We recently hosted a roundtable with senior executives from the restaurant, pub, bar and contract catering sectors, to talk frankly about the challenges and opportunities in progressing their sustainability strategies. We wanted to understand where they see the biggest opportunities to move the dial on this, and what action needs to be taken both at head office and across the estates.
It’s clear that there is huge pressure on operators to show their commitment to change. They know that environmental issues are key to the decision-making of both consumers and employees, and this only continues to increase in importance. Guests want to know that their favourite places for eating and drinking out are making meaningful progress in their sustainability strategies, and team members want to be sure they are working for an ethical and responsible company – otherwise, they may well go elsewhere.
The challenge lies in driving sustainability progress across every level of the hospitality industry. While smaller businesses are no less committed, their limited resources means that independent pubs, bars and restaurants are at risk of falling behind in their progress and ambitions on sustainability compared with their larger counterparts. Participants agreed that increased support from the government is crucial for operators to advance and meet their goals. However, this alone isn’t enough – industry collaboration is key. Here are five key takeaways for better sustainability practices.
1. Adapt Your Measurements
If you don’t measure it, you can’t improve it. Hospitality leaders understand that progress on sustainability has to start with a detailed, company-wide understanding of Scope 1, 2, and 3 emissions. Internal progress must be measured to ensure success in reducing all three, so appropriate KPIs should be in place. A total of 84% of hospitality leaders agreed that KPIs and measurements are vital to improve sustainability.
2. Invest in Innovation
Technology indisputably plays a big role in sustainability, and 82% of operators see the value in investing in appropriate technology, and return on investment measured in both monetary and reputational terms. All agreed that systems and software help measure and display the goals and milestones of their estate’s carbon footprint or food waste reduction programmes, for example. Actively displaying and communicating this insight also helps showcase the progress the sites are making, helping to inform customers and build loyalty and support.
3. Change Comes From the Top Down
More than three quarters (77%) of operators understand that change has to come from the top, and that if sustainability is a priority at the board level, only then will it become a priority throughout the business. Sustainability goals and progress against these should be a recurring item on board agendas. Keeping environmental plans clear and transparent at this level means they can be communicated across the estate, helping to keep team members engaged and motivated to “do their bit”.
4. Supplier Collaboration is Key
The bulk of the hospitality industry’s carbon footprint comes from the supply chain itself rather than individual sites. With this in mind, 77% of hospitality leaders agreed that partnerships with suppliers, producers, logistics partners and others are vital. Good, effective relationships with suppliers enable operators to collaborate and accelerate meaningful change, especially around Scope 3 emissions.
5. Recipe Reformulation and Menu Engineering
Recipe reformulation is by no means a new concept and is used across the hospitality sector. Three quarters (75%) of operators reap the benefits of adapting their menus to drive down both cost and environmental impact and increase health benefits. Carbon labelling on menus can also be positive and labelling lower-emission menu items is a good way to improve guests’ understanding of the environmental impact of their choices – a win for both customer and operator.
Final Thoughts
It’s no secret that operators have a lot to do when it comes to sustainability, but business leaders can’t meet the challenge alone. To make hospitality truly sustainable, it’s essential that we come together as an industry – sharing advice, resources and best practices, to ensure everyone has the tools they need to drive impactful progress. Download our new report for further insight from leading UK business leaders on the actions that can be taken to drive positive change.
Stephen Nolan is Chief Executive at Nutritics