OF CONSUMER-FACING BUSINESSES:
recently announced an investment in Lumachain, an AI-based supply chain platform that tracks ingredients in real time, from farm to table, to improve the management of perishables with the goal of reducing waste. Tech companies, like Winnow, are focusing AI on outputs, identifying what’s being thrown away and when, to give operators a better picture of where reductions can be made. Rich is also a believer in measur- ing waste. “What can be measured can be managed,” he said. Other chains focus on simpler techniques, like smaller batch cook- ing. Chick-fil-A, for example, encour- ages a “lean model” of cooking in smaller quantities, said Heather Beaubien, Chick-fil-A’s director of sustainability. “This helps us re- duce food waste while also provid- ing the benefit of improved product quality, food safety and more. For our local owner-operators, this not only means that they have less left- over food in their restaurants, but their guests can also enjoy food that is more freshly prepared.” But a factor many sustainably minded operators say must be ad- dressed is portion sizes. Restaurant portions began bal- looning in the 1980s and remain a key factor in the perception of val- ue, despite the fact that research indicates 75% of consumers would like the option of smaller portions for less money. Chipotle, for example, earlier this year was skewered on social media platforms when fans perceived that chain’s typically massive portion sizes had shrunk (though company officials insisted they were as gener- ous as ever). But just because those guests demand giant overstuffed burritos doesn’t mean they will eat them all. ReFED estimates that 70% of food waste at the foodservice level is due to plate waste from customers who don’t eat all they are served (or take from a buffet).
When announcing the national strategy earlier this year, U.S. Agriculture department Secretary Tom Vilsack reportedly said, “I wish I was here to re- port to you that we in the U.S. government have done our job, and that we’re very close to meeting that goal. But the reality is we’re not.” Separately, nine states have banned commercial businesses from sending food waste to landfills, and a growing number of states are also setting goals for reducing waste, including California, which has set a legislative goal of reducing organic waste disposal by 75% by next year (from 2014 levels). The bill in California, however, didn’t go into effect until the beginning of 2022. So far, reports indicate such laws have had little impact. Only Massachu- setts has moved the needle, according to a recent study in the journal Sci- ence. (The study credited the state’s investment in composting, simplicity and levying fines on businesses that didn’t comply.) Still policy goals are important because they ultimately have a big impact on expectations for businesses, contends Angel Veza, senior manager of in- novation and engagement for ReFED. More needs to be done, said Veza. And more funding is needed to imple- ment these strategies, including funding that would help subsidize the up- front costs restaurants can incur. Meanwhile, the three (seemingly simple) steps recommended by the EPA offer a framework for restaurant operators to take action. STEP ONE: PRODUCE LESS WASTE It seems a no brainer. Ensuring you have enough food to serve and no leftovers at the end of the day is fundamental to good restaurant operations. “If you’re wasting food, you’re wasting money,” said Veza. Yet it’s a constant battle. To find that right balance, restaurant chains are increasingly tapping into technology to better predict the specific needs of each unit, both in terms of ordering supply and what should be cooked when, and proper storage. Cava, for example, earlier this year launched a Connected Kitchen pilot that uses artificial intelligence and data to better forecast what should be prepped, and batch cooked, giving the team guidance by the day or even by the hour. The initiative uses camera vision, data from digital channels, scheduling and historical data—and even the weather. The goal is to take that complexity out of the hands of team members to allow them to focus more on making great food and hospitality, contends CEO Brett Schulman, but it is also hoped it will reduce waste. Chipotle’s $100 million Cultivate Next venture fund, meanwhile,
SOURCE: REFED | *OTHER FOODSERVICE INCLUDES HEALTHCARE, ASSISTED LIVING, MILITARY AND OTHER SOURCES.
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JANUARY 2025 RESTAURANT BUSINESS
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