth.
Although there are many opportunities and benefits associated with drive-through retail units, it’s important to acknowledge the recruitment challenges businesses may face due to employees working in cramped conditions. Drive-through units are often designed with limited space to accommodate the efficient flow of vehicles, which can result in tight working areas for employees.
Working in cramped conditions can have several implications for businesses. Firstly, it may limit the number of employees that can work simultaneously, which can impact productivity and customer service. Additionally, cramped working conditions can lead to discomfort and potential health and safety concerns for employees.
To address these challenges, businesses should consider implementing measures to optimise the working environment within drive-through units. This may include efficient space planning, ergonomic designs, and the use of technology to streamline operations. By prioritising the well-being and comfort of employees, businesses can create a more conducive work environment and attract and retain talented staff.
ESG Compliance
While embracing the opportunities presented by drive-through outlets, businesses must also address the ESG implications associated with this growing sector. By proactively considering and implementing sustainable practices, businesses can align with ESG principles and demonstrate their commitment to responsible business conduct.
Environmental Sustainability: To mitigate the environmental impact of drive-through units, businesses should explore initiatives such as providing electric vehicle charging stations, encouraging carpooling, bike racks, and investing in eco-friendly packaging materials. By adopting sustainable practices, franchises can reduce carbon emissions and waste generation, contributing to a greener future. Costa is a great example here after it agreed a partnership with InstaVolt, one of the UK’s largest owner-operated of rapid EV charging networks, to install chargers at 200 drive-through sites in the UK.
Social Impact: Drive-through units, if not managed properly, can lead to increased traffic congestion and disruption to local communities. Highways impacts will also be a significant area of concern when seeking planning permission for new purpose-built units. Alongside the potential impact of the unit the vibrancy and attractiveness of the local town-centre, where the Council’s own green policies may be seeking to reduce the public’s reliance on private car-travel. However, when planned and executed thoughtfully, drive-through units can play an essential role in revitalising areas. By bringing in new businesses, drive-through units can act as catalysts for economic growth, stimulating job creation and supporting local supply chains.
Moreover, the presence of drive-through units can help to rejuvenate underutilised or vacant spaces, transforming them into vibrant and thriving locations. This can have a positive ripple effect, attracting other businesses and leading to further investment in the area. Drive-through units can become valuable contributors to the revitalisation of local communities, breathing new life into neglected areas.
Governance and Compliance: Maintaining strong governance and compliance is crucial for franchise businesses operating drive-through outlets. This includes ensuring adherence to zoning laws, obtaining necessary permits, and complying with health and safety regulations. Businesses must also prioritise ethical practices, treating employees fairly, promoting diversity and inclusion, and upholding high standards of customer service.
We understand the unique legal challenges that franchise businesses face when expanding into drive-through retail. Our team of experienced lawyers can provide expert guidance on legal compliance, contract negotiations, and risk management, enabling businesses to achieve ESG compliance while maximizing opportunities for growth.
Conclusion
Working alongside Irwin Mitchell, businesses can navigate the legal complexities, achieve ESG compliance, and contribute to the regeneration and revitalisation of local communities. Drive-through units have the potential to become integral components of regeneration efforts, creating employment opportunities, attracting investment, and transforming neglected areas into vibrant hubs of economic activity. Through responsible business practices and a focus on sustainability, businesses can drive positive change, benefiting not only their own growth but also the communities in which they operate.
