Sustainability is buzzy. But is it profitable yet?

Responsible sourcing and food-waste management in the foodservice industry

While companies may want to operate for the greater good, they also have to satisfy customers with outstanding products and services and dazzle shareholders with quarterly profits. And with margins already razor thin, many hospitality and food service operators don’t have the budgets to invest in what they expect will be expensive initiatives with little return.

Resource: Download Turning sustainability into profit: Strategies for hospitality operators.

People, planet, profit in the foodservice industry

According to a 2024 McKinsey report, Customers are increasingly demanding that businesses demonstrate their commitment to sustainability as a condition of spending their money.*

Two of the most accessible ways are through sustainable sourcing and cutting food waste.

With these two initiates alone, you can make a difference for the planet and positively impact your Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) goals. These two actions will help you meet the needs of all stakeholders so that companies and consumers can do good and feel good about everything from hotel stays to eating out and participating in leisure activities.

Responsible sourcing: supply-chain solutions

According to Ecovadis, a business sustainability ratings provider and founding member of the Hospitality Alliance for Responsible Procurement (HARP), responsible sourcing is the process of selecting goods and supplies with an eye toward the social, ethical and environmental impacts of those purchases. Across the hospitality industry — from restaurants to hotels, senior living communities and golf and leisure businesses, sourcing sustainable products meets the needs of both their business and their customer base.

Chef perspective: sustainable sourcing

Entegra’s Head of Culinary, Chef John Csukor, loves talking about sustainable choices in the kitchen to clients within Entegra Culinary Consulting.

Two of his top recommendations? When possible:

• Buy local, fresh produce or artisanal products
• Look for companies that incorporate sustainable practices at the beginning of their manufacturing process

“Go domestic,” says Entegra Head of Culinary Chef John Csukor. “Salmon, trout, skate, cobia and snapper can all be great domestic items to menu, especially given that up to 38% of the seafood sold in the U.S. is caught here in the states.

“If I were a restaurateur, I would have a fine dining restaurant and I’d be serving American farm-raised sturgeon. It’s boneless, flavorful, premium and extremely versatile on the menu.

“Choose domestic salmon both for costs and sustainability. As a chef, I encourage you to explore ways to source, prepare and serve these alternatives to imported seafood.”

Explore Entegra Culinary Consulting.

Supplier highlight: Danone North America

Danone North America, a leading food and beverage company, supplies yogurt, plant-based beverages, and other sustainability forward products. As one of the largest B Corps in the world, Danone NA commits to "bringing health through food to as many people as possible.” Since 2018, the global Danone Impact Journey has outlined ambitious goals across health, nature and people and communities.

Danone is a trailblazer, achieving approval as one of the first two food companies globally under the Science Based Targets initiative's Forest, Land and Agriculture (SBTi FLAG) guidance. The company is also part of the Global Methane Pledge, which aims for a 30% reduction in methane emissions from fresh milk by 2030 versus a 2020 baseline.

"Our Regenerative Agriculture Program is a cornerstone of our Danone Impact Journey. By working closely with farmers and leveraging deep expertise, we are making significant strides in preserving nature and driving longer term supply resilience. This program exemplifies our dual project which aims to create both shareholder and societal value."
-- Melanie Chow, VP of Mission & Sustainability

Saving food waste. Saving on costs. Saving the environment.

According to Leanpath, an Entegra supplier and leader in automated food waste prevention, the typical food service kitchen will waste 4-10% of its food purchases before it reaches a diner’s plate. That’s money being spent that doesn’t help earn the business any profit but, in fact, costs money through waste disposal. There's a better way.

According to a WWF and Sodexo report, Sustainable eating: Pulling the levers in food service, “To help achieve food waste targets, food service organizations should develop food waste reduction interventions and measurements with suppliers.” **

1. This process should start with a period of waste monitoring and measurement.
2. Operators should observe new recipes, watching for recipe uptake, and measure waste.
3. Monitor procurement data, pulling reports on ingredient usage.
4. Set targets for food waste.

Explore Entegra PurchasingIQ to gain visibility into your procurement spend.

If you’re ready to take a look at how your business can be both profitable and sustainable, Entegra can help. The team of procurement, culinary and sustainability experts can partner with you to explore the best ways for your business to implement the ideas in this post and recommend other ideas to maximize efficiency while driving profits.

Contact us today.

^{* https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets
** Written by: 3Keel, with input from WWF and Sodexo, edited by: Jo Trewern (WWF), Lisa-Marie Huggins (WWF), Sarah Halevy (WWF) (2023) Sustainable eating: Pulling the levers in food service.}