Food waste has become a pressing global issue, with the hospitality industry playing a major role. Restaurants, cafés, and hotels generate substantial amounts of organic waste daily, often due to overproduction, improper portioning, and discarded surplus food. According to the Food and Agriculture Organization (FAO), around 1.3 billion tons of food is wasted globally each year, accounting for nearly one-third of all food produced for human consumption. In urban areas, where restaurants are concentrated, this problem becomes even more severe. The food waste generated by restaurants not only drains valuable resources but also contributes to greenhouse gas emissions and environmental degradation. To address this, the circular economy in restaurants offers a promising solution. Unlike the traditional “take, make, waste” model, the circular economy focuses on keeping materials in circulation for as long as possible, significantly reducing waste. In this context, circular logistics becomes crucial, enabling the recovery, reuse, and redistribution of food and food byproducts. By implementing circular economy principles, restaurants can reduce food waste, lower operational costs, improve efficiency, and enhance their sustainability practices.
The Scale of Food Waste in Restaurants
Food Waste in the Hospitality Industry
Restaurants worldwide generate millions of tons of food waste every year. WRAP (Waste and Resources Action Programme) reported that UK hospitality businesses throw away 920,000 tons of food annually, with 75% of this being avoidable. In the United States, restaurants contribute around 22 to 33 billion pounds of food waste annually. This waste stems from overstocking, improper storage, spoilage, and uneaten meals left by customers.
Portion control is one of the main drivers of waste. Restaurants often serve larger portions than necessary, leading to leftover food that goes straight into the trash. Poor menu planning and inventory management also result in over-purchasing, causing ingredients to spoil before they’re used. Additionally, unpredictable customer demand makes it challenging to avoid wasting ingredients that aren’t ordered frequently.
Many food safety regulations mandate that prepared but unsold food must be discarded. Buffets and events frequently result in surplus food, as restaurants tend to prepare far more than necessary to ensure availability. Additionally, the industry’s reliance on cosmetic standards for fruits and vegetables causes otherwise edible food to be discarded simply because it doesn’t meet presentation expectations.
Environmental Impact Food Waste of Restaurants
Food waste in restaurants creates significant environmental harm. Wasting food means wasting the water, energy, and land used in its production. The FAO estimates that food waste contributes to 8-10% of global greenhouse gas emissions. As food decomposes in landfills, it releases methane, a greenhouse gas that is much more potent than carbon dioxide.
Agriculture is a resource-intensive industry, and wasting food exacerbates water scarcity issues. The FAO reports that the water used to produce wasted food could fill 300 million Olympic-sized swimming pools each year. Furthermore, the land used to grow food that ultimately gets wasted is the size of China, according to the World Resources Institute.
Circular Economy Logistics: A Framework for Reducing Food Waste of Restaurants
Defining Circular Logistics
Circular logistics manages the flow of materials in a circular economy. It focuses on reuse, recycling, and redistribution rather than disposal. In food waste management, circular logistics prevents food from becoming waste and ensures any inevitable waste is repurposed in an environmentally friendly manner.
For restaurants, circular logistics involves several strategies:
- Optimizing inventory management to reduce overstocking.
- Implementing portion control to minimize uneaten food.
- Redistributing surplus food to those in need.
- Using food waste for composting or energy production.
- Collaborating with local farms to create closed-loop supply chains.
Adopting these practices enables restaurants to reduce waste, lower costs, and operate sustainably.
Optimizing Inventory Management and Menu Planning
Restaurants can reduce food waste significantly by improving inventory management and menu planning. Over-ordering due to inaccurate predictions of demand often leads to spoilage. By using data analytics and forecasting techniques, restaurants can better estimate what they need to order, minimizing surplus.
Many establishments now use inventory management software that tracks ingredient usage and expiration dates. This helps kitchen staff prioritize using ingredients that are close to expiring. Additionally, adopting just-in-time ordering—where restaurants order smaller quantities more frequently—can further reduce waste by avoiding overstocking.
Menu planning also plays a vital role. Restaurants that prioritize seasonal, locally sourced ingredients avoid the long supply chains that often lead to spoilage during transit. Designing menus that incorporate nose-to-tail or root-to-stem cooking techniques also helps minimize waste. For instance, vegetable scraps can be repurposed into stocks or sauces, while less commonly used cuts of meat can feature in braised dishes.
Offering flexible portion sizes gives customers more control, reducing uneaten food. Some restaurants now offer smaller portions or customizable plates, letting customers order based on their hunger. This reduces waste and enhances the dining experience by personalizing portion sizes.
Redistributing Surplus Food
Preventing food waste is the first step, but redistributing surplus food ensures leftover food doesn’t go to waste. Many restaurants produce surplus food that remains safe to eat. Instead of discarding it, they can donate it to charities, shelters, or food banks.
Several apps and organizations have made redistribution more accessible. Too Good To Go allows restaurants to sell unsold food to customers at a discount, reducing waste and providing affordable meals. Similarly, Food Rescue US connects restaurants with food pantries and shelters for efficient surplus donations.
Many restaurants also partner with local food banks to donate excess food after large events or catering gigs. Feeding America, one of the largest hunger-relief organizations in the U.S., collaborates with restaurants and food service providers to redistribute surplus food to people in need.
Internal Redistribution and Repurposing
Restaurants can also redistribute food within their own supply chain. Surplus ingredients can be repurposed into new dishes or distributed among staff. Some restaurants even donate food scraps to local farms for animal feed, contributing to the circular economy.
Composting and Energy Recovery
Even with optimized logistics and redistribution, some waste is inevitable. Composting and energy recovery allow restaurants to minimize the environmental impact of the food they cannot save. Composting recycles organic waste into nutrient-rich soil that can be used in agriculture, closing the loop on food waste.
Many cities now have commercial composting programs for businesses. For example, San Francisco’s Zero Waste Program mandates composting food scraps, helping divert over 80% of the city’s waste from landfills. New York City’s Organics Collection Program provides a similar service, allowing businesses to separate food waste for composting.
Some restaurants take composting further with on-site composting systems. These systems allow restaurants to compost food waste on their premises, reducing the need for waste transportation. For example, Nolla, a zero-waste restaurant in Helsinki, composts on-site, using the compost for growing herbs and vegetables in its kitchen.
Anaerobic digestion offers another solution for food waste. This process breaks down organic waste into biogas, which can be used to generate electricity. Waste-to-energy plants convert food waste into renewable energy, providing a sustainable alternative to landfills. Denmark’s Biogas Network uses food waste from restaurants, supermarkets, and households to power homes and businesses.
Closed-Loop Supply Chains: Partnering with Farms and Suppliers
Restaurants can further reduce waste by partnering with local farms to create closed-loop supply chains. In these systems, organic waste from restaurants returns to farms for use as compost or animal feed. Farms then supply the restaurant with fresh produce, completing the loop.
Closed-loop supply chains also support sustainable farming practices such as regenerative agriculture, which promotes biodiversity and helps sequester carbon in the soil. For restaurants, these partnerships reduce the environmental impact of food transportation and provide a responsible outlet for organic waste.
In New York, Blue Hill at Stone Barns exemplifies this model. The farm-to-table restaurant sources its ingredients locally, while composting food waste to fertilize the fields that grow its produce. Similarly, London’s Roganic partners with local farms to return food scraps for composting.
Economic and Environmental Benefits of Circular Logistics
Reducing Costs Through Waste Minimization
Circular logistics not only benefits the environment but also reduces costs. By preventing food waste, restaurants save on ingredient purchases. Additionally, waste reduction strategies such as better portion control and inventory optimization improve overall operational efficiency.
Apps like Too Good To Go generate extra revenue by selling surplus food at a discount. Composting and waste-to-energy programs also cut down on waste disposal costs. Many cities charge businesses based on the volume of waste they produce, so reducing food waste lowers these fees.
Enhancing Sustainability and Brand Image
Restaurants that embrace circular logistics boost their sustainability credentials, appealing to eco-conscious consumers. According to an IBM report, 77% of consumers say sustainability influences their food choices, and 70% are willing to pay a premium for eco-friendly products.
Marketing circular practices can differentiate restaurants from competitors, attracting customers who prioritize sustainability. Many restaurants now highlight their waste reduction initiatives in marketing campaigns, improving brand loyalty and positioning themselves as leaders in environmental responsibility.
Overcoming Challenges to Implementing Circular Logistics
Initial Investments and Complexity
Despite the benefits, implementing circular logistics can present challenges. The upfront costs of purchasing inventory management software, composting systems, or energy recovery equipment can be high, especially for smaller restaurants. Additionally, training staff to handle new systems and practices requires time and effort.
However, cities that introduce mandatory composting or recycling may impose fines on businesses that do not comply, making the cost of not implementing circular practices higher in the long run.
Regulatory and Food Safety Concerns
Strict food safety regulations sometimes discourage food redistribution or reuse. Although food may still be safe to eat, certain laws require businesses to dispose of it if it’s been prepared but not served. Clarifying regulations and creating food safety protocols for redistribution could help reduce waste without compromising safety.
In many regions, Good Samaritan laws protect businesses from liability when donating surplus food, as long as it’s donated in good faith. Educating restaurant owners about these protections can encourage more participation in food redistribution programs.
Conclusion: Economy on the Path Forward for Circular Logistics in Restaurants
Circular logistics offers restaurants a sustainable and economically beneficial way to tackle food waste. By optimizing inventory, improving portion control, redistributing surplus food, and engaging in composting or energy recovery, restaurants can reduce waste and contribute to a more sustainable food system. Implementing circular logistics not only helps restaurants save money but also enhances their reputation in a market where consumers increasingly value sustainability.
The future of circular logistics in the hospitality industry is promising, with technological advancements, regulatory support, and growing consumer demand for sustainability driving its adoption. Through collaboration with local suppliers, governments, and environmental organizations, restaurants can lead the way in reducing food waste, creating a more circular and resilient food economy.
