Oct 10, 2024
Food waste is a major challenge for restaurants, impacting financial performance and sustainability efforts. According to the National Resources Defense Council (NRDC, 2021), food waste costs U.S. restaurants around $162 billion annually. This waste typically results from over-preparation, spoilage, and inaccurate demand forecasting. Reducing waste is critical to maintaining profitability in an industry already operating with tight margins.
A significant portion of this waste is avoidable. ReFED (2021) estimates that about 85% of restaurant food waste can be prevented, with 51% of that waste coming from over-prepped food that never gets sold. Many restaurants rely on outdated methods to estimate demand, which leads to inefficiencies and excess production. However, modern approaches that involve precise demand forecasting have been shown to help restaurants better manage their food supply and significantly cut down on waste. This knowledge empowers restaurants to take proactive steps in reducing their waste.
Addressing food waste is not only a financial imperative but also an environmental one. According to the U.S. Environmental Protection Agency (EPA, 2021), food waste is a leading contributor to methane emissions, a potent greenhouse gas. Reducing food waste in the restaurant industry can, therefore, have a meaningful impact on operational efficiency and environmental sustainability.
Food waste continues to be a costly and environmentally harmful issue for restaurants. By focusing on more accurate demand forecasting and implementing better food management practices, restaurants can reduce waste, improve their bottom line, and contribute to a more sustainable future.
References:
Environmental Protection Agency (EPA). (2021). Sustainable management of food: Food recovery hierarchy. https://www.epa.gov/sustainable-management-food/food-recovery-hierarchy
National Resources Defense Council (NRDC). (2021). Wasted: How America is losing up to 40% of its food from farm to fork to landfill. https://www.nrdc.org
ReFED. (2021). Insights engine: Restaurant food waste reduction. https://insights-engine.refed.org/food-waste-solutions/prevention