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Increasing Restaurant Food Donations: a Strategy for Food Waste Diversion

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Increasing Restaurant Food Donations: a Strategy for Food Waste Diversion Increasing Restaurant Food Donations: A Strategy for Food Waste Diversion Prepared for: The National Restaurant Association Prepared by: Joaquin Brahm Helen Chananie Toumil Samonte Yi Yang Sanford School of Public Policy, Duke University 201 Science Drive Durham, NC 27708 (919) 613-7401 May 2, 2014 This student presentation was prepared in 2014 in partial completion of the requirements for PUBPOL 804, a course in the Master of Public Policy Program at the Sanford School of Public Policy at Duke University. The research, analysis, policy alternatives, and recommendations contained in this report are the work of the student team that authored the report, and do not represent the official or unofficial views of the Sanford School of Public Policy or of Duke University. Without the specific permission of its authors, this report may not be used or cited for any purpose other than to inform the client organization about the subject matter. The authors relied in many instances on data provided to them by the client and related organizations and make no independent representations as to the accuracy of the data. May 2, 2014 Natalie Chadwick and Jeff Clark National Restaurant Association 1200 17th Street, NW Washington, DC 20036 RE: Increasing Restaurant Food Donations to Charities Dear Ms. Chadwick and Mr. Clark, We are pleased to submit our consulting report to the National Restaurant Association. It has been a pleasure working with both of you over the course of the semester. Thank you for graciously lending us your time and support throughout the process. Please also extend our thanks to Laura Abshire and Alyssa Prince for providing us with their valuable insights. Sincerely, Joaquin Brahm Helen Chananie Toumil Samonte Yi Yang Increasing Restaurant Food Donations: A Strategy for Food Waste Diversion Prepared for: The National Restaurant Association Prepared by: Joaquin Brahm Helen Chananie Toumil Samonte Yi Yang Sanford School of Public Policy, Duke University 201 Science Drive Durham, NC 27708 (919) 613-7401 May 2, 2014 This student presentation was prepared in 2014 in partial completion of the requirements for PUBPOL 804, a course in the Master of Public Policy Program at the Sanford School of Public Policy at Duke University. The research, analysis, policy alternatives, and recommendations contained in this report are the work of the student team that authored the report, and do not represent the official or unofficial views of the Sanford School of Public Policy or of Duke University. Without the specific permission of its authors, this report may not be used or cited for any purpose other than to inform the client organization about the subject matter. The authors relied in many instances on data provided to them by the client and related organizations and make no independent representations as to the accuracy of the data. EXECUTIVE SUMMARY Policy Question What steps can the National Restaurant Association (NRA) take to increase food donations from restaurants to charities? Problem Overview Approximately 40 percent of food produced in the United States each year ends up in landfills, negatively impacting the environment and the economy. Restaurants generate a significant portion of this food waste, with an annual average of 35 tons per full-service restaurant. This waste includes food scraps and spoiled inventory, as well as unsold food still fit for consumption. While this edible food is wasted, over 16 percent of Americans suffer from food insecurity – defined as inconsistent access to adequate food. Durham, NC, is a foodie city with more than 600 restaurants for its 250,000 residents. It serves as an ideal case study for investigating food waste and food insecurity at the local level. Durham restaurants are responsible for 50 percent of the 16,000 tons of commercial food waste generated by the city each year. Durham also suffers from food insecurity more acutely than the rest of the nation, with approximately 19.7 percent of the population hungry or at risk of hunger. Donating surplus food to the needy can minimize both food waste and food insecurity. The US EPA recommends food donations as its second most preferred method for reducing food waste. Incentives for restaurants to donate surplus food to charities include enhanced tax deductions and federal liability protection under the Bill Emerson Good Samaritan Act. Unfortunately, many restaurants do not donate surplus food because of: 1. A lack of awareness about food waste and food donation, including where and how to donate surplus food and the benefits of doing so. 2. Transaction costs, including staff time to arrange donation logistics, and capital expenditures related to storage and transportation. 3. Confusion regarding food safety, and fear of liability and bad publicity. 4. A lack of relationships, trust, and communication with food donation recipients. i Recommendations Increasing restaurant food donations will require a multi-pronged approach to engage diverse stakeholders, raise awareness, lower transaction costs and logistical barriers, and shift mindsets regarding food waste and food donation. By taking steps to empower existing food recovery organizations, the NRA can help increase rates of food donation immediately. • Recommendation 1: The NRA should support the Food Recovery Network by awarding small grants to exceptional university chapters. • Recommendation 2: The NRA should work with Food Donation Connection to increase route densities for food recovery organizations, thereby increasing volume per donation pick-up and lowering transaction costs. By taking steps to change mindsets within communities and the restaurant industry, the NRA can also help to have long-term, wide-reaching impacts on food donation. • Recommendation 3: The NRA should promote food donation to local governments as a cost-effective mechanism for achieving municipal waste diversion goals. The NRA should provide government officials with a food donation toolkit to promote food donation to restaurants and the community. • Recommendation 4: The NRA should help develop a sustainable management course for culinary schools. The course should emphasize cost savings and benefits to restaurants’ organizational culture and reputation. ii Table of Contents EXECUTIVE SUMMARY…………………………………………...………………………i INDEX OF ORGANIZATIONAL ACRONYMS……………………………………………1 INTRODUCTION………………………………..…………………………………………..2 SECTION I: STAKEHOLDER OVERVIEW………………………………..……………..6 Stakeholder 1: Food Donors…………..………….…..………………..……….....7 Stakeholder 2: Food Recovery Organizations.…………………………..……....9 Stakeholder 2: Recipient Organizations…………..……..….……..……...........11 Stakeholder 4: Government Entities……..………………………………..........12 SECTION II: FINDINGS…………………………………………………………………..13 Barriers to Increasing Restaurant Food Donations…......……………………..13 Components of Successful Food Donation Strategies...………………………16 New Hope Commons Route Density Analysis…………...………..…………...19 SECTION III: RECOMMENDATIONS AND ANALYSIS…….……………..……….....20 Recommendation 1: Build Campus Capacity for Food Recovery...………….20 Recommendation 2: Increase Route Densities.…...............................……..22 Recommendation 3: Educate Government Allies…..………………..….……..23 Recommendation 4: Train Future Chefs and Restaurant Owners…………...24 BIBLIOGRAPHY…………………………………………………………………………...25 APPENDIX I: INTERVIEWS & NEW HOPE COMMONS SURVEY LIST………...…29 APPENDIX II: CALCULATION OF TAX BENEFITS …...……….………………....….33 APPENDIX III: SUCCESSFUL FOOD DONATION PROGRAMS MATRIX…………34 APPENDIX IV: EPA FOOD RECOVERY HIERARCHY….………………………..….35 INDEX OF ORGANIZATIONAL ACRONYMS Organizations Mentioned in Report DHHS Department of Health and Human Services EPA U.S. Environmental Protection Agency FDC Food Donation Connection FRN Food Recovery Network FWRA Food Waste Reduction Alliance KAF Keep Austin Fed NCGA North Carolina General Assembly NCRLA North Carolina Restaurant and Lodging Association NRA National Restaurant Association NRDC Natural Resources Defense Council TROSA Triangle Residential Options for Substance Abusers USDA U.S. Department of Agriculture 1 INTRODUCTION Policy Question What steps can the National Restaurant Association (NRA) take to increase food donations from restaurants to charities? Problem Overview Food Waste and Food Insecurity In 2011, approximately 36 million pounds, or 40 percent, of food produced in the United States was sent to landfills.1 Restaurants contributed significantly to this total, generating an annual average of 35 tons per full-service restaurant.2 Restaurant food waste includes customers’ discarded leftovers, kitchen scraps, and spoiled inventory, as well as unsold food still fit for consumption. Food waste creates significant environmental and economic impacts. As food decomposes anaerobically in landfills, it releases methane, a potent greenhouse gas. Sending food to landfills is also wasteful of the water, energy, and financial resources used to produce it. Americans throw away the equivalent of $165 billion and 25 percent of all freshwater and 4 percent of all oil consumed in the U.S. each year, along with their food waste. 3 At the same time, about 16.4 percent of the national population –over 50 million Americans- suffered from food insecurity in 2011.4 The USDA defines food insecurity as a household-level economic and social condition of limited or uncertain access to adequate food. 5 Food insecurity can result in a state of hunger for individuals within those households. Young children in food insecure households are particularly
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