Nandos Australia Apc Action Plan

ACTION PLAN, 2010 - 2015
Implementing the Sustainable Packaging Guidelines
NANDOS AUSTRALIA PTY LTD

ACN 065 327 068
Developed by
Contents
Contents ................................................................................................................................................... i Executive Summary................................................................................................................................. ii Corporate Overview ................................................................................................................................ 1 Company Name and Structure............................................................................................................ 1 The Nature of the Organisation .......................................................................................................... 1 Australian Restaurants and Offices..................................................................................................... 1 Office Address Details ......................................................................................................................... 2 Covenant Contact Officer.................................................................................................................... 2 Nandos Brands ................................................................................................................................... 2 Position of Nandos in the Supply Chain ............................................................................................. 2 Packaging Materials and Formats used by Nandos ........................................................................... 2 Nandos Action Plan Period ................................................................................................................ 3 Top Level Support ............................................................................................................................... 3 Action Plan Development ................................................................................................................... 3 Summary of Previous Achievements .................................................................................................. 3 Framework for Implementing the SPG ............................................................................................... 4 Baseline Data ...................................................................................................................................... 7 APC Action Plan Summary .................................................................................................................. 9 Formal Commitment by Nandos to Implement the Action Plan ..................................................... 15
Action Plan July 2010 June 2015
Nandos Australia Pty Ltd
Executive Summary
Nandos Australia Pty Ltd is a signatory to the Australian Packaging Covenant (APC). We are committed to the Covenants goals and targets, and to making a difference to minimise the environmental impacts of packaging. We are committed to: Protecting and delivering goods efficiently with minimum environmental impact Using materials, water and energy more efficiently Reducing the amount of waste and litter generated by packaging through facilitating the waste hierarchy Avoid, Re-use, Recycle, Recover, Contain, Dispose Minimising negative impacts of packaging and packaged products on humans and the natural environment Ensuring effective and clearly demonstrated practices are in place to address environmental concerns in the Product Development and Review process for packaging and packaged products
This document outlines a detailed Action Plan to be implemented by Nandos over the next 5 years, with progress against Key Performance Indicators (KPIs) to be reported annually. We will use the first year of the APC period to refine our data collection and formalise written policies. Nandos will use the Action Plan and the key principles of the Sustainable Packaging Guidelines (SPG) to ensure that our consumer product packaging is fit for purpose, resource efficient, made from low impact materials and recyclable or reusable at the end of its useful life. Nandos is committed to resource conservation and product stewardship and will work towards ensuring that all members of our packaging supply chain continue to evolve packaging in line with the Australian Packaging Covenants goals. We are committed to making continual improvement to the design, material selection and labelling of packaging and will provide an update on this Action Plan in our first APC Annual Report.
ii
Corporate Overview
Company Name and Structure
Nandos Australia Ltd (Nandos) became a signatory to the Australian Packaging Covenant in September, 2010. The majority of Nandos Australias restaurants are franchised, however a small number in various states are company-owned and used for franchisee and staff training.
The Nature of the Organisation

Nandos is an international company founded in 1987, with restaurants in five continents. Nando's has operated in Australia since 1990, following establishment of its first restaurant in Tuart Hill, WA. Nando's Australia has since opened restaurants in all mainland states and territories, as well as in Tasmania Corporate headquarters of Nandos Australia are in East Brunswick, Victoria. Other offices are located in East Bentleigh (Victoria) and Neutral Bay, NSW. Currently Nandos Australia distributes through NAFTA members on the East coast and Kailis Brothers in WA.
Australian Restaurants and Offices

Nandos Australian restaurants and offices (as at June, 2010) are detailed by state in the following table.
Nandos Owned Restaurants

NSW Western Australia Victoria Queensland South Australia ACT Tasmania NT TOTAL AUSTRALIA 11 0 3 3 3 1 0 0 21
Nandos Offices
1 0 2 0 0 0 0 0 3
Franchised Total Restaurants Restaurants

29 33 115 53 5 2 2 1 240 40 33 118 56 8 3 2 1 261
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Office Address Details

Nandos Australian office addresses are:
Victoria
Head Office 453 Lygon Street East Brunswick VIC 3057 Phone: 03 9385 0777 Fax: 03 9384 0888 State Office 196A Miller Street, North Sydney, NSW 2060 Ph: 02 8920 0005
Regional Office 730A Centre Road East Bentleigh VIC 3165 Phone: 03 9384 0777 Fax: 03 9579 3203
NSW
Covenant Contact Officer

Mr Lindsay Sacks QA and Product Development Manager Nandos Australia Pty Ltd 730A Centre Road East Bentleigh VIC 3165 Australia Phone: 03 9385 0753 Fax: 03 9579 3203 Email: lindsay@nandos.com.au
Nandos Brands
The Nandos range of branded products includes cooked chicken, chips, salads, desserts and an assortment of cooking and seasoning sauces. Nandos-branded bottled sauces and packaged spices are available for purchase in Nandos Australias restaurants.
Position of Nandos in the Supply Chain

Nandos Australia is primarily a retailer of food products through its restaurants, which provide both dine-in and take-away food. Nandos is a brand owner under the Australian Packaging Covenant.
Packaging Materials and Formats used by Nandos

Nandos Australia currently sources most of its packaging and products for sale to the Australian public from Australian companies, but some plastic packaged products and a range of glass-bottled sauces are directly imported. Packaging materials used in the sale and distribution of Nandos branded products are summarised in the following table.
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Material
cardboard sugar cane bagasse glass paper PET (Plastic Code 1) polypropylene (Plastic Code 5) other (Plastic Code 7)
Notes
Secondary packaging cartons, catering boxes Takeaway burger boxes, chicken boxes, side item pales Sauce jars and bottles Serviettes, wrappers, carry bags Salad Bowls Small containers, straws, secondary packaging pita bags Cap seals, etc.
Nandos Action Plan Period

The current Action Plan covers the period July 2010 to June 2015. Each APC Annual Report will cover the preceding 1 July 30 June period.
Top Level Support

Nandos Australias environmental sustainability initiatives including activities under APC guidelines are enthusiastically supported by parent company Nandos International. The company is embracing change and is proactively driving development of systems worldwide for sustainability in Nandos operations. The current report has been reviewed and endorsed by Mr Lester Sacks (Executive Director, Nandos Australia Pty Ltd).
Action Plan Development

Nandos has engaged the services of Manor Sustainability Consulting Pty Ltd to produce the Australian Packaging Covenant Action Plan. Members of the Nandos APC Team include Mr Lindsay Sacks and Mr Lester Sacks. Detpak, a subsidiary of Detmold Australia Pty Ltd, is one of the main suppliers of paper bags to Nandos Australia. As an APC signatory, Detmolds influence on Detpak products is reflected in recycled pulp content and resource-saving design in many of Nandos Australias paper bag packaging items.
Summary of Previous Achievements

Nandos is committed to minimising overall life cycle environmental impacts of packaging and packaged products, including efficient use of resources during manufacture and distribution.
Bulk Cooking Oil Supply

We are currently rolling out a bulk cooking oil supply system to our stores. Our supplier, Cookers, provides each participating store with a stainless steel bulk storage facility that is filled periodically with cooking oil from their tanker truck.
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The bulk cooking oil supply system rollout commenced with a few stores in Victoria and is now the standard for all new store builds across Australia. In 2011 approximately 70% of our stores use the bulk cooking oil supply system and we plan to extend this to 90% by 2014. Use of bulk cooking oil for refilling our deep fryers eliminates the use of steel drums and casks for cooking oil distribution. Prior to adopting the bulk cooking oil supply system, each Nandos store would use on average 2 x 20 litre steel drums per week. We have currently reduced the use of steel drums by around 470 drums per week across all stores using the bulk supply system. Used oil from Nandos stores is collected by Cookers, who sell the spent oil to recyclers for blending with diesel. They then buy back biodiesel to run their trucks.
Distribution
Nandos supports greening of the supply chain. Our distributors have onsite recyclable waste collection services provided by VISY.
Labelling and Disposal of Packaging

Nandos prints disposal instructions and recyclability markings on most branded packaging. Much of the packaging contains recyclable material and we aim to identify opportunities to increase this proportion over the course of the packaging review.
Office Recycling
We currently use VISY to collect comingled recyclable waste from our head office.
Corporate Awareness
At Nandos we believe that cultural change is most effectively driven from the higher levels of management. We are propagating awareness of responsibilities associated with environmental performance and sustainability throughout the business by providing training modules for newly inducted staff through our Peri Uni training website.
Framework for Implementing the SPG

Specific actions proposed by Nandos for implementing the commitments under the APC and supporting the achievement of the APCs objective and goals are presented in the sections below.
Packaging Review
In line with the APCs requirements, Nandos will develop a documented policy and procedure for evaluating and procuring packaging using the SPG. This will include a documented process and timetable for review of at least 50% of our existing packaging against the SPG by 2015, and a documented process for assessing new packaging introduced in the same period. We intend to group packaging by type, focusing on products with the greatest sales volumes and progressing until at least 50% of existing packaging is reviewed (by 2015). By using available information for comparing environmental credentials of different materials for our existing and future packaging needs, we hope to identify opportunities for improvement and implement those with highest positive impact as we update our packaging and introduce new products to our range.
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We recognise that our suppliers have an excellent working knowledge of their own products and processes, and we intend to work more closely with key suppliers to improve the sustainability of our packaging. Goal 1- Design Nandos will endeavour to optimise packaging for efficient resource use and reduced environmental impact without compromising product quality and safety. We will achieve this through systematic review of our packaging within the APC timeframe (through to 2015) and continue to seek improvement through integration of APC commitments into our business processes. Our review process will be conducted both internally and with the assistance of external expertise. Nandos is continuing on the path toward sustainable packaging design. Although some Nandos goods sold in Australia are imported, we have control over the production process for our branded products and aim to influence manufacturing and packaging designs in line with best practice. In 2010, Nandos, with packaging supplier Cocoon Republic, completed an evaluation of sugar cane bagasse as an alternative material for burger boxes (formerly made of plastic-coated paperboard composite). Aspects of the evaluation included compostability, source reduction and packaging fitness for purpose. Following a successful trial outcome, Nandos Australia phased out all polymer-paperboard composite take away containers and has now replaced them with bagasse alternatives. Although these bagasse containers implicitly inform customers of their environmentally friendly credentials, we intend to further emphasise this with educational information printed on the packaging. Goal 2- Recycling Distribution Packaging Nandos currently promotes the SPGs goal of recycling and supporting secondary materials markets through efficient collection of secondary and tertiary packaging waste (mostly cardboard) in our third-party logistics warehouses. The in-house recycling collection system is provided by Visy. Plastic Consumer Packaging Nandos recyclable plastic consumer packaging is marked with recycle logos and plastic codes both to educate the consumer and inform the recycling industry. Office Paper Nandos is proposing a trial of recycled paper at our corporate headquarters in East Brunswick, Victoria, to be concluded by December 2011. We will introduce a formal Buy Recycled purchasing policy (from February 2012) with the aim of replacing virgin office paper with recycled paper where possible, if the trial is successful. Goal 3- Product Stewardship Nandos recognises that Product Stewardship underpins the APC and the SPG. Because we share responsibility for the life cycle environmental impacts of our packaging at every stage of the supply
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chain, we endeavour to work on sustainable design within our company and with our manufacturers. Disposal Almost all packaging sourced by Nandos Australia contains recyclable or biodegradable material. A strategy for recycling in-house restaurant packaging Australia-wide is currently under consideration in conjunction with Visy / Coca Cola (comingled recyclables & cardboard) and WasteFlex (nonrecyclable and putrescible waste). Updates on this project will be included in Nandos APC Annual Reports.
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Baseline Data
Key Performance Indicator KPI 1 Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging Baseline Data (2011) Nandos has not yet formally implemented the SPG for design or procurement of packaging.
KPI 3 Proportion of signatories with on-site recovery systems for recycling used packaging
Nandos consumer goods are handled in thirdparty warehouses that have recovery systems for recyclable packaging materials. We currently have a comingled material recovery service for recyclable office paper and packaging waste from our East Brunswick corporate site.
KPI 4 Proportion of signatories with a policy to buy products made from recycled packaging
Nandos currently has no formal policy to buy products made from recycled packaging, but we do buy recycled where possible.
KPI 6 Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging
Nandos does not currently have a formal policy for working with our overseas suppliers to improve design and recycling of packaging. Nandos prints recycling logos and messages on primary and secondary packaging to encourage distributors, retailers and consumers to recycle packaging. Nandos is currently transitioning from a singleuse cardboard crate to a reusable plastic crate for poultry transport. Roll out complete in WA and underway in VIC.
KPI 7 Proportion of signatories demonstrating other product stewardship outcomes
Nandos suppliers are HACCP-approved. Product stewardship initiatives include using renewable resources (sugar cane bagasse) in around 40% of our consumer packaging. 70% of stores use bulk cooking oil system. Nandos has an active program to encourage customers to eat purchased food in the store (restaurant). Currently, 48% of food sold is eaten in-house.
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KPI 8 Reduction in the number of packaging items in the litter stream
Most Nandos packaging is designed with no separable small parts to reduce litter. Our bagasse containers are biodegradable.
Retention of data for packaging audits

In recognition of the APCs stated aim of conducting packaging audits on selected signatories, Nandos will maintain appropriate records of internal communications, discussions with members of the supply chain and other data in a manner that is transparent and supportive of the APCs overall goals.
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APC Action Plan Summary

Nandos proposed actions for each SPG goal and KPI, together with responsibilities, timeframes, targets and evidence and are summarised in the tables below.
APC Performance Goal 1- Design Aim: To optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety Action KPI 1 Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging
Integrate SPG into packaging procurement policy
Responsibility Lindsay Sacks (Nandos Operations) Lindsay Sacks (Nandos Operations)
Timeframe
end Sep 2012
Target
Procurement policy with SPG integrated
Evidence
Formal documented policy
Continue to develop, improve, and extend our use of bagasse materials, where possible, throughout our primary packaging Apply SPG checklist to new packaging
end Dec 2014
Target to have 70% derived from renewable sources
Communication records and other documented research
Lindsay Sacks (Nandos Operations)
ongoing through to 2015
All new product packaging assessed against SPG
Documented checklist comparison process
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APC Performance Goal 2- Recycling Aim: The efficient collection and recycling of packaging
Action KPI 3 Proportion of signatories with on-site recovery systems for recycling used packaging
Review existing on-site recovery system for recycling office paper and packaging waste
Responsibility Lindsay Sacks (Nandos Operations)
Timeframe
end Aug 2011
Target
Evidence
Confirmation that existing Zero recyclable waste on-site recovery system is in landfill stream functioning effectively
KPI 4 Proportion of signatories with a policy to buy products made from recycled packaging
Conduct trial of recycled plain office paper
Lindsay Sacks (Nandos Operations) Lindsay Sacks (Nandos Operations)

Laurence Morris (Manager, Groceries)
end Mar 2012
Confirmation that recycled office paper is acceptable All virgin plain paper replaced by recycled plain paper All cartons made from recycled material
Documentation of trial outcome
Introduce a formal Buy Recycled purchasing policy for office paper (if trial successful) Introduce a formal Buy Recycled purchasing policy for overseas-sourced cardboard cartons
end Jul 2012
Documented Buy Recycled purchasing policy; No virgin plain paper in use Documented Buy Recycled purchasing policy
end Aug 2013
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APC Performance Goal 3- Product Stewardship Aim: A demonstrated commitment to product stewardship by the supply chain and other signatories
Action KPI 6 Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging
Establish communication with key suppliers re packaging design & recycling
Responsibility Lindsay Sacks (Nandos Operations) Lindsay Sacks (Nandos Operations) Robert Nackoski (Key Account Sales Manager, Mission Foods) Lindsay Sacks (Nandos Operations) Paul Schumann (Cocoon
Timeframe
end Mar 2012
Target
Key suppliers understand APC aims and SPG goals
Evidence
Communication records
Eliminate use of inner liner inside pita bread cartons. Current configuration is 16 pks x 3 pitas with divider. Conduct travel tests to assess product protection.
trial currently underway introduction in all states in Jul 2011
New configuration: 12 pks x4 pitas per carton, with no divider. Reduced use of PP bags by 4 bags per carton
Records of changes to packing configuration with Mission Foods
Continue making design adjustments to the following bagasse packaging items: Mini Pail & Lid
Adjustments to be implemented by Dec 2011
Overcome current weaknesses in the products by: ensuring that lids lock securely that bases of
Paper trial of design changes and adjustments recorded by Cocoon Republic
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Maxi Pail & Lid Chicken Container & Lid Full Chicken Container & Lid Burger box clam shell container
Republic)
containers do not absorb moisture (from condensation or stored products) strengthening structure without increasing material weight Adjustments to be implemented by Oct 2011 Remove extra-large carry bag Remove 3 bottle bag Re design all current bags to optimise fitting all pails and chicken containers To have only 3 bag options instead of 5 Records of packaging changes with Detpak
Further rationalise current Lindsay Sacks takeaway bag range by (Nandos optimising dimensions to Operations) reduce volumes consumed Paul Knape (Business Manager, Detpak)
Research renewable resource material (possibly bagasse) to substitute paper based products used in primary packing bags
Lindsay Sacks (Nandos Operations) Paul Knape (Business Manager, Detpak)
end Dec 2012 As soon as suitable material is found: Make up trial packing bags Conduct trials in restaurants Launch when fully functional
Documented correspondence between parties involved
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Design inner divider/liners for catering boxes to optimise space for packing multiple items in single container.
Lindsay Sacks (Nandos Operations) Avi Rubenstein (MD - Litho Superpak) Lindsay Sacks (Nandos Operations)
Design completed, manufacture & distribution by Oct 2011
Reduce number of containers required for catering
Records from supplier of goods (Litho Superpak)
Continue transition from single-use cardboard crate to reusable plastic crate for poultry transport.
end Jun 2012
Eliminate use of cardboard secondary packaging for poultry distribution to stores.
Elimination of
single-use cardboard poultry distribution crates Australia-wide
KPI 7 Proportion of signatories demonstrating other product stewardship outcomes
Increase percentage of stores using bulk cooking oil supply / collection system.
end Dec 2015
95% of stores to have bulk oil storage and collection facilities; 20L steel cans removed from the cooking oil supply chain. 60% of food sold eaten in-house (using reusable crockery and cutlery)
Documented evidence of bulk cooking oil supply / collection system rollout
Increase proportion of food Matt Thys, Ben eaten in-house through store Appel (Store design and menu refinement Design Group) (with the objective of reducing takeaway Lindsay Sacks packaging)
end Aug 2014
Corporate statistics from Point-of-Sales system
(Nandos Operations)
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KPI 8 Reduction in the number of packaging items in the litter stream
Reduced primary packaging dispensed to customers
end Mar 2014
Fewer primary packaging items to be disposed of
Documented records of packaging optimisation
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Formal Commitment by Nandos to Implement the Action Plan

The management of Nandos Australia Pty Ltd is fully committed to minimising the impact of business operations on the environment and firmly supports the Australian Packaging Covenants performance goals and framework. As a brand owner, Nandos is undertaking to adopt product stewardship policies and practices and to implement the Sustainable Packaging Guidelines in order to improve the design, recyclability and recycled content of packaging and to improve collection and reprocessing systems for postconsumer packaging. Nandos is committed to working together with all its product suppliers to achieve goals and targets as identified in this Action Plan and to report annually against relevant KPIs.
Lester Sacks Executive Director Nandos Australia Pty Ltd
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Nandos Australia Apc Action Plan

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ACTION PLAN, 2010 - 2015

Implementing the Sustainable Packaging Guidelines

NANDOS AUSTRALIA PTY LTD

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

The Nature of the Organisation

Australian Restaurants and Offices

Nandos Owned Restaurants

Franchised Total Restaurants Restaurants

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Office Address Details

Covenant Contact Officer

Position of Nandos in the Supply Chain

Packaging Materials and Formats used by Nandos

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Nandos Action Plan Period

Top Level Support

Action Plan Development

Summary of Previous Achievements

Bulk Cooking Oil Supply

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Labelling and Disposal of Packaging

Framework for Implementing the SPG

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

KPI 7 Proportion of signatories demonstrating other product stewardship outcomes

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

KPI 8 Reduction in the number of packaging items in the litter stream

Retention of data for packaging audits

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

APC Action Plan Summary

Responsibility Lindsay Sacks (Nandos Operations) Lindsay Sacks (Nandos Operations)

end Dec 2014

Target to have 70% derived from renewable sources

Communication records and other documented research

Lindsay Sacks (Nandos Operations)

ongoing through to 2015

All new product packaging assessed against SPG

Documented checklist comparison process

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

Responsibility Lindsay Sacks (Nandos Operations)

Conduct trial of recycled plain office paper

Lindsay Sacks (Nandos Operations) Lindsay Sacks (Nandos Operations)

end Mar 2012

Documentation of trial outcome

end Jul 2012

end Aug 2013

Action Plan July 2010 June 2015

Nandos Australia Pty Ltd

trial currently underway introduction in all states in Jul 2011

Records of changes to packing configuration with Mission Foods

Adjustments to be implemented by Dec 2011