How to Reduce Food Waste in Restaurants

Half-finished plates of food, vegetables that spoiled in the walk-in, and a few stale pieces of toast from the breakfast buffet don’t sound all that shocking. After each service, restaurant and hotel food waste isn’t very dramatic, but over time all the wasted food really adds up.

Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to economic losses and environmental harm. At the same time, the demand for food grows and 1 in 11 people on Earth are going hungry.

Restaurant owners and managers must step up to the challenge of reducing waste, and luckily there are many innovative solutions. By implementing smart strategies, restaurants can reduce waste, lower costs, and meet the increasing demand for sustainable dining.

In this article, we define the problem of food waste before discussing how food and beverage businesses can reduce waste and enhance value by transitioning to the circular economy.

Defining the Problem of Food Waste in the F&B Industry

On a global scale, the United Nations Environment Programme (UNEP) estimates that 1 billion tons of food are wasted annually (UNEP). In the U.S., around 40% of all food is lost between the farm and the fork, with 66 billion pounds stemming from commercial food services (NRDC).

Similarly, the UK generates approximately 10.7 million tons of food waste annually, with the hospitality and food service sector contributing around 1 million tons. Meanwhile, in Australia, 7.6 million tons of food are wasted, costing the economy $36.6 billion annually (Fight Food Waste CRC).

These alarming statistics underscore the urgent need for restaurants to implement food recovery strategies such as recycling, food donation, and sustainable waste management.

Food Waste in the F&B Service Sector

The food and beverage (F&B) service sector, encompassing restaurants, hotels, and catering services, significantly contributes to food waste.

• In the United Kingdom, the hospitality industry generates over one million tons of food waste annually.
• Globally, a 2024 report found that 4%–10% of food restaurants purchase never even reaches a customer and 31%–40% of food served to customers isn’t consumed.

This waste often results from factors such as overproduction, large portion sizes, and inefficient inventory management. Adopting a circular economy approach—designing systems to keep resources in use for as long as possible—can address these inefficiencies.

Economic and Environmental Impact

Figures shared by WasteMission.com show the economic implications of food waste are substantial. In the UK, edible food waste per year is valued at approximately £17 billion, equating to £250 per person. Environmentally, food waste contributes to 8–10% of global greenhouse gas emissions, exacerbating climate change.

By embracing circular economy principles, the F&B sector can reduce these emissions and promote environmental sustainability.

Recent Initiatives and Innovations

To combat food waste, various initiatives have been implemented, and they are showing excellent results when the principles of a circular economy are applied to all steps in the value chain.

• California became the first U.S. state to ban “sell-by” dates, a move expected to save more than 70,000 tons of food waste each year. (realsimple.com)
• Melbourne-based Fresho are leveraging artificial intelligence to streamline ordering processes, aiming to reduce the estimated 30–40% wastage in the fresh food industry. (theaustralian.com.au)
• End Food Waste Australia (EFWA) initiative had impressive progress in 2024 the fight against food waste, with participants reducing their overall food waste by 13% since 2022, leading to 505,000 tons of CO2 equivalent emissions avoided (the same as taking 210,000 cars off the road for a year).
• Since 2005, South Korea has banned organic waste from landfills. Through public awareness campaigns, education programs, and a pay-as-you-throw system, the country has achieved an almost 100% food waste recycling rate. (World Economic Forum)
• Less than 1% of Denmark’s food waste ends up in landfills, according to the European Environment Agency. The government promotes prevention, redistribution, and recycling, alongside public campaigns and regulations, to minimize food waste.

Addressing food waste in both production, distribution and service sectors is crucial for enhancing food security, reducing environmental impact, and improving economic efficiency within the F&B industry.

Understanding Food Loss vs. Food Waste

Before tackling solutions, it’s essential to differentiate between food loss and food waste within the circular economy framework.

• Food loss occurs during production, storage, and transportation due to inefficiencies in the supply chain.
• Food waste happens at the restaurant level, including unused ingredients, spoiled food, and plate waste from customers.

In a circular economy, food loss can be minimized through better supply chain management, while food waste can be reduced by implementing sustainable business models that reuse, repurpose, and redistribute food wherever possible.

Why Food Waste Happens in Restaurants

Several factors lead to food waste in restaurants, including:

• Overproduction: Preparing too much food to meet unpredictable demand.
• Portion Sizes: Oversized servings leading to uneaten leftovers.
• Inventory Mismanagement: Ingredients expiring before use due to poor tracking.
• Menu Complexity: Large or complicated menus increasing the risk of unused ingredients.
• Lack of Staff Awareness: Employees discarding food that could be repurposed.

By shifting to a circular economy approach, restaurants can address these inefficiencies through smarter procurement, waste monitoring, and food repurposing initiatives.

Strategies to Reduce Food Waste in Restaurants Using the Circular Economy

The circular economy is an economic system that focuses on reducing waste and making the most of available resources by promoting practices such as reusing, recycling, and repurposing materials. Unlike the traditional linear economy, which follows a “take-make-dispose” model, the circular economy seeks to close the loop by keeping resources in use for as long as possible.

In the restaurant industry, this means minimizing food waste, optimizing supply chains, and repurposing surplus food into new products.

1. Optimize Inventory Management Through Circular Practices

Using digital inventory tracking systems can help restaurants monitor stock levels, track expiration dates, and reduce unnecessary purchases. Tools like AI-driven forecasting can predict demand and minimize surplus ordering.

According to Prof. Carlos Martin-Rios, “Technology is revolutionizing waste management in hospitality, helping businesses make data-driven decisions that improve sustainability.”

2. Adjust Portion Sizes and Menu Design to Align with the Circular Economy

Offering flexible portion sizes allows customers to choose a meal that suits their appetite, reducing plate waste. Restaurants can also analyze sales data to refine menus, eliminating items that generate excessive waste. Additionally, ingredients can be repurposed into new dishes, ensuring maximum utilization.

3. Train Staff on Circular Economy Waste Reduction

Employees play a crucial role in minimizing food waste. Training kitchen staff to use all edible parts of ingredients (e.g., vegetable stems in stocks, citrus peels for flavoring) can significantly cut waste. Educating servers on portion suggestions and food storage best practices is equally important.

4. Implement Food Donation Programs to Close the Loop

Instead of discarding surplus food, restaurants can partner with local food banks and charities. Many organizations facilitate food redistribution, ensuring edible food reaches those in need rather than ending up in landfills. In a circular economy, food donation is a key strategy for minimizing waste while addressing food insecurity.

5. Compost and Repurpose Waste to Maintain Circularity

Food scraps and unavoidable waste can be composted or converted into animal feed, reducing landfill contributions. Some restaurants also collaborate with farms to return organic waste to the soil, closing the sustainability loop and promoting regenerative agriculture.

6. Partner with Sustainable Suppliers to Support Circularity

Working with vendors who use sustainable packaging and responsible sourcing practices helps minimize waste before ingredients even reach the kitchen. Establishing local supply chains can reduce spoilage due to long transportation times and supports the circular economy by keeping resources within localized systems.

The Role of Luxury Restaurants in Leading the Circular Economy Movement

Luxury dining establishments have the opportunity to set industry standards for sustainability. High-end restaurants can implement circular economy principles by using premium but sustainable ingredients, reducing packaging waste, and innovating with zero-waste dining concepts.

For instance, some luxury restaurants repurpose kitchen scraps into gourmet dishes or collaborate with sustainability-focused brands to enhance their eco-conscious reputation.

As Prof. Carlos Martin-Rios notes, “The luxury sector is uniquely positioned to influence industry-wide change by demonstrating that sustainability and high-quality dining can go hand in hand.”

By embedding circular economy principles into their business models, luxury restaurants can enhance their brand image, attract eco-conscious consumers, and pave the way for a more sustainable hospitality industry. So, with all those benefits in view, what’s stopping restaurants from reducing food waste?

Challenges Undermining Food Waste Management Initiatives

While the concepts discussed in this article can help restaurant owners and managers to become more aware of the factors that contribute to food waste, implementing new practices and shifting mindsets at an operational and leadership level may be challenging. Prof. Carlos Martin-Rios concluded, in his writings about food waste management innovations, that any attempt at implementation must necessarily address the following challenges:

• Lack of Customization: Foodservice establishments struggle to identify which innovative practices best suit their specific needs for food waste reduction, reuse, or recycling.
• Limited Awareness: Many foodservice managers lack knowledge about the opportunities, challenges, costs, and benefits of food waste innovations.
• Social and Professional Barriers: Traditional waste management programs often overlook the social and professional skills required for effective food waste management, creating resistance to change.
• Low Interest in Systematic Innovation: Waste management innovations are not widely seen as a strategic, systematic process, limiting their adoption.
• Cost-Driven Decision Making: Foodservice providers prioritize cost-saving measures over sustainability efforts, often ignoring waste management innovations unless they offer clear financial benefits.
• Knowledge and Training Gaps: Industry professionals typically rely on existing waste disposal methods rather than implementing structured waste reduction strategies. There is a strong need for training and government-led goal-setting.
• Operational Challenges: Daily concerns related to sorting, storage, and disposal make it difficult for food businesses to focus on innovation beyond the recycling options provided by local councils.
• Limited Industry Leadership: The foodservice sector is not actively leading waste management innovation. While awareness is increasing, few businesses are adopting zero-waste practices or creatively repurposing food scraps.

Conclusion

Reducing food waste in restaurants is not just about sustainability—it’s also a key pillar of the circular economy. By optimizing inventory, training staff, redesigning menus, and embracing technology, restaurants can transition to a more sustainable, circular business model.

Unfortunately, many challenges hinder the adoption and deployment of sustainable methods in the food and beverage industry. Margins are tight and issues such as perishable products and global supply chains add complexity. Yet, as consumer expectations shift toward sustainable dining, restaurants that proactively address food waste within a circular economy framework will be well-positioned for long-term success.

The time to act is now—embracing circular economy principles is no longer optional but essential for the future of the food and beverage industry.

Contact Veronika on LinkedIn.

This article originally appeared on EHL Insights.