How to Calculate Food Waste Percentage in Restaurants

“Quick Overview” It is almost certain that not every ounce of food you buy will end up on your visitors’ plates.

The UN Environment Programme (UNEP) estimates that every year, one billion tons of food are wasted worldwide. In the United States, approximately 40% of all food is wasted, with commercial leftover food waste accounting for 66 billion pounds.

However, steaks are occasionally overdone, serving trays are dropped, and there is always an onion or two at the bottom of the box. And, you can’t do much about it.

If these types of incidents happen (sometimes), then it’s fine and if the wastage in the restaurant is nominal – it works, but frequent incidents and higher food wastage lead to draining your money in the bin.

According to a Boston Consulting Group analysis, food waste is expected to result in lost income of over $1.5 trillion worldwide by 2030.

If you are worried about the lot of food waste in your restaurant and are willing to find out how to calculate food waste percentage in restaurants along with some effective ways to reduce it, then this blog has everything covered.

Let’s dig in and find out everything about it.

Understanding Food Waste

Food waste in a restaurant refers to the discarded or unused food items generated during various stages of food preparation, cooking, and serving that are not consumed by customers.

It can include trimmings, spoiled ingredients, plate waste (leftovers), and any food that, for various reasons, does not make it to the customer’s table. Food waste can occur in both the front-of-house and back-of-house operations.

It represents a loss of resources, including the cost of ingredients, energy used in the preparation, and the environmental impact associated with disposal. Reducing food waste is a significant goal for restaurants to enhance sustainability, minimize costs, and contribute to responsible environmental practices.

To know more about the benefits of calculating food waste, how to calculate food waste, and the best practices for reducing food waste, keep on scrolling.

Why Calculate Food Waste Percentage?

Efficiently managing and reducing food wastage in a restaurant brings about multifaceted benefits. Beyond mere cost savings, it aligns with sustainability goals, enhances operational efficiency, boosts customer satisfaction, aids strategic menu planning, and facilitates data-driven decision-making. Each aspect contributes to a more responsible, environmentally conscious, and customer-focused restaurant operation.

Here are some of the benefits of food waste for your restaurant:

Cost Reduction: Accurate measurement of food wastage allows restaurants to identify areas of inefficiency and implement targeted strategies for cost reduction. By minimizing waste, businesses can optimize their purchasing practices, reduce overproduction, and improve overall operational efficiency, leading to cost savings and improved profitability.
Sustainability and Environmental Impact: Monitoring food wastage aligns with sustainability goals, as it helps minimize the environmental impact associated with the disposal of organic waste. By reducing the volume of food sent to landfills, restaurants contribute to lower greenhouse gas emissions and promote environmentally responsible practices.
Enhanced Operational Efficiency: Understanding patterns of food wastage enables restaurants to streamline their operations. It allows for more accurate inventory management, better forecasting, and improved communication between kitchen and front-of-house staff, ultimately enhancing overall operational efficiency.
Customer Satisfaction: Restaurants that actively manage and reduce food wastage demonstrate a commitment to responsible and sustainable practices. This commitment resonates positively with customers who increasingly value businesses with ethical and environmentally conscious operations. Improving sustainability practices can enhance the restaurant’s reputation and customer satisfaction.
Strategic Menu Planning: Analysis of food wastage data helps in fine-tuning menu offerings based on customer preferences and demand. Restaurants can optimize portion sizes, adjust menu items, and introduce creative solutions to align with customer expectations, leading to a more strategic and customer-centric menu.
Data-Driven Decision-Making: By regularly calculating and analyzing food wastage, restaurants gain valuable data that can inform data-driven decision-making. Insights into consumption patterns, seasonal variations, and popular menu items enable informed adjustments to operational processes, helping businesses stay agile and responsive to changing circumstances.
Legal Compliance: In some regions, there are regulations and guidelines regarding the disposal of food waste. Calculating food wastage helps restaurants ensure compliance with local regulations, adopting best practices for responsible waste management. This proactive approach avoids potential legal issues and associated penalties, maintaining a smooth and lawful operation.
Working Smarter: Understanding where and why food is going to waste helps restaurants work smarter. It’s like playing a game where everyone knows the rules. If the kitchen staff and servers talk to each other and plan together, everything runs more smoothly. It’s about teamwork and making the restaurant a well-organized place.

Steps to Calculate Food Waste Percentage

The precise estimation of food waste is critical to comprehending the scope of the issue as well as discovering possibilities for improvement. Here’s how to calculate food waste in restaurants step by step:

Step 1: Establish a Trial Duration

Decide on a trial period in advance, like one month, and start tracking food waste during that time. This period will give you a precise picture of the trends in food waste at your business.

Step 2: Distinguish Food Waste Origins

Set aside distinct trash cans for every source of waste so you can determine where your food waste is coming from.

Sorting your food waste according to its type is the most straightforward method of measuring it.

Bin 1: Food preparation waste — waste generated during food preparation.

Bin 2: Spoiled food — food that has gone bad in storage

Bin 3: Plate waste – food served that your visitors did not consume

Throughout the shift, provide your staff instructions on how to dispose of waste appropriately.

Step 3: Determine the Bins’ Weigh

Use an industrial scale to weigh the bins holding food waste after each shift. Enter the weights in an inventory management platform or spreadsheet.

Step 4. Evaluate Outcomes Against Stock

To evaluate the effect on your bottom line, compare the totals of food waste with your sales and inventory figures. In the restaurant business, food waste typically accounts for 4–10% of purchased inventory. For maximum profitability, try to limit your waste proportion at or below 4%.

Step 5. Continual Examinations

Throughout the year, conduct routine audits of food waste to monitor developments and spot any shifts in waste trends. This will assist you in remaining proactive in your trash reduction efforts.

The Right Tech to Monitor Food Waste

Another crucial method to measure food waste is using the right technology, if you don’t have the room for multiple bins or the time to weigh and track your garbage every day. Restaurants may measure and analyze food waste using the built-in waste feature of the correct point of sale system (POS) and take appropriate action to reduce waste in the future.

How?

Easily keep track of food waste, including who entered it and why (the kind and reason of waste).
The inventory is automatically updated upon recording waste.
At the end of the month, you can get to know how much of your inventory is wasted.
Reduce waste by generating reports to identify patterns over time.

Knowing what you’ve thrown away allows you to put a price on those losses and gauge the effect. Knowing why you’ve wasted money allows you to take action to keep it from happening in the future, thus saving you money.

Tools and Technologies for Food Waste Measurement

Point-of-Sale (POS) Systems: POS systems are central to the operations of businesses in the food industry, serving as the hub for transactions, inventory management, and customer interactions. These systems streamline sales processes, track inventory levels, and facilitate the integration of sales data to get food waste measurement details and make informed decisions on the go.

Key Features:

Efficient sales and inventory management.
Seamless integration with food waste data.
Real-time insights for better decisions.
Improves overall operational efficiency.
Enhances the accuracy of sales and inventory data.

Food Waste Tracking Software

Specialized food waste tracking software is designed to offer end-to-end solutions for businesses looking to measure, analyze, and reduce food waste. These platforms typically integrate seamlessly with hardware like smart scales, providing real-time monitoring and actionable insights. User-friendly interfaces and robust analytics empower businesses to make informed decisions for waste reduction.

Key Features:

Real-time monitoring of food waste.
Advanced analytics and reporting functionalities.
User-friendly interfaces for easy data entry.
Integration with various data sources.
Enables proactive waste reduction strategies.
Enhances sustainability initiatives.

Smart Scales and Weighing Systems

Smart scales equipped with advanced technology play a pivotal role in accurate food waste measurement. These scales often feature connectivity options such as Bluetooth or RFID, streamlining the process of recording and managing data. The integration with software solutions enhances precision in waste data, contributing to effective inventory tracking and waste reduction strategies.

Key Features:

Bluetooth or RFID connectivity for detailed insights.
Accurate measurement of food waste.
Seamless integration with software solutions.
Enhances precision in waste data.

Kitchen Display Systems (KDS)

Kitchen Display Systems (KDS) go beyond traditional order management, offering insights into kitchen operations, order patterns, and potential wastage. Integrated KDS solutions contribute to optimizing food preparation processes and minimizing unnecessary waste. By enhancing communication in the kitchen and improving workflow efficiency, KDS systems support overall cost-reduction efforts.

Key Features:

Real-time order tracking and display.
Integration with inventory and sales data.
Enhances communication in the kitchen.
Improves kitchen workflow efficiency.
Identifies patterns for optimized food prep.
Contributes to overall cost reduction.

Mobile Apps for Food Waste

Mobile applications designed for food waste measurement provide convenient solutions for small businesses. These apps typically offer user-friendly interfaces for easy data entry, enabling on-the-go tracking and monitoring. Additionally, they often include educational content on waste reduction, promoting awareness about sustainability and encouraging businesses to combat food waste.

Key Features:

User-friendly interfaces for seamless use.
Quick and efficient data entry.
On-the-go tracking and monitoring.
Educational content for waste reduction.
Promotes awareness about sustainability.

Food Waste Analytics Platforms

Advanced analytics platforms leverage technologies like machine learning to analyze patterns and offer actionable insights into food waste reduction. These platforms aggregate data from various sources, contributing to a comprehensive waste reduction strategy. By employing machine learning algorithms for predictive analysis and providing customizable reporting tools, these platforms support

evidence-based decision-making and continuous improvement initiatives.

Key Features:

Machine learning algorithms for predictive analysis.
Customizable reporting tools for tailored insights.
Holistic analysis of data from diverse sources.
Enables proactive waste reduction strategies.
Supports evidence-based decision-making.

Best Practices for Reducing Food Waste

(Food wastage surely occurs in the restaurant and the nominal wastage is fine, but it really is troubling for you(if it goes out of the way). However, there are so many best practices that we can follow to keep wastage at the minimum while still making sure our customers are happy and ensuring that our profits are up. It’s not just about being eco-friendly; it’s a smart way to save money and run our restaurant more efficiently.

Keep reading to learn about some of the effective tips you can follow to reduce food wastage!

Informed Ordering

Using par-level ordering and improved inventory controls, you can lower the quantity of spoilage in your kitchen. Par levels are the bare minimum of inventory required to keep up with demand, plus a little room to accommodate variations in daily demand.

Use historical sales data to predict your par levels. One way to estimate holiday sales estimates is to look at sales from the previous year during the same time frame.

There is less uncertainty involved in ordering and less food wasted thanks to the ability of contemporary POS systems that are coupled with procurement platforms to automatically generate order guidelines based on what’s already in the kitchen and what is required to maintain par.

The FIFO method(for inventory management) is highly recommended

Use the first-in, first-out (FIFO) strategy to limit the amount of spoilage in your restaurant.

In a FIFO-compliant kitchen, inventory is ordered and cycled so that the oldest things in your kitchen are consumed first, reducing food waste due to spoilage.

Let’s say that on Monday and Wednesday, you received shipments of hamburger buns. The hamburger rolls that were received on Monday will be used first, following the FIFO system.

Moving older supplies to the front of the shelf and the new stock behind it will guarantee that you are not wasting good products and tossing out unnecessary food merely because of your consumption order.

Pre-Plan Your Orders

Pre-planning your orders and supply sourcing guarantees that you do not over-buy or stock up on items you do not require. Determine the components and quantities needed for each dish before making any purchases.

A well-thought-out shopping schedule keeps your restaurant’s supplies sufficient while cutting down on food waste in storage. Even if there are discounts or ways to save if you buy in bulk, you will ultimately end up wasting resources in the long run.

Manage the Portion Sizes

While most people enjoy eating large portions and feeling full, they hate wasting food. Make sure your clients don’t feel bad for leaving food on their plates. So, you should instead, provide a realistic plate size that will end up in their stomach rather than the dumpster.

Even with a relatively small serving size, the illusion of a full plate can be achieved by using visually appealing and intriguing restaurant crockery.

Train your employees to suggest portion sizes when placing orders and provide takeout bags for any leftover meals. When it’s feasible, utilize eco-friendly takeout containers for your meals.

Properly Store Food

Ensure that every food item is stored correctly, in the right containers, and at the ideal temperature.

All perishable goods should be labeled with the date of receipt, the expiration date, and the number of servings in each container. Some kitchen workers will employ a color-coded labeling scheme so that BOH staff may more easily identify which container contains which sort of item.

You will be able to manage your inventory more effectively and cut down on the amount of materials you waste thanks to this organized storage.

Reuse Ingredients

It’s time to use your imagination! Now comes the enjoyable part! Collaborate with your culinary staff to come up with creative uses for food that might otherwise go to waste, such as croutons made from day-old bread.

Keep in mind that a large portion of your restaurant’s customers are probably concerned about sustainability as well. You can even involve them in this process by asking them to share recipes they make at home on social media through repurposing.

To foster brand loyalty, hold a contest and provide a complimentary supper to the winner. Reducing kitchen food waste has many advantages, two of which are pleasing your guests and benefiting the environment, while also attracting eco-conscious customers.

Future Trends in Food Waste Management

Facing the challenge of more food wastage, there are so many emerging future trends that we will witness that can better help us track and reduce waste in our restaurant. And, the good part is, customers and even the government are getting serious about finding new tech and methods to cut down on food wastage. It’s not just about making our business more profitable; it’s about doing something good for our community too.

To find out what the future holds to help us reduce the food wastage, keep scrolling.

Technological Integration

Choosing the right technology and integrating it into the restaurant business proves to be beneficial, as it significantly helps in tracking and reducing food wastage.

Here’s how?

Smart sensors and Internet of Things (IoT) devices can help with monitoring food storage conditions, tracking expiration dates, and providing real-time data for efficient inventory management.

Blockchain technology will enhance traceability and transparency in the supply chain, reducing the risk of food waste through improved information sharing. Predictive analytics and artificial intelligence also play a key role in anticipating and preventing food spoilage by analyzing historical data, consumption patterns, and external factors.

Repurposing for Food Waste Reduction

Repurposing food is a new and growing trend right now. The core emphasis is on encouraging the transformation of food waste into valuable resources is growing(constantly). Upcycling and circular food systems will gain importance, promoting the repurposing of discarded food into new products or ingredients.

It helps minimize overall waste while contributing to more sustainable and circular use of resources within the food production and consumption cycle.

Sustainable Packaging Solutions

In the future, innovative and sustainable packaging solutions will play a crucial role in extending the shelf life of food products and reducing waste. Smart packaging designs will provide consumers with accurate information about freshness, contributing to better inventory management and minimizing the likelihood of premature food disposal. This shift towards sustainable packaging aligns with broader environmental goals and consumer preferences for eco-friendly practices in the food industry.

Regulatory Measures

Anticipated future trends in food waste management include the implementation of stricter regulations and policies at governmental levels. Governments may introduce measures to encourage businesses to measure, report, and actively reduce their food waste. This regulatory framework aims to increase responsibility and accountability among businesses, ensuring a collective effort to address the global challenge of food waste.

Supply Chain Optimization

Future food waste management will witness a focus on optimizing the supply chain to prevent food spoilage and ensure efficient delivery. Companies will leverage technology and data analytics to streamline transportation and storage logistics, ensuring timely and safe delivery of food products.

This optimization is crucial, especially in regions with complex and lengthy supply chains, to minimize the chances of food deterioration during transit.

Innovative Food Waste Reduction Technologies

Emerging technologies specifically designed to reduce food waste will gain prominence in the future. It usually includes advancements such as improved food waste digesters in commercial kitchens, capable of converting organic waste into energy, compost, or other usable byproducts.

These technologies aim to provide on-site solutions for businesses to manage their food waste more efficiently, contributing to both environmental sustainability and operational cost-effectiveness.

Consumer Engagement Platforms

The future of food waste management will witness increased efforts to engage and educate consumers directly. Innovative platforms, including mobile apps and online tools, will be developed to empower consumers with information about food expiration dates, recipe suggestions for utilizing leftovers, and tips on reducing household food waste. By actively involving consumers in the fight against food waste, these platforms contribute to a more holistic and collaborative approach to sustainable food consumption.

Conclusion

In this comprehensive guide, we’ve delved into the essential aspects of reducing food waste in restaurants, starting with the importance of calculating wastage and the methods to effectively do so. We explored trending technologies, best practices, and future trends that will help in revolutionizing food waste management.

With comprehensive insights into why calculating food wastage is crucial and offering practical steps, restaurant owners and managers can make informed decisions for more sustainable and efficient restaurant business operations.

Looking ahead, we have highlighted the future trends that will promise significant disruptions, paving the way for even greater reductions in food wastage.

We hope this guide has helped you with a brief idea about food wastage management and how to calculate food wastage in restaurants.

Let’s work together for a greener, more efficient future for your restaurant!

Frequently Asked Questions(FAQs)

1. What is the Difference Between Food Loss and Waste

Have you ever given much thought to the distinction between food waste and food loss? Better still, did you even realize there was a distinction?

It turns out that there is a significant difference, and understanding it is critical if we are to ensure that as much food as possible reaches its end destination, human consumption.

Food loss and waste are two different issues that require different solutions.

Food waste happens as it moves from production to distribution along the supply chain after harvest. It describes food that is wasted or thrown away at the retail and consumer levels. Food waste examples include tossing away leftovers from a dinner at a restaurant or throwing away old veggies at home.

Food loss is the reduction in the amount or quality of food meant for human consumption that takes place during the production, handling, and processing phases of the supply chain. It could be the consequence of things like inefficiency, spoiling, or damage sustained during storage and transit. Food loss examples include crops that are left unharvested in the field because of logistical problems or perishable items that deteriorate while being transported.

A basic guideline for distinguishing food products as waste or loss is that edible food mass that is lost or discarded during the manufacturing, post-harvest, storage, transportation, and processing phases is referred to as food loss. While most food waste occurs after products have reached grocery shops and beyond.

2. What are the Different Types of Food Waste in a Restaurant?

There are different types of food waste in a restaurant and understanding the various types of restaurant food waste is essential for implementing targeted strategies to minimize wastage and enhance overall operational efficiency.

Let’s explore the main categories of restaurant food waste in more detail.

Prep Waste: Prep waste in a restaurant refers to the portions of food that go unused during the preparation of dishes. This includes trimmings, peels, and excess ingredients discarded before the final assembly. Minimizing prep waste involves adopting efficient prepping techniques and accurate portioning to optimize ingredient use.
Plate Waste: Plate waste occurs when customers do not consume all the food served on their plates, resulting in leftover portions. This type of waste is influenced by factors such as portion sizes, individual preferences, and dietary restrictions. Addressing plate waste involves strategies like offering sufficient portion options, using the right crockery, and encouraging the use of take-home containers.
Spoilage: Spoilage includes food items inedible due to factors such as improper storage conditions, mishandling, or surpassing its shelf life. Commonly occurring when refrigeration practices are inadequate or inventory is not effectively managed, you can minimize spoilage with comprehensive inventory management, proper storage management, and regular checking.
Overproduction: Overproduction occurs when a restaurant prepares more food than required. It results because of inaccurate sales forecasting, unexpected shifts in demand, or miscommunications in the kitchen. To combat overproduction, restaurants can implement better forecasting methods, improve communication between the kitchen and the front of the house, and adjust preparation quantities based on demand.
Inventory Waste: Inventory waste arises when purchased ingredients are not utilized promptly and end up spoiling. It can happen due to inefficient inventory management practices, inaccurate forecasting, or changes in menu offerings. Minimizing inventory waste requires careful monitoring of ingredient shelf life, maintaining accurate inventory records, and adjusting procurement.
Transportation Loss: Transportation loss occurs when food is damaged during transit and becomes unsuitable for use. Factors such as improper handling, temperature fluctuations, or accidents during transportation contribute to this type of waste. Implementing proper packaging, transportation protocols, and quality checks can help minimize transportation loss.

3. What are Zero Waste Policies and How Restaurants Can Implement Them in Their Restaurant?

What is the Zero-Waste Policy?

A zero waste policy in a restaurant is a commitment to minimizing waste generation by emphasizing reduction, reuse, and recycling practices, with the ultimate goal of sending little to no waste to landfills.

Implementing zero-waste practices in your restaurant for composting, reusing, and recycling materials can significantly reduce food waste while also making your business lucrative and sustainable. The goal is to keep 90% of food waste from restaurants out of landfills.

According to research by the National Restaurant Association, customers are concerned about sustainable solutions. Thus, if you implement this policy, your restaurant will draw a lot of environmentally-minded customers.

How to Implement a Zero-Waste Policy in Your Restaurant?

First things first: label everything clearly, store in designated areas, cut back on less common dishes and supplies, manage your portions, reuse and repurpose leftover products, donate unused items, and make sauces and seasonings out of trimmings and scraps.

Technology can also make trash tracking easier and more automated. Restaurants require a fully integrated inventory management system that is customized to meet their unique requirements to guarantee accurate data analysis and a clear awareness of the true cost of waste.

Technology can assist you in avoiding overordering and over-portioning by helping with ingredient procurement, inventory management, and demand forecasting.

4. What are Food Costs & How to Calculate Them?

The food cost percentage is computed by dividing the income or sales made from the final product by the cost of goods sold, also known as COGS.

(Total Cost of Goods Sold / Total Food Sales) x 100 = Total Food Cost Percentage

COGS is the total amount of money you have spent during a specific period on inventory and ingredients.

To calculate COGS, use this formula:

COGS=Beginning Inventory+Purchases−Ending Inventory

Here’s the guide to calculate the food cost percentage in your restaurant:

Determine the Starting Inventory: Make a list of every food item you have had at the beginning of the week. If you have a POS system in your restaurant, then you can get all the required figures from there!
Calculating Total Spend: Add the monetary value of each item. How much did you spend on each supply in your warehouse or kitchen?
Keep Tabs on Your Purchases: After starting inventory, did you make any further purchases during the week?
Choose the Right Method: Start the next week with another inventory. Use the same procedure. Many advise using a shelf-to-sheet method, in which your inventory tracking system is organized similarly to your back-of-house.
Calculating Total Weekly Sales: Calculate the total amount of food sales you made during the course of the week.
Incorporating the Formula: After gathering all the information, use the following food cost % method to get the real cost of food for the week:

Note: We have taken the weekly details, you can account for bi-monthly or even monthly details as well.

Food Sales ÷ (Starting Inventory + Purchases – Ending Inventory) = Food Cost Percentage

To see this food cost percentage formula in action, look at the following example:

$8,000 is the starting inventory value.

$2,500 in purchases

$9,000 is the ending inventory value.

$6,000 in food sales

Percentage of Food Cost = (8000 + 2500 – 9000) ÷ 6000

Percentage of Food Cost = 1500 ÷ 6000

Percentage of Food Cost = 0.25 or 25%

Is a 25% Food Cost Acceptable for Eateries?

Yes, 25% food expenses can be beneficial for most restaurants; but, managing food costs is a continuous process that must be always in motion to effectively measure and modify costs. 25% is manageable food cost. So, if not less, you should at least try to maintain this proportion of food costs for your restaurant.

5. How to Properly Utilize the Wastage?

Efficiently managing food waste is crucial for businesses, aligning both with environmental responsibility and economic sustainability. Various strategies can be employed to ensure responsible disposal and, in some cases, repurposing of surplus or unsold food and supplies.

Here are some of the effective tips to utilize the wastage of food and supplies in your restaurant:

Donate Your Food: Charities and nonprofit organizations play a vital role in redistributing surplus food to those in need. So, you can either partner with other charity organizations or NGOs who can help you with donating. Otherwise, you can even do it by yourself as well.
Use a Food Waste Collection Service: Connecting with a licensed service or business that processes food waste ensures responsible disposal when food is no longer fit for consumption. This option is suitable for food beyond acceptable consumption or when composting capacity is limited. Choosing an Environmental Protection Agency (EPA)-approved facility from the public register ensures compliance with environmental standards.
Make Your Own On-Site Compost System or Worm Farm: Implementing an on-site composting system, worm farm, or in-vessel composter is an effective strategy to reduce on-site waste and create nutrient-rich soil. Before setting up, check local council regulations and be aware of food items unsuitable for composting, such as seafood, onion, garlic, and meat.
Use Recycling Equipment: Investing in small-scale recycling equipment can significantly decrease kitchen waste disposal on-site. Options like macerators turn solid food into pulp suitable for licensed commercial composting services. Rapid decomposition or dehydrated food waste containers, requiring sewage hook-ups, are another choice. Local council approval is essential, ensuring compliance with licensing or permit requirements for small-scale recycling equipment.
Collaborate with Local Farmers: Establish partnerships with local farmers to redirect unsold or excess produce. This collaborative approach supports local agriculture, reduces waste, and strengthens community ties. Local farmers may use surplus food as animal feed or for composting, contributing to a circular economy.

Related Resources: