Australian businesses 'blindly' throwing billions in profits into landfill with food waste

Hospitality sector alone wastes 1.2 million tonnes a year, costing an average $66,000 per business

By LineZotpaper
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Australian businesses are unknowingly discarding billions of dollars in profits along with their food waste, according to food waste experts, with the hospitality sector alone throwing away 1.2 million tonnes of food each year at an economic cost of about $6.4 billion.

When Karl Riseborough realised how much food went to waste each week at his Sydney pub and brewery, he was shocked. Grain left over from the beer-making process was thrown out, as well as food waste from the kitchen.

What surprised him most was "the volume" of waste on top of the spent grain.

"The food scraps coming back, the plate waste, the kitchen prep waste ... you don't really notice when it was all going straight into the bin," Mr Riseborough said.

Food waste expert Belinda Chellingworth says many traders have no idea how much waste they are generating, or how much it is affecting their bottom line.

Every year about 7.6 million tonnes of food is wasted in Australia at a cost of more than $36 billion to the economy. Of that wasted food, 70 per cent is edible, with critical knock-on effects for landfill management, food security and the climate.

With the support of Ms Chellingworth, who happily calls herself a "garbologist", Mr Riseborough has stopped throwing away 50 kilograms of spent grain from each batch of beer he brews.

"So now I have regular users who come and collect it once I've brewed and use it for the benefit of their gardens or their animals," Mr Riseborough said. "We had two 240-litre bins that were getting collected each week. We're now down to one bin collected each fortnight."

He says that saves him about $5,000 a year.

The cumulative effect not realised

Australia's hospitality sector wastes 1.2 million tonnes of food each year, according to the Sustainable Restaurant Association. The economic impact of food waste in the food service sector is about $6.4 billion, averaging about $66,000 annually per business.

Ms Chellingworth said less than a quarter of businesses regularly inspected their food waste.

"Typically, many businesses, if they've got food left over at the end of their operations or the end of the day, then it will be landfilled," she said. "For many businesses, and particularly large businesses, the cost of food waste across their operations isn't fully realised because they incur it multiple times, but it's not obvious."

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Analysis

Why This Matters

  • Food waste represents a direct financial drain on Australian businesses, with an average of $66,000 lost per hospitality business each year.
  • The environmental and social costs are significant: 70 per cent of wasted food is edible, contributing to landfill pressure, food insecurity and climate emissions.
  • Addressing food waste could improve profit margins while reducing environmental impact, but most businesses are not even measuring their waste.

Background

Food waste is a well-documented global problem, but in Australia the scale is particularly stark, with annual national losses estimated at over $36 billion. The hospitality sector, which includes pubs, restaurants and cafes, is a major contributor, generating 1.2 million tonnes of waste annually. Much of this waste is avoidable, yet many business owners do not regularly track what they throw away, meaning the financial and environmental costs go unnoticed.

Key Perspectives

Business owners: Many are unaware of the volume and cost of their food waste, as Karl Riseborough was until he began separating and redirecting spent grain and kitchen scraps. Simple changes, such as finding users for by-products, can yield significant savings.

Food waste experts: Belinda Chellingworth and others advocate for regular waste audits, arguing that the cumulative cost of waste is hidden across multiple operations and that inspection is the first step to reducing it.

Critics and skeptics: Some businesses may struggle to implement waste reduction programs due to time, cost or logistics, especially smaller operators who lack the resources to find alternative uses for their waste streams.

What to Watch

  • Whether more hospitality businesses begin conducting regular food waste audits and adopting diversion practices.
  • Potential policy or industry-led initiatives to reduce food waste, such as improved collection services or incentives for composting and donation.
  • The impact of food waste reduction on landfill volumes and food security as Australia's population grows.

Sources

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