Sustainability is more relevant for the restaurant industry than ever. Climate and environmental protection play a central role, not least due to food waste and the energy crisis. However, sustainable restaurant operations also extend to responsibility toward employees. In this article, we explain the benefits of sustainable practices in the restaurant industry and how digitalization can fuel this transformation.
(Written by Max Falkenstern and Patrick Schady. This article was originally published in German and has been updated and translated for our English-speaking audience.)
What Is Sustainability? A Definition
There are currently many different interpretations of this term. In an economic context, one of the most fitting definitions comes from the Federal Agency for Civic Education (bpb):
“Sustainability does not mean generating profits that are then funneled into environmental and social projects, but rather generating profits in an environmentally and socially responsible manner from the start.”
Source: bpb
Anyone who wants to offer future generations a sustainable, ecological, and social environment must think and act holistically.
Sustainability in the Restaurant Industry: The Current State
When it comes to sustainability, the restaurant industry is not as inactive as it might initially appear.
An increasing number of restaurants are developing a stronger environmental consciousness. In 2025, 80 restaurant businesses in Germany alone were awarded the “Green Star” by the Michelin Guide. The award highlights dining establishments with outstanding social and ecological commitments.
Since June 2026, the temporarily paused recognition lives on in the form of an editorially curated Mindful Voices concept. In addition, other initiatives and associations like Greentable e.V. award sustainable restaurants with a seal, provided they meet specific criteria based on a sustainability profile.
However, this does not take into account restaurant operations that have taken smaller (yet essential) steps toward environmentally friendly management of finite resources.
But what does sustainability in the restaurant industry actually mean?
Typical characteristics include:
- A focus on regional and seasonal cuisine, ideally organic, characterized by shorter delivery routes and a lower carbon footprint
- “Plant-based food“, i.e., offering partially or exclusively vegetarian/vegan options
- Use of eco-friendly reusable packaging systems (mandatory in Germany since 2023 for takeaway services) to minimize (plastic) waste
- Energy-efficient equipment in dining areas, kitchens, and back-of-house to reduce energy costs and optimize production
- Powering restaurant operations with green energy, ideally self-generated (e.g., rooftop solar panels)
- Printed menus using resource-friendly materials (recycled paper, animal-free inks, etc.)
- Social engagement, such as donating to non-profit organizations or providing free meals to those in need
- Employer responsibility toward staff, e.g., through fair compensation and flexible working hours
- Cultural diversity and targeted employee programs, such as integrating individuals with disabilities
It is an ambitious list, and many a restaurant operator might rightly ask: “Who is going to pay for all this?” After all, sustainable restaurant operations must at least break even.
Examples of Sustainability in the Restaurant Industry
In fact, practical examples in Germany demonstrate that sustainable restaurant concepts can succeed in the market over the long term.
- The multi-award-winning restaurant Nobelhart & Schmutzig is a frequently cited example. The team justifies three-figure prices per person for an evening with an uncompromising focus on regionality, the environment, and employee retention. Double seating is taboo, allowing guests to truly enjoy their meal throughout the evening.
- The family-run Obermühle Görlitz received the German Sustainability Award in 2025 for its consistently sustainable concept. According to the jury, the Slow Food-certified establishment goes far beyond traditional hospitality. Agriculture, brewery, bakery, pasta production, and catering for kindergartens and school kitchens—everything is produced in-house with “the highest quality” and low emissions thanks to its own hydroelectric power plant.
However, nothing lasts forever, as shown by Frea. With a unique plant-based zero-waste concept (“Full taste. Zero waste”), the trendy Berlin venue delighted guests for around six years. All food scraps were processed into soil substitute in an in-house composting machine. The fertilizer produced was then returned to regional suppliers. The two owners closed Frea in June 2025 to open the Italian restaurant Cara, citing sharply rising costs among the reasons for their decision.
Growing Environmental Awareness Among Guests and Consumers
Guest expectations are rising, as demonstrated by numerous surveys and studies:
- Nearly one in three Germans considers sustainability a key purchasing factor, according to the Global Sustainability Study 2021. In recent years, 88 percent reported placing greater emphasis on environmental consciousness when making buying decisions.
- Sustainability is particularly important to younger generations (e.g., Gen Z). This group is the most willing to pay a premium for eco-friendly practices.
- An increasing number of people value regional sourcing for food products. According to a survey by German consumer organisations, 76 percent of respondents prioritize regional origin. Restaurateurs should respond accordingly to this growing sensitivity.
- Clear rejection of takeaway packaging waste: 96 percent of consumers want less packaging waste, and more than one in two demand a ban on single-use packaging.
Sustainability is gaining momentum. If restaurateurs want to meet guest expectations in the future, implementing programs for waste reduction, energy efficiency, and sourcing regional/seasonal products will be essential over the medium to long term.
Sustainable Gastronomy in Times of Economic Crisis
However, consumer demand is closely tied to the country’s economic development.
Sustainably produced food and climate protection require investment. With an inflation rate of 2.8% (as of July 2026), many consumers are tightening their belts. The result is a level of consumer reluctance to spend not seen in years. Organic supermarkets, including Alnatura, have expressed concern.
“The organic market is currently experiencing its worst decline in 35 years.”
Alnatura, organic food retailer (2022)
With economic forecasts for the coming years remaining subdued, some are speaking of a (temporary) end to the organic boom.
Other climate-conscious concepts, such as package-free grocery stores, are also struggling. Many stores have closed, leading media to report on a widespread crisis. Plastic-free shopping is no longer a top priority for consumers as household budgets tighten.
This widespread uncertainty affects more than just supermarkets. Germans are also planning to cut back on restaurant visits. According to market research by NielsenIQ, one in three people plans to dine out less often.
One in three people wants to save money on restaurant visits.
For restaurateurs, this presents distinct operational challenges. Guest retention becomes more critical than ever.
To keep tables filled, restaurant operators must invest in targeted retention strategies to re-engage regular guests. Regulars are generally much less price-sensitive. From exclusive email discounts and loyalty programs to non-traditional offerings like cooking classes, the possibilities are extensive.
Benefits of Sustainability for Restaurants
From a positive brand image to lower operating costs, sustainability offers numerous advantages for restaurants.
Saving Energy, Reducing Costs, and Lowering Carbon Footprints
Energy consumption is a central element of sustainability. Around 80% of restaurateurs now use highly efficient, energy-saving equipment. These investments pay off, as long-term energy savings exceed initial equipment costs.
Given rising energy prices, restaurateurs are practically forced to address energy efficiency. Consulting a professional energy advisor can provide a valuable baseline analysis.
Sustainable Concepts Attract New Guests
Practically all published studies agree that younger consumers prioritize sustainability in purchasing decisions. However, environmental awareness is growing across all demographics, and demand will likely continue to rise. To attract new guests, restaurateurs should integrate sustainability into their business strategy.
Simply offering pumpkin soup or venison ragout in autumn is not enough.
Two key points to remember:
- To recall the core definition: “Think and act holistically.” From regional and seasonal dishes and sourcing ingredients from local suppliers (e.g., local farms, independent butchers, and bakeries) to a supportive working environment that resonates with guests—all measures must align seamlessly to create an authentic dining experience.
- A classic marketing rule states: “Do good and talk about it.” In short: if you operate sustainably, promote it! Leverage your available communication channels: your restaurant website, social media, and local press. Participating in initiatives like Greentable or earning trusted certifications reinforces your commitment and aids in guest and media communication.
Cost Reduction Through Waste Management
Food waste and trash reduction are major operational concerns for nearly every restaurant owner. The reason is simple: both lead to higher operating costs. Consequently, operators have a clear financial incentive to invest in waste management.
- To tackle food waste, standardized recipes and predictive purchasing are essential. Conducting a menu audit helps identify unprofitable dishes so they can be removed. A streamlined menu saves money and helps guarantee freshness.
- Platforms like Too Good To Go allow restaurateurs to sell surplus food while generating extra revenue. Major hospitality and retail chains like dean & david, Nordsee, and Edeka already use the service. Beyond supporting a good cause, it generates positive content for your social media channels.
- Opt for eco-friendly takeaway packaging made from renewable resources that can be recycled or composted. In 2023, Germany introduced a reusable container mandate. With few exceptions, restaurants offering takeaway must provide reusable packaging options and accept returns.
Sustainability in Employee Leadership
Sustainability encompasses social responsibility alongside climate protection. Sustainable leadership means viewing employees not as cheap, easily replaceable commodities, but focusing on long-term employee retention. Sustainable leadership aims to keep staff healthy, satisfied, and productive over the long run.
Severe staff shortages in hospitality demand a change in approach. Skilled workers are no longer willing to tolerate poor working conditions, such as low pay, a harsh tone, or inflexible scheduling. High employee turnover costs money and undermines business stability.
Restaurateurs must actively counteract these challenges.
Here is how you can improve working conditions:
- Fair, competitive compensation – Offering only statutory minimum wage limits your ability to attract top talent
- Non-monetary perks, such as transit subsidies and complimentary staff meals
- A structured duty roster that accounts for employee preferences
- Career advancement and professional development opportunities
- Digital tools that reduce repetitive tasks and boost floor productivity
- Opportunities for involvement, empowering employees to take ownership
Greater Sustainability Through Funding Programs
The German Federal Office for Economic Affairs and Export Control (BAFA) offers various funding opportunities:
- Energy consulting
- Vocational training
- Business consulting
In addition, KfW, Germany’s state-owned development bank, provides subsidized loans for eco-friendly investments, such as solar panel installations.
Digital Solutions Help Drive the Transformation
Transitioning to a sustainable restaurant operation can feel overwhelming. Where should you start? What are the initial steps? What investments will be required?
A central piece of the sustainability puzzle is digitalizing your restaurant. From electronic inventory tracking and reservation management to shift planning and online marketing, virtually all key processes can be managed digitally.
This offers significant benefits for restaurant businesses:
- Purchasing and actual food consumption become easier to plan and measure through digital systems. Overproduction and food waste are avoided, while optimized procurement lowers operating expenses.
- Time-consuming tasks, such as answering reservation calls by phone, can be reduced significantly with a restaurant reservation software.
- Data collected in a guest management system makes it easy to identify regular guests along with their preferences and dietary requests. This knowledge enables personalized service, fostering lasting customer relationships.
- Tools like a digital menu with online ordering allow operators to expand off-premise sales and open new revenue streams.
- Automated feedback management via post-visit emails helps restaurant owners consistently collect new positive guest reviews online, enhancing reputation and visibility.
- Improved employee satisfaction resulting from streamlined, transparent kitchen and service workflows. Automation minimizes repetitive admin tasks, giving staff more time for guests and driving higher gratuities.
- Online marketing creates new ways to reach guests: inform and excite diners with a modern restaurant website, and re-engage regulars with targeted email campaigns.
Remember:
Sustainability must break even. By digitalizing your operations, you establish the economic framework that makes sustainable restaurant operations viable.
These systems enable you to reduce operating costs and generate more revenue. At the same time, digital solutions free up valuable time for your staff to focus on hospitality—giving service teams more time for sales!
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Conclusion: Staying Competitive Through Sustainability
Sustainability is no longer just a trend in the hospitality industry. Operating sustainably will be essential for remaining competitive in the future.
Rising food and energy costs alongside labor shortages are increasing pressure on restaurant operators. Meanwhile, regulations are tightening—such as Germany’s mandatory reusable packaging policy. At the same time, guests expect eco-friendly and socially responsible practices from restaurants.
Restaurateurs should initiate this transformation early. From supplier selection and kitchen waste management to HR practices—only businesses that embed sustainability holistically into their business strategy will thrive.
The key is simply getting started: automating routine tasks through digital technology is an ideal starting point. Entry barriers and initial costs are low. Ultimately, sustainability must make financial sense for restaurants. Accurate price calculation is critical. Combined with digitalization, you will lower costs and contribute to a more sustainable future.
