Food loss and waste is food that is not eaten. The causes of food waste or loss are numerous and occur throughout the food system, during production, processing, distribution, retail and food service sales, and consumption. Overall, about one-third of the world's food is thrown away.
Food waste is a massive problem in our society. It’s most apparent across the restaurant industry.
Restaurant food waste is tilted toward larger players. Research shows between 4% - 10% of food purchased by restaurant leaders never gets to customers and instead ends up in landfills, totaling approximately $1,000 of the company’s revenue per 3.3 lb of food waste.
Food costs typically make up the bulk of restaurant expenses — especially these days with supplier prices increasing.
While operators have plenty of methods and procedures to better control food costs, they must implement waste controls to increase restaurant cost controls and maximize profitability. As your food waste decreases, your restaurant’s profitability increases. It’s a win-win.
Read on to explore the common causes of restaurant food waste, how to reduce it, and how to track waste events so you know exactly where money is being lost.
Several different factors contribute to restaurant food waste. The four most common reasons for food waste include:
Food can become unfit for consumption due to improper handling, storage, or packaging. Common examples include improper refrigeration, over-ordering, and poor restaurant inventory management methods.
Incorrect or inconsistent kitchen training can lead to larger portion sizes than planned. As much as it may please customers to have leftovers to bring home, you risk creating more waste—and losing valuable margin on the plates.
Food spillage is quite common in restaurants. It can include anything from a server dropping a tray of food in the dining room during food service to a prep cook accidentally knocking over their cutting board. Those mistakes, no matter how small, can add up to large monetary losses.
Refires occur when a plate of food is sent back to the kitchen and needs to be remade. Maybe a diner received the incorrect order, they failed to mention they’re allergic to something, or the food wasn’t prepared to their liking. Whatever the reason for the refire, it’s costing your kitchen twice as much to make one plate.
Understanding the most common ways that restaurant food waste is generated better prepares you for knowing how to reduce it.
Without conducting a waste audit, there is no way of truly knowing the amount of food waste your restaurant is tossing out as a result of your current operations and what your potential cost savings are to help your bottom line.
This does mean you’re going to have to roll up your sleeves and go through the trash.
Every day for one week, before you prepare your trash for pick up, have a team open the bags and sort out the trash into the following categories:
Paper goods (paper towels, napkins, promos/flyers, etc.)
Takeout products (cups, plates, containers, etc.)
Produce (fruits, veggies)
Meat (this can include poultry and fish, besides red meat)
Plastics
Other (aluminum foil, broken plates, etc.)
A food waste audit is the process of identifying types and quantities of items in the waste stream in order to plan appropriate waste management systems. The audit typically includes an on-site project to collect, measure and record food waste data.
Feel free to fine-tune these categories to fit your restaurant’s menu, offerings, and waste.
Once everything has been sorted, weigh each of the piles on a scale and record their weights in a spreadsheet. Next, multiply each weight by the number of days your restaurant is open a year — this will give you a better idea of your annual waste in each of your waste categories.
Now that you’ve finished getting down and dirty conducting your waste audit, it’s time to analyze the results.
The waste categories with the heaviest weights are the areas that need the most attention. For example, if you find your meat or produce waste is heavy, it could be an indication that your current menu items aren’t as big of a hit as you’d like, or that your prep cooks aren’t being thorough enough in their produce and meat cuts, or that you’re getting poor quality products from your distributors.
The insights you will gain from a waste audit stand to positively influence many aspects of your restaurant's operations by showing you exactly what changes to make.
As you conduct your restaurant’s waste audit, document and track your restaurant’s efforts in a waste journal to reduce food waste going forward.
Have staff record the weight of trash and recyclables as they prepare them for pick up.
Encourage staff to jot down descriptions of any noteworthy items that were disposed of, like broken pint glasses, pallets from deliveries, or rotten produce.
Your restaurant’s waste journal will enable you to track your progress over time and assess whether your efforts have put a dent in reducing waste in your restaurant.
You can reduce the amount of food spoiled in your kitchen with better inventory controls and placing orders based on par levels. Par levels are the minimum amount of inventory needed to maintain demand while including a small margin of error to account for changes in daily demand.
To forecast your par levels, refer back to past sales data. For example, you can estimate holiday sales forecasts by exploring sales over the same period last year. Those projections, along with seasonal recipe modifications, should be used to better anticipate what you’ll actually use.
Software can make par level ordering even easier. Modern inventory management solutions that are integrated with procurement tools can automatically generate order guides based on what’s already in the kitchen and what’s needed to maintain par, so there’s less guesswork in ordering — and less food to be wasted.
Though some restaurants have successfully implemented zero-waste and sustainability policies to reduce waste and food costs, it’s not the industry norm. It’s more realistic to take small steps in every corner of the kitchen to set the expectation that everyone is responsible for reducing excess food.
Food scraps and excess that can’t be repurposed can be considered for composting instead. If you have space, use composted leftover food to create nutrient-rich soil that can support the growth of your own herb and vegetable garden.
Remember, it’s better to reduce food waste upfront than find ways to eliminate it after it’s already been created.
For example, prep cooks should know how to correctly cut, clean, trim, and portion food, and servers should always ask about customer preferences and allergies up front to eliminate refires. Proper team training can go far in reducing food waste at a restaurant.
To reduce the amount of spoilage in your restaurant, use the first-in, first-out method, also known as FIFO.
In a FIFO-compliant kitchen, inventory will be organized and rotated so that the oldest items in your kitchen will be used first, cutting down on food waste as a result of spoiling.
Say you received a shipment of hamburger buns on Monday, and again on Wednesday. According to the FIFO method, the hamburger rolls received on Monday will be used first.
Adhering to the FIFO method may mean shipments take a little longer to unload, but moving the older stock to the front of the shelves and putting the new stock behind it will ensure that you are not wasting good product and throwing out unused food simply because of your order of consumption. However, it’s still important to follow food safety laws and make sure the older food you’re using first is safe for consumption.
Inventory days on hand (DOH) refers to the average number of days you hold inventory before selling it. This calculation can be applied to your restaurant’s inventory on the whole, or to individual inventory items.
For example, if you order 180 lbs of chicken and use 30 lbs of chicken each day, that chicken is ‘on hand’ for six days.
180 lbs of chicken ÷ 30 lbs of chicken a day = 6 days ‘on hand’
Food items that have a higher inventory days on hand ratio are not selling quickly, which could indicate that guests aren’t happy with the item’s corresponding dish on the menu.
Food items that have a lower inventory days on hand ratio are selling quickly; reach out to your distributor or vendor and negotiate a better deal for these items.
By paying attention to how your kitchen uses inventory on a weekly basis, you can optimize your orders with vendors to only include what you’ll use in between deliveries. If you’re receiving a quantity-based discount, talk to your vendor about storing the product in their space and only delivering as needed. This will ensure that you are freeing up your coolers, and the vendor will rotate out the product so that it’s fresh when you receive it.
Be sure to revisit your reports quarterly to make sure that you are staying on top of what’s selling, what’s not, and what costs have increased due to seasonality, market, trends, etc.
Proper recipe management in restaurants will give you the yield, or batch size, that each recipe creates. Knowing what each recipe yields is an important step both in calculating plate costs and maintaining correct and consistent portion sizes.
Manual recipe management is complicated and prone to human error, but recipe management software helps you create, cost, and manage recipe yield with ease. Use it to accurately convert all ingredients in your kitchen to the units of measurement your staff uses to cook, along with correctly calculating proper yields for each dish. Share recipes across locations to ensure each dish is the same size and flavor, no matter where your customer consumes it.
You should also train kitchen staff to make each recipe exactly as it’s written, including its final serving size. Using consistent measurements and portions will help eliminate surplus food.
Make sure that all food items are placed in proper storage areas in appropriate containers and at the optimum temperature.
Label all perishable products with the date they were received, the date they should be considered expired, and the amount of servings within each container. In some kitchens, staff will use a color-coded labeling system to make it easier for BOH staff to know what category of item is in which container.
Finding ways to use a food item in multiple dishes will enable you to save money by buying in bulk; it will also help you reduce that inventory item’s DOH ratio and cut down on food waste as a result of spoilage.
Let’s say you only use broccoli in one salad recipe and often find yourself throwing out a significant amount of the unused vegetable because it’s gone bad. You can either change the recipe to take them out, or find new ways to use them before they go bad, such as a pizza or pasta dish, or create a variety of seasonal offerings that feature broccoli.
You may have an item that traditionally does really well in your restaurant, but at certain times of the year, you notice yourself tossing more than expected. This can be due to the seasonality of produce.
Avocados, for example, have a peak season in the US from May to August. If you’re getting the same number of avocados from the same distributor all year long, there may be some batches that are quicker to go bad, resulting in thrown out product.
Whether you choose to restructure your menu around produce seasonality or simply purchase less produce that’s out of season, you can make sure that you’re always offering the freshest items all year long and won’t be throwing out so much unused food.
Restaurant kitchens during both World Wars operated under the gospel of the clean plate. “Don’t Waste Any Food. Leave a Clean Dinner Plate,” read one 1917 propaganda poster for the Department of Agriculture’s (USDA) anti-waste campaign. We may not need to conserve food in order to send meals to troops overseas, but the message is just as important today — the US throws away more than any other country in the world, with nearly 80 billion pounds of food wasted per year, an estimated 30 to 40 percent of the country’s entire food supply. Seventy five years after the second war, the ideals of the wartime thriftiness are largely forgotten; food waste has skyrocketed in a world where leftovers are too often left behind, food scraps are tossed, and composting isn’t part of the process.
The cost of food waste is inconceivable and irreversible: wasting food wastes money, along with the water and energy it took to produce that food. Agriculture accounts for nine percent of greenhouse gas emissions in the US, and those climate impacting gases are even more senseless when the food is wasted. According to the National Resources Defense Council (NRDC), US food waste is responsible for the equivalent of the emissions of 37 million, or one in seven, cars. At a time when one in four Americans struggle with food insecurity and the impacts of climate change are worsening, this is not food we can afford to waste.