Despite economic challenges, dining out remains popular with Aussies
\nCollins Foods and GYG are gaining rapid grounds as a result
\nBut we must talk about the environmental impact caused by food waste<\/p>\n
\u00a0<\/p>\n
Despite cost-of-living headwinds impacting households across Australia, dining out seems to remain a significant part of the lifestyle for many Aussies.<\/p>\n
Collins Foods\u2019 (ASX:CKF)<\/strong><\/a> trading update on Tuesday highlights this trend, as the company not only upheld but bolstered its market presence by opening 17 net new restaurants over the year.<\/p>\n For FY24, Collins reported a robust 10.4% revenue growth to $1,488.9 million. Statutory NPAT soared to $76.7 million, marking a significant increase from $12.7 million in FY23.<\/p>\n The company operates 279 KFC restaurants in Australia, making it the largest franchisee of KFC in the country. (It does not own KFC itself; KFC is globally owned by YUM!).<\/p>\n The strong performance exemplifies the vibrant dining scene in Australia, which was further demonstrated by Guzman y Gomez (ASX:GYG)\u2019<\/a><\/strong>s decision to list its shares on the ASX last week.<\/p>\n But beneath this bustling scene, some ethical investors are concerned about the significant food wastage generated by companies running restaurant businesses.<\/p>\n Across the industry, restaurants create massive amounts of food waste each year, squandering not only resources but also exacerbating greenhouse gas emissions, as unused food often ends up in landfills.<\/p>\n According to the United Nations, one third of all food produced is lost or wasted each year, amounting to around 1.3 billion tonnes of food.<\/p>\n This waste isn\u2019t merely an unfortunate byproduct, and the consequences are profound: discarded food contributes significantly to greenhouse gas emissions, equivalent to the output of 42 coal-fired power plants annually.<\/p>\n \u00a0<\/p>\n Restaurants, especially full-service establishments with diverse menus and buffets, face particular challenges as the complexity of their offerings often leads to more food being prepared than is ultimately consumed.<\/p>\n Buffets, in particular, must anticipate demand but frequently end the day with surplus food destined for landfill.<\/p>\n This inefficiency not only affects profits but also worsens environmental harm, as discarded food in landfills decomposes and releases methane, a potent greenhouse gas.<\/p>\n Methane is released by food waste primarily due to the anaerobic (without oxygen) decomposition process that occurs when organic matter, such as food scraps, breaks down in landfills.<\/p>\n In terms of its environmental impact, methane is around 28 times more effective than carbon dioxide at trapping heat in the atmosphere over a 100-year period, and even more potent over shorter timescales.<\/p>\n This makes the gas a significant contributor to global warming and climate change.<\/p>\n According to the UN\u2019s Intergovernmental Panel on Climate Change (IPCC)<\/em>, methane is responsible for about 16% of global greenhouse gas emissions.<\/p>\n \u00a0<\/p>\n In Australia, food waste also poses a significant challenge.<\/p>\n According to the National Food Waste Strategy Feasibility Study<\/em>, the annual cost of food waste to Australia\u2019s economy is approximately $36.6 billion.<\/p>\n Australians discard about 7.6 million tonnes of food annually, amounting to roughly 312kg per person, costing households up to $2,500 per year.<\/p>\n Food waste contributes around 3% of Australia\u2019s annual greenhouse gas emissions.<\/p>\n Producing wasted food also consumes about 2,600 gigalitres of water annually, equivalent to the volume of water in 5 Sydney Harbours.<\/p>\n More than 25 million hectares of land in Australia are used to grow food that ultimately goes to waste, surpassing the area of Victoria.<\/p>\n Households, not restaurants, are in fact the largest contributors to food waste in Australia, accounting for about 30% of the total, which translates to approximately 2.5 million tonnes per year.<\/p>\n Food wastage increases pressure on food prices globally, affecting vulnerable populations who may already be food insecure.<\/p>\n Reducing food wastage therefore is critical to addressing not only access to food for vulnerable populations worldwide, but also climate change.<\/p>\n \u00a0<\/p>\n FoodBank.org.au<\/a> has compiled a set of actions we can take to minimise food waste.<\/p>\n 1. Adopt a healthier and more sustainable diet<\/strong>: Choose foods from the five core food groups and cut back on processed and packaged foods.<\/p>\n 2. Buy only what is needed<\/strong>: Plan your meals and write shopping list. This great habit saves you time, money and makes it easy to organise dinner.<\/p>\n 3. Pick \u201cugly\u201d fruit and vegetables<\/strong>: Choose from the \u201codd bunch\u2019\u2019 or the \u201creject fruit and veg\u201d area at your local shop. These odd-shaped fruit and veg are just as healthy and tasty, and once chopped or grated, you can\u2019t tell the difference!<\/p>\n 4. Store food wisely:<\/strong> Rotate the food in your fridge, freezer and pantry so the older items are at the front and are used first. Have a look at the \u201cuse-by date\u201d and \u201cbest before date\u201d as the latter is still safe to eat after the suggested date.<\/p>\n 5. Eat Smart:<\/strong> Dish out smaller portions at home or choose entr\u00e9e size at the restaurant. Freeze left-overs or have them for lunch the day after. Ask for a \u201cdoggy\u201d bag to take left overs home after eating out to eat the next day.<\/p>\n 6. Put your food waste to use:<\/strong> Instead of throwing away your food scraps, compost them or give them to friends who have chickens, ducks or a worm farm.<\/p>\n 7. Support local food producers:<\/strong> By buying local produce, you support family farmers and small businesses in your community. You also help fight pollution by reducing food miles.<\/p>\n 8. Share and give away:<\/strong> Donate food that would otherwise be wasted.<\/p>\n \u00a0<\/p>\n On the ASX, there are several companies that are addressing Australia\u2019s landfill problem.<\/p>\n \u00a0<\/p>\n Delorean Corporation (ASX:DEL)<\/a><\/strong><\/p>\n Delorean collects food and organic waste from industrial and agricultural streams in Australia, and processes it for energy production through a natural biological process called anaerobic digestion.<\/p>\n This process produces clean biogas to fuel conventional heat and power generators, and can also be upgraded to mains-grade renewable natural gas for use in the existing gas network.<\/p>\n In February, Delorean announced that it has received a $5 million grant from the Queensland Department of State Development and Infrastructure.<\/p>\n The grant will support the construction, commissioning, and operation of Delorean\u2019s QLD 1 bioenergy facility project.<\/p>\n The funding is part of Queensland\u2019s Resource Recovery Industry Development Program, aimed at supporting projects that reduce landfill waste, minimise stockpiling, and promote job creation in the state.<\/p>\n \u00a0<\/p>\n Cleanaway Waste Management (ASX:CWY)<\/a><\/strong><\/p>\n Cleanaway helps businesses recover food waste through its organics recycling technology.<\/p>\n CWY\u2019s EPA-approved organics recovery facilities help cafes, shopping malls, kitchens, bakeries and other food and beverage businesses turn food waste into high-grade compost and fertilisers.<\/p>\n For bulk food manufacturers and supermarkets, CWY\u2019s food de-packaging technology takes large volumes of food or liquid packaged in aluminium, plastic, liquid paperboard or cardboard, and separates the organic material to be recycled.<\/p>\n Earlier this week, CWY acquired Citywide Waste, a waste and recycling business, for $110 million.<\/p>\n Citywide Waste serves about 1,500 municipal, commercial, and industrial customers in Melbourne, including the Melbourne City Council.<\/p>\n \u00a0<\/p>\n SECOS Group (ASX:SES)<\/a><\/strong><\/p>\n SECOS is a Melbourne outfit that has established itself as a leader in sustainable packaging solutions.<\/p>\n SECOS\u2019 MyEcoWorld products \u2013 launched in 2021 \u2013 are now prominently featured in 2,300 stores across major Australian retail chains such as Coles and Woolworths.<\/p>\n As the only listed compostable plastics business on the ASX, SECOS has been recognised with the prestigious Silver EcoVadis rating.<\/p>\n SECOS\u2019 biodegradable products primarily utilise various grades of resin, but its core resin grades, particularly those used in the MyEco bag products, are derived from corn starch.<\/p>\n This corn starch comes from a commercial grade of non-GMO corn, ensuring the product is entirely renewable.<\/p>\n SECOS has strategically entered the North American market through partnerships with distributors like Jewett-Cameron Trading Company (NASDAQ: JCTCF)<\/em>, targeting both the United States and Canada.<\/p>\n \u00a0<\/p>\n Now read: SECOS rides high on global trend towards sustainable packaging, eyes American markets<\/a><\/strong><\/em><\/p>\n \u00a0<\/p>\n The post The Ethical Investor: As restaurant sector rebounds, it\u2019s time to talk about the impact on food waste<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Landfill produces methane gas<\/h2>\n
Australia also grapples with the problem<\/h2>\n
How to minimise food wastage<\/h2>\n
ASX companies addressing food waste<\/h2>\n