Sustainability and Waste Reduction in the Hospitality Industry: How the Right Policies can Increase Profitability

The North American hospitality industry has witnessed a significant shift in consumer behaviour and values as millennials have come of age. Authenticity, transparency, and optics now play a critical role in developing an on-going relationship with guests; whether that’s in a restaurant’s brick and mortar space, on their digital and social media platforms, through their print menus, or even during guest interactions.

According to, ‘Foodservice Facts 2019‘ millennials are Canada’s biggest spenders in the restaurant demographic. For example, consumers under 30 years old spend 44% of their food dollar on food and alcohol from restaurants compared to 27% for those 65 and older. Winning with this persuasive segment is something that every hospitality-based business needs to consider to maximize volume and profit, and ultimately thrive in this highly competitive industry.

When deciding where to dine, the majority of millennial consumers value spending with companies that have clearly-defined policies in place, dedicated to lowering their environmental impact, and that are socially responsible.

As we move through 2019, more environmentally-focused legislation is expected to be actualized, and there are serious financial benefits to hospitality-based businesses who take the lead. If executed properly, it can be a win-win for your brand and the planet. Providing restaurateurs with guidance on the strategic development and implementation of policies devoted to improving sustainability, attracting more guests, and ultimately increasing profits is critical to success in 2020.

When formulating a program, restaurants need to focus the majority of their efforts on resource reduction concerning water, waste, and energy, which ultimately translates to lowered operational costs and increased profit. A solid sustainability and waste reduction policy can also impact how employees perceive a hospitality business, ultimately aligning with the majority of millennial ethos, helping to reduce turnover and increase employee engagement.

In a survey of Restaurant Canada’s members, ‘Foodservice Facts 2019’ reported that eight out of 10 restaurant operators mention that increasing environmentally sustainable operations are essential to the success of their business. According to VCM International’s research, a one percent reduction in food waste can lead to the equivalent of a 4 per cent increase in profits. (Source, NOW Toronto).

Restaurant Canada members reported: 98 percent of foodservice operators mentioned that they recycle, 77 per cent track, compost, or donate leftover food, 93 per cent use energy or water-saving equipment, and 92 per cent plan to continue to improve their current level of environmentally sustainable operations over the next three years.