Budgeting season is the most important time of year for hotel leaders. It’s when General Managers, Finance Managers, and Operations Directors step back from the day-to-day to take a strategic view. Budgets define priorities, allocate resources, and communicate leadership’s strategic intent across teams. In an environment where margins are under pressure, competition is fierce, and food prices are at record highs, every line in the budget needs to earn its place.
For most hotels, food and beverage operations represent one of the largest cost centres. Yet within that spend sits an invisible challenge: food waste. Industry research shows that up to a fifth of all food purchased never reaches the guest. For a hotel group, this can mean hundreds of thousands in lost revenue each year — costs that are rarely seen directly in the P&L but are certainly felt in profitability.
The question is not whether food waste is costing your business money — it is how much, and what you are prepared to do about it. Budgeting season is the perfect time to bring food waste reduction into the conversation. Done well, it not only improves margins but also drives efficiency, empowers teams, and strengthens sustainability performance.
Food waste is not a single problem but a combination of small inefficiencies that add up across a kitchen. Overstocked storerooms, forecasting errors, overproduction, and portioning inconsistencies all contribute. In most hotel kitchens, these losses are simply absorbed into food cost percentage. On paper, they are invisible. In practice, they erode profitability every single day.
This was the reality for DoubleTree by Hilton Putrajaya Lakeside. Despite their culinary excellence, the hotel’s buffet operations led to consistent overproduction, particularly of traditional Malaysian sweets like Kuih Lapis. Without Winnow, the team had no visibility into how much was being lost or where. Once data came in, the impact was eye-opening:
"Before we used Winnow, we didn’t realise how much food we were throwing away. Even small amounts add up to big numbers."
Similarly, at an Accor hotel in London, the team struggled to identify the sources of waste across complex operations. Their Cluster GM noted:
"Before tracking we were missing the details about where, when, and what type of waste was being generated. Decisions were based on perception, not data."
Operators understand the pressure. Rising food prices mean procurement budgets are already stretched. Fluctuating guest numbers and unpredictable events make forecasting harder. Staff turnover adds another layer of complexity. All of this makes waste not just likely, but inevitable — unless it is actively measured and managed.
When hotels take waste seriously, the benefits are felt across the operation. Less waste means lower food purchasing costs and more accurate forecasting. Teams learn to prepare the right amount of food at the right time, reducing the stress of constant firefighting and last-minute adjustments. Finance leaders gain confidence that food cost percentages are under control. General Managers see improved profitability, while chefs have the satisfaction of working in a kitchen that runs smoothly and efficiently.
Hotels can also dramatically cut costs by reducing overproduction. At Mandarin Oriental, Hong Kong, chefs discovered they were preparing the same amount of food on weekends as weekdays, despite a 30–40% drop in demand. Adjusting volumes accordingly led to a 73% reduction in food waste and over HK$375,000 in savings. Executive Sous Chef Simon Guthridge reflected:
"You might think, two or three kilos of vegetables isn’t a lot, but it builds up over a month, three months and is quite significant."
Similarly, Lisbon Marriott identified that up to 50 kilos of scrambled eggs were being wasted each week at breakfast. By switching to smaller top-up batches and matching supply more closely to demand, they reduced food waste by 50% and saved €31,000 in food costs.
Effective and creative use of trimming waste is another way of increasing profitability. Not only does this reduce waste but reduces the need to buy costly new ingredients and helps kitchens get more value from every delivery.
For example At The Lodge at Ashford Castle in Ireland, Executive Chef Jonathan Keane transformed kitchen trimmings into a standout vegetable treacle glaze for a short rib dish.
"The dish is now one of the most profitable items on the menu with incredible flavour."
Beyond cost savings, tackling waste strengthens the hotel’s sustainability story. Guests increasingly want to know that hotels are acting responsibly. Investors and corporate clients are asking tougher questions about ESG performance. Regulators are moving towards mandatory waste reporting. A proactive waste reduction strategy positions hotels not only as efficient operators but as sustainability leaders.
The challenge has always been proving the numbers. That’s why Winnow developed a Food Waste P&L Methodology. It separates the drivers of food cost variance — inflation, changes in menu mix, guest volumes, and waste itself — so operators can see exactly how much of their cost savings come from reducing waste.
With this evidence in hand, waste reduction stops being an abstract “nice to have” and becomes a strategic investment that belongs in every budget conversation.
Hotels that have adopted waste measurement technology are already seeing the results. Industry data suggests that as much as 20 percent of purchased food can go to waste, but with the right systems in place, operators can cut this dramatically. Winnow clients typically reduce food costs by between two and eight percent. Across hotels and resorts using Winnow, the average waste reduction is 42% within six months, rising to over 50% for long-term users. Immediate drops are seen once tracking begins, giving finance and operations teams an early view of progress.
At Radisson Blu Bremen food waste was cut by 60%, delivering savings of €150,000. “Avoiding food waste is not only good for your soul and the planet, but it’s also cost saving,” said General Manager Angelika Zupac. For global clients like IKEA, food waste reduction has translated into savings of more than $37m.
Budgeting season is when operators can set themselves up for success. The first step is to include food waste measurement as a line item in the budget. Without accurate measurement, waste remains hidden and unmanageable. Technology makes this possible by capturing reliable data, giving operators visibility into where and why waste is happening.
The second step is to connect waste data with financial reporting. By building KPIs such as “food cost per guest” or “waste reduction percentage” into performance management, you can link operational improvements directly to the P&L. This ensures accountability and makes savings visible to both Finance and Operations teams.
The third step is to decide how to deploy the savings. Some operators will choose to bank the improvement, boosting margins and giving the business resilience. Others may use the savings to reinvest in higher-quality produce or more innovative menu offerings, elevating guest satisfaction while maintaining costs. Both approaches are valid. The important point is that waste reduction creates the choice.
With food prices rising, guest expectations shifting, and sustainability pressure growing from investors and regulators, the case for waste reduction is stronger than ever. Budgeting season is the moment when hotels can make it a priority. By acting now, you can protect margins, run more efficient operations, and show leadership in sustainability.
At Hilton Saigon, Executive Chef Arnaud Daleau encourages others to take action now:
"Just start it. Don’t be afraid. There is no small or big step. The fact that you think about food waste means you're ready."
The bottom line is simple. Food waste is not just a kitchen problem. It is a financial and operational opportunity. For hotel operators preparing their budgets, it is one of the smartest investments you can make.
Talk to us today about embedding waste measurement into your next budget cycle.