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In the foodservice industry, where customer interactions are frequent and impactful, transparency in corporate social responsibility (CSR) is crucial for building trust and upholding brand integrity. In this exclusive interview, Maximilien Pellegrini, chairman and CEO of Elior North America, sheds light on the importance of CSR transparency and innovation in this sector.

Maximilien Pellegrini

Why is CSR transparency particularly important in the foodservice industry? 


CSR transparency is critical in the foodservice industry due to its direct impact on consumer and stakeholder trust and brand reputation. With close interactions between foodservice providers and customers, transparency about practices like sustainability and ethical sourcing is essential to establish and maintain a brand’s integrity. 


Expectations for more detailed disclosures about sustainability efforts and ethical practices, and a consistent, proactive reporting cadence help to demonstrate a brand’s integrity and build consumer trust. All B2B and B2C consumers are looking for transparency and keeping an eye out for signs of greenwashing. Brands are anticipated to maintain higher standards of accountability and openly share their progress as well as their challenges. 


To improve transparency, foodservice companies should plan to invest in comprehensive reporting systems that provide clean data, collaborate with industry partners to find collective solutions to improve food systems and engage in regular stakeholder communication through accessible ingredient information, detailed sustainability reports and online updates. Effective storytelling includes transparent details and a genuine voice to establish trust in your brand. 


What are some innovative CSR practices being adopted in the foodservice industry? 


The foodservice industry is adopting zero-waste kitchens, a culinary focus on low-carbon foods, behavioural science to encourage customer adoption and more circular economy principles. There are growing trends toward integrating circular economy practices in restaurants and foodservice companies, such as moving to more responsible packaging; redirecting surplus away from landfills through donation or local compost efforts and supporting regenerative farming methods. Chefs are rethinking how they work with ingredients to eliminate food waste, using more root-to-tip methods of preparation and highlighting creative ways to transform food surplus. 


Consumers also want to make more sustainable food choices and foodservice companies can help by making it easy to do so by eliminating plastics and packaging with 'forever' chemicals in favour of reusable, biodegradable or compostable packaging. 


Brands may invest in zero-waste technologies and engage chefs to break away from some traditional preparation methods and structured menus in favour of those that allow for the creative use of surplus food.


There is also a growing focus on carbon-friendly menus that feature more plant-based proteins and reduce heavy portions of meats and dairy products. We have partnered with the World Research Institute’s Cool Foods team to utilise behavioural science marketing techniques that better appeal to guests to make more sustainable choices without sacrificing flavour. 


How has the role of CSR in the foodservice sector evolved over the past decade? 


CSR has shifted from a peripheral concern to a central element of business strategy. Initially focused on basic compliance, it has evolved to emphasise proactive sustainability and ethical practices. Expectations have moved from mere compliance to ambitious goals for environmental stewardship and community engagement. No longer a 'nice-to-have' feature, companies are seriously taking their role in creating a more sustainable future, setting more rigorous targets and integrating CSR into their core strategies. 


Beyond internal practices, companies are collaborating with industry colleagues and NGOs to find collective solutions that will impact food systems overall. They are implementing comprehensive sustainability programmes, investing in systems supporting data management, engaging in community outreach, and aligning CSR goals with broader business objectives to drive long-term value. 


How can foodservice companies ensure their practices are environmentally sustainable? 


Utilising third-party assessments provides unbiased evaluations of sustainability initiatives, ensuring the credibility of environmental claims and building consumer trust. These assessments also help identify areas for improvement. Meanwhile, implementing energy-efficient technologies, such as energy-saving appliances and renewable energy sources, optimises energy use and reduces waste. Some suppliers are beginning to employ technology like blockchain for tracking ingredient sourcing. 


Initiatives that companies can implement include identifying the appropriate third-party assessments that apply to your line of business and are credible to your customer base. We use Ecovadis to align with and support our clients’ sustainability goals. Investing in LED lighting and high-efficiency kitchen appliances and employing water recycling systems also help ensure strong environmental sustainability efforts. Lastly, companies like ours can encourage suppliers to partner with tech firms to implement blockchain solutions that enhance supply chain transparency and support sustainability goals.


What steps can foodservice businesses take to reduce food waste? 


Reducing food waste involves implementing precise inventory management, staff training on efficient food handling and establishing partnerships for surplus food distribution. Technology and innovation play a role in waste reduction with tracking tools to analyse and address waste patterns. Implementing smart kitchen equipment and data-driven tools for accurate demand forecasting, portioning and inventory control helps monitor and reduce waste effectively.


A way to reduce foodwaste includes effective menu planning and food preparation methods that focus on seasonal ingredients to align with available local produce and use all item parts. Developing flexible recipes that utilise common ingredients and stems, peels and 'ugly' produce helps reduce excess and avoid waste. Staff training is also essential for effective waste reduction – educating staff on best practices and tracking helps identify and address areas where food waste can be minimised. 


Something else to consider is customer engagement – it involves communicating portion sizes and offering customisation options to match customer preferences and encouraging feedback on menu options and portion sizes can help refine offerings and reduce waste. Donation and recovery strategies include partnering with local organisations to donate surplus food and collaborating with food recovery networks to redirect excess to those in need. 


Many companies like ours are utilising food waste awareness programmes and advanced waste-tracking systems that connect with menu software to identify waste patterns, providing staff with training on portion control and waste management. To redirect food surplus, foodservice companies can partner with connective organisations like Food Rescue US to coordinate food donations with local resources, or Too Good To Go to offer reduced price incentives on high-quality restaurant meals.



How is technology helping foodservice companies meet their CSR goals? 


Technology is crucial in advancing CSR goals by optimising supply chain logistics, monitoring resource use and enhancing traceability. By integrating technology, foodservice companies can make data-driven decisions that support their CSR objectives and demonstrate their commitment to social and environmental responsibility.


Key technological advancements contributing to CSR in foodservice include advanced waste-tracking systems that connect with menu software to identify waste patterns, providing staff with training on portion control and waste management; supply chain transparency tools such as blockchain and other tracking technologies that provide real-time visibility into sourcing and production processes; AI and machine learning tools that support inventory management by predicting demand more accurately and reducing overstocking and waste.


What are the benefits of having a strong CSR strategy for a foodservice company? 


A strong CSR strategy enhances brand reputation, strengthens stakeholder relationships and leads to operational efficiencies and cost savings. Advantages of a strong strategy include an improved brand image, increased customer loyalty, better relationships with suppliers and investors and reduced operational costs through efficiency improvements. Companies with strong CSR strategies have seen enhanced market positioning, greater customer retention and significant cost savings from reduced waste and energy use. 


What challenges do foodservice companies typically face when implementing CSR initiatives, and how can they overcome them? 


Some challenges foodservice companies face include high upfront costs, resistance to change and difficulties in measuring impact. In the foodservice industry, we also face environmental challenges on food supply that can affect progress such as livestock diseases that reduce supply of higher welfare animal products and weather-related impacts on produce. Taking a phased implementation to manage costs and allowing time to budget ahead for higher investments.


Developing partnerships with subject matter expert organisations will help establish credibility in the approach and investing in change management techniques and employee training will help to address resistance. Additionally, keeping a close eye on the supply chain and partnering with producers to help anticipate environmental challenges, then using menu engineering to shift purchases to help mitigate any negative impacts they have on your progress. 


Companies are starting with pilot programmes on a smaller scale to demonstrate value and forecast the impact – starting with a few kitchens, on-site teams can test new programmes for feasibility and any potential ROI; team members and clients need to understand and align to the 'why' of your new efforts, so providing comprehensive training and support and employing appropriate and effective change management techniques have been critical to gain adoption towards new CSR goals. Establishing a collaborative team within the organisation of culinary, procurement, sustainability and operations leaders has helped us to monitor and proactively identify ways to engineer menus in times of product shortages. 


What are the key elements of a successful CSR strategy in the foodservice industry? 


A successful CSR strategy includes clear and measurable goals, alignment with core business values, a willingness to invest in your programme and effective, transparent stakeholder engagement. You must define specific, achievable objectives and establish key performance indicators (KPIs) to track progress. Aligning CSR initiatives with core business values is also critical. CSR goals should reflect a company’s mission, vision, and values, ensuring consistency between operations and strategic objectives. It’s also vital to consider the values and expectations of our stakeholders to maintain alignment and relevance. 


Committing adequate financial, human and technological resources to support initiatives is also key. As business leaders, we must recognise that effective CSR requires a long-term commitment and careful budget planning to cover implementation and monitoring costs. It’s important to maintain open communication with stakeholders and provide regular updates and opportunities for feedback. Transparency about CSR goals, progress and challenges builds trust and strengthens collaboration, ensuring that a CSR strategy is both impactful and aligned with broader business objectives. 


To develop a successful  CSR strategy, companies need to ensure that CSR goals are directly linked to the company’s mission, vision and strategic objectives by incorporating them into the overall business strategy and decision-making processes. Additionally, regular reviews are essential to ensure a brand stays on course and can make necessary adjustments based on performance data to drive continuous improvement. Lastly, a well-planned annual report with a regular cadence of updates is the best way to update stakeholders regularly. At Elior North America, we set time-bound roadmaps toward specific goals, and include key storytelling elements to enhance core data points, giving relevant examples of the efforts in action. 



What future trends do you see in CSR for the foodservice industry? 


Future trends in CSR for the foodservice industry include a stronger focus on climate action, advanced technologies for waste and resource management, and increased attention to social equity. The adoption of science-based targets for carbon reduction will continue to increase across the board. 


There will be a growing demand for practices that reduce carbon footprints and promote environmental stewardship, influencing companies to adopt more sustainable operations and reduce waste. Also, the use of AI for predictive waste management, and an emphasis on fair labour practices and community impact. 


Foodservice companies can take several actions to position themselves as leaders in the evolving CSR landscape: 


  • Set ambitious climate goals and invest in emerging technologies for data management, waste and resource management and reporting to help monitor and enhance CSR efforts effectively 

  • Lean into carbon-positive menus and other features that will help customers know they are making a positive sustainable impact with their meal 

  • Implement robust supply chain transparency tools and develop strategies and roadmaps to address social equity issues, focusing on purchasing products and choosing partners that support the ethical treatment of people, the land, and animals.


#EliorNorthAmerica #CSR #interview

Interview: Navigating CSR in foodservice

Rafaela Sousa

6 August 2024

Interview: Navigating CSR in foodservice

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