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Reducing Waste, Saving Money: Ways to Manage Food Waste in Australian Hospitality

Published on April 18, 2023 • Last Updated on April 18, 2023

Did you know that the Australian food service industry produces over 250,000 tonnes of food waste annually, generating around 400,000 tonnes of greenhouse gases? [1]
Food waste is an economic, environmental, and socio-ethical problem that costs $20 billion in Australia every year. Annually, only 10% of the 5 million tonnes of food that gets sent to landfill in Australia actually gets composted. [2]
Unsurprisingly, all eyes have been cast onto the hospitality industry in the fight against food waste, as globally it leads the way as a major food waste generator.[3]
April 26th, Stop Food Waste Day is the largest single day of action in the fight against food waste. Stop Food Waste Australia, hopes to inspire and encourage hospitality businesses to adopt a sustainable approach to deal with their largest commodity – food.
Unfortunately, in the hospitality industry, food waste occurs in all sectors, from out-of-date milk to failed meal preparations, to uneaten plates and leftovers. As a hospitality business, it is your responsibility to proactively incorporate sustainable methods of reducing food waste. These practices will not only impact the industry as a whole but help you save costs and improve your bottom line. On average, cafes and restaurants throw out 120g of every plate served [4], which is basically money scrapped into the bin. Food wastage costs the Australian hospitality industry around $2.84 billion in lost profits.[5]
“The most common things left on plates are those considered to be sides – chips, salads, garnish – people tend to not consider garnish to be a food at all!” says sustainability expert Dianne McGrath from RMIT University who conducted a study titled ‘Watch My Waste’ where Australian foodservice businesses self-audited their food waste.
Not only does food waste directly eat into profit margins, but it also has dire consequences for the environment. Oz Harvest states that throwing away one burger wastes the same amount of water as a 90-minute shower. [6]
A survey conducted by Love Food Hate Waste found that out of the restaurant food waste, 65% was lost during preparation, 30% was left on the plate by the customers and 5% was food spoilage.[7]
The average hospitality venue spends 25-40% of its monthly revenue on food inventory [8], which means a lot of money is being tossed in the bin. Before any other cost-cutting options, hospitality businesses should reconsider the amount of stock and inventory that gets wasted without any second thoughts.
Therefore, businesses must make food sustainability and waste reduction a priority.
Stop Food Waste Day is the perfect encouragement to start making changes.
These are some practices that hospitality businesses can adopt to reduce their food wastage and create a plan for a more sustainable future for the industry:


1. Keep your Quality!


As Hospitality owners, we all know that quality is of utmost importance. Reducing waste and maintaining quality can go hand in hand. With cautious planning for menu items, chefs can take full advantage of in-season produce. Menus can be planned to use ingredients to their full potential across many dishes and utilise daily specials to reduce the percentage of food spoilage. More sustainable ideas and creative culinary flair can ensure that more of the food item being used to reduce unnecessary waste and cut down the cost of inventory. Stop Food Waste Day features many innovative recipes to inspire even the most seasoned chef.
Purchase just enough and go local.
Keeping on top of stock control and calculating food quantities, can reduce the issue of over-ordering. Studies have shown that training in food waste management can help your staff make sufficient purchases and save additional costs!
Reduce the possibility of food spoilage, by ordering fresh produce in smaller quantities – this is always an option worth discussing with suppliers as you can both contribute to reducing food waste. Seek out local food suppliers to limit the milage of food travel and further contribute to greenhouse gas reduction.


2. Plating and Portions


Did you know that most people don’t eat garnishes? All that parsley that ends up in the bin, could easily be replaced with carrot leaves or other food scraps destined to be wasted. Many Australian consumers are taking a conscious stance on food wastage when dining out.
Let the customers be in control and reduce food waste with the YourOrder self-ordering app, where customers can easily view and order different menu options. Offer options with portion sizes and sides, so that they can have their say in what they will actually eat.
The customer has the right to take home their leftovers, and offer environmentally friendly takeaway containers so they can ensure that not only do they not waste their leftovers, but they also get the best value for money off their plate.


3. Donate it!


Despite all your efforts, there may still be some food that ends up in the bin. Partnering with a food donation charity can help you contribute towards feeding the community while reducing any food waste. Food rescue organisations such as Oz Harvest, FareShare, Second Bite and Food Bank will collect and redistribute quality surplus food.


4. A partner in food waste reduction


Bepoz’s systems can help hospitality businesses take control of their food waste without increased stress or financial pressure. Easily manage stock & inventory levels and set up automatic purchase orders based on your requirements. Take the guesswork out of planning events and parties, using sales forecasts and recommendations based on sales trends and historical data, from your Bepoz Back Office.
With a comprehensive inventory management module, you can save time and money, and do your part in this fight for food waste reduction.

Being a contributor to food waste, it is the responsibility of every hospitality business to be proactive in reducing the amount of waste produced at their venue. Along with substantial cost savings and minimised wasted food inventory, these practices will ensure a promising future for the industry.
We owe it to our customers, staff, and the planet, to look at the bigger picture and leave a remarkable legacy for the hospitality industry.

References:

  1. Meunier, Z. September 3, 2026. “How much food do you waste?” Sydney Morning Herald. Good Food. https://www.smh.com.au/goodfood/tips-and-advice/how-much-food-do-you-waste-20160909-grd5gk.html
  2. “Managing food waste in the hospitality industry” October 30, 2018. INAC Hospitality. https://ineedachef.com.au/managing-food-waste-hospitality-industry/
  3. Guenn Tayao, I. “Waste management in the hospitality industry” Waster. https://waster.com.au/waste-management-hospitality-industry/
  4. McGrath, D. 2021. “Watch my waste: how self-auditing affected Australian foodservice food waste”. RMIT University. https://researchrepository.rmit.edu.au/esploro/outputs/doctoral/Watch-my-waste-how-self-auditing-affected-Australian-foodservice-food-waste/9921998124901341“How to scale down food waste financial costs in restaurant and supply chain” December 8, 2021. ChefCart. https://www.chefcart.com.au/post/how-to-scale-down-food-waste-financial-costs-in-restaurant-and-supply-chain
  5. “Icon Water and OzHarvest toast a new partnership on world food day” October 19, 2018. OzHarvest. https://www.ozharvest.org/news/icon-water-and-ozharvest-toast-a-new-partnership-on-world-food-day/
  6. “Food waste in the café and restaurant sector in New Zealand” 2018. WasteMINZ. https://lovefoodhatewaste.co.nz/wp-content/uploads/2022/05/New-Zealand-cafe-and-resturant-food-waste-WasteMINZ-2018.pdf
  7. Cvetkovic, A. May 31, 2019. “Hospitality business cost breakdown: beyond the basics”. Typsy. https://blog.typsy.com/hospitality-business-costs-breakdown-beyond-the-basics

Aanchal Midha

Marketing Specialist


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