Today, businesses are tasked not just with generating profits but with doing so responsibly. One of the most pressing challenges is the staggering amount of food that goes to waste yearly, a symptom of inefficiencies in the food supply chain and consumer habits. This waste is not just a lost economic opportunity but a significant contributor to environmental degradation, from wasted water and energy to greenhouse gas emissions.
Enter the concept of upcycled foods: an innovative approach that transforms would-be wasted food ingredients into value-added products. These aren’t just stop-gap measures or charity-driven initiatives; they are full-fledged business opportunities that, when executed effectively, can marry profitability with sustainability.
Brands that are agile, forward-thinking, and willing to adapt will find that upcycling not only addresses a global problem but resonates deeply with today’s conscious consumer.
The Genesis of Upcycled Foods
Historically, resourceful communities worldwide have always found ways to repurpose leftovers or food scraps, be it through creating broths, composts, or feeding livestock. However, as global food production and consumption patterns changed and as waste began to pile up at an unprecedented scale, a more systematic and commercial approach to these age-old methods began to take shape.
The initial thrust came from grassroots movements and small-scale entrepreneurs who saw potential in what many dismissed as ‘waste’. They recognised that much of what was being discarded was not just edible but nutritious and flavorful. Ugly fruits and vegetables, spent grains from beer production, or pulp from juiced fruits were all untapped potential ingredients. By reprocessing and reimagining these ingredients, early innovators created products that were not only sustainable but also added a unique selling proposition in an increasingly crowded food market.
Thus, the upcycled food movement wasn’t born solely from a need to address waste but from an opportunity to differentiate products meaningfully. It’s a testament to the power of innovative thinking and the ever-evolving dynamics of the food industry.
The Scale of the Problem: Food Waste by the Numbers
To truly grasp the magnitude of the upcycled food movement’s significance, one must first understand the staggering scale of food waste globally.
According to the United Nations, roughly one-third of the food produced in the world for human consumption every year — approximately 1.3 billion tonnes — gets lost or wasted. This lost food has a value of nearly US$990 billion. But the problem isn’t just economic; it’s profoundly environmental and social.
Environmental Impacts:
Greenhouse Gas Emissions: Decomposing organic waste in landfills produces methane, a greenhouse gas that is 25 times more potent than carbon dioxide in trapping heat in the atmosphere. If global food waste were a country, it would rank third in greenhouse gas emissions, following only the US and China.
Wasted Resources: For every piece of food wasted, there’s a string of wasted resources—water, energy, and land. For instance, the water used annually to produce food that ends up as waste would be equivalent to the entire annual flow of the Volga River, Europe’s largest river.
Loss of Biodiversity: Increasing agricultural lands to meet global food demand often results in deforestation and habitat loss. When a significant portion of that produce is wasted, it exacerbates the strain on ecosystems and biodiversity.
Economic Impacts:
Lost Revenue: As previously mentioned, the value of global food wastage amounts to nearly US$990 billion. For producers, retailers, and consumers alike, this represents a tremendous economic inefficiency and lost revenue.
Increased Production Costs: Inefficient utilisation of produce means that more resources are spent producing food that never reaches our plates. This not only drives up production costs but can also inflate market prices.
Social Impacts:
Food Insecurity: In a world where nearly 9% of the global population is undernourished, the juxtaposition of massive food waste is a grim paradox. Recovering just half the food currently wasted or lost could feed the world’s hungry several times over.
Cultural Implications: In many cultures, food holds significant symbolic value, representing hospitality, prosperity, or gratitude. The act of wasting food can sometimes contradict these deeply held values, leading to a cultural dissonance.
Understanding these figures and impacts underscores the urgency and the opportunity. Addressing food waste through methods like upcycling isn’t just a potential business trend; it’s a pressing global imperative. The upcycled food movement stands at the intersection of environmental responsibility, economic opportunity, and social equity. It’s a solution that looks forward by looking back—taking age-old principles of frugality and resourcefulness and applying them on a global scale.
Upcycling in Action: Case Studies
The concept of upcycled foods has moved well beyond theory. Several companies are already making waves in the market with their upcycled products, turning challenges into opportunities and redefining the food industry’s landscape. Let’s delve into a few standout examples:
ReGrained: This innovative company saw potential in the spent grains, a by-product of the beer brewing process. Recognising that these grains are rich in fibre and protein, ReGrained developed a line of granola bars and snack puffs. According to a report by Sustainable Brands, their sales have grown by over 250%. Moreover, ReGrained has successfully diverted several tons of grain from waste, effectively reducing the carbon footprint associated with grain disposal.
Imperfect Foods: Starting as a subscription box service delivering “ugly” fruits and vegetables to consumers, Imperfect Foods has expanded into a full-fledged grocery service, with offerings ranging from grains to dairy. As per a Forbes article, the company has rescued over 139 million pounds of food from going to waste since its inception. This effort reduces environmental impacts and offers consumers products at a lower cost than standard groceries, making sustainable choices more accessible.
Toast Ale: Based in the UK, this company produces beer using surplus bread that would otherwise be wasted. According to their sustainability report, Toast Ale has upcycled more than 2 million slices of bread since their launch. They’ve not only seen a warm reception from environmentally-conscious beer enthusiasts but have also sparked interest in mainstream consumers looking for unique flavors and stories behind their beverages.
Each of these companies exemplifies the multi-fold benefits of upcycled foods: environmental responsibility, economic opportunity, and a resonance with an evolving consumer mindset. Their success stories serve as a roadmap and inspiration for brands looking to pivot towards a more sustainable future.
The Consumer Perspective
The modern consumer is markedly different from those of previous generations. Empowered by the digital age’s information accessibility, they’re more informed, more discerning, and more aligned with broader global issues than ever before.
This evolution in consumer consciousness is reshaping market dynamics, with sustainability and ethics taking centre stage.
Willingness to Pay More: According to a Nielsen Global Corporate Sustainability Report survey, 73% of global consumers say they would definitely or probably change their consumption habits to reduce their environmental impact. Additionally, 66% of global respondents indicate they’re willing to pay more for sustainable goods, a figure that rises to 73% amongst millennials.
Preference for Transparent Brands: A study from Label Insight revealed that 94% of consumers are likely to be loyal to a brand that offers complete transparency, and 73% are willing to pay more for a product that promises total transparency. This underscores the importance of adopting sustainable practices like upcycling and communicating them effectively to consumers.
Resonance with Upcycling: A recent industry report indicated that 58% of consumers in major markets look for products with environmentally friendly packaging or reduced waste claims. This sentiment aligns seamlessly with the ethos of upcycled foods, positioning them favourably in the minds of these conscious consumers.
The intersection of market demand with global responsibility presents an attractive proposition. Brands that align with these consumer sentiments, powered by authentic stories and impactful initiatives like upcycling, are poised to command both loyalty and premiums in the market.
Opportunities for Brands
The rise of upcycled foods isn’t just a fleeting trend; it indicates a broader shift in consumer values and market dynamics. For brands, this presents both challenges and a vast array of opportunities. By understanding the landscape and strategically navigating it, companies can reap significant benefits, both tangible and intangible.
Tapping into the Upcycled Food Trend:
- Product Development: Brands can begin by assessing their supply chains to identify potential waste streams that can be transformed into new products. Collaborating with R&D teams, food scientists, and chefs can lead to innovative product ideas that stand out in the market.
- Partnerships: Engaging with startups or existing brands in the upcycling space can allow for faster market entry. These collaborations can be joint ventures, product collaborations, or even acquisitions.
Considerations When Launching an Upcycled Product:
- Sourcing: Consistent sourcing of waste materials is crucial. This requires robust partnerships with suppliers and a deep understanding of the waste generation cycle.
- Marketing: Effective storytelling is at the heart of upcycled products. Brands must clearly and compellingly communicate the product’s origin, impact, and broader value proposition.
- Transparency: Given the modern consumer’s demand for brand transparency, companies must be open about their upcycling processes, the authenticity of their claims, and the overall sustainability impact of their products.
- Regulation & Compliance: As upcycling gains traction, regulatory frameworks may evolve. Brands should proactively understand and adhere to any standards or guidelines pertinent to upcycled foods.
Potential Economic Benefits:
- Cost Savings: Repurposing waste can lead to substantial cost savings in raw materials. By reducing waste, brands can also save on disposal costs and potential penalties or fees associated with waste generation.
- New Market Segment: The sustainability-driven consumer segment is growing. Brands that cater to this audience can tap into a premium market with higher margins and greater brand loyalty.
- Enhanced Brand Image: Associating with sustainability and upcycling can significantly enhance a brand’s image, leading to broader market appeal, increased press coverage, and stronger stakeholder relationships.
- Risk Mitigation: With global challenges such as climate change, resource scarcity, and regulatory shifts, brands that adopt sustainable practices are better positioned to mitigate supply chain disruptions and adapt to changing regulatory landscapes.
Upcycling represents a convergence of economic rationale and ethical responsibility. Brands that recognise and act upon this convergence stand to gain not just immediate financial benefits but also long-term brand equity, consumer loyalty, and market leadership.
Challenges and Considerations
While promising, the journey into upcycled foods isn’t devoid of challenges. As brands venture into this evolving landscape, understanding potential pitfalls and being equipped to navigate them will be crucial for sustained success.
Regulatory Hurdles:
- The world of upcycled foods is relatively nascent, and regulatory frameworks are still catching up. Brands may face ambiguities in labelling requirements, safety standards, and certifications specific to upcycled products. This evolving regulatory environment can pose challenges regarding compliance and market access.
Sourcing Consistency:
- One of the inherent challenges with upcycling is that it relies on waste streams, which may not always be consistent in volume, quality, or availability. Ensuring a steady supply of the “waste” ingredient can be tricky, and any inconsistency can impact production schedules and product quality.
Consumer Skepticism:
- While many consumers are receptive to the idea of upcycled foods, there’s a segment that may harbour skepticism. Questions about the safety, quality, and taste of upcycled products can hinder adoption. Building trust and credibility is paramount, which can take time and sustained engagement.
Production & Quality Control:
- Transforming waste into a high-quality product can require innovative technologies, specialised equipment, and rigorous quality control measures. Ensuring that upcycled products meet the same standards as traditional products is essential but can also be resource-intensive.
Market Education:
- As a relatively new concept, upcycled foods might necessitate market education efforts. Brands must invest in educating consumers, retailers, and even their teams about the benefits, safety, and value proposition of upcycled products.
While upcycling offers a plethora of opportunities, it also brings with it a unique set of challenges. Success will hinge on a brand’s ability to anticipate these challenges, respond proactively, and continuously evolve in tandem with the market.
Looking to the Future: Predictions and Potential
The upcycled food trend, still in its relative infancy, promises a trajectory that could redefine our relationship with food, waste, and sustainability. The momentum it has gained in recent years is just the beginning.
Trajectory of the Upcycled Food Trend:
- Upcycled foods have made significant inroads in niche markets and among conscious consumers. As awareness and appreciation for sustainability grow, it’s plausible that upcycled products will transition from niche to mainstream. With an increasing global focus on waste reduction and circular economies, upcycled foods will likely cement their place in the pantheon of sustainable solutions.
Role of Technology and Innovation:
- The upcycled food movement’s scalability largely hinges on technological advancements. Innovations in food processing, preservation, and packaging are pivotal. Biotechnology might play a role in enhancing the nutritional profile of upcycled ingredients. Digital platforms can facilitate direct connections between waste generators and upcycling brands, streamlining sourcing and ensuring consistency.
Expansion Beyond Foods:
- The principles of upcycling aren’t confined to the realm of edibles. There’s significant potential for the trend to bleed into other industries. Upcycled beverages, utilising by-products from beverage production or imperfect ingredients, are already making a splash. Beyond this, the cosmetics and personal care industry presents a ripe opportunity. Ingredients that may not pass the aesthetic muster for food consumption can find their way into skincare products, where their nutritional benefits can be harnessed topically.
In the grand tapestry of the future, upcycled products have the potential to be more than just a footnote. They can symbolise humanity’s ability to adapt, innovate, and derive value from challenges, all while treading lightly on our planet.
Final Thoughts
When the ecological footprints of our choices become more palpable with each passing day, the urgency to rethink and reshape our consumption patterns has never been more evident. Food waste, a colossal environmental and ethical concern, stands as a testament to our collective inefficiencies and, perhaps, even apathy.
But herein lies an opportunity. As influential agents of change, brands wield power not just to modify consumer behaviours but to inspire them, mould perceptions and set the gold standards for sustainable practices. Upcycled foods are not just products; they are profound statements of intent, signalling a commitment to reimagine waste, derive value where none was seen, and tread a path that is as much about ethics as economics.
The future, as we envision it, will not be shaped merely by technology, policies, or economies. It will be shaped by values. Brands that champion the ethos of upcycling are not just capitalising on a trend; they are laying the foundation for a future where sustainability isn’t an option, but the norm. They embody the philosophy that true progress marries profitability with responsibility.
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Environmental sustainability has emerged as a cornerstone of brand integrity, corporate responsibility, and a growing determinant of bottom-line success.
As public consciousness veers emphatically towards sustainability, the pressure is mounting for brands to respond.
With environmental awareness at its pinnacle, prominent Quick Serve Restaurants or QSRs are unveiling ambitious sustainability goals. For instance, Burger King has envisioned a net-zero emissions target by the year 2050, while Wendy’s has committed to utilising 100% sustainable materials for its customer-facing food packaging by 2026.
Not trailing behind, Chipotle, an early adopter of sustainability in the QSR world, has outlined a bold objective to slash its carbon emissions by half by the close of this decade.
Such brand announcements reflect a profound shift in operational strategies aligning with the global sustainability ethos.
How are these commitments translating into tangible actions concerning sourcing, packaging, and waste management?
And how is this green transition influencing consumer behavior and brand loyalty in a market where differentiation is key?
The sustainability movement for QSRs is a testament to the broader narrative of ecological consciousness. Traditionally, QSRs, known for their speed and convenience, are now standing at the intersection of experience and sustainability.
The sustainability narrative within QSRs is not novel but has gained momentum recently.
A Seedling of Change: The Initial Foray into Sustainability
The roots of sustainability in QSRs can be traced back to modest beginnings when rudimentary practices such as recycling or energy conservation marked early environmental responsibility efforts.
These early steps, driven more by cost-saving inclinations than environmental altruism, gradually began morphing into more structured and deliberate sustainability strategies.
Over time, as environmental consciousness grew among consumers, pioneering brands started to explore beyond the rudimentary towards more comprehensive and impactful sustainability measures, laying the groundwork for a broader industry-wide awakening.
Evolutionary Strides: Broadening the Sustainability Spectrum
The journey from sporadic green initiatives to integrated sustainable practices has been evolutionary.
Central to this evolution has been incorporating sustainability in sourcing, which burgeoned from merely procuring locally to embracing organic, fair-trade, and plant-based ingredients, marking a significant stride towards a lower carbon footprint.
The eco-journey of QSRs is a narrative of evolution, innovation, and contribution towards a greener future, keeping the essence of convenience and quick service intact.
Concurrently, the packaging standards shifted from single-use, non-biodegradable materials to recyclable, compostable, or biodegradable alternatives.
On the waste management front, the narrative evolved from simple disposal to recycling, composting, and educating consumers on waste segregation, symbolising a transition from reactive to proactive waste management ethos.
The Consumer Consciousness Crest: Fueling the Sustainable Transition
Amidst the operational green shifts, a parallel narrative of rising consumer awareness and demand has unfolded. Armed with a deeper understanding and concern for environmental issues, the modern consumer began to wield their purchasing power to endorse brands aligning with their eco-values.
The demand for transparency in sourcing, eco-friendly packaging, and robust waste management has transmuted from a soft preference to a pronounced expectation.
The rise in consumer eco-consciousness has accelerated this sustainable transition, making it a competitive advantage, and, for QSRs today, it is a brand differentiator as important as taste and convenience.
The symbiotic relationship between evolving sustainable practices within QSRs and the escalating consumer demand for environmentally responsible dining experiences narrates a story of transformation. It demonstrates how heightened consumer awareness can propel industries to recalibrate their operational strategies, enabling a cycle of continuous improvement toward environmental stewardship.
As QSRs continue on this green revolution, they help foster a business environment where profitability coalesces with responsibility.
Sustainable Sourcing in Quick Serve Restaurants
In a world where environmental conscientiousness is no longer a choice but a necessity, the QSR sector is amidst a pivotal transition towards sustainable sourcing.
This aspect of the operation is not merely a superficial attempt to ride the green wave but a robust strategic shift that goes to the core of how QSRs function.
Below, we unravel the importance, practices, and consequential impact of sustainable sourcing, shedding light on how this green vein reshapes the QSR industry.
The Importance of Sustainable Sourcing
Sustainable sourcing is an indispensable pivot towards reducing the environmental footprint of QSR operations. By aligning procurement practices with sustainability principles, QSRs can significantly curb their greenhouse gas emissions, reduce waste, and foster a more responsible consumption ethos.
The process aids in ensuring that the ingredients served across counters every day are not just appetising but are a symbol of ecological respect and responsibility.
Moreover, sustainable sourcing highlights the broader global objective of achieving the Sustainable Development Goals (SDGs), an agenda aimed at melding the threads of economic growth, social inclusion, and environmental protection.
Green Procurement in Practice
The QSR sector has witnessed the sprouting of innovative sourcing strategies aimed at nurturing an environmentally benign supply chain. Foremost among these is the endeavour to local sourcing, which curtails transportation emissions and galvanises local economies. For instance, procuring fresh produce from local farmers, thus reducing the carbon footprint associated with long-haul transportation.
The shift toward organic and plant-based ingredients is another remarkable stride. QSRs champion a more natural and less harmful food system by opting for suppliers that shun synthetic pesticides or genetically modified organisms.
Additionally, partnerships with suppliers practicing fair trade and responsible agriculture further underscore the commitment to sustainable sourcing. By endorsing fair wages, ethical labor practices, and environmentally sound farming methods, QSRs are extending their sustainability ethos beyond the immediate boundary of their operations.
Impact on Consumer Choices and Brand Loyalty
The ripple effects of sustainable sourcing transcend the operational sphere, making a discernible imprint on consumer perception and brand loyalty. Today’s consumers, equipped with a heightened awareness of sustainability issues, are increasingly aligning their patronage with brands that reflect their eco-values.
When a QSR articulates its sustainable sourcing practices, it resonates with this growing segment of eco-conscious consumers, fostering a deeper brand connection.
Sustainable sourcing practices are also becoming a key brand differentiator in the cluttered QSR marketplace. By embodying a commitment to environmental stewardship through sustainable sourcing, QSRs are not merely enhancing their societal image but are forging a distinct competitive advantage.
Sustainable sourcing goes beyond corporate responsibility and enters the domain of brand equity, consumer loyalty, and business viability. It’s an emblem of how integral sustainability has become in carving a modern, responsible, and appealing brand persona in the QSR sector, underlining a strategic alignment with evolving global sensibilities and consumer expectations.
As QSRs navigate the green procurement pathway, they are inching closer to a sustainable operational ethos. Still, they also nurture a brand identity that resonates with the zeitgeist of environmental mindfulness prevailing amongst modern consumers.
Sustainable packaging in Quick Serve Restaurants
Amidst the global clamor for environmental responsibility, the QSR sector is progressively turning to sustainable packaging.
This shift transcends environmental compliance and resonates with a broader narrative of corporate responsibility and consumer demand for eco-friendly practices.
The critical need for sustainable packaging emanates from an ecological necessity to reduce waste, particularly plastic, that besieges our environment.
Conventional single-use plastic packaging, long favored by the QSR industry for its convenience and cost-effectiveness, has been identified as a significant contributor to the global plastic pollution crisis.
Sustainable packaging allows QSRs to reduce their environmental footprint substantially, align with regulatory mandates, and respond to the burgeoning consumer demand for environmentally responsible practices. It’s a proactive step towards establishing a brand’s eco-credentials and fostering a culture of environmental mindfulness within the sector.
Sustainable packaging ventures in QSRs
The QSR industry is burgeoning with innovative sustainable packaging solutions, significantly departing from the erstwhile norm of single-use plastic.
Several QSRs champion using recyclable, biodegradable, or compostable materials as a viable and environmentally responsible packaging alternative. For instance, transitioning to plant-based plastics, recycled paper, and other biodegradable materials has seen a notable uptick.
Another laudable venture is the design innovation to minimise material usage without compromising functionality or aesthetic appeal. Some QSRs are also exploring reusable packaging models, encouraging consumers to return the packaging for a discount on their next purchase, thus instigating a reuse cycle.
Impact of eco-friendly packaging on consumer choices
The ripple effects of sustainable packaging are perceptible in altering consumer perception and behavior. Sustainable packaging articulates a brand’s commitment to environmental responsibility, a message that resonates profoundly with a growing cohort of eco-conscious consumers.
The tangible shift towards eco-friendly packaging solutions enhances a brand’s appeal. It engenders a positive behavioral change among consumers, who are increasingly inclined to patronise establishments that echo their environmental values.
The transparent communication of sustainable packaging fosters a deeper trust and brand loyalty, as consumers appreciate the tangible steps taken towards environmental conservation.
Rethinking waste management in Quick Serve Restaurants
The sustainability narrative in the QSR sector is incomplete without a candid discussion on waste management.
The disconcerting visuals of overflowing landfills and marine ecosystems besieged by plastic debris have accentuated the waste dilemma, a significant portion of which is attributed to the F&B industry, including QSRs.
A Waste Quandary: Challenges Pervading the QSR Industry
Predominantly, the heavy reliance on single-use packaging in the QSR sector has led to a surge in plastic waste, an environmental hazard given its non-biodegradable nature. Food waste, another glaring challenge, contributes significantly to landfill overflows and greenhouse gas emissions.
There is also a lack of robust recycling and composting infrastructure, coupled with varying regional regulatory frameworks, which often impede streamlined waste management practices. These challenges highlight the urgent need for reimagined waste management strategies that are both ecologically viable and operationally feasible.
Innovative Solutions in QSRs
The QSR sector is progressively advancing towards innovative waste management solutions that aim to mitigate the environmental repercussions of its operations. Notable among these are waste reduction initiatives, such as portion control and inventory optimisation, aimed at minimising food waste right at the source.
Embracing recycling and composting has seen a significant uptick. QSRs nurture a recycling culture by setting up dedicated recycling stations within outlets and educating consumers on proper waste segregation. Similarly, composting organic waste is being adopted to divert food waste from landfills.
The adoption of circular economy principles, wherein waste is viewed as a resource, is gaining traction. For instance, converting food waste into bioenergy or organic fertilisers embodies a circular approach to waste management, turning a problem into a solution.
The impact of waste management initiatives on the environment and consumer preferences
The positive ramifications of waste management initiatives extend both environmentally and perceptually. Environmentally, effective waste management significantly curtails landfill contributions, reduces greenhouse gas emissions, and fosters resource efficiency.
On the consumer front, the cognizance and appreciation for waste management practices are burgeoning. A visible commitment to reducing waste enhances a brand’s eco-credibility and resonates profoundly with the rising tribe of environmentally mindful consumers. This resonance is a defining factor in consumer preferences and, by extension, brand loyalty.
Case studies of QSR brands committed to reducing their carbon footprint
Pret A Manger: Grab-and-Go
Pret A Manger is leading the charge in environmental responsibility, aiming to reduce carbon emissions and waste in its operations. They’ve initiated using sustainable packaging and have committed to sourcing ingredients sustainably, focusing on animal welfare and organic produce.
The brand has also implemented energy-efficient lighting and equipment in stores, further minimising its environmental impact. These changes have heightened the brand’s appeal to an ever-increasing base of eco-conscious consumers in the UK and beyond.
Tata Starbucks: Brewing Sustainability
Tata Starbucks, a joint venture between Tata Consumer Products and Starbucks, has pursued sustainability goals in India. They have been moving towards renewable energy sources and investing in energy-efficient equipment, working actively to diminish their carbon footprint.
Tata Starbucks has also initiated water-saving measures and waste reduction strategies, including recycling and composting, that reverberate well with India’s growing environmentally conscious market. These efforts underscore the brand’s commitment to sustainable business practices, thereby enhancing brand perception and loyalty.
Yoshinoya: Sustainable Bowls
Yoshinoya, a major QSR brand in Asia, is another example of progressively adopting sustainable practices to reduce its environmental impact. The brand has initiated measures like using eco-friendly packaging and reducing single-use plastics in its operations.
Additionally, Yoshinoya is working on reducing food waste and implementing energy-saving technologies in its outlets across Asia. The brand’s dedicated sustainability actions are fostering a deeper connection with its Asian consumers, who are increasingly valuing environmental responsibility.
Nando’s: A Flame-Grilled Commitment to Sustainability
With its roots in South Africa and a strong presence in the UK, Nando’s has been committed to sustainability. The brand has been working towards sourcing its energy from renewable sources and has implemented several energy-saving measures in its restaurants.
Nando has also shown commitment to animal welfare and sustainable sourcing of ingredients, resonating well with consumers who are passionate about the provenance of their food. These strategic sustainability initiatives enhance Nando’s brand image and cement its position as a responsible QSR player.
Jollibee: Serving Joy Sustainably
Jollibee, the renowned Filipino QSR brand, is earnestly embracing sustainability. The company is focused on optimising its operations to be more energy-efficient and is progressively reducing its dependence on non-renewable energy sources.
Jollibee is also concentrating on waste management strategies and has undertaken extensive efforts to reduce the use of plastics in its services. These concerted sustainability endeavors foster loyalty and admiration from its diverse customer base, underlining the brand’s resolve to act responsively towards environmental concerns.
How sustainable practices shape consumer decisions
Evidence suggests that contemporary consumers, particularly younger ones, are inclined towards brands that embody environmental stewardship.
For QSRs, adopting sustainable practices is also a strategic maneuver to align with this evolving consumer preference. The decisions encompassing sustainable sourcing, eco-friendly packaging, and waste management initiatives are progressively becoming a barometer of brand appeal and determining where consumers dine.
Beyond greenwashing, sustainability is a pillar of brand loyalty.
Consumers seek genuine commitment and tangible actions toward sustainability, making it a cornerstone for building and retaining brand loyalty.
Brands that communicate their sustainability efforts transparently and continually strive for eco-excellence are perceived as trustworthy and responsible, attributes that engender consumer loyalty.
The importance of Market Research and Surveys for the QSR sector
Market research and consumer surveys provide a rich tapestry of insights into the interplay between sustainability, consumer choices, and brand loyalty in the QSR sector. A slew of studies highlights a willingness among consumers to pay a premium for sustainably sourced and packaged food.
Additionally, brands that are perceived as environmentally responsible enjoy a higher degree of customer loyalty and advocacy, cementing the financial viability of sustainable practices.
A particularly revealing data point is the correlation between the perceived sustainability of a QSR and the likelihood of repeat patronage. Consumers are not just making one-off green choices but forming lasting allegiances with brands that mirror their ecological values.
Challenges and opportunities in embedding sustainability in Quick Serve Restaurants
The journey towards sustainability for QSRs is rife with both hurdles and prospects. While the ecological and ethical imperatives are clear, the pragmatic pathway is often mired in operational, financial, and regulatory challenges.
Yet, within these challenges lie untapped opportunities for innovation, differentiation, and enhanced consumer allegiance.
Challenges faced by QSRs when adopting sustainability choices
- Operational Adaptability: Adapting operations to embrace sustainable practices often requires a significant overhaul of existing processes, which can be both time-consuming and financially demanding.
- Cost Implications: Sustainable sourcing and eco-friendly packaging solutions often come with a higher price tag, posing financial challenges, especially in a sector known for razor-thin margins.
- Regulatory Landscape: The diverse and ever-evolving regulatory landscape concerning environmental practices demands continuous adaptation and compliance, often requiring substantial investment in legal and operational adjustments.
- Consumer Price Sensitivity: While there’s a growing preference for sustainable practices, price sensitivity among consumers remains a concern, especially in economic downturns.
- Supply Chain Complexity: Establishing a sustainable supply chain, especially in a globalised economy, demands rigorous vendor assessment and continuous monitoring to ensure adherence to sustainability standards.
Opportunities for brands unveiling the sustainability spectrum
- Brand Differentiation: Sustainability provides a robust platform for brand differentiation in a highly competitive market. It offers an avenue to showcase a brand’s values, attract eco-conscious consumers, and foster loyalty.
- Market Expansion: Aligning with sustainability opens doors to new market segments and demographic cohorts, particularly among younger, environmentally aware consumers.
- Innovation Drive: The quest for sustainability is a potent catalyst for innovation, propelling the development of eco-friendly packaging solutions, waste management technologies, and energy-efficient operations.
- Long-term Cost Savings: Sustainable practices such as energy efficiency, waste reduction, and sustainable sourcing can yield long-term cost savings, balancing the initial investment required.
- Resilience and Risk Mitigation: Sustainable operations foster resilience by reducing dependency on finite resources and mitigating risks associated with regulatory compliance and reputational damage.
- Investor Appeal: With a surge in responsible investing, sustainability credentials are becoming a key consideration for investors, potentially enhancing a brand’s financial standing and attracting investment.
Final Thoughts
The QSR sector’s sustainability story is a shared script where consumers, industry players, and stakeholders have pivotal roles. As consumers, the power of choice is significant; choosing brands prioritising sustainability contributes to a larger narrative of positive change. For QSR stakeholders, embedding sustainability is an investment in long-term resilience, brand loyalty, and a thriving consumer base.
The rising tide of consumer advocacy for eco-conscious brands will likely accelerate the sustainability drive, turning it into a norm rather than a niche.
At Kadence, we have worked with some of the world’s most renowned QSR brands, and we can help analyse your current operations thoroughly, offer strategies for sustainable transformation, and assist in navigating the regulatory landscape.
Connect with us at Kadence to explore how your QSR can step into a sustainable future, meeting both the ecological imperatives and the evolving expectations of the modern-day consumer.
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With legalization of recreational marijuana becoming more commonplace alongside a continual rise in the availability of cannabis-based products, it is a turbulent but exciting time for CBD. But do people really understand what CBD is and what it does? Why do people use CBD products … and how are people using it compared to cannabis?
According to our recent study on the topic, CBD usage is rapidly growing in popularity. 4 times as many adults are using CBD products in 2019, compared to 2018, growing from 5% to 18%.
Unsurprisingly, there is considerable overlap between CBD and cannabis usage, with half of CBD users also using cannabis. That said, CBD growth is also coming from those who don’t use cannabis.
Many CBD consumers use these products regularly to address a range of ailments. Roughly half of CBD consumers use CBD at least once a week, while very few only use the product a couple times a month. Most (60%) use it for pain relief or inflammation; the next most common reasons are anxiety (45%) and sleep (33%).
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Despite its increasing usage, there is still a large gap in product understanding. Only 24% of US adults believe they are moderately or extremely familiar with CBD, and, more surprising, only half of CBD users (57%) believe they are.
There are also many misconceptions regarding CBD products. 25% of US adults believe that pure CBD can “get you high”, which is not true. CBD users tend to be more knowledgeable about these products but many are still misinformed. For example, 13% of CBD users believe that it can get you high.
“CBD is a fantastic option for many, but it’s a very complex landscape for consumers to navigate. One sees CBD advertised with specific medical claims through dispensaries in medical cannabis states. Then one sees hemp derived CBD available at the local natural foods store as a dietary supplement — but without medical claims and available in isolate form, full spectrum form, or hybrids of the two” comments CBD Industry Executive, Ashley Grace. “It’s a lot for consumers to decipher and it all doesn’t work the same. The dispensary CBD might get you high, the isolate CBD may not work at all or might stop working quickly, and many ‘full spectrum’ CBDs are really just oils spiked with isolated CBD. Then you have US grown or imported. While it’s difficult for consumers to find the right products to meet their needs, the good news is there are some amazing products available that are literally changing people’s lives,” said Grace.
It is important to note that the average CBD user looks just like anyone else. There are no major differences in gender, employment, income, marital status or geography when compared to average American adult. Although, younger adults (age 21-44) are more likely to have tried CBD. Interestingly, they are also more confident that they are familiar with CBD but more likely to be misinformed about it.
Download the full report to explore the findings in depth.
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In this insightful video, our Country Manager for Singapore, Derek Goh, sheds light on the often overlooked cultural nuances that significantly influence consumer behaviours in Singapore despite its modern facade. Drawing from examples like the Hungry Ghost Festival and Chinese New Year and highlighting the tangible impact of traditional beliefs on purchase patterns during these periods, Derek presents a compelling case for brands to tailor their strategies accordingly. Furthermore, he unveils the growing yet underserved silver generation market, urging brands, especially in the entertainment and leisure sectors, to realign their offerings to cater to this expanding demographic, tapping into a lucrative and burgeoning market segment. Watch the video here.
Here’s a transcript from the video from Derek Goh:
What cultural values and beliefs influence purchase decisions in Singapore?
Derek Goh: When it comes to traditional beliefs and values influencing purchase behaviour, you would have thought that a modern metropolis like Singapore would be very advanced and very interesting in how they buy things, and that’s true, but traditions and values still influence purchase behaviour, quite a bit. For example, in August, the lunar calendar is actually the seventh month, which in Chinese belief is the ghost month or the Hungry Ghost Festival. It is believed that ghosts are released back into the human realm, and we coexist. All that affects purchases, and many people choose not to buy big ticket items during this time because it’s believed to be unlucky. Property sales significantly drop yearly during the Hungry Ghost Festival, and even car sales, which are typically very high in Singapore, experience a bit of a standstill. It’s a down period for car sales in Singapore. So that’s an interesting phenomenon, and it illustrates how, in Singapore, even though we’re quite modern, we still have suspicions and beliefs regarding what influences our purchases.
Another example would be the Chinese New Year period, which is still considered to bring good luck and good fortune, and people in Singapore like to give cash. So, during the early part of the year, all the regional banks in Singapore make sure their cash machines are stocked with fresh dollar bills and even set up specific cash machines in neighbourhoods to make the cues manageable. This is another example of how traditional values and beliefs motivate behaviour.
What opportunities do you see in the Singaporean market that brands might be missing now?
Derek Goh: Singapore has an advanced economy, of course, and has consumer strategies for different brands, and not surprisingly, most brands target Gen Zs or Millennials. So, that’s normal. But one misunderstood segment in the Singapore Consumer Society, I would say, would be the silver generation. I define that as people aged 65 years and above. Why would I say that? According to national statistics in 2010, one in 10 Singaporeans were aged 65 and above.
In 2023, currently, about one in five are above age 65. So, in a span of 13 years, the proportion of Singaporeans who fall into this silver generation has doubled, and it is projected that in the next seven years, by 2030, one in four consumers in Singapore will be aged 65 and above. So, currently, a lot of the products and services catering to the aged generation, not surprisingly, are focused on healthcare, and I think that makes sense because once these consumers grow older, there’s a tendency for them to require healthcare support, and that’s not surprising. However, if you think about it, in seven years, one in four people with the power to spend will be above age 65. If you are in the entertainment business, or if you are in the leisure and travel business, are you prepared to serve this currently underserved market? What would you do differently so you can also capture a share of one in four Singaporeans?
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What are the current local trends in beauty and food in Thailand and Vietnam?
In consumer marketing, it is essential to know the latest trend.
Hide (Kadence Thailand) and Kengo (Kadence Vietnam) interviewed four Thai/Vietnamese women who can speak in Japan to reveal the current local trend in beauty and food.
The participants prepared the videos to introduce their daily cosmetics/inside refrigerators too. Let’s catch up by watching the recordings below!
*Only Japanese available (No English dub/subtitles)
Watch the session in Japanese
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In 2022, the global space tourism market size was estimated at USD 695.1 million and was expected to reach USD 815.7 million in 2023.
The term “NewSpace” pertains to the rise of the private spaceflight sector, encompassing domains like private launch companies, constellations of small satellites, sub-orbital tourism, and innovative initiatives aimed at redefining the conventional space industry supply chain.
Many companies allow anyone who can pay the price to travel to space.
In 2020, SpaceX, founded by Elon Musk, made history by carrying two NASA astronauts to the International Space Station (ISS) in its Dragon spacecraft. It was the first crewed mission to launch in the United States in almost a decade. Currently, SpaceX offers private orbital flights to the ISS for tens of millions of dollars per seat.
Virgin Galactic, founded by Richard Branson, is in the final phases of returning its suborbital spaceplane to commercial service as it ramps up the development of a next-generation vehicle. The reservation price for a flight with Virgin Galactic starts at $450,000.
Blue Origin, founded by Amazon’s Jeff Bezos, is the only space tourism company offering commercial suborbital flights. While Blue Origin charged $28 million for a ticket on its first flight with Jeff Bezos, it does not advertise its current ticket prices.
For those who want a relatively lower-priced option, other companies offer balloon rides that take tourists up to an altitude of 20 miles. These rides provide a view of the Earth’s curvature, dining services, cocktails, and music in a sleek lounge. Spaceship Neptune from Space Perspective charges $125,000 per seat, while World View charges $50,000.
Although both companies have flights scheduled to launch in 2024, neither has yet received approval from the FAA.
For those who want to experience space travel without the risks, companies like Zero-G offer modified Boeing 727 flights that simulate zero gravity. These experiences are more affordable, with prices around $8,200. However, dining options during the flights may be limited due to restrictions on certain foods in space.
However, since none of these companies have demonstrated the feasibility of making space travel accessible to the majority, let alone ensuring its environmental sustainability, we are not yet at a point of critical mass.
While space travel may still be out of reach for many, we are not too far from a future where it will become commonplace to travel to outer space.
Just like civil aviation was not as accessible to everyone as it has become now, traveling to outer space could soon be as easy as booking a flight to another country.
For an in-depth look at the five emerging trends shaping the future of global travel and tourism, download our free report, Navigating Emerging Trends in Global Travel and Tourism.
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As we see the return of normalcy and tourism rebounding, our latest report, Navigating Emerging Trends in Global Travel and Tourism, closely examines the trends shaping the future of the travel industry. This report explores five global travel trends shaping the future of travel in 2023 and beyond.
The travel brand of the future is not just focused on transportation, discovering new destinations, or arranging trips. Instead, it has a progressive and holistic 360-degree approach that considers every aspect of the traveller’s journey to create exceptional, personalised, and unforgettable experiences.
Download our insightful report, “Navigating Emerging Trends in Global Travel and Tourism,” to discover how leading travel brands keep up with the modern traveller.
Today’s traveller seeks a personalised, customised, frictionless, and stress-free travel experience from start to finish. Integrating technology provides travellers with personalised and bespoke experiences. Read our case study on how Hopper became one of the fastest-growing OTA (Online Travel Agency) brands by offering a highly personalised, data-driven travel platform.
Virtual tourism, including VR and AR experiences, is becoming more popular, allowing travellers to explore new destinations from the comfort of their homes. But how are brands approaching this technology?
Digital nomadism is rising, creating a new type of traveller with unique needs and preferences. The report showcases an airline that developed a Super App, the best value one-stop travel and lifestyle app, to build a digital lifestyle hub that enables Digital Nomads.
Finally, sustainability and experiential travel are becoming more popular as travellers prioritise social and environmental responsibility.
Experiential travel is expected to continue its growth trajectory as more travellers seek exclusive and personalised experiences. The report highlights G Adventures, which offers sustainable and community-based tourism experiences.
Also, read about the award-winning Changi Airport, which is ahead of the curve in sustainability practices across all areas.
2023 is seeing a surge in travel despite economic uncertainty and high inflation. So what has changed post-pandemic? Read the full report to gain insights into the changing travel landscape.
Download the full report to discover the future of travel and how your travel brand can appeal to travellers’ changing attitudes and behaviours globally with insights for airlines, hotels, transportation, travel operators, OTAs, and cruise ships.
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Vital Strategies
Customer Intelligence Director