Food wastage remains a critical challenge for India’s foodservice industry, not only eroding restaurant profits but also intensifying environmental concerns in a country where millions suffer from undernourishment and malnutrition.

Leveraging technology offers a dual advantage by mitigating food waste and promoting sustainable practices, thereby enhancing efficiency and supporting long-term industry growth, says GlobalData, a leading data and analytics company.

Parthasaradhi Reddy Bokkala, Lead Consumer Analyst at GlobalData, comments: “Many restaurants struggle with operational inefficiencies that lead to excess food preparation. This includes challenges in accurately predicting customer demand, which can result in over-preparation of meals that ultimately go uneaten. 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.

“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.”

This unpredictability often results in food waste as restaurants may prepare items that do not sell. Given the increasing oversight by the Food Safety and Standards Authority of India (FSSAI), restaurants face a dauting task to minimize wastage and losses.

Francis Gabriel Godad, Consumer Business Development Manager at GlobalData, adds: “The evolution of technology has ensured that even smaller outlets can benefit from it. 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 minimizing food waste but also provides an economical option for consumers, thereby contributing to a more sustainable food delivery model.”

The initiative will appeal to eco-conscious consumers who have set sustainability values and tend to favor businesses that align with their views. This is reflected in a GlobalData 2024 Q3 Consumer Survey*, wherein 39% of respondents opined that a business’s “sustainable / environmentally-friendly” credentials are essential when deciding to purchasing or ordering from that business.

The adoption of technology will help in streamlining operations by helping in planning the purchases and reducing wastage. Another feature that will help in planning includes the new order scheduling feature on both Swiggy and Zomato, the dominant food delivery platforms in India.

This feature enables customers to order food in advance and receive it on time. Meanwhile, it will help restaurants plan their kitchens better and avoid wastage.

Reddy concludes: “Large restaurant chains have always had access to technological solutions to streamline their operations. 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.”

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