Supermarket Recycling Organics Initiative An Overview of Startup Costs and Cost Savings
Potential Cost Savings
• • • • • • An average 40,000 s.f. supermarket employing 150 full and part time staff generates 400 – 600 tons of trash annually. Trash disposal costs are averaging $90 per ton and are continuing to rise. 75% of supermarket waste is comprised of organic materials including discarded food, waxed and wet cardboard, paper, renderings, soil, and plants. Recycling organics is a less expensive alternative with costs averaging $60 per ton. An average supermarket using a compactor and recycling 75% of 500 tons of organic materials annually at a savings of $30 per ton can save $11,250 per year. Supermarkets have the potential to save $10,000 – $20,000 per store per year.
Estimated Initial Startup Costs: Two Scenarios for a 40,000 s.f. Supermarket
These examples are based on experience. Savings will depend on per ton recycling and waste disposal costs and store volume.
Scenario 1: Toter (wheeled cart) Collection System
In this scenario, toters are used to collect and store organics. Toters can be lined with biodegradable bags to reduce cleaning costs and improve sanitation – however at an additional cost to the generator. Haulers dump these toters into collection trucks and transport the organics to a processor. The toter collection system is limited to the recovery of food residuals. Toters are not used for collection of waxed or wet cardboard, wood, or other bulky organic materials. 40,000 s.f. supermarkets normally generate between 1000 to 4000 pounds of organic food residuals weekly, depending on store sales volume.
New Operating Expenses
Sixteen 68 gallon toters w/ covers @ $65.00 each Printing of training/educational materials (handbook available from WasteCap) Training Expenses (35 employees x $15 x 1 hour) Total $1,040 $100 $525 $1,665 Total $3,840
Annual Savings
1.5 tons x 52 weeks x $30/ton disposal savings Training Assistance provided by WasteCap $2,340 $1,500
Over the first 12 months of participating in the ROI, a supermarket using the toter method saves approximately $2,200. Annual average savings beyond the first year are approximately $3,300.
Scenario 2: Compactor Collection System
Higher volumes of organic materials may be recycled from the waste stream by dedicating a compactor to the collection of all food residuals plus waxed and wet cardboard, wood, paper and other organic materials. In many cases, this option requires an additional compactor. The capital costs for the installation of this compactor are offset by the higher cost savings resulting from the diversion of more materials from the waste stream. New Operating Expenses
Eight 68 gallon toters w/ covers @ $65.00 each Training expenses (35 employees x $15 x 1 hour) 1 year’s supply of 68 gal biodegradable liner bags @ $35.00 per case (100 bags/case) Sealed compactor purchase and installation* Annual compactor maintenance Printing of training/educational materials (handbook available from WasteCap) Total $520 $525 $2,000 $2,510 $360 $100 $5,655 Total $12,750
Annual Operating Savings
500 tons/yr x 75% x $30/ton disposal savings Training Assistance provided by WasteCap $11,250 $1,500
* Includes $15,050 average cost for the purchase of a 30 cubic yard sealed compactor, installation of a concrete pad, access to the compactor through an exterior wall, and installation of electrical service, amortized over seven years. Leasing a compactor can reduce initial capital costs, but long-term costs for leasing are high.
Over the first 12 months of participating in the ROI, a supermarket using a compactor will save approximately $7,100. Annual average savings for years 2 through 7 are approximately $7,700. Annual savings may vary with leasing arrangements.
WasteCap of Massachusetts 376 Boylston Street, Ste 303 Boston, MA 02116 617-236-7715, 617-236-7141 fax wastecap@wastecap.org www.wastecap.org
