Food waste is costing Australian hospitality businesses thousands of dollars each year, but the full extent of the problem often remains hidden in the bins out the back.
For Sydney pub and brewery operator Karl Riseborough, the scale of the issue became clear when he began paying closer attention to what was being thrown away at his venue. Alongside spent grain left over from brewing, kitchen preparation scraps and uneaten meals were adding significantly to the weekly waste load.
With guidance from food waste specialist Belinda Chellingworth, Riseborough identified practical ways to turn waste into a resource. This includes around 50 kilograms of spent grain from each brewing batch now collected by people who use it for gardening or animal feed.
The changes have also delivered tangible financial benefits. By reducing the volume of waste sent for collection, the venue has gone from filling two 240-litre bins each week to having a single bin collected fortnightly, saving approximately $5k annually.
It is a clear example of how understanding waste streams can improve sustainability while strengthening business performance.
Australia wastes approximately 7.6 million tonnes of food each year, costing the economy more than $36 billion. Around 70 per cent of that food is still edible, highlighting the potential to reduce costs, improve food security and limit environmental impacts.
Hospitality businesses account for an estimated 1.2 million tonnes of that food waste annually, with the financial burden across the food service sector reaching approximately $6.4 billion. For an individual business, the average annual cost is around $66,000.
The issue also has broader implications for Australia’s waste management infrastructure, with landfill capacity under growing pressure. Meanwhile, the federal government’s target to halve food waste by 2030 raises questions about whether current efforts will be enough to achieve meaningful change.
The scale of the challenge is recognised internationally through the United Nations’ International Day of Awareness of Food Loss and Waste, observed on 29 September each year. The initiative encourages action to reduce food waste, conserve resources and improve food security.
Across Australia, hospitality venues have been finding ways to turn environmental initiatives into operational savings.
At South Australia’s Maylands Hotel, organic food waste accounted for around 38 per cent of general waste. Introducing a dedicated waste management service has saved the venue approximately $2,600 annually.
The Watervale Hotel has taken a different approach, introducing a dog-friendly degustation menu that makes use of animal parts that might otherwise have been discarded.
While the strategies differ, both demonstrate how rethinking waste can help venues make better use of existing resources while reducing disposal costs.
According to Chellingworth, one of the biggest challenges is that many operators underestimate the true cost of food waste. Expenses are spread across purchasing, kitchen operations, lost sales and waste collection, making the overall financial impact difficult to see.
Without regular waste audits, these costs can remain disconnected, leaving businesses unaware of where food is being wasted and where savings could be made.
Regular waste audits can help businesses identify patterns and establish practical priorities for improvement.
Opportunities include better stock management, more efficient food preparation, diverting organic material from landfill and redistributing surplus food to registered organisations.
Food donation can also be more straightforward than some operators realise. Australian states and territories have protections for food donors when applicable requirements are met, including ensuring food is safe to eat and providing appropriate storage and preparation instructions.
These measures require a combination of better systems, consistent monitoring and collaboration across the supply chain. They can also help businesses respond to wider environmental pressures while making more effective use of the food and resources they already purchase.
For venues, the first step may be as simple as taking a closer look at what ends up in the bin. Doing so can uncover avoidable expenses, reveal opportunities to recover valuable resources and improve day-to-day operational efficiency.
With tight margins and rising operating costs continuing to challenge hospitality operators, reducing food waste offers a practical way to achieve tangible financial savings while supporting more sustainable business practices.
