The true cost of food waste in hospitality and food manufacturing
28th June 2026
Food production is essential to daily life and the maintenance of stable societies around the world. But there is no doubt that modern food production is resource intensive – requiring land, water, fertiliser and a range of other natural resources to keep communities fed.
Of course, this means that when food goes to waste, so do these resources.
The UK generates around 9.5 – 9.6 million tonnes of food waste annually, with 6.4 – 6.7 million tonnes of this food being edible at the point of disposal. The cost of food waste can be measured not only in environmental impact, but in inventory costs, energy use, storage, and the need for additional disposal.
Food waste in hospitality and food manufacturing is a global issue, one which cannot be tackled until it is fully understood. So, let’s take a closer look.
What is the cost of food waste for businesses?
Food waste costs the manufacturing industry an estimated £850 million each year. Even more astonishingly, it costs the hospitality industry in the region of £3.2 billion a year, averaging a staggering £10,000 per outlet, per annum.
The direct costs of food waste include unpurchased food items (up to 1.8% of sales revenue), fees for disposal and food waste collection (up to £200 per additional tonne), as well as spoilage and overproduction. Hidden operational costs include labour costs, the energy needed for storage, the price of cooking and refrigeration, and packaging costs.
Where food waste happens across hospitality and manufacturing operations
The first step to reducing food waste is understanding where it occurs.
In the hospitality industry, food is wasted through over-ordering food and ingredients, by having an overly complex menu made up of dishes which share few ingredients, through needlessly large portion sizes, and by inaccurately forecasting which food will be most popular with customers.
In fact, it is estimated that as much as 30% of prepared meals are wasted annually – whether it is large portions leaving diners unable to clear their plate or generous breakfast buffets that are dramatically over-catered.
Food waste in food manufacturing can be grouped into four key areas:
- Production waste – such as spillages
- Overproduction and excess byproduct production – typically material that is trimmed and peeled away, like bones, fat, and vegetable peels
- Supply chain inefficiencies – like poor storage conditions and slow transport
- Packaging waste – in the form of damaged packaging, mislabeling and sizing errors.
Why should businesses reduce food waste?
Reducing food waste is an effective way for businesses across the hospitality and food manufacturing industries to save money and create a more environmentally sustainable business model. It also presents an opportunity for a business to boost its reputation among eco-conscious customers and to make a social impact by donating unused food to those in need, through food banks and homeless shelters.
There are several simple steps a business can take to reduce food waste. The first is to track how and where food is wasted by conducting regular inventory audits to check overstocked products and expiry dates. Digital waste tracking is a useful tool for this.
The second is to ensure all staff are well-trained in food handling protocols and know the difference between ‘best before’ dates and ‘use by’ dates. In tackling this issue, astute hospitality businesses often choose to optimise their menus so they use fewer ingredients, decrease portion size on dishes that are regularly left unfinished, and offer daily specials for ingredients with an approaching expiry date.
Smart packaging such as vacuum sealing and resealable containers has been shown to reduce food waste across both the hospitality and food manufacturing industries.
Additionally, food production businesses can partner with responsible commercial waste management companies like Everflow to manage, separate and dispose of food waste in the most cost-effective and environmentally responsible way possible.
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