Food, Glorious Food — But Not When We Waste It

Food waste is a major problem in the U.S. and across the globe. Drivers range from overordering and food spoilage to projections by restaurants and grocery stores that turn out to be wrong.

In fact, research suggests consumers don’t end up eating as much as one-third of produced food worldwide, which also takes 1.4 billion hectares of land to produce. While governments and regulatory agencies have made indications that they want to address this problem, progress has been slow and there is no certainty that their solutions will prove effective.

Market-driven solutions lead to innovation. Lowering food waste can boost profitability and recommend ways to achieve such a feat. Getting market buy-in to the importance of lowering food waste will ultimately save money, while preserving resources and helping to ultimately address food scarcity and hunger issues, as well.

While reducing food waste should be a priority for all participants in food-based industries, it is a particular concern in the restaurant business.

Impact of Lower Food Waste on Profitability

Some evidence suggests that restaurateurs typically do not measure food waste. Failure to take this metric into account can negatively impact return on investment (ROI) and can lead to higher waste management and disposal charges. In contrast, adopting mitigation strategies for wasted food can improve a restaurant’s bottom line while also leading to better outcomes for all people.

• On average, effective waste reduction strategies achieve a 7:1 benefit-cost ratio over three years.
• Seventy-six percent of restaurants that implement such programs recoup their investment in the first year. This number rises to 89 percent in the second year.
• Restaurants can save more than two cents for every dollar of the cost of goods sold by lowering food waste levels.

Ways To Reduce Food Waste in a Restaurant Setting

There are various strategies restaurant owners and managers can employ to avoid food waste, most of which are reasonably cheap and easy to achieve. For little resources investment, these restaurants can see significant positive returns.

Avoid Overstocking

One particular temptation for restaurant managers is to stock up on certain items when the cost is low. However, if these items are not intended for longer-term storage, the excess purchases can ultimately go bad on the shelf.

Store Food Correctly

Something as simple as proper food storage can lead to significant savings in avoiding food waste. Having refrigerators and freezers at the correct temperatures will preserve food longer. Storing longer-lasting items on higher shelves drives reductions in wasted items.

Practice FIFO

The first in, first out (FIFO) rule for storing food and preparing food ensures that the kitchen staff uses the older stock first, saving the items from going to waste.

Make Sound Business Decisions

We understand that reducing food waste can be difficult to prioritize for busy restaurant managers. The return on the investment will far exceed the time put into it and help business in the long run.

At OWL ESG, we offer unparalleled data on current ESG practices that restaurant companies, and any company interested in more sustainably oriented strategies, can leverage to inform sound long-term business decisions. Call 424-800-3834 now to see how your practices compare.