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Green Tomato: Sustainability, Social Responsibility High on Foodservice Industry’s Radar

01 March 2014

Incorporating sustainability and social-responsibility elements into an operator’s business is no longer a “nice to have,” according to Technomic, as Americans increasingly demand that foodservice become more responsible and transparent.

Sustainability and social responsibility are taking on greater importance within the foodservice industry, according to a landmark study recently completed by Chicago-based Technomic. The research included input from foodservice consumers, operators and suppliers to better understand the current state and future expectations for these key issues.

In June 2008, Technomic conducted a landmark study on the impact of corporate social responsibility (CSR) in foodservice, examining consumer, operator and distributor concerns and priorities relating to the three Ps of corporate social responsibility: people, planet and product. It also identified “best in class” companies and recommended initiatives to formalize a comprehensive CSR strategy.

For consumers and operators alike, social responsibility and sustainability include a number of different elements, from humane treatment of animals to conservation to local community involvement. Among consumers, 63% say they are more likely to visit a foodservice operation they view as socially conscious.

Across all foodservice segments, operators expressed strong commitment to these initiatives for a variety of reasons, including positive impact on the environment, improved reputation and better food and beverage quality. Over half of foodservice operators (53%) say that having an actionable social-responsibility strategy will be necessary to remain competitive in the next two years.

In many cases, consumers are rewarding companies they perceive to be good environmental stewards and corporate citizens.

By far, the biggest obstacle among operators is the higher costs associated with many initiatives. But companies that respond proactively and creatively to these critical consumer demands will reap significant reputational benefits, enhanced profit opportunities and greater shareholder value; those that fail do so will put themselves at unnecessarily high risk and will undermine their market position.

“Incorporating sustainability and social responsibility elements into a foodservice operator’s business is no longer a ‘nice to have,’” says Wade Hanson, Technomic principal and director of the study. “Consumers now expect that the foodservice venues they visit exhibit social consciousness and sustainability points, just like consumers are making the effort to do in their own lives. We also see evidence that consumers are rewarding operations that meet their requirements in this increasingly critical area.”


Photo:Courtesy of Kendall College/Eric Futran