Sustainability in Business in 2024: Challenges in Hospitality

Sustainability in Business in 2024: Challenges in Hospitality

What are the key sustainability challenges facing hospitality businesses in 2024, and how can we tackle them? Get insight from top industry experts in our free ebook.

Sustainability in Business: the Boardroom Case

The impact of the hospitality sector on the environment can be seen in business costs, waste and staff, affecting all aspects of front and back of house operations. When combined with an increasing desire from consumers for more accurate and transparent food labelling, ethically and locally sourced ingredients, and carbon footprint reduction in waste and packaging, it’s more important than ever for industry leaders to drive change and be positive examples for others to follow.

Foodprint from Nutritics hosted a roundtable meeting chaired by veteran industry insider Peter Martin, founder of Peach 20/20, and brought together leaders to talk frankly about their achievements in sustainability and the areas where more work is still needed.

Importance of Sustainability in Business

From back-of-house challenges around waste reduction and staff training, to front-of-house food labelling and consumer desire for transparency, our industry experts presented a range of issues which sustainability in business presents.

  • Climate Change and Net Zero

    Leaders at the round table agreed on the urgency of the sustainability issue in hospitality. “I can’t think of anything in my career that has changed at such a pace and at such a level,” said one industry veteran. “It’s touching everyone and everything we do in our working days.”

  • Carbon Labelling

    Labelling the carbon footprint of menu items shows guests that a brand is serious about sustainability. “We absolutely want our stakeholders to know what we’re doing, and carbon labelling can help provide reassurance.” said Annelie Selander, Chief Sustainability Officer at WSH (parent company of Baxterstorey, Benugo, BM Caterers, Caterlink, Holroyd Howe, Searcys and more) one of the first major contract caterers to successfully roll out carbon labelling.

  • Danger of Greenwashing

    Brands that are trying to communicate on sustainability know the risk of greenwashing only too well. “We’re very conscious of greenwashing and being careful not to overstate our position… our message is more that we’re striving to be better every day,” said one CEO.

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What does sustainability mean for consumers?

Research carried out for Foodprint from Nutritics by CGA by NIQ’s BrandTrack service in February 2023 considered what consumers want from brands in relation to sustainability in business. It’s based on a bespoke survey of 5,000 nationally representative consumers to find out more about customer attitudes towards the environment, climate change, and sustainable practices in the hospitality sector.

Top ten sustainability concerns for hospitality customers

1.Sustainability matters to consumers: 70% say they actively try to lead an environmentally friendly lifestyle

2. Consumers choose environmentally-friendly hospitality venues: 44% say it’s important in their choice

3. Consumers will pay more for strong sustainability credentials: 34% are willing to spend more than usual on brands with robust policies and who take action

4. Younger adults are climate conscious, with those aged 18-34 twice as likely to pay more for sustainable brands than those aged 55+

5. Only 23% of consumers think brands and venues communicate carbon footprint information well

6. 47% of customers want more information about carbon footprints on menus

7. Consumers’ top three sustainability factors in decision-making include ingredient sourcing, recycling and the reduction of waste

8. Awareness of environmental credentials such as B Corp status is low

9. 23% of customers say sustainability is unimportant in their choice of venues, showing there’s still some way to go in communicating its importance

10. The cost of living crisis is having an impact on climate commitment, with sustainability-related pricing under increased scrutiny

“At wagamama one of our values is treading softly and mindfully, and sustainability remains at the heart of what we do. We have a number of initiatives running to reduce our impact on the planet, ranging from sustainable packaging, reducing waste, to plant-based eating.”

Thomas Heier | CEO, wagamama

Get Sustainability Tips for your Hospitality Business

Find out what leaders from PizzaExpress, Leon, Greene King, wagamama and more are doing in their businesses to tackle sustainability challenges and appeal to customers in 2024. Download our Sustainability Matters – Hospitality Leaders report now.

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