Sustainability & The Hospitality Industry

Sustainability has been a hot topic over recent years, and the movement has gained even more momentum since the pandemic began in early 2020. From deforestation to carbon emissions, food waste and ocean plastics, the global focus on sustainability is now laser-sharp.

But do consumers really care about sustainability?

In short, yes.

83% of consumers say they consider environmental factors before making a purchase, and 78% believe businesses should do more to highlight the environmental impact of their operations.

It’s now more important than ever for hospitality businesses to rethink their operations and invest in sustainable practices to avoid alienating a growing, sustainably-minded wave of consumers.

War on waste

Like many other industries, the hospitality sector, as a whole, has a long way to go before it can fully embrace sustainability. The war on waste has gained significant traction in recent years and food waste, in particular, is a huge issue for hospitality businesses. In fact, it’s estimated that, in Australia, 40% of food bought for inventory ends up in the kitchen bin.

Not only does this equate to millions of dollars in lost revenue, but it’s also taking a massive toll on the environment, and consumers are taking note. As a result, there’s been a notable shift in purchasing habits as customers align their behaviour with sustainable and environmentally friendly practices — and this is having a knock-on effect for businesses.

With 66% of consumers willing to spend more at sustainable businesses, cafes, bars and restaurants need to prioritise sustainability by reducing the amount of food and plastic waste they produce.

How can your business adapt?

Adopting a sustainable business model isn’t going to happen overnight, but there are several steps you can take to reduce waste and make your business more eco-friendly.

Eliminate plastic

Position yourself as a plastic-free venue. Replace plastic straws with environmentally friendly paper ones and avoid giving away plastic cutlery or packaging if you offer takeaway.

Donate leftovers

If you have regular leftovers, consider donating them to a local homeless shelter or charity like OzHarvest who distribute the donated food to those in need.

Track food waste

Consider investing in technology to help track and minimise the amount of food waste your business creates. Many Restaurant POS Systems, for example, let you track and record how much waste your venue creates so you know exactly how much it’s costing. These insights will allow you to cut costs and appeal to sustainably-minded customers in the long run.

Incentivise customers

If you offer takeaway beverages, incentivise your customers to use environmentally-friendly, reusable cups. For example, you could offer a small $0.50 discount on any drink purchased by a customer who uses their own cup.

Paperless Revolution

While food waste is the hospitality industry’s biggest sin, it’s by no means its only one. Paper waste, for example, accounts for 26% of total waste in landfill and is a huge global issue contributing to deforestation, greenhouse gas emission and water pollution. As a result, consumers and businesses alike are increasingly conscious of their paper consumption habits.

How can your business adapt?

While recycling your paper waste is a great first step, with the help of technology, there’s a lot more that hospitality businesses can do to reduce their paper waste.

Digital receipts

90% of paper receipts end up in the bin. Offering a digital alternative is an excellent way for hospitality businesses to reduce the amount of paper they waste and highlight to customers that they care about sustainability.

If you need more convincing, it also saves on the small but regular cost of buying receipt paper. Plus, by sending digital receipts to customers’ email addresses, you can build a customer database for your marketing efforts.

Bump Screens

Bump screens, also known as kitchen display systems, are a great alternative to traditional kitchen printers as they eliminate the need for printer paper. Not only are bump screens environmentally friendly, but they also make it easier for kitchen staff to stay organised, ensuring back of house operations run smoothly.

Printed tickets are often lost or put in the wrong order, whereas bump screens allow kitchen staff to view orders in one place. Orders are sent straight from the point of sale to the bump screen in real-time, meaning faster, more efficient service and no paper waste.

The rise of plant-based diets

Consumers are becoming increasingly conscious of what they eat and where their food comes from, particularly concerning meat production and its impact on the environment. Many consumers now opt for plant-based, vegetarian and flexitarian diets on a regular basis. In fact, Australia was the second-most popular nation in the world for vegans in 2020, behind only the UK.

How can your business adapt?

By excluding plant-based options from your menu, you will miss out on potential sales from customers who otherwise would have come to your venue. Therefore hospitality businesses must adapt their offering to meet this change in demand.

Plant-based menu items

Add a range of vegan and vegetarian-friendly dishes to your menu to broaden your appeal and attract a new pool of customers. If you serve alcohol, consider a more inclusive drinks offering by incorporating vegan-friendly wine and beer into your menu.

Offer substitutes

If your menu can’t accommodate any new plant-based dishes, consider offering substitutes instead. For example, pasta dishes that contain meat or fish can be made vegetarian on request. While this shouldn’t majorly disrupt your existing operations, you’ll open your venue up to a wider range of customers by accommodating their needs.

Reduce your carbon footprint

Despite an initial coronavirus-related drop in carbon emissions in early 2020, carbon dioxide levels have hit an all-time high. Food production and the supply chain of certain food groups, particularly beef, lamb and cheese, hugely contribute to carbon emissions. And while it’s not always possible to cut these items from your menu, there are steps you can take to reduce your venue’s carbon footprint.

Partner with local suppliers

Source sustainable produce from local suppliers to reduce your carbon footprint and appeal to ethically conscious consumers.

Reducing the amount of time your menu ingredients spend on a plane or truck results in fresher produce and fewer carbon emissions. Plus, purchasing local produce helps your local economy to thrive and is also instrumental in fostering long-term connections to support other local businesses while also helping the environment.

Reduce energy waste

It’ll come as no surprise that over half of the electricity used by restaurants comes from cooking and refrigeration. Therefore investing in new energy-efficient equipment is an effective way to reduce your energy waste and lowers your utility bills.

The same goes for lighting. Lighting accounts for 6% of CO2 emissions, and switching to LED lighting can reduce your carbon footprint and electricity costs. Plus, there are often government grants and rebates to help cover the costs.

The future of sustainability in the hospitality industry

Sustainability is now a prevalent global issue, and the hospitality industry needs to adapt to reduce its impact on the environment and appeal to sustainably-minded consumers. With a few simple adjustments, hospitality venues can reduce waste and their carbon footprint to boost the sustainability of their business.