A&W Canada: Serving Great Taste with Minimal Waste

Description

In November 2020, A&W Food Services of Canada Inc. (A&W Canada) had a difficult decision to make. As a fast-food chain with a track record on advancing sustainability issues, the company could not ignore the mounting public concern about plastic and packaging waste or the continuously evolving regulatory environment regarding waste in Canada. The company had already taken steps in this direction by introducing paper straws and compostable burger bags, for example. However, it was the large number of beverage cups that stood out as generating the largest amount of disposable waste. Regulations on extended producer responsibility were being introduced across Canada, although the details in each province varied. New materials were constantly being developed, which provided various potential alternatives. A&W Canada had to make a decision but was unsure what criteria to apply. How would this decision affect key stakeholders? How could the company make a more informed decision?

Learning Objective

This case can be used at both graduate and undergraduate levels. The case can be used early on in a sustainability course to immerse students in the reality of decision-making in complex contexts. The case requires students to make decisions by weighing different and often conflicting financial, environmental, and social costs and benefits. Dealing with such complexity is a key skill for sustainable development. More specifically, the case encourages students to examine the challenges related to reducing the environmental impact of packaging in a large restaurant chain that spans across Canada. Choosing the right packaging option requires developing and applying a set of decision criteria and assessing the total cost of ownership of each option. It also requires understanding the multifaceted environmental impact of different packaging options and the relationships with heterogeneous local policies and infrastructures. Based on the specific course, the instructor can emphasize one or more of the following teaching objectives: Examine how to develop and apply a sophisticated decision-making framework that considers complex stakeholder trade-offs and multifaceted environmental impact.Discuss the benefits of using a total cost of ownership lens on procuring responsibly.Discuss the unintended consequences of linear innovation processes. Investigate EPR policies and their incentives for businesses.