The Blue Economy - CASE 81: Franchising Public Toilets
This article introduces the franchising of public toilets as one of the 100 innovations that shape The Blue Economy, known as ZERIʼs philosophy in action. This article is part of a broad effort by the author and the designer of the Blue Economy to stimulate open-source entrepreneurship, competitiveness and employment. Researched, Written and Updated by Professor Gunter Pauli.
The Blue Economy Inspired Series
The Sanitation Solution:
Franchising Toilets to Drive
Social and Environmental Impact
Written by; Shelley Tsang, 2024.
In an increasingly urbanized and resource-scarce world, access to clean, functional sanitation is a pressing concern. Public toilet facilities remain inadequate or nonexistent for nearly 2.8 billion people worldwide, posing significant health and environmental challenges. A transformative solution lies in franchising public toilets—a model that leverages entrepreneurial energy, innovation, and a self-sustaining business framework to address these issues. Case 81 of *The Blue Economy* by Gunter Pauli highlights this franchising approach, revealing how scalable sanitation solutions can reshape cities, improve public health, and unlock local economies.
This article will delve deeper into the franchising of public toilets, discussing the global sanitary ware market, innovation in sanitation, the cash flow and resource opportunities presented by franchises, and the immense potential for future expansion. By examining these factors, it becomes evident how franchising public toilets is a powerful example of innovation that drives economic, environmental, and social change.
The Global Sanitary Ware Market and Demand for Toilets
The global market for ceramic sanitary ware—spanning toilets, bidets, sinks, and other bathroom appliances—was valued at around $45 billion in 2010. However, the demand for sanitation infrastructure goes far beyond commercial profits. As urban populations surge, especially in developing countries, sanitation infrastructure struggles to keep up. An estimated 500 million new toilets are required globally to meet basic needs, with China, India, and parts of Africa representing the highest demand.
China, for example, has seen a construction boom over the past decades, establishing itself as the largest toilet market globally. By 2010, Chinese consumers purchased 20 million units, and that demand has only grown as the country rapidly urbanizes. Moreover, shifting consumer behavior from water-based cleaning to wiping has driven the demand for ceramic sanitary ware even higher. Spain and Japan dominate the global sanitary ware production market, with Spain leading in volume and Japan excelling in high-end, technology-integrated solutions.
Japanese manufacturers, including industry giants Toto and INAX, have taken the lead in developing high-efficiency, innovative toilets. They offer advanced features like integrated cleaning systems, automatic sensors, and intelligent health-monitoring capabilities, which are ideal for both urban and rural communities. European producers like Roca, the world’s largest family-owned bathroom company based in Barcelona, manufacture 32.5 million toilets annually, while Kohler in the U.S. ranks second, producing approximately 21 million units. Although these large firms are essential suppliers, their products do not necessarily reach the most impoverished regions. Franchising public toilets, therefore, offers an alternative means to address the sanitation gap and leverage high-demand markets through a more socially focused approach.
Innovation in Toilet Design: Toward Resource-Efficiency
The franchising of public toilets builds upon technological innovations that address water and resource scarcity. Traditional toilets consume significant water volumes, with a single flush averaging 13 liters in 1980. By 2000, double-flush systems reduced this to about 4.8 liters per flush, but further innovations are necessary to make sanitation fully sustainable.
Dry toilets, composting systems, and urine separation models are now emerging as viable alternatives in areas with limited water access. Researchers like Prof. Dr.-Ing. Ralf Otterpohl of Hamburg’s Technical University advocate for dry systems that eliminate the need for extensive sewage networks, which are costly and often unsuitable for low-income regions. Dry toilets not only reduce water consumption but also simplify waste management. In India, for instance, the Sulabh sanitation model uses 1.5 liters per flush in compost toilets that naturally decompose waste into nutrient-rich materials without the need for sewage treatment.
In collaboration with Daiwa House, Toto has even developed an intelligent toilet that monitors health indicators such as blood glucose levels, underscoring the potential of toilets to double as health-monitoring devices. Such innovations can further empower the franchise model by diversifying the functions of public toilets and making them more valuable to communities.
The First Cash Flow and Financial Viability
Public toilet franchises can sustain themselves financially, as demonstrated by the Sulabh toilet system in India. Sulabh’s model relies on low-cost, eco-friendly toilets installed in public spaces such as bus stations, hospitals, and markets. A simple household system costs around 500 Indian Rupees (INR) or about $10, while community setups cost more but produce biogas as a byproduct. Sulabh’s flush-compost toilets require minimal water and offer waste processing that reduces the need for large-scale sewer systems, which saves municipalities millions in infrastructure costs.
The franchise model’s initial cash flow stems from small user fees, contributions from local governments, and the revenue generated from byproducts like biogas. In slum areas and rural villages, biogas derived from public toilets is especially valuable, providing affordable energy for cooking and heating. Sulabh’s operations have scaled to over 7,500 complexes with 700 million daily uses. Collectively, these franchises save 11.2 million cubic meters of water each year, while generating millions of cubic meters of biogas that previously would have been unattainable for these communities.
Franchising Opportunities: Expanding the Model Globally
The global sanitation crisis presents a vast, largely untapped opportunity for franchises that offer scalable, localized solutions. For a franchise model to succeed in diverse settings, it must be adaptable. Sulabh’s approach includes 12 different toilet designs tailored to local climates, water availability, and cultural needs. These adaptable solutions range from compact flush systems to biogas-powered complexes with integrated washing and bathing areas. The clustering of toilets, bathing facilities, and laundry stations not only attracts more users but also promotes a self-sustaining, cleaner environment.
Franchises can significantly benefit developing countries by creating jobs, reducing environmental pollution, and improving public health. In India alone, Sulabh employs over 50,000 volunteers to maintain these complexes, demonstrating the potential for job creation and community involvement. Other regions with similar needs and resources, like Sub-Saharan Africa and Southeast Asia, represent excellent expansion opportunities for this model.
Environmental and Social Impact
The franchising model for public toilets extends benefits well beyond sanitation. A successful franchise can reduce water wastage, produce renewable biogas, and decrease pollution in urban areas. In many places, untreated sewage often flows directly into water bodies, contaminating drinking water and harming ecosystems. Public toilet franchises with biogas generation capabilities can significantly curb this environmental degradation.
Moreover, providing clean, accessible toilets in public spaces enhances public health. The spread of waterborne diseases like cholera, typhoid, and dysentery often arises from poor sanitation practices, especially in densely populated urban centers. By establishing more public toilets, franchises can drastically reduce disease transmission and improve the quality of life for millions.
Socially, the model empowers women and children who face significant sanitation challenges in many developing regions. Lack of adequate facilities in schools leads to higher dropout rates among girls, while the absence of clean public toilets in cities often deters women from working or travelling freely. Establishing safe, hygienic facilities encourages more equitable participation in daily life and has a transformative effect on gender equality.
Challenges and Future Potential
While franchising public toilets is promising, challenges remain. The model must navigate cultural stigmas, ensure maintenance standards, and source sufficient funding, especially in rural or underserved urban areas. Additionally, regulatory frameworks differ between countries, which may complicate the expansion process.
To overcome these challenges, partnerships with local governments, non-profits, and international organizations are essential. Organizations like the United Nations Development Programme (UNDP) and the World Health Organization (WHO) have already supported pilot projects in various countries. Scaling this model will require continued support from similar institutions, alongside private investment and community involvement.
Looking forward, public toilet franchises could integrate further with other infrastructure projects, such as public transport and housing, to provide seamless services in urban centres. The model can also incorporate additional revenue streams, including advertisements, local shop rentals, or micro-utility fees for services like water or charging stations for mobile devices. Each of these innovations contributes to making public toilet franchises financially sustainable and more impactful for the communities they serve.
Conclusion: Franchising Public Toilets as a Blueprint for a Sustainable Future
Franchising public toilets offers a unique, scalable solution to a critical global problem. By combining technological innovation with a sustainable business model, this approach meets a basic human need while empowering communities, creating jobs, and protecting the environment. The Sulabh model in India provides a compelling proof of concept, demonstrating how public toilet franchises can reduce pollution, generate renewable energy, and support local economies.
As countries worldwide face increasing urbanization and resource constraints, the franchising of public toilets represents an invaluable tool for sustainable development. By embracing this model, governments, businesses, and social entrepreneurs can transform sanitation from a public burden into an opportunity for growth, health, and progress. With continued support and innovation, franchised public toilets could soon become a foundational element of The Blue Economy, delivering clean, dignified sanitation for all.
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