Leanpath data shows foodservice kitchens waste 5-15% of purchased food; United States foodservice businesses waste US$25B worth of food annually

For foodservice operators, managing costs has always been a balancing act—but in today’s economy, that balance is becoming harder to maintain. Rising food prices, supply chain disruptions, and inflationary pressures are already squeezing margins, and now, new tariffs on imported goods are set to make food even more expensive.

With these financial challenges looming, preventing food waste is no longer just a sustainability goal—it’s a crucial business strategy for survival.

Food waste is wasted money

According to Leanpath data, the typical foodservice kitchen wastes 5-15 percent of the food it purchases, as either kitchen waste or plate waste.

Every ingredient that gets thrown away represents lost profit. Whether it’s food that spoils before it’s used, dishes that go uneaten, or overproduction that leads to waste, those losses add up fast. In fact, foodservice businesses in the U.S. waste approximately $25 billion worth of food annually, according to ReFED. Globally, it is a $1 trillion problem.

When food costs rise, that waste becomes even more expensive. Wasting a half pan of scrambled eggs from the breakfast buffet a year ago might have cost you $8. Today it would cost you closer to $27.

The global food supply chain is already under stress, but new tariffs on key imports are expected to send prices soaring. The latest round of tariffs—imposed as part of ongoing trade disputes—will increase the global cost of imported ingredients, packaging materials, and even agricultural products that rely on global supply chains.

This means that everything from fresh produce to cooking oils, seafood, and grain-based products could see significant price hikes. For foodservice operators, that translates to higher costs, lower margins, and less room for error.

In an environment where food costs are climbing, businesses that fail to control waste will find themselves losing profits.

Reducing food waste isn’t just about being more sustainable—it’s about financial health. Here’s how a proactive approach to waste prevention can help keep your business profitable:

• Track and analyze waste data – Tracking food waste with Leanpath pinpoints problem areas so kitchens can make smart adjustments to purchasing, prep and menuing to keep that waste from reoccurring.
• Optimize inventory management – Accurate ordering and inventory tracking are more important than ever. Avoid overordering and ensure perishable items are used before they spoil. Leanpath data can show you if your inventory processes are sufficient and being followed.
• Portion control saves money – Standardized portioning ensures customers get what they need without unnecessary waste, helping you stretch expensive ingredients further. Leanpath can track plate waste, giving you insight into portioning as well as diner preferences.
• Repurpose ingredients smartly – Use every part of your ingredients. Vegetable scraps can make stocks, stale bread can become croutons, and overripe fruit can be turned into sauces or desserts. Maximizing ingredient use keeps costs down. In Leanpath, you can even track food that has been repurposed to give you a complete picture of your food waste.
• Train your team to reduce waste – Leanpath helps you create a culture of food waste prevention among your culinary team. Kitchen staff who understand proper food storage, handling, and portioning techniques can significantly cut down on unnecessary losses.

With food prices rising due to inflation, supply chain issues, and new tariffs, foodservice businesses can’t afford to ignore food waste. Every dollar lost to waste is a dollar that could be invested in labor, new equipment, or improving customer experience.

By making waste prevention a priority, operators can protect their margins, navigate economic uncertainty, and build a more resilient business. The reality is simple: reducing food waste isn’t just good for the planet—it’s essential for your bottom line.