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Food waste has become a huge challenge in the United States. In 2018 alone, over 63 million tons of food waste were generated in the commercial, institutional, and residential sectors.  

And while every stage of the supply chain contributes to this issue, commercial food waste is particularly concerning, with overproduction, poor demand forecasting, and improper storage all contributing to waste. 

Studies showing food waste in numbers highlight the need to adopt more sustainable practices and improve commercial food waste disposal. What many don’t realize, though, is that improving waste disposal isn’t just an operational task—it’s an opportunity to enhance compliance, cost management, and sustainability. 

Dive into this topic with us, where we’ll discuss the different types of food waste businesses produce, disposal methods available in the commercial sector, and best practices for businesses.

Key Takeaways 

  • There are various types of food waste produced in the commercial sector, including unsold produce, leftovers, food scraps, expired products, recalled food items, by-products, and food packaging. 
  • Commercial food waste composting is a valuable waste management approach due to its ability to turn waste into a nutrient-rich soil amendment. This solution contributes to a circular economy, supports soil health, and can be sold on the market to increase a business’ profitability. 
  • The food waste hierarchy ranks food donations as a highly preferred waste reduction method due to its role in diverting food from landfills and providing food to those in need. As an added bonus, companies can receive potential food waste tax deductions for donating surplus food, making it a mutually beneficial solution. 
  • Best practices for businesses to improve sustainability include conducting regular food waste audits, partnering with a trusted food waste management company, training employees on waste management practices, optimizing inventory management, adopting advanced technologies, and more. 

What Is Commercial Food Waste Disposal? 

Commercial food waste disposal refers to the process of managing organic waste generated by businesses. From restaurants to supermarkets and offices, commercial food disposal is required for businesses of all sizes to maintain hygiene standards and ensure compliance. 

There are various steps involved in this process, including: 

  • Segregation at the source: Organic waste must first be separated from other types of waste. Businesses must have a clear process for accomplishing this, such as providing designated bins for organic materials, recyclables, and general waste. 
  • Collection: Once segregated, the waste must be stored in suitable containers to prevent leakage, odors, and pest issues. 
  • Transportation: Food waste must then be transported to a disposal or processing facility. This step must be done carefully to reduce the environmental impact of waste. 
  • Treatment: As we’ll discuss below, there are various disposal methods available, meaning the treatment process may vary depending on your unique approach. For commercial waste, composting and anaerobic digestion are among the top sustainable waste management solutions. 

Due to the numerous steps involved, compliance standards, and various options when it comes to waste management, handling large-scale food waste is a complex process that requires careful planning. To streamline efforts, businesses can partner with a waste management company for tailored solutions.  

Visual Wasted Food Scale on How to reduce the envriomental impacs of wasted food
Source: EPA

Types of Food Waste Businesses Produce 

There are various types of food waste produced in the commercial sector, meaning they can’t all fit under one category. That said, to reduce commercial food waste, we must first understand where it originates from. This includes: 

  • Unsold produce: Large quantities of fresh fruits, vegetables, and other perishable goods never reach consumers, significantly contributing to commercial food waste. This is especially evident in grocery stores, markets, and food distribution centers, where overstocking, poor demand forecasting, and unsold ugly produce are all large concerns. 
  • Leftovers: Leftovers are a big issue in catering businesses, buffets, and restaurants, often due to poor demand forecasting and overproduction. In addition to using advanced technology to improve demand forecasting, companies can donate leftovers to nonprofits to divert food from landfills and give back to their communities. 
  • Scraps: Food scraps—such as vegetable peels, bones, and eggshells—are common in food preparation processes. Businesses like restaurants and food processing plants must know how to deal with food scraps to reduce their environmental footprint.  
  • Expired products: Handling expired products is a big challenge for supermarkets, restaurants, and food producers, often caused by overstocking, which leads to food expiring before it can be sold. In addition, misunderstood expiration dates are a large concern, with the lack of federal regulations leading to confusion throughout the supply chain. For that reason, California recently passed a law requiring standardized language for date labels. However, while California’s ban on sell-by dates is a step in the right direction, more laws are required to reduce confusion and minimize waste. 
  • Recalled food items: Safety concerns like contamination or mislabeling lead to food recalls, causing food to be thrown out before it reaches consumers. While food recalls help protect public health, they contribute to waste in the commercial sector. 
  • By-products: During food production, there are various types of by-products that are often discarded, including vegetable peels, pulp from fruit, and more. However, businesses can recycle food byproducts to reduce the environmental impact of waste, with strategies including making alcohol from whey and recycling whey from cheese production
  • Food packaging: Packaging waste is also a big issue for many businesses, with soiled cardboard boxes, plastic wraps, and containers contaminated with food all contributing to waste. With the emergence of sustainable packaging, companies can reduce their environmental footprint and achieve sustainability goals. 

The Bigger Picture: Why Commercial Food Waste Disposal Matters 

Having a proper waste management strategy is crucial in increasing your business’ overall sustainability. Why? 

Because there are various consequences of improper commercial kitchen food waste disposal, including: 

  • Environmental consequences: Food waste affects the environment in multiple ways, including its role in pollution, resource depletion, and loss of biodiversity. In addition, methane emissions in landfills are a huge environmental concern, as food waste that decomposes in landfills contributes to global warming. 
  • Economic consequences: The financial consequences of food waste should not be underestimated, as they affect businesses of all sizes. In addition to losing profit on food that is produced and never consumed, there are additional costs that must be considered, including financial losses associated with the water, land, energy, and labor required to produce, transport, and store food that is wasted. Even more, improper disposal can lead to fines and damage a business’ reputation, making food waste diversion a valuable strategy that works to increase a business’ profitability. 
  • Social consequences: In the United States, more than 47 million people face food insecurity. That said, companies have the opportunity to bridge the gap between hunger and surplus food by improving donation efforts. This helps them divert food from landfills while improving their brand image—a win-win for businesses and their communities. 

Commercial Food Waste Disposal Methods 

Businesses have access to various food waste disposal methods, including: 

  • Landfilling: Despite the environmental consequences of sending waste to landfills, landfilling is still a common choice for companies due to its convenience and ability to handle large quantities of waste. The insufficient laws regulating food waste and overall lack of awareness regarding the food waste crisis also led to increased reliance on landfills. 
  • Composting: Commercial food waste composting is a valuable waste management approach due to its ability to turn waste into a nutrient-rich soil amendment. Composting food waste also contributes to a circular economy, supports soil health, and can be sold on the market to increase a business’ profitability. 
  • Anaerobic digestion: Anaerobic digestion of food waste is a process where microorganisms break down biodegradable matter in the absence of oxygen. This process creates two valuable byproducts: biogas, a renewable energy source, and digestate, a nutrient-rich material that can be used as fertilizer. This makes it a great option for businesses that generate large volumes of organic waste. 
  • Donation and redistribution: The food waste hierarchy ranks food donations as a highly preferred waste reduction method due to its role in diverting food from landfills and providing food to those in need. To encourage businesses to donate, the Bill Emerson Good Samaritan Food Donation Act protect donors from liability, provided the food is donated in good faith. Companies can also receive potential food waste tax deductions for donating surplus food, making it a mutually beneficial solution. 
  • Recycling: Food waste recycling helps businesses achieve sustainability goals, comply with regulations, and attract eco-friendly customers. The benefit of recycling is that there are various approaches available to businesses, meaning you can create a solution that’s tailored to your specific needs. Examples of commercial food waste recycling include repurposing spent grains for animal feed or using coffee grounds as compost enhancers. 

10 Best Practices for Businesses 

Food safety statistics highlight the importance of reducing waste, staying compliant, and increasing the efficiency of processes. That said, here are some best practices that businesses of all sizes should adopt to enhance internal operations: 

Infographic on the 10 Best Commercial Food Waste Disposal Practices for Businesses

1. Conducting regular food waste audits

Conducting food waste audits helps businesses understand how much waste they generate, what type of waste, and where in the supply chain it’s produced. This helps companies create better waste management strategies tailored to their specific challenges, requirements, and goals. 

2. Partner with a trusted food waste management company

To ensure compliance and streamline efforts, businesses can partner with an experienced waste management company like Shapiro. At Shapiro, we’ll create a tailored commercial food waste disposal solution that helps you achieve sustainability goals and meet industry-specific requirements. 

3. Train employees on waste management practices

Employees should receive hands-on training to ensure they prevent waste at the source, streamline internal processes, and comply with federal and local policies. 

4. Optimize inventory and supply chain management

Businesses can implement advanced inventory management systems to optimize stock levels, enhance demand forecasting, and minimize spoilage. 

5. Adjust production processes

Companies can adjust internal processes to increase efficiency and reduce food waste during preparation. This includes repurposing scraps to further divert waste from landfills. 

6. Use technology to streamline waste management

The emergence of advanced technologies has transformed waste management, helping to improve the efficiency of collection, transportation, and treatment processes. Tools like AI, IoT sensors, and waste tracking apps are especially helpful in reducing waste. 

7. Stick to food safety & storage guidelines

By following food safety guidelines, such as proper storage practices and temperature controls, your company can extend product shelf life, reduce waste, and increase profitability. 

8. Make sure you follow federal and state regulations

Staying compliant ensures you avoid fines and legal issues. However, navigating the legal landscape can be difficult, as food waste laws vary depending on where your business is located. By working with a waste management company, you can stay up to date with new requirements. 

9. Adopt circular economy practices

By keeping products and materials in circulation, your company can conserve resources and support sustainable food systems. This includes turning food waste into compost, animal feed, or bioenergy. 

10. Clean up sell-by dates

Clear and simple labeling of sell-by dates helps prevent unnecessary food disposal by reducing confusion about the actual freshness and safety of products. While there’s currently a lack of federal regulations, your company can do its part by educating consumers and implementing transparent labeling practices to minimize waste. 

3 Challenges in Commercial Food Waste Disposal 

Businesses must overcome multiple obstacles to reduce commercial food waste, including: 

  1. Logistic barriers: Limited access to composting or anaerobic digestion facilities, inadequate storage conditions, transportation delays, and infrastructure issues are all potential challenges that businesses may face. To streamline efforts and overcome logistical barriers, businesses can consider partnering with an experienced waste management company. 
  2. Financial constraints: Implementing new programs often requires an upfront investment, which can be especially difficult for smaller companies. For that reason, businesses must consider which strategy best fits their budget. For instance, while implementing an on-site composting program is a great approach, it requires space, technology, and employee training—all of which come at a cost. A more economical option would be to explore local programs or partner with a company that handles it for you. 
  3. Employee resistance: Making company-wide changes requires collaboration from everyone involved, along with in-depth training on new processes and expectations. During this transition, fostering a culture of open communication helps employees feel more comfortable giving feedback and expressing concerns. You can also consider implementing changes gradually to make the process easier for your employees. 

4 Benefits of Proper Food Waste Disposal for Businesses 

Businesses can gain multiple benefits from commercial food waste recycling, including: 

  1. Cost savings: By reducing waste, companies can use their resources more strategically, therefore minimizing financial losses. In addition, you can reduce landfill disposal fees and potentially create a new revenue stream, therefore improving overall profitability. 
  2. Compliance: One of the benefits of reducing waste and implementing innovative waste management strategies is that you can ensure compliance with changing regulations. This helps you avoid fines and mitigate potential risks. 
  3. Meet sustainability goals: Meeting corporate social responsibility goals helps businesses foster long-term success and create value for both the company and society. With proper food waste disposal, businesses can achieve short- and long-term goals and increase efficiency. 
  4. mproved reputation: Adopting more sustainable practices can help your company attract more eco-conscious customers and position itself as an industry leader, therefore strengthening your reputation. 

Conclusion 

With the commercial sector producing large quantities of waste, proper waste disposal should be a top priority for businesses of all sizes. That said, there are various ways companies can improve their sustainability, focusing on both prevention at the source and strategies like commercial food waste composting to reduce their environmental footprint. 

Since every business has unique sources and types of organic waste, goals, and industry-specific requirements, working with a food waste disposal company is key to streamlining the entire process and ensuring compliance. 

At Shapiro, we’ll work closely with you to create a tailored strategy that meets your specific needs. To learn more about our commercial food waste disposal solutions, contact us today

FAQs About Commercial Food Waste Disposal 

1. How much food is wasted by businesses?

In one year, over 63 million tons of food waste were generated across the commercial, institutional, and residential sectors in the United States. Of this, commercial food waste was a large contributor, highlighting the importance of reducing commercial food waste. 

2. What is the largest contributor to food waste?  

In the United States, consumers are the largest contributors of food waste. That said, commercial waste is also a huge concern, with overproduction, poor demand forecasting, and improper storage all contributing to waste. 

3. What is the number one cause of food waste?  

One of the main causes of food waste in the United States is consumer behavior, with over-purchasing, confusion over expiration dates, and poor storage techniques all contributing to household waste. Inefficiencies throughout the supply chain are also a large concern, with overproduction, strict sorting and grading processes, and losses during transportation all contributing to the issue. 

4. How much food is wasted by grocery stores?  

Around 40% of food waste in the United States is at the retail level. Of that, around 30% is generated at grocery stores, resulting in 9.6 billion pounds of waste per year. 

5. What is food waste management?  

Food waste management is an approach that aims to reduce and recycle food waste, with strategies that include commercial food waste composting, anaerobic digestion, donations, and turning waste into animal feed. 

6. What do companies do with leftover food? 

While landfilling is still a common commercial food waste disposal approach, there are more sustainable options available to companies, including donating, composting, anaerobic digestion, turning food waste into animal feed, and more. 


Baily Ramsey, an accomplished marketing specialist, brings a unique blend of anthropological insight and marketing finesse to the digital landscape. Specializing in educational content creation, she creates content for various industries, with a particular interest in environmental initiatives.

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