But challenges of sustainability in the hospitality industry go far beyond customer preferences – the ongoing increase of energy costs with strict regulations regarding waste or single-use plastic force businesses to proactively adopt sustainable practices. Should they not comply, businesses risk financial penalties, reputational damage and missed opportunities to attract eco-conscious guests.
If you’re reading this, you’re in a good place. Here, at Access Hospitality, we hear these challenges directly from our clients and help them achieve their sustainability goals through our tailored solutions.
In this article, we’ll explore the key challenges facing the hospitality industry with a particular focus on how restaurants, pubs and bars can overcome them, and we’ll guide you through the digital tools that help solve sustainability challenges in hospitality.
What sustainability challenges are hospitality businesses facing today?
Let’s look at some of the key sustainability issues in the hospitality industry driven by evolving regulations, rising operational costs, shifting guest expectations and the urgent need to reduce environmental impact.
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Food waste – Hospitality alone generates around 1.1 million tonnes of food waste annually, equivalent to roughly 18% of purchases, costing a sector nearly £3.2 billion each year.
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Energy costs – Post-pandemic energy costs rose by 80% year-on-year and are still approx. 3x higher than before Covid.
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Water consumption – UK hospitality sector is one of the biggest users of water, accounting for approximately 15% of the total commercial water usage in the country.
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Supply chain issues – Restaurants and hotels face challenges sourcing sustainable ingredients due to higher costs and complex logistics, an issue particularly painful for smaller businesses without bulk-buying leverage.
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Staff retention & engagement - According to a Nutritics/CGA by NIQ survey, 76% of hospitality staff, and a striking 88% of managers, report they’d stay longer in their roles if their employer demonstrated a positive environmental impact.
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Guest expectations and behavioural change - A 2025 Sodexo survey found that 68% of UK guests actively seek out sustainable options when dining, and 56% would pay more for restaurants that prioritise environmental action.
Together, these issues paint a clear picture: sustainability in hospitality is no longer a topic operators can ignore.
Why sustainability challenges in hospitality are becoming harder to ignore
The stats we’ve collected above are pretty much self-explanatory – customers and employees alike increasingly expect businesses to go green, voting with their feet and wallets, favouring venues that take visible, measurable steps to reduce their environmental footprint. But there’s another major driver behind the urgency to act: regulation.
Current sustainability regulations for hospitality in the UK
Below is a range of new and evolving sustainability regulations in 2025, targeting waste management, resource efficiency and environmental reporting, with a strong focus on food waste, plastics, recycling and energy use.
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Regulation |
In force from |
Key requirement/risk |
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Mandatory food waste separation |
31 March 2025 |
Mandatory separation of food waste and dry recyclables; non‑compliance may trigger Environment Agency enforcement notices. |
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Single-use plastic ban |
01 October 2023 |
Prohibits plastic cutlery, plates, balloon sticks and EPS takeaway boxes. Offenders may face Trading Standards action and fines. |
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Extended Producer Responsibility (EPR) – Packaging Fees
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Data reporting 2024; full fees Oct 2025
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Operators placing >25 t of packaging on the UK market must pay the full net cost of its disposal; accurate packaging data is critical to avoid penalties.
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Deposit Return Scheme (Scotland)
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01 Oct 2025 (England/Wales planned 2027)
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20 p deposit on single‑use drinks containers; venues must provide take‑back facilities or secure a return‑point exemption.
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Streamlined Energy & Carbon Reporting (SECR) |
In force since 2019 (annual) |
Large companies must disclose energy use & carbon emissions in their directors’ report; failure may incur Companies House penalties. |
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Net‑Zero Target (UK‑wide)
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Ongoing to 2050 |
Growing expectation to track Scope 1–3 emissions; supply‑chain partners and funders increasingly demand reduction plans. |
Disclaimer: The regulatory information provided here is accurate as of June 2025. Operators should always consult official government guidance or seek legal advice for the latest updates and how specific rules apply to their business.
The rising costs of unsustainable practices in hospitality
Understanding challenges of sustainability in the hospitality industry is the first step to reducing hidden costs. Failing to comply with the latest sustainability regulations in the UK, hospitality sector exposes businesses to a range of serious risks, including financial, legal, operational and reputational consequences.
Fines for non-compliance
Those who are found to be acting outside of the disposal of waste regulations may be fined up to £50,000 or in extreme cases the offenders may be imprisoned for 12 months at the magistrates court.
Energy inefficiency
Operators that fail to invest in energy-efficient infrastructure often absorb far higher running costs. Though that’s not operator’s fault, if they wish to survive, they simply have to adapt and cut their energy costs. UK Hospitality surveyed restaurant and bar operators and 86% of them admitted they’re concerned about the energy costs and whether their venue will make it.
Excess food waste
A problem on its own, as too much food waste means more to dispose. But that waste came from somewhere – could be overproduction, portion control or lack of forecasting tools that lead to waste - and that waste costs money.
Reputational consequences
While fines and inefficiencies are easy to quantify, the damage to brand reputation can be just as costly. Sustainability is increasingly visible to guests – and 37% say they’d be less likely to return or recommend a brand if its sustainability practices disappointed them. That’s like losing one in every three guests - a risk few venues can afford to take.
Supply chain inefficiencies
Any hospitality business owner will agree that reliable, cost-effective sourcing is essential - but it’s also one of the hardest areas to get right. Limited visibility, last-minute ordering or relying on unsustainable suppliers can lead to inflated costs, stock waste and higher carbon impact – or having to source ingredients from supermarkets, which is a practice of 52% of operators affected with that issue. Without smart procurement systems in place, businesses risk losing margin on both ends: financially and environmentally.
Digital tools to help solve sustainability challenges in hospitality
With so many potential cost drains: waste, inefficiencies, non-compliance, manual processes simply aren’t enough and that’s where digital tools can help.
Trail App
This daily checklist and operational tool has so much potential when it comes to sustainability and savings. Firstly, it removes the need for paper – which we all know comes from trees and is quite costly, especially if we’re talking about multi-site operators. But it goes further.
Trail helps teams monitor fridge temperatures, log waste and prompt energy-saving actions like switching off unused equipment. It also integrates with Carbon Statement, providing weekly energy usage and carbon reporting, all to make sure venues are only using what they need.
Procure Wizard
Our purchase to pay software, Procure Wizard, is a powerful procurement platform that gives hospitality operators full visibility and control over ordering, invoicing and supplier management. With over 2500 suppliers, Procure Wizard allows businesses to centralise their purchasing, standardise their procurement processes and compare prices between suppliers to get the best deals.
At the same time, it gives operators visibility over their spending, helps avoid over-ordering and keeps waste to a minimum.
You can also add additional bolt-on modules to help with food waste and menu engineering, so that you can get your cost of sales fully under control using one easy solution.
Turn sustainability challenges into opportunities with Access Hospitality
In this article, we’ve explored the most pressing sustainability challenges facing the UK hospitality sector, from rising energy costs and food waste to shifting guest expectations and complex regulations. We’ve shown how unsustainable practices are no longer just bad for the planet - they’re bad for business. But we’ve also highlighted how powerful digital tools can turn these challenges into real opportunities to cut costs, drive efficiency and stay compliant.
If you’re serious about making progress, start by assessing your current operations:
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Are you tracking your energy usage and food waste in real time?
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Do you know where your supply chain is leaking profit or carbon?
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Are your teams equipped to follow sustainable processes day to day?
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How often do you review compliance risks or changes in legislation?
Once you’ve identified your key gaps, we’re here to help.
At Access Hospitality, we work with over 10,000 venues to build tailored sustainability strategies that work commercially and operationally. From smarter procurement to streamlined waste tracking, our tools give you the data, visibility and control to drive both profit and positive impact.
Visit our Sustainability Hub for practical resources and insights. Or if you're ready to explore how you could be making smarter, more sustainable decisions that cut costs and boost long-term profitability, speak to our friendly team today.