Food waste is one of the most pressing obstacles in the hospitality industry, with the UAE having one of the highest per capita amounts of food waste yearly — around 224 kg. This is further highlighted by the United Nations’ 2030 Sustainable Development Goals (SDGs), which advocate for innovative solutions in the food tech industry to combat food waste globally. These solutions aim to embrace sustainability in operations while maintaining profitability — that’s the bottom line.
Initiatives like the “$2M Global FoodTech Challenge,” presented at the Clinton Global Initiative 2024 Annual Meeting during the UN General Assembly, showcase the urgency of this difficulty and embrace innovation from market players. For instance, St. Regis Abu Dhabi recently demonstrated that strategic food waste reduction can yield financial benefits, saving nearly Dh500,000 in six months. As the UAE’s restaurant sector rises to meet this issue, a question emerges: What are the most effective strategies to minimise food waste?
Overstock prevention using AI technologies
Overstocking, a common challenge in the restaurant industry, occurs when establishments need more resources beyond their demand. Striking the right balance is essential, as excessive inventory can result in food waste, increased food costs without corresponding sales growth, and overcrowded storage spaces. Effective restaurant management requires optimising the Cost of Goods Sold (COGS) while maintaining a great dining experience. To address these challenges, restaurants are turning to artificial intelligence (AI) solutions.
Modern AI technologies offer several advantages for preventing overstocking. For instance, real-time inventory tracking systems, such as those provided by Syrve MENA, offer up-to-the-minute data on stock levels, helping managers make informed decisions. AI algorithms also enable optimal inventory planning by analysing historical data and trends to ensure sufficient supply.
Automated ordering, supported by accurate AI forecasts, further reduces the risk of overstocking. In fact, over 60% of Middle Eastern restaurants leverage AI for sales estimates, a revolutionary feature in today’s market. Additionally, AI-driven systems can calculate precise ingredient measurements needed for each dish. This level of accuracy minimises waste and provides valuable insights into yield percentages, allowing for more efficient use of resources.
Minimising what’s thrown away
Restaurants invest a significant portion of their capital in inventory, which impacts costs and revenue and raises environmental concerns. The Food and Agriculture Organization (FAO) estimates that food waste costs the global economy nearly $1 trillion annually, underscoring the urgency of addressing the problem. Several factors contribute to this issue, including inefficient stock management, missed expiration dates, and a need for real-time waste tracking. So, what can we do about this?
One practical approach is implementing inventory checks and tracking systems. These measures help prevent over-ordering and ensure that ingredients are used before expiration. For instance, Lowe in Dubai has adopted a Michelin Green Star approach, focusing on nose-to-tail dining and avoiding single-use plastics to reduce waste and promote sustainability.
Waste recording is another powerful tool for recording better insights into problem areas, allowing creative repurposing of ingredients and ensuring minimal discarding. This level of control over waste can significantly improve efficiency and profitability. According to Sant’Anna School Management Institute research, one-third of restaurants implemented waste prevention and efficient food production to manage food waste.
Another effective yet simple strategy is portion control. Offering smaller portions and providing take-home containers for unfinished meals can significantly reduce plate waste. As a vivid example, the FoodKarma app partners with restaurants and cafés across Dubai to connect them with eco-conscious foodies, helping to reduce food waste by offering surplus food at discounted prices. Furthermore, sustainability-focused procurement is gaining traction. BOCA in Dubai exemplifies this by sourcing eco-friendly catering supplies and selecting wines with environmentally solid credentials.
Eliminating overproduction
What would happen if ingredients were prepped but never used? A substantial amount of unused ingredients would simply be disposed of. If production consistently exceeds demand, resulting in a surplus of unsold or uneaten food, it’s a clear sign that forecasting isn’t practical.
Implementing inventory tracking and demand forecasting is one effective way to tackle this. For instance, Syrve MENA’s AI generates automatic sales forecasts with 95–98% accuracy based on comprehensive sales data. In terms of technology, integrated order channels streamline supply chains, while data analytics offer insights for fine-tuning operations.
Shelf-life control is also key to eliminating overproduction. It helps track pre-cooked items, ensuring only the necessary quantity is prepared, reducing waste, and maintaining fresh food quality. For example, Syrve MENA’s software tags each item individually, logs its expiration date and sends notifications when it’s nearing its shelf life. Thus, businesses can analyse food usage and waste trends, helping them make more informed decisions about purchasing and production.
Understanding shrinkages and shortages
In the food industry, shrinkages and shortages pose serious problems, leading to higher day-to-day expenditures, disruptions, and lost revenue. For instance, the UAE imports over 90% of its food, making it vulnerable to global supply chain disruptions. However, the country avoided significant food shortages by leveraging its advanced logistics infrastructure and strategic food reserves.
To solve these issues, restaurants often use inventory control systems to track discrepancies and food quantities. With a real-time view of your inventory position, the integrated forecasting feature in your system allows you to track events such as sales data, stock checks, wastage, shipment acceptance, transfers, and batch production. As a vivid example, the UAE’s National Food Security Strategy 2051 aims to enhance local food production through advanced farming techniques like hydroponics and vertical farming, which help mitigate the impact of global supply chain disruptions.
Minimising mistakes
In the fast-paced world of restaurant management, data consistency and communication often lead to oversights and errors. These issues can significantly impact orders, inventory, and financial information crucial for informed decision-making. Restaurants implement various strategies and technologies to address these challenges and improve data reliability.
So, what are the ways to make data more reliable? Centralised inventory management has emerged as a critical solution for streamlining stock control and reducing errors. At the same time, adopting digital ordering systems can eliminate handwritten mistakes, ensure clear communication between staff, and improve overall operational accuracy.
Automated prep plans and integrated scales are crucial in maintaining precise portion sizes in the kitchen. This technology reduces waste and ensures consistency in inventory levels and food quality. Similarly, real-time inventory tracking across multiple locations gives restaurants enhanced visibility and control, helping prevent costly mistakes.
In addition, quickly identifying and correcting inventory errors ensures accurate stock data, reduces discrepancies, and improves efficiency. For instance, Carrefour has implemented such systems in its in-store restaurants, allowing it to monitor stock levels accurately and predict future needs.
Wrapping Up
UAE restaurants are pioneering transformative solutions through AI forecasting, smart analytics, and innovative waste reduction strategies. These technological advancements yield tangible results: reduced operational costs, enhanced resource efficiency, and a significant decrease in environmental impact.
As the food tech sector continues to evolve, UAE’s leadership in sustainable restaurant practices serves as a compelling blueprint for global adoption.
