Food waste in restaurants: What we know

Food waste is a global problem that has significant economic, human, and planetary implications. In the US, around 84.3% of unused food in restaurants is thrown away while only 14% is recycled, and only 1.4% is donated. According to Green Restaurant Association, a restaurant can produce up to 25000-75000 pounds of food waste a year.

Globally, we waste one billion tons of food annually, according to UN Environment Programme (UNEP). In the US, around 40% of all food is wasted—with 66 billion pounds consisting of commercial leftover food waste. While in the UK, around 9.5 million tons of food waste are produced yearly, with 1.1 million tons (12%) coming from the hospitality and food service sector. In Australia, 7.6 million tons of food is wasted, costing their economy $36.6bn. These alarming statistics highlight the need for a combined effort to reduce food waste in restaurants through food recovery practices like recycling and food donation. In fact, Boston Consulting Group (BCG) estimates that global food waste equates to $1.5tn in squandered potential value.

But the source of the problem is complex as food waste comes from many other sources: households (43%); grocery stores, restaurants, and food service companies (40%); farms (16%), and manufacturers (2%). Interestingly, as the amount of food waste increases yearly, so does the number of people suffering from food insecurity (reaching over 800 million). According to the U.S. Bureau of Labor Statistics, an average American consumer spends over $3000 on dining out annually—contributing to the astonishing amount of food wasted in restaurants. It’s also estimated that 17% of a diner’s meal is left uneaten and 55% of leftovers in restaurants are edible, according to Food Print. This costs the US restaurant industry over $162bn in food waste yearly.

Consumer expenditures, selected categories, 2018

Moreover, according to National Resources Defense Council (NRDC), 21% of agricultural water resources and 19% of US croplands are wasted for every food that’s thrown away.

Wasted: How America is losing up to 40 percent of its food from farm to fork to landfill

_{Source: NRDC}

This problem is likely to get worse as the demand for food grows 1.5 to two times more in 2050 compared to 2005. But demand isn’t the only contributor, it’s also the businesses, households, and the restaurant and food service sector’s habit of disposing of produce for superficial reasons, throwing out food past or near its expiration date, and letting stored food decay. With over 300 million diverse people in the US, food waste is becoming an embarrassing problem that we all contribute to—regardless of status, age, and gender. But before we go further, let’s talk about the two main types of waste.

The two common kinds of waste

There are two categories of wasted food: food loss and food waste (FLW). According to the Food and Agriculture Organization (FAO) of the United Nations, FLW are hurting food security and nutrition and contribute largely to gas emissions, pollution, and degradation of the ecosystem. Let’s define what they mean below:

• Food loss refers to the decline in quality or the mass of food intended for consumption. This often happens due to issues in supply chains like infrastructure and logistics, limited access to technology, lack of skills, natural disasters, and more.
• While food waste refers to (mostly) edible food that’s discarded. Usually, food is wasted due to spoilage, but it could also be because of excess supply due to ever-changing market trends and consumer eating habits. Not to mention the legal restrictions restaurants need to follow when disposing of leftover, uneaten, and expired food.

Food waste and food loss make up 21% of urban solid waste in the US. It’s also responsible for the increase in methane emissions—a strong greenhouse gas that contributes to global warming. It’s clear that there are opportunities for improvements and that reducing food waste by 15% or more could potentially feed over 25 million Americans.

Restaurant food waste statistics

According to NRDC, the US produces the most food waste globally. Although most waste reduction strategies have focused on household waste, the restaurant industry has a huge potential for reducing costs. The National Restaurant Association (NRA) currently predicts the food service industry workforce to increase by 500,000 more jobs for total industry employment of 15.5. million this year.

A recent study on reducing food waste found restaurants waste 4% to 10% of the food they bought, and 30% to 40% of the food they serve to customers is never eaten. This results in a substantial loss for the restaurant industry, according to the United Nations Department of Agriculture (USDA). Overproduction, lack of awareness, improper employee training, improper food storage, and lack of access to composting facilities are some of the reasons for this waste.

Fortunately, 72% of US diners are also becoming increasingly aware of this issue and 47% are willing to spend more at sustainable restaurants with active food recovery and waste disposal programs, according to a Unilever study.

What are the reasons for restaurant food waste

Many factors contribute to the amount of food waste in restaurants and below are the six reasons you need to know about.

1. Excess inventory: Having excess inventory and poor stock rotation can result in overordering and overstocking. Many restaurants still manage their inventory the traditional way through manual methods, such as using pen and paper or spreadsheets. Without an inventory management system, it can be challenging to track the amount of food that’s needed accurately, with food going to waste if not used.
2. Improper storage methods: Poor storage processes can result in expired or spoiled ingredients that need to be discarded. And throwing away food scraps and trimmings at restaurants are also contributing to restaurant food waste. Clear guidelines for food storage and handling can ultimately reduce restaurant food waste.
3. Overproduction: There’s a constant need to have more than enough food during serving hours, especially buffets. Add to this the legal restrictions regarding waste disposal and the inability to accurately predict the quantity of food needed for the day, and you have a recipe for food waste. Predictive order management systems and clear procedures for food planning, prep, and production can reduce overproduction and optimize ingredient usage.
4. Absence of data and insights: The inability to accurately predict the quantity of food needed can contribute to food waste in restaurants too. Without accurate data on food usage and inventory, the kitchen staff can’t properly forecast demand, leading to over-ordering and overproduction. The right demand forecasting tools backed with sufficient data can remove the guesswork from menu creation, ingredient usage, and costs.
5. Inability to track food waste: The inability to track and stay on top of food waste in restaurants adds to more waste. Without a proper system in place to track and monitor food waste, it can be challenging to recognize areas where waste is occurring and take steps to reduce it. Moreover, without clear procedures for food waste management, staff may not be aware of how to properly dispose of waste, leading to inefficiencies, and unnecessary waste.
6. Human mistakes: Lastly, mistakes made during order taking or food preparation often lead to food being sent back to the kitchen, automatically resulting in restaurant food waste.