THE $66,000 BIN: WHAT FOOD WASTE IS REALLY COSTING YOUR VENUE

Most venue managers know food waste is a problem. Fewer know how much it costs them, because the expense is scattered across ordering, labour and waste collection. Industry estimates put the average cost for a food service business at around $66,000 a year, and for pubs, clubs and hotels in New South Wales a new rule has made the topic urgent. Here is what the evidence says and where to start.

The size of the problem

Australia wastes about 7.6 million tonnes of food each year, costing the economy more than $36 billion, and about 70 per cent of that food is edible. According to the Sustainable Restaurant Association, hospitality accounts for 1.2 million tonnes of it, with an economic impact of roughly $6.4 billion, or about $66,000 per business per year. That figure traces back to earlier industry research from 2021, so treat it as a guide rather than a precise number for your venue.

Food waste expert Belinda Chellingworth says many businesses do not realise what they are losing, and that fewer than a quarter regularly inspect their waste. She points out that venues pay for the same food several times. Over-ordering is a cost to the kitchen, unsold stock is lost revenue, and whatever ends up in the bin adds a collection cost. Because those costs sit in different departments, they rarely get added together.

A Sydney pub that looked in its bins

When Karl Riseborough checked what was going into the bins at his Sydney pub and brewery, he was surprised, and not only by the spent grain left over from brewing. Plate waste and kitchen prep waste had been disappearing into the bin unnoticed. With Chellingworth’s help he stopped throwing away 50 kilograms of spent grain from every batch, and now has people collect it for gardens and animals. His two 240 litre bins collected each week became one bin collected each fortnight, saving about $5,000 a year.

The NSW rule

From 1 July 2026, NSW required venues to have a source-separated food organics collection service. The NSW EPA lists pubs and bars, restaurants, cafes, hotels and motels, and registered clubs among the covered premises. The rollout is staged by the weekly capacity of your general waste bins:

From 1 July 2026, premises with a total residual waste capacity of at least 3,960 litres a week, equal to about six 660 litre bins.

From 1 July 2028, premises with at least 1,980 litres a week, or about three 660 litre bins.

From 1 July 2030, premises with at least 720 litres in total, or a single 660 litre bin.

Local councils check compliance at pubs, clubs, cafes and restaurants. Maximum penalties reach $500,000 plus $50,000 per day for continuing offences, and on-the-spot fines of up to $5,000 can be issued. Venues outside NSW are not covered by this rule, but the federal government has committed to halving food waste by 2030, and a UNSW professor quoted by the ABC doubts that target is on track.

What operators are saying about the fix

The Sustainable Restaurant Association has spoken to operators about practical steps. Julian Cincotta, chief operating officer and executive chef at Sydney’s Butter and a founding member of HospoDECLARE, says in many venues 30 to 50 per cent of general waste is food, so separating it can cut landfill collections and costs. End Food Waste Australia’s Emil Kroell says the average venue wastes 140 grams of food per cover. Their basic advice is to separate food waste in the kitchen, talk to waste providers about organics collection, check what is really in the general bin, and make the system easy for staff with clear bins and signage.

Amelia Birch, owner of the Newtown wine bar Famelia, adds two kitchen habits. One person is responsible for the weekly stock-take and order, because split responsibility makes over-ordering easy, and leftover ingredients are cross-used between food and bar, so lemon skins from a martini end up in dishes and prep.

What this means for venue managers

Run a bin audit this week. Look at a few days of general waste and record what is food, including plate waste, prep waste and spoiled stock. That gives you your own number in place of an industry average.

Add up the full cost. Combine purchasing, labour and collection costs for what you throw away, so the real expense is visible in one place.

Check your NSW obligations. If you are a NSW venue, compare your weekly bin capacity to the thresholds above and talk to your waste provider about an organics service before the date applies to you.

Name one person for ordering. Clear ownership of orders and stock-takes is a cheap fix for over-ordering.

Consider donation. The ABC reports that every state and territory has laws protecting food donors, provided the food is edible, comes with any storage or preparation instructions, is given free and goes to a registered organisation.

 

Sources

• ABC News, “Food waste costing Australian businesses and the economy billions” — https://www.abc.net.au/news/2026-10-13/australia-food-waste-business-economic-cost/107249996

• Sustainable Restaurant Association, “Operators Share Simple Advice for Australian Hospitality Ahead of FOGO” — https://thesra.org/news-insights/insights/operators-share-simple-advice-for-australian-hospitality-ahead-of-fogo/

• NSW EPA, “FOGO mandates and rollout” — https://www.epa.nsw.gov.au/Your-environment/Recycling-and-reuse/business-government-recycling/Food-organics-and-garden-organics/fogo-mandates-and-rollout