At a recent conference I overheard a business leader decry, “how can we go green when we’re in the red?”. If that was true for the sector in which his business operated, it’s no less true for the hospitality sector which is facing a tsunami of knockbacks ranging from the shockwave of the pandemic to sky-high energy prices, wage inflation, rising interest rates, supply chain issues, staff and food shortages, increased taxation and a host of other challenges.
And yet, it’s a sector that delivered an output of £50.3bn in 2019, around 3% of total UK economic output.
Whether we like it or not, the green transition is not only the most recent, but probably the most fundamental challenge the hospitality industry must now face. Not only do businesses need to think about what they can do for the planet, they also need to guard against what the planet can do to them. It’s an issue that no business can afford to avoid.
The key is to start by recognising the risks. As excellent as an instant transition would be, few businesses will have the investment bandwidth to do everything they’d like to in the greening space. So, it’s best to start where the pressure is greatest and where failure to mitigate will damage the business’ sustainability, environmental and financial integrity.
Sustainable supply chains and food systems are an essential pillar. But, they can be more costly than those we’re used to, where the full impact of carbon emissions may not be accounted for. It means every business must think carefully about the three pillars of impact, effectiveness and cost. Customers are another conundrum, matching their desire for change to their desire not to change habits can be a huge concern.
The answer is to address greening step by step, setting achievable targets in line with a business’ financial freedom and addressing areas that would affect future income streams.
There are some simple principles that at least help in establishing a healthy attitude towards greening. Firstly, businesses can begin by establishing the scope of their ambition. Is it to minimise risk, comply with regulation or is there an opportunity to build reputational value that could translate into increased profitability?
Secondly there comes a gap analysis. If a business were to look at where they are today and where they’d like to be, it becomes easy to produce a roadmap suited to their personal requirements or financial capabilities.
Radical change isn’t the only option, which can be a good thing, as radical change can be intimidating for some. Often consumers can be nudged towards behaviour change, such as eating less meat, moving towards healthier choice and changing the supply chain that will help you meet the dual goals of sustainability and profitability. Authentic and persuasive reasons, matched to customers’ aspirations, can work wonders.
Hospitality should always consider if local food sourcing is an option. If not, it’s worth considering the company’s role in influencing sustainable food supply chains; positive involvement can enhance reputational value significantly, encouraging consumers to ‘do the right thing by you’ because you’re doing the right thing for them.
It is also beneficial for businesses to look at what factors have they got most control of? Is it reducing waste, cutting pollution emissions, minimising environmental impact? Improving employee engagement, lowering energy and water consumption, advancing diversity recruitment or promoting a greater range of healthy products could also be important steps to take. Whatever they are, it is important to remember that every step-change counts.
No matter what a food and beverage business decides to do, there’s one undeniable fact, it’s no longer really about choice. Customers can vote with their feet if they feel a business is under-prioritising green issues. They are aware that this won’t make you ‘lose sleep’ right now, however, it will matter significantly in the future. Profit isn’t yet a dirty word and we do not subscribe to a ‘green wash or indeed a ‘green wish’. Unacceptable.
Achieving purpose with profit means a resilient supply chain, a positive attitude to change, a transparent dialogue with customers and a sensible look at the things that could be changed (such as packaging, food wastage, portion control, sourcing transparency, process efficiencies). It also means, critically, celebrating the benefits that sustainability can undoubtedly bring.
