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9 Ways to Manage Food Waste in Your QSR and Boost Profits

June 20, 2023

Izzy Esber

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Math can be complicated, but this math is simple: Less restaurant food waste = more money on your bottom line. In the U.S., restaurant food waste costs the industry about $162 billion annually (ReFED). For quick-service restaurants (QSRs), where profit margins are already tight, even small improvements can lead to hundreds of thousands of dollars in annual savings.

But how do you tackle restaurant food waste? And is it really worth the investment? Short answer: Yes. Long answer? Let’s dive in.

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The High Cost of Food Waste

Every industry is facing inflationary pressure, and food prices have surged accordingly. The average QSR spends 20-40% of its revenue on food costs (National Restaurant Association), and up to 10% of that food is wasted (FoodPrint). That means for every $100,000 spent on food, up to $10,000 goes straight into the trash.

Beyond financial losses, food waste also has an environmental cost. According to the EPA, U.S. food waste contributes 170 million metric tons of CO2 equivalent emissions annually—the same as 42 coal-fired power plants (EPA). Managing food waste isn’t just about saving money—it’s about sustainability.

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Types of Restaurant Food Waste

To effectively reduce waste, you need to understand where it’s happening. In a QSR, food waste falls into two main categories:

Pre-Consumer Waste: This happens before food reaches the customer. Examples include expired ingredients, improperly stored food, and mistakes in preparation (e.g., burned burger patties or cold coffee dumped).
Post-Consumer Waste: This occurs after food reaches the customer. Diners leave up to 17% of their meals uneaten (NRDC). Over-portioning is a leading cause of post-consumer waste.

Understanding these distinctions helps pinpoint solutions that address each type effectively.

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‍9 Ways to Reduce Food Waste in Your QSR

1. Conduct a Food Waste Audit

‍If you don’t measure it, you can’t fix it. Conducting a food waste audit helps identify problem areas. Track waste by category (pre- vs. post-consumer), time of day, and reason (e.g., order errors, spoilage).

• Use POS data to track voids, discounts, and refunds that signal food waste (Toast).

‍2. Improve Order Accuracy

‍Incorrect orders = wasted food. Repeating orders back to customers and using digital order screens for staff can reduce mistakes and improve customer satisfaction.

‍3. Optimize Portion Sizes

‍Are customers consistently leaving half their fries? Over-portioning contributes significantly to waste. Gradual reductions—while maintaining perceived value—can save thousands annually.

‍4. Store Food Properly

‍Improper storage is a leading cause of pre-consumer waste. Implement FIFO (First In, First Out) inventory rotation, regularly check fridge/freezer temperatures, and use expiration date labeling to prevent spoilage.

‍5. Reduce Theft and Fraud

‍Employee theft accounts for 4% of total restaurant sales, costing the industry $3-6 billion annually (National Restaurant Association). Using AI-powered loss prevention technology can help detect unauthorized food consumption and improper transactions.

‍6. Leverage Technology for Food Waste Monitoring

AI-driven video and POS integration, like DTiQ’s solutions, provide real-time insights into food waste patterns. Businesses using smart monitoring have reduced food waste by up to 25% annually.

‍7. Implement Staff Meals

‍Offering structured staff meals helps utilize ingredients that might otherwise go to waste. Provide limited meal choices based on surplus inventory to maximize efficiency.

‍8. Revisit Waste Metrics Regularly

‍Food waste strategies should evolve. Regularly analyze data, adjust inventory orders, and refine preparation processes to align with customer demand.

‍9. Engage in Gamification & Incentives

‍Incentivize waste reduction by ranking locations based on efficiency metrics. Recognizing top-performing stores and teams encourages accountability and improvement.

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‍Don't Wait To Reduce Food Waste and Increase Profits

‍With tightening QSR margins, reducing food waste is one of the most cost-effective ways to boost profitability. Small adjustments—like optimizing portion sizes, improving order accuracy, and leveraging technology—can lead to significant savings.

DTiQ’s intelligent monitoring solutions can help reduce food waste by up to 25% while improving order accuracy, loss prevention, and efficiency.

9 Ways to Manage Food Waste in Your QSR and Boost Profits

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