Food Waste in Rst. Pakistan
Food Waste in Rst. Pakistan
Food Waste in Rst. Pakistan
ABSTRACT KEYWORDS
Recently, there is growing focus on quantifying food waste pro- Food waste; restaurants;
blem and analyzing its causes due to an imminent challenge: feed survey; Pakistan
nine billion people by 2050. Among developing countries, we
focus on Pakistan which has the sixth largest population in the
world and faces serious issues of food insecurity and malnourish-
ment. Astoundingly, despite the gravity of the situation the avail-
able research on the issue is almost non-existent. Here, in this
first-of-its-kind study for Pakistan we attempt to measure the
quantum of food wastage and study its underlying reasons across
restaurants in the country’s second largest urban center, Lahore,
which is also popularly designated as “the culinary capital of
Pakistan”. Segmenting restaurants according to the niche mar-
kets they target—as high-end, medium-end, and low-end—and
using actual measures of daily wastage, we find overproduction
and liability concerns as the prime reasons of excess food pre-
paration and its improper disposal.
Introduction
The food wasted across all developing countries is valued at US$310 billion. This
is staggering given that food waste creates serious constraints on essential factors
of production such as energy and capital along with continuing stress on vital
natural resources like land and water. The FAO (2011) identifies a huge differ-
ence of one to ten in per capita waste between the developing and developed
world, respectively. However, as the developing block contributes to more than
40% of the global population, the difference in absolute waste is reduced to just
one to two. It is therefore shocking to observe that the trend of food waste
extends to societies where millions still suffer from hunger and malnutrition.
A more recent report from FAO (2015) estimates that approximately 800
million people around the world do not have enough food to eat, and that
hunger and malnutrition pose the greatest risk to human health. Black et al.
(2013) estimate that under-nutrition in the aggregate—including fetal growth
Literature review
The available literature on food waste and its reasons is scarce as the issue has
only recently caught attention in academic and policy circles.
Papargyropoulou, Lozano, Steinberger, Wright, and Bin Ujang (2014) exam-
ine the factors that give rise to food waste throughout the food supply chain
and propose a framework to identify and prioritize the most appropriate
options for prevention and management of food waste. The food waste
hierarchy posits that prevention, through minimization of food surplus and
avoidable food waste, is the most attractive option. The second-best option
involves the distribution of food surplus to groups affected by food poverty,
followed by the less preferred option of converting food waste to animal feed.
In a similar vein, ReFED (2016) makes the first-of-its-kind, collaborative
effort between food businesses, governments, farmers, consumers, and busi-
ness investors to not only quantify the food loss that arises from various
sectors in the USA but also to explore business and entrepreneurship oppor-
tunities to reduce food waste. They categorized food waste solutions into
three broad based groups: (i) food waste prevention strategies; (ii) food waste
channelization and recovery; and (iii) food waste recycling. While developing
the questionnaire for this study, we have largely followed a similar structure
of questions. ReFED (2016) reported that effective demand forecasting and
cold chain management could be some of the best ways to prevent food
waste. Similarly, using donation matching software, promoting education of
donation liability laws, and providing tax incentives could potentially stream-
line channelization of excess food resources.
In another study, Aschemann-Witzel, De Hooge, Amani, Bech-Larsen, and
Oostindjer (2015) point out that lack of knowledge about the correct inter-
pretation of ‘best before’ dates on food labels leads to waste by people who
assume that food is not fit for consumption after the said date. Cox and
Downing (2007) found buying too much and poor storage management were
the prime reasons for increased food waste in England. Moreover, they also
point out a behavioral angle where a large proportion of consumers (about
49%) indicate their sensitivity to the issue, yet fail to link food waste and
environmental degradation and tend to waste a lot of food.
With this overview of the food waste issue, we now focus on the food
service industry, which contributes substantially to food losses across the
food value chain. Beretta, Stoessel, Baier, and Hellweg (2013) in their study of
food values losses in Switzerland identify the food service industry as the
third largest source of food waste based on food input at each stage of the
value-added chain. The total losses are estimated as 18% of food inputs, with
avoidable losses at 13.5%, showing the gains to be made if the industry can be
made more efficient. Youngs, Nobis, and Town (1983) conducted their
investigation of food waste from UK hotels and restaurants in two stages.
594 M. AAMIR ET AL.
The first stage involved direct observational techniques while the second
involved indirect techniques so that the work of the restaurant was not
disrupted. The results from their study indicate that high waste values
observed in the hotels can be attributed to overproduction of food, tradi-
tional catering methods using a high proportion of unprocessed foods, and
offering extensive menus to customers. The methods, however, may lead to
biased results as direct observational techniques may make the chefs aware of
the fact that they are being recorded. We feel that it is difficult to replicate
this approach in Pakistan, as restaurants are not willing to grant researchers
frequent access to their kitchens.
Surveys and structured interviews as employed by Parry, James, and
LeRoux (2015) and Food Waste Reduction Alliance (FWRA, 2016) were
more favorable for the Pakistani context. Both these reports conducted a
primary survey among the restaurants, which was followed by structural
interviews and focus groups of select restaurant owners and chefs. They
found consumer waste to be one of the prime reasons of food waste in a
restaurant. This study will follow the research pattern of these two in a bid to
better understand the dynamics of food waste in restaurants of Lahore.
What is Rizq?
Pakistan has been ranked as a country with a “serious” hunger concern where
22% of its population is undernourished according to the 2016 Global
Hunger Index report (Von Grebmer et al., 2016). The document states that
at the current rate of decline, more than 45 countries—including India,
Pakistan, Haiti, Yemen, and Afghanistan—will have “moderate” to “alarm-
ing” hunger scores in the year 2030. Placed 107 in a ranking of 118 devel-
oping countries, Pakistan performed worse than most of its South Asian
neighbors in eliminating hunger. Research has shown that more is being
produced in the country than what is needed to wipe out extreme hunger, yet
tragically hunger seems to be only growing (Dawn, 2016). Whereas on one
hand the state’s indifference on the issue of food waste and donations is
unfortunate, it is heartening to note that various civil society organizations
have taken lead and are meaningfully contributing to the solutions.
Rizq is a Lahore based social enterprise focused on smart channelization of
societal resources to alleviate food insecurity and malnourishment. Rizq has
developed a unique model for providing a “marketplace” for food donor and
food insecure segments of society. Rizq works with various community
centers for a more targeted intervention. With the help of community
centers, it identifies and verifies food insecure households and provides
them with low-cost or free food assistance.
Rizq also uses technology to connect food donors to its food insecure
target audience, enabling them to observe the impact their donation is
JOURNAL OF FOOD PRODUCTS MARKETING 595
Methodology
This section describes the methods and sampling techniques used to calculate
food waste in restaurants around Lahore and gauge the major reasons behind
such food waste. Our research methodology comprises both quantitative and
qualitative methods. The first part of the study entails a survey using a
structured questionnaire of various restaurants around Lahore, which is
then followed by a qualitative interview of a select restaurant managers and
chefs. The human subject approval for the questionnaire was duly sought and
granted by the IRB at the Lahore University of Management Sciences.
why food waste is generated in restaurants. The questionnaire also asked about
various strategies employed by the restaurant to reduce waste, with a special
focus on two strategies: food donation and food recycling. The survey also
explored the reasons as to why restaurants would be hesitant to employ the
above two strategies. Finally, the seasonality of food waste was also explored.
Structured interview
Subsequent to the survey, a structured interview was conducted to add to the
results of the questionnaire. The focus was more on the economics behind
the various reasons for food waste or loss and why it is not donated or
recycled. Overproduction, which is one of the leading causes of food waste,
might persist due to the profit motives of the restaurant. Similarly, food
donation might be a problem due to lack of storage or efficient channels to
disperse excess food. A total of six restaurants managers and chefs were
interviewed, two from each category. These restaurants were selected at
random from the sample of those who had participated in our survey.
Hence, we ignore observations with missing or zero values for the food
waste variable and focus our analysis to only those who responded with some
positive numbers. Figure 1 shows the overall amount of food wasted among
all responding restaurants. The results for the three defined categories of
restaurants are given in Table 1, which shows an average waste quantity of
35.6 kg (78.5 pounds) per day. Overall waste per restaurant is highest for the
high-end restaurant category, followed by the medium-end and low-end
restaurants. We validated around 10% of these figures using Rizq’s internal
data base, which measures the amount of food it receives from each of its
participating restaurants, where high-end restaurants tend to donate more
food to the Rizq Food Bank than medium or low-end restaurants. Also, as the
average seating capacity of restaurants in the three defined categories varied
in a narrow range from 100 to 120, the waste quantity is not likely to be
driven by the size of operations.
Although the trends in the amount of food waste seem fairly accurate, the
magnitude of food waste that occurs still poses a huge question mark. The
chefs and restaurant managers who were interviewed explained that in many
restaurants there was no defined standard operating procedure (SOP) that
measured the daily amount of food waste, despite the fact that such informa-
tion could have helped them in forecasting the optimal amount of stock and
inventory. Moreover, respondents from our structural interview indicated
that many managers and chefs would be inclined to under-report the level of
food waste that occurs in their restaurants since this information might make
them look inefficient. Further investigation shows that there is some weight
to this claim: when cross validated with Rizq database over the same period
of time, we found that some of the restaurants that were partners with Rizq’s
donation network under-reported the amount of waste when compared to
the amount they donated to the food bank.
Lastly, when figuring out the weekly variation in food waste, we saw that
across all restaurants, the largest amount of food going to waste was on
weekend nights, with the least being wasted on Mondays. This is in line with
the general trend of eating out on weekends. Moreover, exploring the
seasonality in the trends we find that across all high-end and medium-end
restaurants, the most food is wasted in the October to December period. The
weather during this time of the year is very pleasant, causing restaurant
managers to expect high customer traffic and to overproduce to ensure
adequate supplies for the larger expected crowds.
100%
90% 19%
28% 30%
80% 43%
51%
70%
69%
% of Restaurants
60%
50% 58%
48%
50%
40% 33%
33%
30%
20% 22%
18% 14% 18%
15%
10% 15%
8% 6% 9% 6%
1% 1% 5%
0%
High End, High End, Medium End, Medium End, Low End, Low End,
Primary Reason Secondary Primary Reason Secondary Primary Reason Secondary
Reason Reason Reason
production cost. This means that there is a greater opportunity cost faced
by a restaurant if a customer leaves without being served due to non-
availability of prepared food than the restaurant overproducing the food in
the first place. This mismatch of expected profits between overproducing
the food and not having enough food for the customers is also noted by
Stuart (2009). Similarly, insufficiency or non-availability of demanded food
reflects badly on the restaurant reputation and is thought to hinder sub-
sequent visits by the same customer.
From our interviews, we also found out that many restaurants had pay
back deals in place with many of their suppliers who would replace expired
items in restaurant stock and inventory with new ones every month. This was
especially the case with juices and canned goods and drinks. As such, many
restaurants do not prioritize the use of products which have an early expiry
date because expired products would be replaced by their suppliers.
However, this does not apply to supplies of meat, dairy, and vegetables,
which are purchased on a day-to-day basis. Restaurants have their own
SOP for the disposal of meat and dairy products. Usually such procedures
require the restaurants to dump all such products after 24–36 h. This con-
tributes to a lot of waste, according to our interviewees.
30
25
20
Restaurants
Number of
15
10
0
Demand Forecast Trainings Storage Diff Sized Portions
Prevention Method
100%
4% 5% 8% 5%
90% 10%
21% 14% 16%
80%
15%
7%
70%
29%
% of Restaurants
60%
50%
54%
40%
70% 71%
30%
50%
20%
10% 21%
0%
Across High End Across Medium End Across Low End Across Sample
sample have their own staff kitchens which produce food for them on a
regular basis, whereas low-end and medium-end restaurants do not have that
luxury owing to cost constraints.
During interviews, we also inquired as to how restaurants separate or track
their food waste and make it efficient for consumption. We found that a
majority of the restaurants just had a separate food waste bin as a primary
source of food waste separation. Three of high-end respondents had saving
counters installed. Saving counters are specially designated places in a restau-
rant where all the food left from plates and buffet trays goes before it is
trashed. At these counters personnel may take usable food before emptying
the trays and plates in the trash. Lastly it was observed that none of the
restaurants use any software or app to separate and track food waste.
100% 3% 6%
90% 20%
28%
80%
33%
70%
% of Restaurants
60% 12%
60% 4%
50%
40%
10% 28%
0% 2%
Across High End Across Med End Across Low End
30
25
20
Restaurants
Number of
15
10
0
NGOS Orphanages Slums Schools/Madrassas
Donation Avenues
of the said institutions sold the food donations to low quality food stalls and
restaurants for a profit.
Finally, to the question about where restaurants are most likely to make
food donations, we found that a majority of the restaurants preferred to give
it to homes for the aged and orphanages followed by established NGO’s and
self-identified slums. Public schools and madrasas were the last resort. The
detailed statistics are shown in figure 6.
Food recycling is an avenue which has not yet been fully explored in Pakistan,
and our results corroborate this fact as only six of 58 restaurants engage in food
recycling. Those who do sell their food waste to poultry farms and zoos as animal
feed. It is no surprise that only high-end restaurants engaged in food recycling,
as one of our interview respondents suggested that selling to zoos and farms is
only worthwhile when you have an ample amount of food leftover.
Policy recommendations
The food industry in Pakistan is growing rapidly. Memon (2016) claims that
fast food is the second largest industry in Pakistan. The boom in the restaurant
industry can also be confirmed by the fact that FoodPanda, which is a food
delivery application, generated an additional PKR 1 billion in the FY 2016. In a
country where the gap between the under-fed and the over-fed is increasing
rapidly, thousands of tons of food is wasted every day at different levels of the
supply chain. There is no government body addressing this problem, which is
why it is becoming more challenging. Currently there is no law regarding food
waste in Pakistan. Also, there is no authority in Pakistan that is responsible for
checking on these restaurants with respect to food waste.
We now examine two policy approaches used around the globe that are
aimed at combating food waste: negative sanctions and positive sanctions.
Negative sanctions
Negative sanctions primarily comprise of imposition of fines and taxes on
those enterprises or individuals who are responsible for food waste.
Imposition of fines and taxes is a possible way to regulate the restaurants
and grocery stores to donate their leftover food to charities and community
centers. In this way, the restaurants will become conscious since the industry
is already very competitive and no business would like to bear any extra cost.
Additionally, imposition of fines would also affect the restaurant’s image, and
hence, its clientele. Such models are already in place in many European
nations like Italy and France. In France, any store larger than 4,000 square
feet would have to give away its edible food for human or animal consump-
tion; otherwise they would be liable to heavy fines. Hence it becomes
imperative for the store to sign a contract with a charity organization or
JOURNAL OF FOOD PRODUCTS MARKETING 605
face a penalty of nearly €3,750 (Chrisafis, 2016). However, one also needs to
be mindful of such policies since they involve regular enforcement and
incentivize restaurants to under-report or hide the amount of food waste.
Positive sanctions
Positive sanctions mostly include incentives to motivate restaurants and gro-
cery stores to donate more of their excess food. Incentives may include
addressing liability concerns. Given that this was reported as the universal
obstacle by the survey participants, this area needs special attention. In the
USA, the Emerson Good Samaritan Food Donation Act provides that as long
as certain requirements are met and if a food donation later causes an injury,
the donor will not be held liable for that injury. The donor may be liable only
for acts constituting gross negligence or for intentional misconduct. The
requirements that must be met are (1) the donated food must be either an
“apparently wholesome food” or an “apparently fit grocery product”; (2) the
donor must donate the items in good faith; (3) the donation must be made to a
nonprofit organization; and (4) the nonprofit organization must distribute the
donated items to needy individuals. This act to take away liability of any
consequence of the donation from the donor has increased food donations
in the recent years in USA (Roberts, 2016). Reiterating, liability issues were the
primary concern of restaurants across all categories before making a donation.
As such a law addressing this can go a long way in increasing food donations
in Pakistan as well. This would also be helpful in avoiding undue litigation in a
country where legal process is both expensive and cumbersome.
Incentivizing restaurants with tax rebates may encourage restaurants to
give away their excess food to the needy and is popular in the West,
especially in the USA. Organizations like GoCopia have emerged that
specialize in collecting excess food from restaurants and issuing them tax
rebate certificates in return, which the restaurants could then use to offset
some of the cost that comes with donating food. This might be a good
strategy for the Pakistani context too, since our study found that cost
constraints were the second most important barrier in food donation for
low-end and medium-end restaurants. However, the government will have
to devise a mechanism through which they can check the transparency of
the channel. Some restaurants might fabricate or overstate the amount in
order to get tax rebates. Another issue is that since Pakistan already has a
low tax base, the introduction of tax rebates would become an extra cost for
the country. However, a major problem with introducing such laws is that
food which is unfit for human consumption might be supplied in the
market. The government will need quality control teams, through which
they are able to ensure that businesses are not misusing the situation, in
order to avoid fines or gain tax rebate.
606 M. AAMIR ET AL.
While framing laws and procedures on food waste and its disposal,
Pakistani authorities may benefit from a recent set of international standards
developed for measuring food waste (WRI, 2016). Adopting such standards
and promoting procedures based on this across the restaurant sector could be
an important measure of policy design in case of Pakistan.
Conclusion
The problem of food waste is huge in Pakistan. However, despite the scale of the
problem, it is rarely given its due share of thought. This study is an attempt to
not only highlight the extent of the problem of food waste in Pakistan but also to
provide an understanding of the reasons causing food waste and its possible
solutions. Focusing on restaurants across Lahore only, we see that the lack of
awareness of this issue is evidenced by the fact that almost none of the surveyed
restaurants have any mechanism in place to quantify their food waste. Moreover,
we also found that reasons for food waste and potential strategies employed by
the restaurant owner to prevent, channelize, or recycle food varies with the
restaurant’s clientele (high-end, medium-end, or low-end). Effective demand
forecasting was seen as the best way to reduce food waste across restaurants,
whereas overproduction and plate waste by customers was found out to be the
major contributors toward food waste. Lastly, we found that barriers to food
donation such as liability concerns and cost constraints seriously hinder the
donation process. Policy measures such as incentivizing donation through tax
rebates or introducing laws that ease the liability concerns of restaurant can go a
long way into effective channelization of excess food.
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10. Rank in ascending order, the days in which your face most food excess and waste?
□ Monday
□ Tuesday
□ Wednesday
□ Thursday
□ Friday
□ Saturday
□ Sunday
11. Does Ramadan season entail more food waste than average?
12. On average during which months do you feel there is more food waste in your restaurant?
Rank from 1 to 4 (1 being least 4 being most)
□ Jan–Mar
□ April–June
□ July–Sep
□ Oct–Dec
17. Rate your restaurants interest in participating in an established food donation program
□ No Interest
□ Low interest
□ Mod interest
□ Very interested
□ Don’t know
□ Already participate