Why a commitment to sustainability is a game-changer for F&B businesses
August 2024
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Making real commitments to sustainability is the responsibility of any modern business – especially in the hospitality sector, where the impact is huge and the potential for creating widescale change is endless. The good news is that doing this work in a strategic and transparent way can deliver a wide range of business benefits! In this article, The Sustainable Restaurant Association shares seven ways in which building sustainability into operations can be a game-changer for F&B businesses.
- Boost revenue, reduce costs
It’s true that improving your sustainability involves some investment –– but over time, it can have a positive impact on your bottom line and deliver better results for your stakeholders. Sustainable practices can help your business reduce costs through careful management of energy and water use and by improving kitchen efficiencies and reducing food waste. At the same time, you can see increased revenue as more customers choose a brand they can trust to do the right thing.
- Enhance your reputation
Speaking of making your brand look good, once you’re doing the work, sharing this with your customers in a transparent way provides a valuable marketing opportunity and a means of connecting with people on the issues that matter to them. This can enhance your reputation with customers, staff, investors and other stakeholders, increase customer loyalty and lead to positive press.
- Attract more customers
Increasingly, customers want to know that they’re spending their hard-earned money with a business that is doing good for both society and our planet. In 2024 research conducted by Marriott International – examining 1,200 affluent travellers in Australia, Singapore, India, Indonesia, South Korea and Japan – sustainability was found to be a significant driver in selecting destinations, accommodation and food options.
This report found that high-end gastronomy is the primary driver for luxury travel in the APAC region, with 88% planning holidays around food or culinary experiences, while sustainable travel is of increasing importance. Mindful of environmental impact, 80% of high-net-worth travellers say a hotel’s sustainability and environmental practices is a consideration when deciding where to stay. A considerable 43% want to see restaurants within hotels offering locally-sourced food products, and a further 35% expect to see effective management of food waste.
- Improve attraction, recruitment and retention
Corporate ethics matter to job-seekers. More and more, people want to work for businesses that have a positive effect on the world around them. This is especially true as more people from Generation Z enter the workforce. Transparent and measurable sustainability initiatives can make your restaurant, hotel, bar, café or catering service a more appealing place to work, helping with attraction and recruitment.
The social side of sustainability may be discussed less often than the environmental side, but it’s every bit as important. Treating staff fairly, paying them well and creating a truly great place to work has a big impact on retention figures – and keeping staff members on board for the long term is cheaper than training new employees.
- Be future-proof
With the effects of the climate crisis only worsening, supply chain disruptions becoming more frequent and increasingly stringent environmental legislation coming down the line, now is the time to build a resilient, future-proof operation. Incorporating sustainability into both your current operations and long-term strategy will help you avoid any potential for costly legislative pitfalls or greenwashing accusations while also making sure you’re ahead of the curve – giving you an edge over your competitors.
- Lead the market
The climate and biodiversity crises are at critical points and we need every industry to enact drastic, immediate change. Being open and transparent about your sustainability work won’t just benefit your own business, but can create a ripple effect, encouraging others to make positive changes of their own. If brands see competitors reaping the benefits we’ve mentioned above, they’re more likely to take action on sustainability themselves. For large companies and chains, there’s even bigger potential; they can leverage their influence to lead the market and provide a benchmark for sustainability.
- Change the world
The energy and transport industries are two of the biggest contributors to carbon emissions and the climate crisis, but both are successfully decarbonising at a rapid and increasing rate. Within the next decade, our food systems will become the focus in the fight against the climate crisis – but it will be too late to catalyse the scale of change that we need. The time to act is now; we need an immediate and drastic overhaul of how we grow, source, prepare and consume our food. With its unique position at the intersection between food systems and food consumers, the hospitality industry has a critical role to play in this seismic shift; make sure your business is part of this world-changing movement.
A credible third-party certification rooted in tangible, measurable, evidence-driven action is a fantastic way to showcase your sustainability work to your customers, staff and stakeholders. The Food Made Good Standard by The Sustainable Restaurant Association is the only global sustainability accreditation developed especially for the hospitality industry – read more at www.thesra.org! If you have any questions, please reach out to Karen at karen@thesra.org.
Source: The Sustainable Restaurant Association
