India‘s foodservice industry is increasing leveraging technology to tackle its growing food waste problem and promote sustainable business practices, GlobalData has said.
According to Parthasaradhi Reddy Bokkala, lead consumer analyst at GlobalData, many HoReCa outlets in India, particularly small- and medium-sized establishments, tend to over-prepare food, which results in meals going uneaten, and increased food waste – even in a country where malnutrition remains widespread.
Limited resources
“Moreover, small- and medium-sized restaurants often have limited resources and experience, making it difficult for them to negotiate with vendors for better pricing or to find quality services that can aid in waste reduction,” he said.
“In addition, financial challenges are particularly acute for smaller eateries, which often lack the capital to invest in waste-reduction systems or processes. Additionally, the dynamics of the food delivery market, such as shifting consumer preferences, create challenges in maintaining predictable and efficient inventory management.”
India’s Food Safety and Standards Authority (FSSAI) has increased oversight on businesses to manage waste effectively, prompting many to turn to technology as a potential solution.
“The evolution of technology has ensured that even smaller outlets can benefit from it,” added Francis Gabriel Godad, consumer business development manager at GlobalData. “For instance, Zomato launched a new initiative, Food Rescue, which will help restaurants address the challenge of food wastage to some extent.
“This initiative allows customers living near restaurants to purchase these cancelled food orders at significantly reduced prices. The feature not only helps in minimising food waste but also provides an economical option for consumers, thereby contributing to a more sustainable food delivery model.”
Environmental purchasing
This aligns with a rising trend of eco-conscious consumer behaviour, with just under two fifths (39%) of respondents in GlobalData’s 2024 Q3 Consumer Survey indicating that environmental sustainability influences their purchasing decisions.
Additionally, order scheduling features on food delivery platforms like Swiggy and Zomato are helping restaurants better manage their inventory, enabling customers to place advance orders.
“Large restaurant chains have always had access to technological solutions to streamline their operations,” Reddy commented. “However, these are out of bounds for small businesses that cannot invest in the technology due to financial constraints. However, the proactive approach of the online food delivery platforms will help small businesses to overcome financial challenges to invest in technology.
“While these technology innovations are nascent, they have significant potential to transform waste management at foodservice businesses.” Read more here.
