Let’s face it — food waste is one of those pressing global issues we’re all aware of but often overlook. However, it’s high time businesses address this problem head-on. Food waste is not just an environmental blunder, but a financial drain. The good news? Reducing food waste isn’t just a win for the planet, it’s a win for your business. By implementing innovative food waste solutions, Australian businesses can simultaneously protect the environment, improve profitability, and enhance brand reputation. Let’s explore how!
The Impact of Food Waste on the Environment
Global Food Waste Statistics
Globally, approximately one fifth of all food produced for human consumption is wasted — that’s around US$1trillion straight down the garbage chute each year. To make matters worse, 60% of this food waste occurs where you’d least expect it: in the home.
Environmental Cost of Food Waste in Australia
In Australia, food waste is a major concern. Australians discard approximately 7.6 million tonnes of food every year. In Australia, households are the biggest culprits when it comes to food waste, responsible for about 30% of the total. That’s around 2.5 million tonnes of food tossed out every year, and it’s not just bad for the environment — it’s also costing Aussie families up to $2500 annually. Yikes, $2500 in this economy. No thank you!
Food waste isn’t just a financial burden — it also has significant environmental consequences. When food waste ends up in landfills, it generates 3% of the harmful methane gas in our atmosphere and depletes valuable natural resources. In fact, Australia uses the equivalent of five Sydney Harbours’ worth of water each year to farm food that ultimately goes to waste. The environmental impact is extensive, and addressing this issue requires a coordinated effort from businesses across the country.
TL;DR: Globally, one-fifth of food produced is wasted, costing US$1 trillion yearly. In Australia, households waste 2.5 million tonnes of food annually, costing families up to $2,500. This contributes to methane emissions and wastes valuable resources like water.
Why Food Waste is a Business Problem
Financial Implications for Businesses
Food waste isn’t just an environmental headache — it also has serious financial implications for businesses in Australia. In fact, food waste is costing Australia’s economy over $30 BILLION each year. That’s a huge amount of money going straight to landfill, literally and figuratively.
To put this into perspective, if you run a café or restaurant, food costs are often one of your biggest expenses, typically accounting for around 30% of your total expenses. So, if your business spends $10,000 a month on ingredients and 10% of that goes to waste, you’re throwing away $1,000 each month — that’s $12,000 a year down the drain (pun intended). Not only are you losing money, but you’re also spending more on waste disposal, which could be better spent elsewhere.
But it’s not just hospitality. Retailers and supermarkets are in the same boat. In fact, supermarkets in Australia are foregoing millions of dollars in revenue due to food waste. And let’s not forget the hidden costs — things like wasted staff time, lost opportunities to sell, and the potential brand damage from poor sustainability practices.
So, reducing food waste is not only a smart way to save money but also a great way to enhance your brand image, especially with millennials and Gen Z increasingly demanding sustainability from businesses. It’s a win-win.
Food Waste in the Hospitality Industry
The hospitality sector is a major contributor to food waste, with cafes and restaurants often discarding perfectly edible food due to issues like over-ordering, spoilage, and portion sizes. Many restaurants serve oversized portions, which can leave customers (ME) unable to finish their meals, leading to waste.
During my time working at a pub in inner-city Brisbane, we frequently threw away large amounts of uneaten food simply because the portions were too big — seriously, who needs a parmi the size of their head? It was a constant reminder that small missteps, like misjudging portion sizes, can lead to significant waste and financial losses.
Could adjusting portion sizes or refining ordering processes be a simple strategy for cutting down food waste and saving money? Are we overlooking simple solutions that could improve both our bottom line and the environment?
In the Real World: The Australian Food Pact
The Australian Food Pact is a nationwide effort to slash food waste by 50% by 2030. Big players like ALDI, Mars Australia, and McCain are on board, tackling waste across the supply chain. And it’s working — signatories have already cut 16,000 tonnes of food waste, saving $57 million, and preventing the CO₂ equivalent of 200,000 cars from hitting the road. This shows that fighting food waste isn’t just good for the planet — it’s good for business too
TL;DR: Food waste costs Australia over $30 billion a year. In sectors like hospitality and retail, businesses can lose thousands annually from wasted food, excess disposal costs, and missed sales. For example, a café wasting 10% of its $10,000 ingredient spend loses $12,000 yearly. The Australian Food Pact is tackling this, with companies like ALDI and Mars Australia cutting 16,000 tonnes of waste and saving $57 million. Reducing food waste is both a smart financial move and a sustainability win.
Benefits of Reducing Food Waste for Businesses
Saving Money
Wasting food isn’t just bad for the planet — it’s also burning a hole in your wallet. Businesses in Australia are spending millions on waste disposal, and food waste is a huge part of the problem. The National Waste Report 2022 shows that the cost of waste management in Australia runs into the billions, and a lot of that waste could’ve been avoided.
But here’s the good news: cutting down on waste means cutting down on costs. Streamlining your waste disposal process can save you serious money. Small changes like better inventory management, reducing over-ordering, or even composting can make a big difference. Not only does this stop you from throwing money away (literally), but it also helps cut down on food spoilage and frees up cash you can reinvest in your business.
Investing in smarter waste reduction isn’t just about saving money — it’s about doing your part for the environment too. The less waste you generate, the less you’ll have to spend on disposal. It’s a win-win for both your bottom line and the planet!
Better reputation
Today’s customers care more than ever about sustainability. By making eco-friendly choices, your business can boost its reputation, attract environmentally conscious customers, and stand out in a crowded market. It’s a smart move that shows you care about the planet — and your bottom line!
Meet customer sustainability expectations
Young consumers, especially millennials and Gen Z, want businesses that align with their values and prioritise sustainability. By adopting eco-friendly practices like reducing food waste, you can meet these expectations and set your business apart in a competitive market.
TL;DR: Reducing food waste saves businesses money, improves efficiency, and enhances brand reputation. By cutting waste through better inventory management and eco-friendly practices, businesses can attract environmentally conscious customers, boost loyalty, and reinvest savings.
Food Waste Solutions for Australian Businesses
APPS
Waste Less uses AI and image recognition to help you identify what waste you can refuse, reuse, and recycle, aiming to reduce landfill and improve recycling quality to support a circular economy. Simply snap a photo of your waste, and it will tell you if it’s recyclable and the best way to recycle it. They are also developing software to help you contribute to building a stronger circular economy in your community and beyond.
Too Good to Go is an app that’s all about saving food and saving money. It connects you with local businesses — like cafés, restaurants, and supermarkets — to grab their unsold food at a discounted price before it gets tossed. Not only does it help reduce food waste, but it also gives you the chance to score a great deal while doing something good for the planet. It’s an easy way to be part of the solution and enjoy a meal at the same time! When we went to the Nordics, we LIVED for this app -> $5 bakery goodie bags? YES PLEASE
Partnerships with Local Charities and Food Banks
Another impactful solution is partnering with local charities and food banks to redistribute surplus food. Organisations like OzHarvest and Foodbank offer businesses a simple way to reduce waste while supporting those in need. Instead of throwing perfectly edible food in the bin, businesses can ensure it reaches the people who need it most.
Local Recycling Programs and Composting Services
Australia has a number of recycling and composting programs that businesses can tap into to manage their food waste responsibly. Programs like the compost hubs throughout Melbourne allow businesses to compost organic waste, turning food scraps into valuable resources for agriculture and landscaping. By engaging in local recycling programs, businesses can help reduce the burden on landfills and promote circular economy practices. Jump online to your local council website and see what they have to offer.
TL;DR: Businesses can tackle food waste with smart solutions like Wasteless, and/or Too Good to Go; and partnerships with charities like OzHarvest and Foodbank to donate surplus food. Local composting and recycling programs also offer sustainable ways to manage food waste—check your council’s website to get started!
How to Cut Down on Food Waste in Your Business (Step-by-Step)
1. Audit Your Food Waste
The first step to tackling food waste is understanding where it’s happening. Run a waste audit using tools like Leanpath to track food waste in real-time. Once you’ve got the data, you’ll know exactly where to make changes and start reducing waste.
2. Get Your Team on Board
Sustainability isn’t just about the business — it’s about your team too. Educate your staff on smarter ordering, inventory management, and portion control. Make it a fun, team effort by providing training materials and resources to help everyone get on the same page and cut down on waste.
3. Work with Local Waste Management Services
Partnering with local waste management providers makes the transition to sustainable practices easier. Here’s what to do:
- Research local recycling and composting services.
- Get in touch to discuss tailored waste management solutions for your business.
- Set up systems to track waste and reduce it wherever possible.
By following these steps, you’ll be well on your way to reducing food waste, saving money, and becoming a more eco-friendly business.
Australian Businesses Reducing Food Waste
Attica Restaurant (Melbourne): For luxury dining lovers, this acclaimed restaurant embraces zero-waste cooking, turning food scraps into inventive dishes and drastically reducing its environmental impact. They recently achieved the B corp certification demonstrating their dedication to transparency and sustainability.
Damaged Goods Distilling co (WA): They’re taking surplus and ‘imperfect’ ingredients — think fruits and grains that would otherwise go to landfill — and turning them into high-quality spirits. By repurposing food that would have been wasted, they’re not only reducing waste but also creating unique, sustainable products. It’s a win-win! Plus, they’re shining a light on the importance of using what we have and making the most of it, all while providing some seriously tasty drinks. Who knew fighting food waste could be this delicious? (They also have a great blog about zero waste living)
Food waste may seem like a minor issue, but its impact on the environment and businesses is profound. By adopting food waste solutions, Australian businesses can reduce costs, enhance sustainability, and strengthen their brand reputation.
Now is the time to embrace change and implement effective strategies to reduce food waste in your business. Because, as they say, “You can’t make an omelette without cracking a few eggs” — but you can certainly make your business more sustainable and profitable by reducing food waste. Ready to get cracking?