Reduce food waste & costs with data analytics & tech system

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Hotels Magic Costa Blanca, a hospitality group operating in Spain, recognized the significant environmental and financial impact of food waste in their operations. Committed to sustainability and aligning with the UN Sustainable Development Goals, the group sought a comprehensive solution to reduce food waste, cut costs, and minimize their carbon footprint.

In April 2023, Hotels Magic Costa Blanca launched a pivotal sustainability initiative at Magic Cristal Park Hotel, utilizing LightBlue Consulting’s FIT Food Waste Tech. The FIT solution leverages app-based technology and data analytics software to strategically track & reduce food waste. 

The FIT Solution Includes: 

1. Agile multi-platform app technology: Designed to operate seamlessly on generic devices (Android or iOS), the app facilitates on-site tracking of food waste. It enables staff at various stages of food preparation and service to input data directly, fostering real-time monitoring and immediate adjustments 

2. Data analytics platform: Utilizing the data collected via the app, the system's cloud-based analytics platform evaluates waste patterns and trends. It generates actionable insights and weekly performance reports, which are essential for continuous improvement and strategic decision-making

3. Comprehensive staff training: A critical component of the approach involves detailed training for kitchen and service staff. This training focuses on best practices for minimizing food waste, effectively using the FIT app, and implementing the insights gathered from data analytics 

Expansion and Impact

Following its effective implementation at Cristal Park, the FIT solution expanded to five additional properties across Spain, including Villa Del Mar, Hibiscus Hotel Lava Beach, Hotel RH Victoria & Spa, RH Hotel Royal, and Hotel Lanzarote Village. This expansion indicates the applicability of the FIT solution in reducing food waste on a larger scale. 

Sustainability impact 

Climate Impact

Scope 1: The solution significantly reduced food waste at Hotels Magic Costa Blanca, preventing 48,230 kg of food from going to waste within 12 months across the properties. This directly translated to a reduction of 120,576 kg of CO2 emissions, as food waste in landfills is a major source of methane, a potent greenhouse gas. 

Nature 

Reducing food waste helps conserve resources used in food production, such as water, land, and energy, thereby reducing the ecological footprint of hospitality operations. This conservation effort supports biodiversity by lessening the strain on ecosystems often disrupted by agricultural expansion and resource extraction. Additionally, by lowering the overall waste and the associated need for landfill space, our solution helps preserve natural habitats that would otherwise be at risk of conversion to waste disposal sites. 

Social

Education embedded in the comprehensive training program to staff and management at client sites about food waste reduction helps change daily habits and attitudes towards food consumption and waste, encouraging a more mindful approach in personal and professional circumstances. 

Business impact

Benefits

The implementation of FIT resulted in $182,311 USD in savings for Hotels Magic Costa Blanca within 12 months across the properties where it was implemented. This was achieved through a 31% average reduction in food waste, leading to lower food purchasing costs and reduced waste disposal fees. Additionally, the project has fostered a greater understanding of guest preferences, enabling more efficient menu planning and inventory management.

Costs:

The initial investment in the FIT solution was offset by the substantial cost savings achieved through reduced food waste. The technology also provides ongoing value through continuous data analysis and optimization opportunities. 

Investment required: The annual cost for the solution, inclusive of training and consulting services, is comparatively low at under $5,000.

Impact on operating costs: The initial investment in the solution typically can be recovered within the first year through substantial cost savings derived from reduced food waste. On average, users experience a 3-5% reduction in cost per cover, directly attributable to decreased waste. Commercial kitchens under large hotels have been observed to save up to $200,000 in twelve months using the system against food waste. These savings are further enhanced by the continuous insights and optimizations provided by our data analytics capabilities. 

Subsidies and external funding: No subsidies are required to initiate the solution, making it an approachable choice for many businesses without the need for external financial support for implementation. 

Dependencies: While the cost is predominantly consistent, flexible pricing is available that varies based on the location, size of the commercial kitchen, and specific needs of the user, facilitating application by businesses of different sizes and in different regions.  

Minimizing costs and maximizing benefits: To minimize costs and maximize benefits, businesses are recommended to fully engage with the training provided, bringing in different departments including the Finance dept to understand the business sense incentive to implement the solution. 

Once the system is set up to integrate the insights from our data analytics into their daily operations, it’s essential to consistently apply the best practices identified through the technology and ensure a lasting shift in mindsets towards mindfulness amongst the kitchen staff. 

Active participation in these areas ensures that the operational savings from reduced waste quickly offset the initial investment, turning an expense into an ongoing value driver for the business. 

Impact beyond sustainability and business

Co-benefits 

This initiative contributes to facilitating a cultural shift within the hospitality industry. Integrating sustainability practices focused on reducing food waste contributes to developing mindfulness among staff and management, which extends to how resources are viewed and utilized and increasing awareness of food waste implications. 

• Educational impact: through comprehensive training sessions, staff members gain not only practical skills in managing and reducing waste but also a deeper understanding of the environmental footprint and the impact on food security caused by their actions or inactions. This education helps embed sustainability and mindfulness as core values within the corporate culture 

• Community engagement: this initiative encourages hotels, -restaurants, and office food facilities to engage with local communities by promoting sustainable practices. This can lead to community-driven projects and collaborations, such as donating excess food to local charities, which enhances social goodwill and community ties 

• Spillover effect: by demonstrating effective sustainability efforts as well as cost reduction, businesses can set an example and influence other companies and industries to adopt similar practices. 

In these ways, the solution reduces operational costs and mitigates environmental impact and also contributes to awareness of and participation in sustainability.

Potential side-effects 

As of 2024, the solution provider's assessments did not identify any significant negative side-effects, tradeoffs, or risks associated with the system.

Typical Business Profile

Sector Considerations 

The initiative is tailored to serve a diverse clientele making it relevant for: 

• Business office food facilities: the system is applicable to food facilities of business offices, such as kitchens or cafeterias, also across multiple offices of one business, in one integrated system. The technology can assist to comply with waste management regulations and lower operational costs while enhancing their sustainability performance 

• Hotels and restaurants: the system is applicable to these establishments’ core business, as they are significant producers of food and food waste. The technology can assist in complying with waste management regulations and reduce operational costs while enhancing their sustainability profiles 

• Consulting firms and development agencies: by providing these organizations with robust data and analytics tools, they can better advise their clients and constituents on effective waste reduction strategies, further amplifying the impact of our technology across sectors 

• Government & destination managers: these users apply the tech to implement and monitor waste reduction initiatives that contribute to broader environmental goals, such as reducing municipal waste footprints and promoting sustainable tourism practices 

Geographical Relevance 

The technology is designed for global scalability and has been successfully implemented in over 30 countries across diverse culinary, economic, and regulatory landscapes. Implementers include the University of British Columbia (UBC) in Canada and leading hotel chains such as Hyatt in Asia

Key geographical benefits include: 

• Adaptability: the technology adapts to local culinary dishes and practices regarding food waste and sustainability, making it suitable for a wide range of locations 

• Customization: the solutions are customizable to specific local needs, whether it's a university campus in North America or a luxury hotel in Asia 

Use cases: 

• Businesses aiming to enhance their appeal to conscious stakeholders

• Entities looking to leverage sustainability as a cornerstone of operational efficiency and reputation as a responsible business 

• In regions where infrastructure for waste management is developing, our technology provides a cost effective way to manage waste efficiently and sustainably

• For locations with significant tourism, reducing food waste is not only environmentally beneficial but also enhances the destination's appeal to environmentally conscious travelers.

This solution is applicable to hotels, restaurants, and other food service providers seeking to reduce food waste, optimize costs, and improve their sustainability performance. 

Approach

Assessment and customization: the solution provider conducts an initial assessment of each facility's specific food waste profile, considering factors such as food service type, menu items, and operational processes. Some kitchens may categorize certain food waste differently, as long as this remains consistently recorded. This information is used to tailor the FIT solution to the specific needs of each property. 

Mandatory staff training and engagement: Comprehensive training sessions are conducted for kitchen and service staff. These sessions cover topics such as the unseen costs of food waste environmentally and financially, food waste prevention strategies, best practices for portion control and storage, and effective use of the platform. It is strongly recommended to include different departments, including Finance to be involved in certain sessions to ensure a unified approach to waste reduction. 

Installation and data collection: Running on iOS and Android, the setup is done under 30 minutes, utilizing existing materials commonly available in kitchens (plastic containers, scales, bins) without any proprietary hardware installed. At the recording station, food waste is weighed and recorded in their appropriate food waste categories into the FIT app on the tablets are provided to staff. 

Data analysis and insights: After the mandatory training, a baseline is created using the collected data uploaded to the FIT cloud platform for analysis and comparison going forward. The platform generates detailed reports highlighting waste patterns, identifying high-waste areas by seeing how much, what, where, when and why food waste is happening in their kitchens and providing actionable recommendations for improvement. 

Continuous Improvement: The data collected through the system is regularly reviewed and analyzed to identify ongoing opportunities for reducing food waste. Regular staff meetings are held to discuss findings, implement new strategies, and maintain a culture of continuous improvement. 

Stakeholders involved

Project Leads: Sustainability and operations teams at Hotels Magic Costa Blanca, LightBlue Consulting experts 

Company Functions: Kitchen staff, service staff, management 

Main Provider: LightBlue Consulting 

Other: Open Revenue Consulting and Horeca Sustainability Solutions 

Key parameters to consider

Average lifetime: Users typically adopt the system for a minimum of one year. This duration is essential to fully integrate the technology within their operations and to see tangible results in waste reduction and cost savings.  Users have renewed up to 3 years since the technology's introduction in 2021. 

Initiative maturity: the technology is well-established, as the solution provider has operated for over a decade and the solution has been implemented in over 30 countries and over 100 adopters since its introduction. The solution received recognition as a "Solar Impulse Foundation Efficient Solution" in 2021. 

Technical constraints: the system requires a reliable internet connection for data transmission and analysis. The materials include tablets, bins, containers, and scales, no proprietary hardware required. Additionally, staff training is essential for accurate data input and successful implementation. Refresher training is also available if users are looking to ensure continued compliance with best practices and to accommodate staff turnover. 

Geographical relevance: The solution is applicable worldwide, as food waste is a global issue. The case study highlights its successful implementation in Spain, but it can be adapted to various cultural and culinary contexts, as well as varying commercial kitchens of different sizes. 

Implementation and operations tips

Main Challenges:

• Often, there is an absence of awareness regarding the environmental and financial costs of not preventing food waste across various departments. This can hinder initial buy-in and support for the initiative 

• Staff and chefs may be wary of new systems that seem to disrupt their established workflows. There is also a common misconception among kitchen staff that their processes are already efficient with little to no food waste 

• Ensuring that all data input is accurate and consistent presents a significant challenge, especially in a busy kitchen environment with different factors such as high and low seasons 

Overcoming challenges: 

• Conduct in-depth training sessions that not only cover how to use the system but also explain the significant benefits of reducing food waste. Highlight both the environmental impacts and the financial gains to foster a sense of purpose and urgency 

• Establish and enforce a clear protocol for data collection to ensure consistency and accuracy. This includes training on the correct use of tools like scales and tablets and regular audits to ensure compliance 

• Work closely with the solution provider to tailor the solution to the specific needs and constraints of each operation. Offer ongoing support to address any issues promptly, ensuring the system works harmoniously within the existing setup 

Tips for Success: 

• Regularly celebrate and communicate both small wins and major milestones to maintain staff motivation and engagement. Recognition of efforts can significantly boost morale and commitment to the implementation 

• Continuously review the data collected through the system to identify trends and areas for improvement. Use this information to refine strategies and interventions, ensuring that the food waste reduction efforts are as effective as possible 

• Encourage sharing of best practices and successes with other properties or industry peers. This not only positions your business as a leader in sustainability but also helps improve industry standards globally 

• Ensure the sustainability of the initiative by incorporating regular training refreshers, updating technology as needed, and adapting strategies based on ongoing feedback and evolving business goals.

Footnotes:

(i) Note: Scope 1 reduction is slightly lower that it could be given emissions resulting from the energy recovery process.