Sustainable Restaurant Design: How Yum! Brands Cuts Costs & Emissions
Yum! Brands—parent company of KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill—has long embedded sustainability into its growth and development strategies. While environmental initiatives alone are commendable, the company has found that eco-conscious design can also drive cost efficiency. For Yum!, going green is not only about environmental responsibility—it’s also smart business.
Back in 2014, Yum! introduced a set of sustainable building guidelines tailored to its restaurant operations. Influenced by the Leadership in Energy and Environmental Design (LEED) framework, these guidelines incorporate features like energy-efficient lighting and strategically positioned exhaust hoods. However, unlike LEED, Yum!’s system uses a specialized point-based structure adapted to the needs of quick-service restaurants, helping the company build more energy-efficient and resource-conscious locations.
“We meet our franchisees where they are, so they can build according to what makes the most sense for their budgets,” said Jon Hixson, Yum!’s Chief Sustainability Officer. “Thankfully, most of the methods we’ve identified are both good for the environment and for business.”
These sustainability principles continue to evolve. KFC recently introduced its “11 Must-Haves” under its Building Green Standards, while Pizza Hut created the Green Hut Toolkit, outlining key sustainable requirements. Both frameworks are designed to help operators reduce operational costs while conserving natural resources.
For example, Pizza Hut's list includes optimized heating, ventilation, air conditioning (HVAC), and exhaust systems, along with efficient lighting, refrigeration, and kitchen equipment. KFC's standards mirror many of these elements. Meanwhile, Habit Burger & Grill ensures that all its U.S. restaurants meet or exceed California’s pioneering Green Building Standards Code.
The benefits of these initiatives are tangible. Installing LED lighting across the KFC network reduced emissions by roughly 5% in 2024. Upgraded HVAC systems at a single Pizza Hut location have cut energy usage by about 30%, eliminating an estimated 7 metric tons of carbon dioxide annually.
KFC’s sustainability focus has also extended to furniture. In 2023, the brand rolled out Green Line Furniture—pieces made with reclaimed materials that are lighter in weight but still durable. This not only enhances sustainability but also reduces emissions from transportation by approximately 32%.
Globally, Yum! Brands leverages Energy Management Systems (EMS) to optimize restaurant operations. These systems control climate settings, track energy usage, and identify areas for improvement. In India, EMS have been deployed in over 800 restaurants across KFC and Pizza Hut, resulting in about 7% savings on electricity costs for KFC. Taco Bell U.S. has similarly installed EMS in approximately 150 of its high-energy-use corporate locations to control HVAC and refrigeration systems.
Yum! also evaluates solar energy opportunities based on site-specific factors like electricity costs, building layout, and sun exposure. KFC restaurants on every continent now use solar power in some capacity. Notably, a KFC location in California operates its drive-thru entirely on solar energy, lowering energy bills by 20%.
These continued efforts have earned Yum! recognition from organizations like CDP, a leader in sustainability reporting. Several of the company’s restaurants around the world have achieved LEED certification, such as KFC in Thailand, Pizza Hut in Vietnam, and a Gold-certified KFC location in India.
Yum!’s commitment is yielding significant results. By the end of 2023, the company had reduced greenhouse gas emissions from franchise restaurants by 28% compared to 2019 levels. The goal is to achieve a 46% reduction by 2030—and with more than half the target already met, Yum! is on track.
“Our aim is to cut emissions per franchise restaurant by nearly half by 2030, and we’re making strong progress thanks to our sustainable building practices,” Hixson noted. “We’re saving money for franchisees and energy for the planet—it’s a win-win.”
Back in 2014, Yum! introduced a set of sustainable building guidelines tailored to its restaurant operations. Influenced by the Leadership in Energy and Environmental Design (LEED) framework, these guidelines incorporate features like energy-efficient lighting and strategically positioned exhaust hoods. However, unlike LEED, Yum!’s system uses a specialized point-based structure adapted to the needs of quick-service restaurants, helping the company build more energy-efficient and resource-conscious locations.
“We meet our franchisees where they are, so they can build according to what makes the most sense for their budgets,” said Jon Hixson, Yum!’s Chief Sustainability Officer. “Thankfully, most of the methods we’ve identified are both good for the environment and for business.”
These sustainability principles continue to evolve. KFC recently introduced its “11 Must-Haves” under its Building Green Standards, while Pizza Hut created the Green Hut Toolkit, outlining key sustainable requirements. Both frameworks are designed to help operators reduce operational costs while conserving natural resources.
For example, Pizza Hut's list includes optimized heating, ventilation, air conditioning (HVAC), and exhaust systems, along with efficient lighting, refrigeration, and kitchen equipment. KFC's standards mirror many of these elements. Meanwhile, Habit Burger & Grill ensures that all its U.S. restaurants meet or exceed California’s pioneering Green Building Standards Code.
The benefits of these initiatives are tangible. Installing LED lighting across the KFC network reduced emissions by roughly 5% in 2024. Upgraded HVAC systems at a single Pizza Hut location have cut energy usage by about 30%, eliminating an estimated 7 metric tons of carbon dioxide annually.
KFC’s sustainability focus has also extended to furniture. In 2023, the brand rolled out Green Line Furniture—pieces made with reclaimed materials that are lighter in weight but still durable. This not only enhances sustainability but also reduces emissions from transportation by approximately 32%.
Globally, Yum! Brands leverages Energy Management Systems (EMS) to optimize restaurant operations. These systems control climate settings, track energy usage, and identify areas for improvement. In India, EMS have been deployed in over 800 restaurants across KFC and Pizza Hut, resulting in about 7% savings on electricity costs for KFC. Taco Bell U.S. has similarly installed EMS in approximately 150 of its high-energy-use corporate locations to control HVAC and refrigeration systems.
Yum! also evaluates solar energy opportunities based on site-specific factors like electricity costs, building layout, and sun exposure. KFC restaurants on every continent now use solar power in some capacity. Notably, a KFC location in California operates its drive-thru entirely on solar energy, lowering energy bills by 20%.
These continued efforts have earned Yum! recognition from organizations like CDP, a leader in sustainability reporting. Several of the company’s restaurants around the world have achieved LEED certification, such as KFC in Thailand, Pizza Hut in Vietnam, and a Gold-certified KFC location in India.
Yum!’s commitment is yielding significant results. By the end of 2023, the company had reduced greenhouse gas emissions from franchise restaurants by 28% compared to 2019 levels. The goal is to achieve a 46% reduction by 2030—and with more than half the target already met, Yum! is on track.
“Our aim is to cut emissions per franchise restaurant by nearly half by 2030, and we’re making strong progress thanks to our sustainable building practices,” Hixson noted. “We’re saving money for franchisees and energy for the planet—it’s a win-win.”
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