New research shows that despite economic uncertainty and pressures on consumer spending, when it comes to eating out, consumers are willing to pay a premium for sustainability, with 37% prepared to spend more than they usually would on a brand or product with strong green credentials. With operators looking for ways to drive footfall and boost revenue, the research is a timely reminder of the value of good sustainability practice and the size of the prize for brands who demonstrate it.
The report from leading foodservice technology provider, Nutritics and hospitality data and insights consultancy CGA by NIQ, Sustainability Matters: What consumers want and how brands can respond, surveyed UK consumers to understand attitudes towards sustainability within the sector and found that a pub’s or restaurant’s poor environmental practice has a significant impact on their decision to spend time and money in them.
The latest insight reveals that consumers’ concerns about sustainability continue to grow and has become a core element of the decision-making process. Two in five (41%) consumers say they are very or quite likely to choose a pub or restaurant based on its sustainability commitments and performance. Unsurprisingly, this increases to 64% amongst 18-34-year-olds, nearly triple the figure of 22% among those aged 55+, once again highlighting how this age group are a highly stimulated by environmental issues and the importance of putting sustainability principles into action.
Encouragingly, when asked whether progress had been made by hospitality on sustainability in the last 12 months, consumers expressed they had seen change, but more is needed, with only 7% stating that they think the pubs and restaurants they use have significantly increased their commitment to sustainability over the past year. Venues will have to work hard to persuade guests of their commitment to this urgent issue. With over two-fifths (41%) of consumers saying they would like to see more carbon footprint labelling on menus, this could be an effective way for operators to show guests they care about sustainability.
Commenting on the findings Stephen Nolan, CEO of Nutritics, said;
“Our research shows that there are some great opportunities for the hospitality industry to capitalise on this demand – especially through transparent communication. Clear messaging and implementing simple eco-friendly initiatives that resonate with consumers will not only help drive eco-conscious guests to visit, but will help retain them. Brands that look to invest in understanding what sustainability practices are a priority to their customers will drive loyalty and spend over their competitors, which is key in an ever-competitive market.”
In addition to identifying consumer attitudes, the report also provides in-depth information around the big changes consumers want to see in venues.
The top priorities for action have been revealed as:
- Recycling (79%)
- Reduction of food waste (79%)
- Use of local/sustainably sourced ingredients (71%)
- Sustainable packaging (69%)
- Sustainable suppliers (66%)
Nutritics’ Sustainability Lead Dr Laura Kirwan concluded:
“The message from our report is clear – consumers still care about sustainability and this is only set to continue as younger, eco-conscious consumers start to come through the customer base. We know operators are under pressure to improve their bottom lines. Pubs, bars and restaurants that show good sustainability practice will ultimately improve brand trust and increase guest spend. Good sustainability practice is not only the ethical thing to do, it’s commercially valuable as well.”