ESG Practices in the Fast-Food Quick Service Industry

Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies which are focused on the Fast-food quick service industry have been disclosing ESG data and strategies.

The companies which fall under this segment have both social and environmental impact. As it is a segment involving food, food safety and quality has been the dominant factor in which stakeholders are giving importance. Companies offer various programs and campaigns to showcase their quality and safety throughout their value chain abiding by frameworks and guidelines. Fast food generally isn't considered to be in the category of healthy diet, there are a lot of long term and short-term negative health impacts. Food Waste Management and package waste Management which are going to be landfilled or dumped into water bodies have been a critical agenda for most of the companies. Companies are also shifting to recyclable packaging and have targets to indicate their progress to attain sustainable packaging.

The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

Discover more regarding the practices and strategies being implemented by industry participants in the Fast-food Quick Service Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

This blog explores how the industry key players are embracing sustainability and social responsibility, making positive changes that benefit both the planet and consumers.

1. McDonald's Corporation:

McDonald's, a global fast-food giant, is committed to sustainability across its operations. The company is working towards sourcing sustainable packaging and aims to reduce emissions intensity. McDonald's also focuses on responsible sourcing, waste reduction, and renewable energy.

2. Yum! Brands:

Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, is dedicated to sustainable practices. The company is striving to source ingredients responsibly, reduce greenhouse gas emissions, and promote responsible waste management.

3. Chipotle Mexican Grill:

Chipotle is known for its commitment to sustainable sourcing and ethical practices. The company prioritizes locally sourced, organic, and non-GMO ingredients, implements recycling and composting programs, and emphasizes animal welfare standards.

4. Our Recipe, LLC:

Our Recipe, LLC is the parent company of Popeyes Louisiana Kitchen, known for its Cajun-inspired fast-food offerings. While specific ESG initiatives of Our Recipe, LLC may vary, the company has been focusing on sustainable sourcing practices, responsible packaging, and waste reduction. They have also made commitments to community engagement and employee welfare.

5. Ark Restaurant Corp.:

Ark Restaurant Corp. is a hospitality company that operates a diverse portfolio of restaurants, including quick-service establishments. While information specific to Ark Restaurant Corp.'s ESG initiatives may not be readily available, the company has the opportunity to implement sustainable practices within its quick-service operations, including responsible sourcing, waste management, and community engagement.

6. Restaurant Brands International Inc.:

Restaurant Brands International Inc. (RBI) is the parent company of renowned fast-food chains, including Burger King, Tim Hortons, and Popeyes. RBI has been actively addressing sustainability and social responsibility across its brand portfolio. The company has set goals to source sustainable ingredients, reduce greenhouse gas emissions, conserve water, and improve waste management. RBI also emphasizes responsible sourcing and community engagement.

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ESG Trends

• Fast-food quick service sector is focusing on food quality and safety through various programs and campaigns

• Legal bodies like FDA, FSSAI, and EFSA are framing regulations for better quality and safer food products

• Total Quality program is a part of Hazard Analysis Critical Control Point to prevent food borne illnesses

• Food and package waste management is playing a vital role in reducing environmental impact

• Many companies recycle packages, cooking oil, and have solid waste recycling programs in place to reduce food waste issues.

ESG Challenges

• Fast-food industry faces challenges with waste management of food and packages

• Food waste can lead to crop loss and companies donate excess crops for CSR purposes

• Fast food has negative health impacts, including short and long term issues with nutrition, digestion, immunity, and obesity

Growth of the Fast-food Quick Service Market

To sum up, Fast food has become an unavoidable part of the fast-moving life of people. These industries have become more cautious for sustainability and have been seriously accelerating their pedal to achieve on goals and abide by regulatory frameworks. In fact, the industry has been focusing on innovative procedures and initiatives to minimize food and package waste. The company had a market value at 257.19 billion in 2019 and is expected to have a compound annual growth rate of 5.1% by 2027.

The fast-food quick service industry is increasingly recognizing the importance of sustainability and social responsibility. Leading companies are implementing ESG initiatives, such as responsible sourcing, waste reduction, and renewable energy usage. By embracing these practices, they are not only reducing their environmental impact but also contributing to the well-being of their employees and communities. 

Browse more ESG Thematic Reports from the Consumer Products Sector, published by Astra - ESG Solutions

About Astra – ESG Solutions by Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

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