Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies which are focused on the Fast-food quick service market have been disclosing ESG data and strategies.
The companies which fall under this segment have both social and environmental impact. As it is a segment involving food, food safety and quality has been the dominant factor in which stakeholders are giving importance. Companies offer various programs and campaigns to showcase their quality and safety throughout their value chain abiding by frameworks and guidelines. Fast food generally isn't considered to be in the category of healthy diet, there are a lot of long term and short-term negative health impacts. Managing food and package waste which are going to be landfilled or dumped into water bodies have been a critical agenda for most of the companies. Companies are also shifting to recyclable packaging and have targets to indicate their progress to attain sustainable packaging.
The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.
Main ESG trends in fast-food quick service sector has been with respect to food quality and safety (SDG 12- Responsible consumption and production) various legal bodies like Food and Drugs Association (FDA), Food Safety and Standards Authority of India (FSSAI), European Food Safety Authority (EFSA) have been framed for ensuring better quality or safer food products. The companies which are on focus have been responsible to address food quality and safety via various programs and campaigns, for example one of the companies conducts a Total Quality program which is a part of Hazard Analysis Critical Control Point as per FDA guideline which is intended to prevent hazards that might cause food borne illnesses. This measure has been analyzing every touch point from farm to fork. Food and package waste management (SDG 12- Responsible consumption and production) is also playing a vital role, as this segment has a significant environmental impact with respect to these factors. One of the companies has mentioned recycling packages at a rate of 33% for the reporting year 2020. In addition to that, restaurants recycle cooking oil and use them in all their value chain as well as more than 70% restaurants have solid waste recycling programs in place. Companies also have a harvest donation program to those who need it most, thus reducing food waste issues.
The main challenges with the fast-food Quick Service Industry have been with respect to waste management of both food and packages. Food waste is a phenomenon which, initiated from the harvesting process, uncalculated or estimated during the harvesting season could lead to huge loss of crops. Companies have started donating such excess crops after harvesting as a part of CSR activity to those who are in need. Even though this humanitarian work causes carbon footprint as well as environmental impact. Generally, fast food is an unhealthy diet, and it is inevitable due to fast moving life. Short term health impact (SDG 3 – Good Health and Wellbeing) can be blood sugar, pressure, vital food nutrient deficiencies and food poison. Long term health impact could be issues with digestion, immunity, and obesity. Fast food segment is also focusing on reducing negative health impact alongside introducing circular or recyclable packaging materials.
To sum up, Fast food has become an unavoidable part of the fast-moving life of people. These industries have become more cautious for sustainability and have been seriously accelerating their pedal to achieve on goals and abide by regulatory frameworks. In fact, the industry has been focusing on innovative procedures and initiatives to minimize food and package waste. The company had a market value at 257.19 billion in 2019 and is expected to have a compound annual growth rate of 5.1% by 2027.
• Our Recipe, LLC
• Carrols Restaurant Group, Inc.
• Yum! Brands
• Darden Concepts, Inc.
• Ark Restaurant Corp.
• DEL TACO RESTAURANT, INC.
• Restaurant Brands International Inc.
• Kotipizza Group Oyj
• Chipotle Mexican Grill
• DD IP Holder LLC
• JACK IN THE BOX INC.
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the theme, globally
• Key insights into environmental developments and ESG issues affecting the theme
• Identifying ESG risks and opportunities to business among leading players in the sector
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector
GET A FREE DEMO