Less Waste, More Speed

Less Waste More Speed: The Cost of Food Waste to US Restaurants 

Customer plate waste and inadequate or outdated kitchen equipment are among the biggest causes of food waste in the U.S. restaurant industry, causing operators to lose almost $21,000 a year in surplus food, according to a new operator survey conducted by Alto-Shaam. 

Managing food waste in America is an ongoing challenge: surplus food is costing the country $408 billion and 40% of all food produced in the United States ends up in landfills, where its decomposition process produces emissions equivalent to 12 million cars.  

Growing awareness of the economic and environmental impacts of food waste has led to a surge in restaurant operators joining the fight against food waste through employee training, inventory management, and food recovery programs. Of those surveyed, 93% of respondents have implemented or are in the process of implementing waste reduction initiatives.  

However, there is little that can be done about surplus food that isn’t fit for donation. Fifty four percent of respondents cited customer plate waste as a primary reason for ongoing food waste in their establishment – more than any other cause.  

This report examines the financial and environmental effects of this challenge, explores the potential solutions for consumers and operators, and measures the potential impact this could have on both costs and emissions.  

Key findings

Cost to operators: What’s eating into profits? 

The U.S. restaurant and foodservice industry has faced an uphill battle in recent years. The COVID-19 pandemic was an unprecedented disruption to operators: between March 2020 and March 2021, 10% of the restaurants were forced to close permanently. 

Following this, restaurateurs have found themselves struggling against rapid inflation in the cost of food, rising rents, and a sharp decrease in both sit-down meals, as customers face a cost-of-living squeeze and in footfall from nearby workplaces as many businesses have switched to remote and hybrid working models.   

But it’s not just the cost of operating that is creating a drain on restaurant profits. It’s that much of their expense ends up going to waste. 

According to a recent survey conducted by Alto-Shaam, 35% of operators estimate that food waste costs them between $201-300 a week, whereas almost a third (29%) estimate that it costs them $300+.  

What’s more, 6% of operators are losing a massive $500 a week to surplus food – that's $26,000 a year. This money could fund: 

Feeling the bite: The environmental cost of food waste 

The cost of food waste goes beyond the financial loss. It also has a serious carbon footprint: It’s estimated that 8-10% of all man-made greenhouse gas (GHG) emissions come from food waste.  

The environmental impact of food waste comes from two main factors:  

A commonly cited statistic is that 1lb of food waste produces 3.8lbs of greenhouse gases (GHG), not including landfill emissions. If the food waste goes to landfill, the decomposition process releases methane, a gas 28 times more potent than CO2. 

It’s estimated that 100lbs of food waste in landfills produces 8.3lbs of methane. 

Wasting no time: Most restaurants already pursuing waste reduction initiatives  

Restaurant operators are acutely aware and proactively working to mitigate the financial and environmental impact caused by ongoing food waste.  

Out of those surveyed, 83% of restaurants had already implemented waste reduction strategies, with a further 10% stating that they are in the process of introducing such initiatives. Similarly, 20% said they don’t feel the US food industry as a whole is doing enough to reduce food waste. 

The most common innovations restaurants are applying to curb surplus food are:  

Among operators that have implemented these methods, 94% have noticed financial benefits.  

Reducing food waste could save restaurants thousands 

Despite these considerable efforts, food waste in the U.S. restaurant industry persists. 

According to restaurant operators, the leading cause of this waste is customers not finishing their meal (54%), followed by: 

A considerable portion of restaurant food waste can therefore be chalked up to two factors: Customer decision-making and restaurant operators not having the right equipment to keep food fresh and ensure a consistent yield and cook quality. 

Should these two factors be entirely or partially resolved, restaurants could make massive financial and environmental savings. 

Fifty seven percent of operators estimate that they throw out 100lbs or more of food waste in a standard week – more than 5,200lbs of food waste a year. Based on this, if customer plate waste dropped by half (27%), restaurants currently losing $400 or more to surplus food could save upwards of $5,928 a year.