A circular economy creates the ultimate sustainable loop

Chantelle Nicholson, chef owner of Apricity, explains that CE is about reducing all waste to a minimum, not just food waste. She points out: "It has implications across the business, from equipment and furniture to food, to premises and also, to people, ie retention."

Implementing circular practices, as opposed to ‘take, make and discard' methods, is the single most important step governments and businesses can take to tackle global warming, says the Circularity Gap Report 2022. As the cost-of-living crisis and supply chain shortages grind on, the principles of CE are gaining greater currency.

"With energy, food and labour costs all soaring, now is the perfect time to align profitability and sustainability, by wasting less and saving more, in every sense," says Juliane Caillouette-Noble, managing director of the Sustainable Restaurant Association.

Second time lucky

When it comes to sourcing catering equipment, supply-chain uncertainty and longer waiting times for new models have made more operators turn to the second-hand market. Ramco is an organisation that helps operators buy and sell secondhand kit, with clients including Marston's, Mitchells & Butlers, Café Spice Namasté and Catercall. Ramco's business development consultant Paul Fieldhouse has noted a strong increase in demand: "The number of buyers registering for our auctions is up 200% on pre-pandemic figures," he says.

Café Spice Namasté owner Cyrus Todiwala says: "Through Ramco's service, we've been able to ensure all our unwanted equipment is given a new lease of life, significantly reducing our waste to landfill."

Phill Lewis says that most of the kitchen equipment for his fifth independent restaurant, Kindle in Cardiff, came from a local auction (see panel). Among Kindle's kitchen fit-out was a La Marzocco coffee machine bought at auction for £1,100 (compared to £11,000 new) and a Winterhalter pass-through dishwasher for £2,000 (compared to £24,000 new).

Notwithstanding such bargains there are inherent risks associated with buying at auction. But out of a large haul of equipment, only one item turned out to be faulty, says Lewis: "The auction sites have viewing days. Their commitment is they've plugged it in and it turns on. That's it. They are not going to test it. That's part of the risk."

Loopcycle is an organisation that aims to minimise such risks and combat the stigma associated with secondhand products by providing them with full digital service histories.

Commercial director Lauren Hunter says: "Secondhand can have a negative connotation. It says: ‘I couldn't afford to buy it new' but I think that's the wrong way to look at it. If a piece of equipment has got a service history, that is really helpful. People are starting to see that the circular economy doesn't have to be about a car boot sale or eBay. It can be done in a really professional manner."

Think again

How can operators embrace CE? How do we change our mindsets and not go straight to Amazon when we need something quickly? "Take a pause and see if there is another option," advises Nicholson. "Can you do without it for a while so you can work on repairing it? Can you get something second-hand? Can you adapt to do it differently, rather than just doing the norm?"

In addition to its roadmap to net zero and targets to eliminate single-use plastics, Sodexo, for example, has introduced a policy of re-surfacing chopping boards rather than replacing them entirely.

Following CE principles is not easy, Lewis acknowledges: "There are always short-cuts that are easier. And when you're busy, in the thick of it, and you're skint and can't pay your VAT bill then you might think ‘sod this.' But we don't do that, as tempting as it has been in the past."

Sacrifices and constraints can lead to higher levels of creativity: "Tom Powell, our head chef at Kindle, would really benefit from a Pacojet. Not only are they expensive, but he knows it's something we are not going to buy off-the-shelf so he will manage without it until one comes up at auction. That's just how we operate."

Powell previously worked at the Walnut Tree in Abergavenny and Ten Minutes By Tractor in Melbourne, restaurants with plenty of meat and fish on the menus. In contrast, Kindle's menu is mostly plant-based. But because Powell fully supports the CE principles that underpin Kindle's entire build and operation, he enjoys having to be creative with what he's got.

Kindle has no gas supply ("a filthy fuel") and most dishes are cooked over fire. Lewis says: "Everything that goes out has an element of fire, whether that be smoke or ash. It's a great space to get really creative with different cooking styles."

Adopting CE principles can be seen as a more rigorous, next-level step up from the sustainable operating practices that are now fairly mainstream in hospitality.

"Anyone who has an interest in sustainability is probably doing the majority of the things we do," says Lewis. "We look at what's coming in, what's going out. We've got a small kitchen garden. We are measuring waste and trying to reduce it, having conversations with our suppliers about packaging. Two or three years ago maybe that would be something different, nowadays it's become common practice."

Taking a CE approach to business means re-thinking and analysing everything you do, but it's a balancing act too, notes Nicholson: "You can't do everything at once, but bit by bit is much better than doing nothing. It is about analysing everything that comes into the operation, and everything that leaves it. Then seeing how you can improve. To give a few practical examples; can you use refillable cleaning products? Can you also minimise single-use items such as clingfilm? Can you switch to renewable energy?"

Power play

In common with many hospitality businesses in recent years, Kindle was unable to get a contract with any of the green energy suppliers because none of them were taking on new contracts: "There's only so much you can do. I think that's not a pitfall of CE but it's a reality. You can't start beating yourself up about things you can't achieve. You have to bide your time."

Soaring energy costs are, of course, a huge worry for the industry, especially for SMEs who cannot fix their prices in advance. Sub-metering and staff training are essential to track and manage energy consumption. Controlling the electricity supply at its source could be a further way to mitigate rising bills.

Voltage optimisation is a technology that adheres to CE principles. A supplier makes a survey of your business and your electricity usage and then installs an intelligent device where the mains supply enters the property that alters the voltage depending on demand.

The National Grid supplies electricity at 230 volts but lots of appliances work perfectly well, if not better, at a lower voltage. Some suppliers claim that voltage optimisation can reduce bills by up to 19%. Voltage optimisation solutions also qualify for 100% tax relief so instalment costs can be offset against corporation tax.

Software platforms can help to minimise waste too: 5-Out, for example, is a restaurant sales forecasting tool powered by artificial intelligence. It automatically ingests data not only from internal sources (POS, labour, reservations, events) but also external sources (weather, traffic, events) to accurately predict upcoming sales down to the hour. The forecasts help operators make accurate decisions regarding purchasing and staff rotas, reducing waste and saving money.

Inner circle

What are the pitfalls of adhering to the circular economy? "That it becomes too hard," says Nicholson. "Sometimes it can feel a bit insurmountable and like you're banging your head against a brick wall, but then at the end of the day, we need to find solutions as we cannot continue as we are."

The financial element of CE is a major pitfall, at least for new businesses. Kindle lost its investor while the site was being renovated.

"We could have opened the restaurant much more cheaply. At the moment people are not particularly interested in something that costs more money and isn't very easily replicable but I feel that might change. There are responsible investors out there," says Lewis.

The benefits of the CE approach include costs savings on all key elements of operations, including energy, waste disposal and supplies. Also, operators have found CE to have a positive influence on staff retention, satisfaction and morale because of the sense of purpose it creates.

Nicholson says: "Most employees have sought us out due to our ethos. We constantly chat about what we do and why we do it. We had a team day out foraging in August, where we could spend time outside the restaurant and reflect on the past few months and think about the future. We also attract guests, and brands, who want to dine with us due to our ethos. The wider benefits are that, emotively, it just feels better."

Lewis adds: "The people we've bought in know the principles. Otherwise they wouldn't work for us." Staffing, recruitment and retention should not be forgotten as important elements of a circular business. Before becoming an entrepreneur, Lewis was the head of social care for a national charity, working with the homeless and in drug and alcohol rehabilitation. He says: "We are now working with a housing association to ring-fence all new jobs that come up for people who are job-ready but who may be struggling to become included in society again.

"Staffing is worse for us than it ever has been. We can't pay the earth but we are definitely living wage employers and we don't allow anyone to work above their contract hours. We are trying to champion good employment in hospitality, not just for us but for the wider industry too."

Circular practices to reduce waste

Indian restaurant, Dishoom, was having problems with the reliability of its hot water supply. It installed two Dext heat recovery systems – one behind the robata grill and the other next to the tandoor ovens. It now has a supply of low-carbon hot water produced on-site.

Strattons, a hotel and restaurant in Norfolk, installed a water recycling system and recovered 2,000 litres of grey water per week, which is used in the garden and toilets.

Vegware manufactures a range of packaging and tableware products made out of plants. Following use, these products can be composted and turned into soil conditioner and green energy.

Hilton's Birmingham Metropole Hotel is saving more than £11,000 a year on energy costs after installing extractor fans that automatically monitor cooking activity and adjust their operation accordingly.

Nando's is using the platform Globechain to redistribute equipment and furniture to charities and communities. By listing over 6,000 items, such as chairs and tables, lighting fixtures and cooking appliances, Nando's has been able to save charities over £37,000 and prevented 82,300kg of items from being thrown away.

Dennys Brands has a range of hospitality and catering clothing made from recycled plastic bottles. Le Nouveau Chef offers workwear made from a fibre of eucalyptus wood extracted from responsibly-managed forests.

Building a circular restaurant from scratch

Kindle in Cardiff was originally a derelict warden's house in a city centre park, occupied by the homeless and littered with syringes. Co-founder Phill Lewis explains how virtually nothing was wasted during its renovation.

"We saw the opportunity to do something very different. From the very core of this building, we've installed the principles of the circular economy," he says. "All the internal walls had to ripped out, creating a lot of waste. We looked at what we could safely use in the garden in terms of rockeries, etc. The brick came out, got cleaned up. We were obviously in need of furniture outside, so they were built into tables. Nothing went to landfill and nothing was purchased new. All the doors were taken off, refurbished and refitted.

"The builders had to re-think everything they were doing. They dug about 18 inches of top soil off the outdoor space. They said, ‘OK, so we'll dump that and buy a new load of topsoil,' and I said: ‘No, you can't do that.' So they had to lift the soil, clean it and put it back, which added three weeks to the work.

"Both myself and my wife Deb come from a social care background and when we went into hospitality we were looking at how those things might marry up, so the motivation is our inherent value system.

"What we have to get out of this is people looking at it and thinking: ‘That's a great model. Let's replicate it' or at least take some parts of it, and then the moral good of what you are doing becomes worthwhile.

"The supply chain isn't there at the moment. We are talking to builders who are doing it for the first time, but someone has to be the first!"