Reducing waste, increasing value: new report reveals how food waste is hurting hotel profits | News

A recently released whitepaper by hospitality expert Ben Lephilibert from Light blue and Johanna Wagner of Agence HoPe show that food waste is not only an environmental problem, but also a major financial burden for hotel owners and investors. While most campaigns about reducing food waste have focused on hotel operators and kitchen teams, this study shifts the focus to owners and asset managers, and shows how tackling food waste can save hotels hundreds of thousands of dollars annually.

Drawing on 1.2 million data points collected over 13 years from hotels in 20 countries, the authors translate complex operational data into financial language and KPIs relevant to investors. Their findings expose a key structural problem: hotel owners bear the costs of food waste, while operators – who manage daily kitchen operations – have no direct financial incentive to minimize it. As a result, 95% of operators have no food waste tracking systems in place, and most underestimate their waste volumes by up to three times.

Hotels that implement comprehensive food waste reduction programs typically reduce waste in half, improve profitability and add 1 to 4 percentage points to gross operating profit (GOP) margins. This increase directly increases the value of assets. For example, Constance Hotels Resorts & Golf saved 164,000 kg of food and $2.3 million across seven locations between May 2023 and October 2024.

The report outlines a three-step plan for asset managers: identify properties with large food operations, calculate potential savings using tailored templates and invest in coaching and support for hotel teams. In addition to the financial benefits, the benefits also extend to staff morale, guest satisfaction and ESG performance. This proves that tackling food waste is not only good for the planet, but also for business.