Consultancy Project: Hospitality Businesses In Society Case Study

Introduction of Consultancy Project: Hospitality Businesses In Society Case Study

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1. Background of the Study

The global consumption of the coffee is more than 11 billion tonnes per year. The coffee grounds that are already utilized or used are wind up as landfill. The “distinct structural properties” of its permeable surface makes is very favourable for the assimilation of molecules that are gaseous (Jagdale et al., 2019).

There are numerous ways by which the coffee can be distinguished like rising conditions, “botanical variety”, flavoured coffee, roasted coffee, post processed coffee and so on as per Deribe (2019). According to LIVRAMENTO (2010), there are more than 1000 chemicals of the coffee that immensely relies on the physiological characteristic like maturation degree.

It can be identified that approximately; 380,000 tonnes of the brewed coffee wastages are thrown away each year as per Jagdale et al. (2019). This wastage results in causing pollution in the environment because of their large level of organic matter; “caffeine”, “free phenols”, “polyphenols” as well as acidic content as per Evrim et al. (2020). Wastage of coffee can cause a serious problem to the environment in effective manner especially in the countries like United Kingdom where the consumption of the coffee is very high.

If this the wastage of ground coffee continues then the carbon emission in the United Kingdom will rise as well affecting the millions of people living and the environmental sustainability will become more difficult to accomplish as per Shaw (2021).

According to Pirani as well as Arafat (2016), various coffee houses such as Costa Coffee, Starbucks and Caffé Nero also failed to identify the problem of heavy food wastages which can be very impactful for the environment especially with the scale at which the hospitality industry is growing in the United Kingdom.

1.2. Company Background

Caffè Nero is the United Kingdom based company and it is an “Italian influenced coffeehouse” business situated in London, England. The company was founded in the year of 1997 by a man named Gerry Ford and as of 2019, the coffeehouse is providing services and commodities in 1017 locations around the world. In the year of 2009, Caffè Nero purchased and opened the Roastery for Coffee in the area of South London that engages in supplying the coffee to all the coffee houses of Caffè Nero Internationally.

2. Aims and Objectives

Aim

This research aims to analyse and evaluate the factors and impact of the waste coffee management process (Recycling process) of Caffé Nero

Objectives

• To understand the factors that compel Caffé Nero to the implement a bio-fuel recycling scheme
• To analyse the implication of the recycling scheme on the environment on the sustainability of the supply chain management
• To identify the challenges that have faced by Caffé Nero through this recycling scheme

3. Literature Review

3.1 Impact of different factors that compels the Food Industry to make a waste management plan

According to the opinion of Nguyen (2018), Food waste should be taken more seriously than food safety and hygiene. Although hospitality organisations need to emphasize the quality of the commodities offered to customers, it is an unusual wastage to risk investing all the expenditures to continually replace obsolete manufacturing with freshly made products. It's not just good for the environment, but also good for the economy and society as a whole.

Fig: Factors that drive the food waste

(Source: Sun et al., 2022)

Food waste is a major problem in the food industry because of overproduction. Restaurant owners and chefs often stockpile and prepare large amounts of food to prevent running out of anything. Additional food waste may arise from food service firms with ambiguous food safety requirements. In that case, Shrivastava and Hart (1995) suggest that Food safety is, in reality, the number one concern of every food service company. Catering companies provide enormous amounts of food to keep labour expenses down, but often fail to realise that they are wasting both food supplies and money by discarding unfinished meals (Sun et al., 2022). The issue of food waste persists despite the government's efforts and needs support in the form of scientific knowledge of the issue, improved public identification, and "more political attention."

Food waste in the hotel business is a cause for worry, and it is also one of the most significant obstacles to the sustainability of the environment stated by Farrukh, Mathrani and Sajjad, (2022). To protect the environment, proper waste management and food waste management must be taught to the community and knowledge of the problem must be raised to educate the people. For a variety of reasons, this was an issue that was often neglected or ignored. While many managers may be concerned about it, not everyone is ready to handle it and consider its seriousness.

3.2 Challenges faced by Clients while implementing the Recycling process in the business 600

There are many different things to blame for the troubles that the customers are experiencing. According to this perspective, one of the most difficult issues in waste management is convincing people to recycle while simultaneously safeguarding them from potentially toxic elements in junk stated by Martin-Rios et al., (2018). This is one of the challenges that face those who work in the field of waste management. The Waste Framework Directive encourages recycling by forcing recyclers to identify hazardous materials that may be integrated into their products. This is done to achieve the Waste Hierarchy's stated purposes, which the directive also supports. In addition to this, they have to search for and assess significant information that already exists. As per the statement of Papargyropoulou et al., (2016), This includes inspection and control at different stages of the recycling process, as well as information on raw material products that may not be readily known to the general public or readily accessible to them. For instance, Caffe Nero has had some difficulties throughout the process of implementing its regulations surrounding the procedure for recycling while they have been working on it.

According to the assertion made, it is very challenging to provide services in an acceptable manner that has a measurable effect on the surrounding environment and that has contributed to the general contentment and joy of the community (Farrukh, Mathrani and Sajjad, 2022). In this scenario, the most important thing to do is to concentrate on the general flow of ethics in the society, and then base the policy for the whole thing on that. It is quite difficult to define the methods of the recycling process in the absence of logical thought and strategy that is strategic.

According to the assertion stated in, downcycling is another fact that is extremely important for the hotel business, which has a problem with the way that waste management is currently being handled. The term "downcycling" refers to the process by which goods or services are created from waste items, but these goods or services do not retain their quality or their availability in the broader market stated by Govindan (2022). According to the assertion stated, the management of the Company needs to be thinking about this fact, and they have a strategy in the appropriate fashion that has created a clear understanding among them of the implication of the product for the general population. As a result of analyzing the hospitality sector, it has become clear that many businesses have been forced to contend with obstacles of this kind, which have an immediate effect on the policies of the organisation. As a result, the uncertainty about the level of quality of the processes in society is a significant challenge (Molloy, Varkey and Walker, 2022). In this scenario, targeted clients or consumers are also confronted with the difficulty since they are uncertain about the quality, which has produced a grey zone in their minds and creates a circumstance in which the process is stalled.

According to the recommendation made by Aldowaish (2022), even though avoiding waste is at the pinnacle of the waste hierarchy, research that was undertaken by the European Environment Agency found that the majority of Member States do not have sufficient waste preventative measures in place. As a consequence of the interdisciplinarity of the subject matter, waste prevention has linkages to a wide range of various fields in addition to the field of waste management. Inadequate data also makes it difficult to quantify the amount of development that has been made.

As a consequence of this, businesses that recycle materials are obligated to investigate whether or not the components they utilise in their manufacturing processes pose any danger to either human or environmental health. In addition to this, they have to search for and assess significant information that already exists (Jacobs et al., 2022). This includes inspection and control at different stages of the recycling process, as well as information on raw material products that may not be readily known to the general public or readily accessible to them. As a consequence of this act, the prices of recycling may go up, firms may move their operations out of state, and the state's economy may rely more on raw materials obtained from other states.

3.3 Theoretical underpinning drew from relevant academic literature

The empirical and iterative technique was used to establish the theoretical underpinnings of the conceptual framework for the investigation into the causes of and solutions to the problem of food waste. This method included using the data collected to construct and refine the theory. It has used the constant comparative analysis technique from grounded theory. As per the opinion of Akter et al., (2022), This included continually comparing different portions of the data to allow for the creation of categories as well as the discovery of the connections between them. The categories that were generated as a consequence were later developed into more generalised concepts. A theory was developed by placing these ideas into logical frameworks and then organising the whole thing. Liu (2022) said that, As more information became available, innovative concepts began to surface, and this continued until the newly gathered information had nothing creative to contribute. This method resulted in the creation of a hypothesis that detailed how, why, and where food waste was formed, and eventually contributed to the identification of the most feasible strategies for controlling food waste.

As per the perception of Zisopoulos, Schraven and de Jong, (2022), In GT, the data gathering, refining, and classification processes each include many phases that are carried out by the researcher. The concepts of emerging, sampling techniques, and continual comparison are essential to GT. These principles are put to use in the process of developing a theory that is based on the observed data (Olujobi et al., 2022). The idea of emergence requires the researcher to address the field of study with as few preconceived assumptions as is humanly possible and to have an open mind about what the results of the experiment revealed. Theoretical sampling and ongoing comparison are two methods that may be used to achieve this.

As a consequence of this, the response that the food service sector has had to food scraps may be described by a theory of waste management called reflection-in-action. The concept of "reflection in activity" is predicated on the assumption that interpretation and behaviour are products of the reflective process itself stated by Severini et al., (2017). To be a good manager, one must be able to put their own experiences into context so that one may have a deeper understanding of the present issue and propose workable ideas. Akter et al., (2022) opined that, When such waste reduction and management approaches as awareness or reflective ways of waste management already exist, the majority of food service innovation efforts consist of reflective or trial reducing waste and management techniques.

3.4 Application of Diagnostic Tools

As per the statement of Mahmoudi and Javed (2022), The first and most important step in the self-evaluation of trash may be done at any time and does not need support from an outside source. This phase results in the generation of rubbish and needs human inspection of all hotel rooms and common areas. At this point, a move toward the efficient use of waste may be considered an option. A checklist is another tool that may be used for waste self-assessment. Nguyen (2018) stated that Tools such as the Environmental Walkthrough, which are particularly built for small-scale hotels, may be developed to provide accurate and useful information on the conservation of water, electricity, and other critical resources.

According to the statement of Kumar et al., (2022), The environmental assessment of a small hotel is a collaborative process that typically takes two to three days and involves the participation of a team consisting of two competent professionals. An extensive list of the most successful alternative practices is compiled by the knowledgeable team after they investigate all of the facilities, operating procedures, and baseline performance to do so. As part of its work, the team provides a report outlining the best practices and options for garbage reduction, restoration, recycling, and reuse, as well as a list of implementation instructions.

4. Findings

According to Jagdale et al. (2019), approximately 380,000 tonnes of the brewed coffee wastages are thrown away each year in the United Kingdom which results in approximately “quarter of a million tonnes” of coffee ground waste. Caffé Nero is also making effort and contribution in converting the coffee ground waste into biomass pellets which can be utilized to provide electricity to many homes in the United Kingdom. The company is engaging in discovering and finding new methods as well as techniques to improve the current state of the environment which is being compromised by various other factors such as pollution to the environment sustainability.

As per World Bank (2018), the world has generated over 2 billion tons of solid waste on a global scale every year and it is estimated to reach 3.4 billion tons by the year of 2050. Around 40 per cent of the wastages are disposed in the landfills in which it generates greenhouse gas emissions that are very harmful like methane which is among the major contributors in affecting the environmental sustainability (Shen et al., 2020).

According to WRAP (2013), the hospitality industry of the United Kingdom generated around 88 percent of the total wastages of the hospitality industry in the year of 2011 and these wastages also involve the coffee ground waste. In addition to that, the cost of food being wasted in the United Kingdom from the Hospitality industry of the United Kingdom is estimated at £2.5 billion/year in the year of 2011 (Parry, Bleazard and Okawa, 2015).

As per WRAP (2017), even after many efforts are being taken by the authorities, the food wastage problem is still persistent and requires assistance via understanding the problem scientifically, improvised public identification as well as “reinforced political attention”. As per FUSIONS (2016), the hospitality industry has a share of 12 per cent in terms of generating food waste, the hospitality industry is the “3^rd largest generator” of food wastage in Europe. With the time, the coffee industry in the United Kingdom is not going to stop or decline instead it is going to capture more customers or consumers in the future.

Coffee is an industry which is a “multi-billion” industry and it can be estimated that the industry will grow constantly even with the slowdowns that took place due to the arrival of deadly virus Covid-19. As per the Mordor Intelligence (2020), the Europe is among the largest coffee market in terms of having customer consumption, the industry is projected to grow at a Compound Annual Growth Rate of 4.28 percent for the year 2022-2027.

In the United Kingdom, many coffee houses or coffee companies such as Boston Tea Party, AMT Coffee, Caffè Nero are actively engaging in taking many measures to contribute to the environmental sustainability and the companies are making many measures to make use of the coffee ground waste effectively instead of letting it discarded in the landfills which can cause environmental pollution because of its organic compounds as well as toxic nature, this can even extend in threatening the environment as well as the health of the human.

In the year of 2019, the government of the United Kingdom had declared that the country and all the people living in the country must become responsible and contribute in accomplishing the various goals and objectives of reaching the “net zero emissions” by the year of 2050. As mentioned in this study that the United Kingdom produces around 500,000 tons of “coffee ground” wastages and then all the wastage wind up to many landfills. Furthermore, the coffee ground wastages are accountable for producing approximately 1.8 million tons of the carbon emissions which is equal to the overall weight of the golden gate bridge of San Francisco. One of the biggest challenges for the coffee shops is to reuse the coffee grounds instead of letting it wasted and affect the land quality. The coffee grounds can have multiple usages even after being used for making the coffee.

There are various other coffee shops in the United Kingdom that give the used coffee grounds to the consumers so that they can use for planting fertiliser. The coffee grounds are filled with rich nitrogen which can provide the favourable for nurturing the plants that are healthy and it can be utilized as a food for the plant that can aid in reducing the amount of carbon emission that is actively spreading in the environment. Just like other coffee shops, the Caffè Nero is also concentrating on reusing the coffee grounds into renewable fuel. From 122 London stores of the Caffè Nero are collaboratively engaging in creating effective planning and also for carrying the operations for recycling coffee grounds to make “low-carbon fuel”.

The company has already partnered with the “award winning clean technological company” named Bio-Bean that will help the company to collect all the coffee grounds that are wasted for utilizing these used coffee grounds in the development of advanced biofuels that can provide electricity to so many homes and it also has the capability of powering the vehicles in the future since the company is working hard to make it possible (Kim, 2017). In addition to that, Bio-Bean also helping Caffè Nero to refine the oils attained from the ground coffee wastes for creating biodiesel. 1 ton of coffee ground that is wasted can be utilized creating 245 litres of “liquid fuel” that can power 4 vehicles. The volume of ground coffee wastage that Caffè Nero do is adequate to fuel “a complete circle of the M253,686 times” (Carter, 2017).

However, it can be recognised that there are no strong challenges for the Caffè Nero can be found which can influence the decision making of the company. But from the other literature sources, it can be identified that the company can face the problem of illegal waste shipments which is among the critical problem for the United Kingdom. In the year of 2013, the European Commission approximated that 25 per cent of the “waste shipments” do not obey the regulations of the waste shipment. As per the case study of 2015 on exports of illegal wastes from the Europe, and it can be recognised that various factors impact the overall execution, inadequate information exchange with the states.

Regional as well as the local policies are going to play a big role in carrying the business operations which is to convert the used ground coffee into renewable fuels effectively as well as efficiently. The policies have a vital role in manging the waste and overall recycling. According to EEA (European Environment Agency), the national as well as the European are the ultimate drivers for the effective management of waste.

There is no denying the fact that the United Kingdom is completely dedicated to overcoming the problem of wastage that can affect the overall environmental sustainability (Kakadellis and Harris, 2020). But, as per the report of EEA, most states are lacking in following and using the effective measures for preventing the poor waste management. The Caffè Nero can face many difficulties in progressing with the new initiative of achieving the different goals and objectives for contributing to the environmental sustainability. The customers or the consumers are required to be understand and must know what are the right measures for supporting the environmental sustainability. 

Poor quality of recycle of ground coffee can also contribute in affecting the overall quality. Recycling is the process which is not about quantity instead there is a requirement of the commodities or the ground coffee being recycled in a good manner to provide the ultimate quality. Downcycling of recycling waste can be a problem for the company since it is the procedure of ruining the overall quality and make it inferior (BOURGUIGNON, 2015).

5. Recommendations

As per the above various challenges that can could be potentially faced by the Caffè Nero, it can be discovered that there no definite challenges that are being faced by the company in managing the ground coffee wastages. The company patterned with Bio-Bean for carrying the operations of converting the used ground coffee into renewable fuels and there might be various unfavourable circumstances like poor skilled employees, government policies, illegal shipments of waste management and also the low quality of recycle (Edmonds, 2017; BOURGUIGNON, 2015). The Caffè Nero can engage in making sure that the quality of the recycle is being maintained since having low recycle quality or inferior quality can affect its usability (Zaid et al., 2022). The inferior quality of the used ground coffee from the process of recycle is among the huge factor for converting into quality renewable fuel.

Caffè Nero can take it to next level by increasing the rate of recycle of ground coffee while also ensuring the quality of the used ground coffee. By increasing the rate of recycling and maintaining the quality can result in compensating the environmental impacts and it can also aid in accomplishing the different goals and objectives for contributing to environmental sustainability (Lago et al., 2020). The main reason behind the company collaborating with Bio-Bean is to ensure that the company is making difference in the environmental sustainability.

Caffè Nero can also engage in providing effective training and development to its human resource or workforce for making the whole procedure of recycling more efficient and productive. Having capable and skilled employees who can carry these business operations effectively can make the whole process faster and the company can launch this operation nationwide more efficiently and it can make the productivity more effective between Caffè Nero and Bio-Bean.

6. Action Plan

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