THE BUSINESS CASE FOR RESTAURANTS TO REDUCE FOOD WASTE

1. THE BUSINESS CASE FOR RESTAURANTS TO REDUCE FOOD WASTE Photo: Lou Stejskal

2. By 2030 halve per capita global food waste at the retail and consumer levels &reduce food losses along production and supply chains, including post-harvest losses TARGET 12.3

3. SECRETARIAT

4. Co-Authored by WRI & WRAP Find the report at: Champions123.org SECRETARIAT

5. SPEAKERS Eleanor MorrisHospitality and Food Service Special Advisor, WRAP Steven PackerDirector of Supply Chain and IT, Pizza Hut UK Kai RobertsonLead Advisor, WRI, FLW Protocol Moderator Liz GoodwinSenior Fellow and Director, Food Loss and Waste, WRI

6. SPEAKERS Eleanor MorrisHospitality and Food Service Special Advisor, WRAP Steven PackerDirector of Supply Chain and IT, Pizza Hut UK Kai RobertsonLead Advisor, WRI, FLW Protocol Moderator Liz GoodwinSenior Fellow and Director, Food Loss and Waste, WRI

7. The business case for food waste reduction in restaurants Eleanor MorrisHospitality and Food Service Special Advisor, WRAP

8. Return on investment For each $1 invested $7 of financial benefit realised 114 restaurants 12 countries

9. Investment was recouped70% in the first year of implementing a food reduction programme Investment was recouped89%within two yearsof implementing a food reduction programme

10. All sites able to keeptotal investment to below$20,000within three year period

11. The true cost of waste Disposal costs Visible costs Invisible costs • Lost materials • Energy costs • Lost labour • Lost water • Other costs On average, the true cost of wasted materials is about 10 times the cost of disposal.

12. Financial benefit-cost ratios for restaurant sites

13. Key strategies: • Measure • Engage Staff • Rethink inventory & purchasing prices • Reduce overproduction • Repurpose excess food

14. Image source: Nestlé

15. All sites e to keeptotal investment to below For each $1 invested $7 of financial benefit realised Investment recouped89%within two years of implementing a food reduction programme All sites able to keep investment below $20,000 within 3 years Youcan have your cake, and eat it………….

16. Tools

17. SPEAKERS Eleanor MorrisHospitality and Food Service Special Advisor, WRAP Steven PackerDirector of Supply Chain and IT, Pizza Hut UK Kai RobertsonLead Advisor, WRI, FLW Protocol Moderator Liz GoodwinSenior Fellow and Director, Food Loss and Waste, WRI

18. Pizza Hut Restaurants Food Waste • Context • 250 Restaurants across the UK • Kitchen preparation waste measured at ingredient level for many years: • Weekly inventory counts • Purchases tracked by restaurant by ingredient • Every item sold can be broken down to ingredient via recipe • ‘Expected use’ compared to ‘actual use’ to derive weekly wastage figures for every restaurant • Includes inedible parts (relatively immaterial for us) • No visibility of front of house or overall food waste prior to 2016 • Since 2016: • Segregated food waste collections in all restaurants (all going to AD if properly segregated, controlled combustion if incorrectly put into general waste) • Collaborative project with WRAP to get accurate weight data for 50%+ of food waste collections • Partnership with Winnow to measure front of house food waste in 3 areas - pizza buffet, unlimited salad bar and plate waste • Introduction of redistribution scheme for surplus buffet pizza • Buffet and salad bar range decisions based upon wastage

19. Pizza Hut Restaurants Food Waste • Current state of play • Overall measured food waste (based upon weighed food collection) c11% of food purchases by weight • Kitchen prep waste c2% • Pizza buffet waste c1% • Salad bar waste c1% • Plate waste c7% • Challenges • Restaurant segregation practices variable – unknown amount of food going into general waste stream and therefore unrecorded • Site specific measurement of front of house waste is both expensive and operationally problematic across 250 locations with varying levels of employee engagement • Plate waste solutions likely to require changes to consumer behaviour which may conflict with brand proposition

20. SPEAKERS Eleanor MorrisHospitality and Food Service Special Advisor, WRAP Steven PackerDirector of Supply Chain and IT, Pizza Hut UK Kai RobertsonLead Advisor, WRI, FLW Protocol Moderator Liz GoodwinSenior Fellow and Director, Food Loss and Waste, WRI

21. Overview of Food Loss and Waste Accounting and Reporting Standard for Restaurants February 14, 2019 Kai Robertson, Lead Advisor, FLW Protocol World Resources Institute

22. The FLW Standard is helping companies and others measure and share data “… it gives us a clear, unambiguous way for talking about food waste.” • A Common Language “… consistent language to use … and standard ways to measure and report.” • Standardized Way to Summarize • Practical Guidance

23. An increasing number of companies and others are measuring food loss and waste (just a sampling) Case studies on using the FLW Standard • ’s major suppliers Courtauld 2025 Kellogg Company: Food Waste In Global Manufacturing Operations Tesco’s Operations in the United Kingdom: Food Waste in Stores and Depots Delhaize America’s Operations in the United States: Food Waste in Stores and Distribution Centers Nestlé Dairy Factories in Pakistan: Losses Across the Value Chain Cranswick Gourmet Pastry’s Operations: Quantifying Food Waste From a Single Factory Estimating Quantities and Types of Food Waste at the City Level IKEA: “Food is Precious” Food Waste Initiative U.S. Food Loss and Waste 2030 Champions (downloadable @ www.FLWProtocol.org)

24. Example of how to use the FLWS common language: Pizza Hut UK Food category = All foodpurchased and sold There is no packaging associated with product produced for sale. Weight of product packaging is excluded from the weight of FLW. 12 months (collect data weekly) Food Animal Feed Inedible parts Biomaterial/processing Co/anaerobic digestion Lifecycle stage = Restaurants (kitchen and plate waste) NOTE: All destinations (other than sewer) are in scope as all material not sold or eaten is included. However, food waste only goes to anaerobic digestion or controlled combustion (as marked with a green check). Compost/aerobic Controlled combustion Geography= United Kingdom Land application Organization= 260 restaurants Landfill Not harvested = in scope but no material to this destination Refuse/discards Sewer

25. Example of how to use the FLWS common language: IKEA 1 Food category = All pre-consumer food and retail packaged beverages only 2, 3 Weight of food product packaging is excluded from the weight of food waste 4 December 2016 through end of January 2019 Food Animal Feed Inedible parts Biomaterial/processing Co/anaerobic digestion Lifecycle stage = Direct operations (Customer and Co-worker Restaurant, Bistro, Swedish Food Market, Cafe) Note 1: IKEA considers material sent to any destination listed in the FLW standard to be food waste. While all destinations are included within IKEA’s scope of reporting, food waste actually goes to only some of these destinations. These vary by store depending on available food waste collection options. Note 2: Scope does not include any unpackaged or restaurant/café/bistro beverages Note 3: Scope does not include food provided to customers as samples Note 4: Scope does include weight of packaging for retail packaged beverages within the Swedish Food Market Compost/aerobic Controlled combustion Geography= Belgium, Switz., Czech Republic, Denmark, Great Britain, Hungary, Italy, Netherlands, Norway, Poland, Sweden and US Land application Landfill Not harvested Refuse/discards Organization= 247 out of 423 total stores Sewer

26. Steps to take in measuring and reporting on FLW Webinars and video clips archived at www.FLWProtocol.org Whyquantify? Whatto quantify Reporting Howto quantify?

27. Where to find guidance? @ www.FLWProtocol.org • You can download • A customizable visual to summarize the scope of an FLW inventory • A summary of requirements in the FLW Standard • A sample reporting form • Key terms and definitions in the FLW Standard • Guidance on quantification methods

29. WRAP’s guidance for hospitality and foodservice sector (built on FLWS)

30. www.flwprotocol.org CONTACT US WITH ANY QUESTIONS Kai Robertson, Lead Advisor, FLW Protocol World Resources Institute robertson.kai@gmail.com

31. Q&A Photo by: tedeytan

32. SPEAKERS Eleanor Morris Eleanor.Morris@wrap.org.ukHospitality and Food Service Special Advisor, WRAP Steven Packer Steven.Packer@phr.co.ukDirector of Supply Chain and IT, Pizza Hut UK Kai Robertson robertson.kai@gmail.comLead Advisor, WRI, FLW Protocol Moderator Liz Goodwin Liz.Goodwin@wri.orgSenior Fellow and Director, Food Loss and Waste, WRI

33. THANK YOU Photo by: Senior Airman Tony R. Ritter