ABSTRACT

With food spoilage contributing to approximately 12% of food waste worldwide, this state of affairs is
increasingly becoming a public health issue and key concern affecting the hotel industry in Kenya today.
Hospitality comprises two sectors; Profit and Post. The Profit sector includes hotels, restaurants, cafes,
canteens and catering. On the other hand, the Cost sector comprises of accommodation and food
service in establishment where profit from hospitality services is not a key consideration. Although there
is an increasing trend of out-of-home dining spurred by growth in income and tourism, food waste has
proved to significantly affect income generation in both developed and underdeveloped food sectors.
Often this results from food spoilage cases resulting in loyal customers going away and failure to attract
other new potential customers. Multiple recent studies have classified educational and healthcare
establishments as institutional waste generators. This research will explore the relationship between
food spoilage and low income in the food industry with reference to Alliance Hotel in Vihiga Town,
Kenya.

On the other hand, food spoilage leads to closure of hotels. Often food establishments with multiple
related cases of high food waste volume are subject to permanent closure. Though comprehensive
approach to effective reduction of waste requires multiple innovation actions, food service
establishments often implement innovations that are cost saving oriented. Government sponsored and
supported programs have proved effective in minimizing kitchen waste and food spoilage in efforts to
prevent closure of food establishments. However, in cases of negligence by hotel management, health
officers take action upon receiving complaints from customers, not limited to closure of the hotel. This
research will dig deep into how food spoilage led to closure of food establishments following numerous
reported cases and complaints from customers.

Furthermore, studies have concluded that food spoilage has a direct correlation with lose of loyal and
potential customers. Increased reported cases of food spoilage in specific cases negatively affects the
reputation and corporate image of the hotel especially when the information spreads among the
general public. This discourages new customers from accessing services from the affected hotels while
loyal customers tend not to refer other potential customers to the establishment, thus resulting in loses
in terms of profit and number of customers. On the same note, when tourists from other countries
cease seeking services from the hotels with reported cases of food spoilage, this potentially affects
foreign exchange. Consequently, lack of customers and profit make the existing hotel staff to leave the
establishment and look for jobs from other competing and developed hotels, leading to bankruptcy and
closure of the former. However, this research argues that the hotel management would be the front
runners in attracting and maintaining customers through implementing proper food spoilage and loss
control measures.
OBJECTIVES

General Objectives

To examine the impact of food waste and spoilage on the profitability of food service industry in Kenya.

Specific Objective

i. Independent

To assess food spoilage and loss along Alliance Hotels food supply chain

ii. Dependent

To establish food spoilage and loss control measures with Alliance Hotel’s operations.
STATEMENT OF THE PROBLEM

Food waste certainly makes or breaks a restaurant or hospitality business. Food items exposed to air,
light and moisture can spoil quicker than that of which can be appropriately stocked. Improve the
overall shelf life of your ingredients by keeping them in controlled storage, and using air tight
containers. As important as food safety and hygiene, food waste should be taken seriously into
consideration. Certainly, it is very critical that hospitality managers need to give prominence to the
quality of products delivered to customers; nonetheless, risking all the expenses to replace old
production with freshly made products all the time is an abnormal spoilage. Reducing food waste can
not only contribute to several environmental benefits but also numerous financial and social impacts.

Bacteria and various fungi are the cause of food spoilage and can create serious consequences for the
consumers, but there are preventive measures that can be taken. Preservatives can expand the shelf life
of food and can lengthen the time long enough for it to be harvested, processed, sold and kept in the
consumer’s home for reasonable length of time. One of the old age techniques for food preservation to
avoid mold and fungus growth, is the process of drying out the food or dehydrating it.

Restaurant owners can reduce the amount of food waste and save money in their budget through
implementing inventory software. With an effective system in place, they will be able to keep an eye on
your stock in real time and only order ingredients as necessary. This means no more overstocking or
wasted food. In another case, an inventory tracking system can help them order the proper amount
each and every time, so they never waste hard-earned profit.

The most common classical preservative agents are the weak organic acids, for example acetic, ractic,
benzoic and sorbic acid. These molecules inhibit the out-growth of both bacterial and fungal cells and
sorbic acid is also reported to inhibit the germination and out-growth of bacterial spores. In the
production of food, it is crucial that proper measures are taken to ensure the safety and stability of the
product during its shelf life.
LITERATURE REVIEW

Food waste and loss is a large and increasingly urgent problem and is particularly acute in developing
countries where food loss reduce by at least 15% for 470million smallholder farmers and downstream
value chain actors, most of whom are part of the 1.2billion people who are food insecure. In developing
countries, 90% of wastage is from food loss within the value chain. It directly impacts poor consumers
through foregone income, reduced food availability, increased prices and decreased nutritional content.

The causes of food losses and waste in low-income countries are mainly connected to financial,
managerial and technical limitations in harvesting techniques, storage and cooling facilities in difficult
climatic conditions, infrastructure, packaging and marketing systems. Food waste in industrial countries
can be reduced by raising awareness among food industries, retailers and consumers. There is a need to
find good and beneficial use for safe food that is presently thrown away.

In the UK, the Waste Reduction Action Plan (WRAP) encourages leading retailers, brand owners and
their supply chains to identify collaborative approaches towards reducing the amount of food and
packaging waste and consumer food waste by carrying out (K&I) Work, by guidance on best practices
and by promotion. WRAP partners with packaging manufacturers, retailers, brands, suppliers, research
institutes, universities, design agencies and environmental and design consultants.

Multiple key movements related to food loss along the value chain and across commodities have been
happening in the last quarter in Africa. This pulls from a wide range of sources to provide a full list of all
relevant stories and provides an overview from both a country perspective and a value chain.

In Sub-Saharan Africa alone for example, approximately 30-50% of production is lost at various points
along the value chain. Recent statistics indicate that food lost and waste in Africa causes as much as
$900 billion per year in economic losses. This approximates to 1.3 billion tons of food lost around the
world- an amount that could feed almost half of the world population.

However, countries across Africa have implemented methods to reduce food loss and waste at various
points in the supply chain. These include, increasing marketability of produce, standardizing data labels,
packaging adjustments, improving cold chain management and value added processing. Other methods
include food rescue and recovery. This could be in form of increasing rescue of healthy food, improving
storage in transportation, providing financial incentives for food donation and liability protection for
food donors, creating online food rescue platforms. Prior studies in Africa also found that measuring,
tracking and reporting approaches can be taken to reduce food loss and waste. This can be
accomplished by performing a food waste composition analysis, keeping records, doing surveys and
using models and proxy data extrapolation methods.

According to statistics from Food and Agriculture Organization (FAO) Kenya, an estimated sh.72 billion is
lost every season by not addressing food loss and waste in the country. This has been linked to farmers
losing earnings as they struggle to manage, store and transport produce to the market. Reducing food
loss early in the supply chain is likely to yield the strongest positive result for greater food security.

In Kenya various elements of strategy are implemented to minimize food loss and waste. This includes
training which strengthens the supply chain downstream since this is where losses occur. Also
minimizing handling of food produce in storage and distribution system through mobilizing farmers,
investigating the potential market and liability of value added processing as well as quality
improvement. Additionally, market development, pest/ disease management and advanced technology
have proved effective in promoting the consumption of food products in Kenya.

To minimize food loss and waste in Kenya, infrastructural development like road network will ensure
that food produce is delivered in time in the market. Farmers and consumers need to be part of this
digital revolution because they are key players in minimizing food waste in the agricultural sector. Going
forward to the government of Kenya should be at the forefront in offering incentives for post-harvest
technological incentives that are geared towards minimizing food wastage because it has an impact on
the county’s food security. Plans are underway by the Kenyan government to cut on food losses to 15%
by 2022 as part of the government’s Big Four agenda. For success, scientific methods of determining
post-harvest loss will make it easier for Kenyan authorities to take action key deliverable in mind.

RESEARCH QUESTIONS

1. How does the impacts of food spoilage affect on profitability of food service industry?
2. How does food spoilage affect food supply chain in hotel industry?
3. How does establishment of food spoilage and loss control measures affect food service
industry?

HYPOTHESIS

Food spoilage has a huge effect on a restaurant’s gross profit. A restaurant purchase food with an intent
to sell it and earn money. The process allows the restaurant to pay for costs associated with preparing
each dish. The restaurant must throw away the items that are spoilt, which results in wasted money.
The business managers must subtract from the profits the cost of food that spoiled and perhaps order
additional food to compensate for the spoilage.

Restaurant managers can take steps to ensure the freshness of food and increase gross profit. Re-
evaluating a restaurant’s inventory and needed adjustments helps to reduce food spoilage. A restaurant
may order a certain number of one particular food item; after close examination however, the
restaurant orders. A slight price increase may also compensate for occasional food spoilage. Some
restaurants operate on a small profit margin, and any misfortune with their food can affect their income
and gross profit.

Food spoilage is one aspect that can affect profit greatly. Keeping a close eye on food inventory and
keeping food fresh can help reduce food spoilage issues. A restaurant acquires food and other items
from suppliers, and managers typically pay those costs upfront. As the restaurant serves customers and
earns money, managers must subtract the amount previously paid to the suppliers from revenue. The
surplus after expense equals the gross profit.
Food waste in the global food supply chain is reviewed in relation to the prospects of feeding a
population of nine billion in 2050. An international literature review found data on food waste and
estimates varied widely; those for post-harvest loss data for developing countries might be over-
estimated. The limited data suggests that the losses are much higher at the immediate post-harvest
stages in developing countries and higher for perishable food across industrialized and developing
economies alike.

Additionally, for affluent economies, post-consumer food waste accounts for the greatest overall losses.
To supplement the fragmentary picture and to gain a forward view, interviews were conducted with
international FSC experts. The analysis highlighted the scale of the problem, the scope for improved
efficiencies and the challenges affecting behavioral change to reduce post-consumer waste in affluent
population.

However, attempts have been made to qualify global food waste over several decades, motivated by the
need to highlight the scale of ‘waste’ in relation to global malnutrition. Such assessments are reliant on
limited datasets collected across the food supply chain at different times and extrapolated to the larger
picture. Such estimates are difficult to scrutinize but highlight the need for greater resource efficiencies
in the global FSC (Food Supply Chain).

Food waste within the hospitality industry, restaurant operations contribute immensely to global food
waste, and studies reveal that it contribute 15% of waste through food preparation and production
process, 21% through food spoilage as a result of poor storage and 34% through food leftovers as
observed from customer plate. Furthermore, research confirms that food wastage has directly resulted
in the starvation of over 842 million people, with over 1.3 billion tons documented as food wastage,
while substantial amount of this food waste and losses taking place within the larger hospitality
restaurant’s operations. The factors influencing these food waste generations include; the type of
service, the type of food served, the expected and actual numbers of customers, the season and the
food service organization, which are addressed by this study in an attempt to propose ways of reducing
food waste and losses, and hence promoting food security.

Moreover, accurate portion control is paramount to reducing waste and increasing profitability. Not
everyone eats the same amount of food, thus restaurants should consider offering different portion
sizes on the menu so customers can choose how much they want to eat, while at the same time keeping
portions consistent by use of standard spoons and measures so that portion sizes don’t stink up for
toddlers, children and lighter eaters. A standard portion of vegetables or side dishes should be served
but a second helping if the customer wants more offered. Staff should be encouraged to help customers
order the right amount of food and monitor plate waste to help identify opportunities for saving as well
as considering offering customers the option to take unfinished food home.
CHARLOTTE AGEYO JUMBA

25570

FOOD AND BEVERAGE

TO WHOM IT MAY CONCERN

The above mentioned person is a student at the East African Institute of Certified Studies pursuing a
Food and Beverage course and the following is a questionnaire on the same. Kindly assist.

1. How long have you been working in this hotel?

10years

15years

20years

2. What is major link to food spoilage in this hotel?

Poor hygiene

Poor storage of food

3. Is the hygiene of the hotel as per your expectations?

Yes

No

4. How have you rated the hygiene of this hotel?

Poor

Excellent

5. Which food item spoils easily?

Vegetables

Fruits

Meat
 6. Which type of food spoilage do you find it difficult to maintain?

Physical spoilage

Chemical spoilage

Microbial spoilage

7. What methods of preservation do you use to preserve your food from spoilage?

Freezing

Canning

Salting

8. Incase of spoilage in your hotel, how does the hotel get affected?

Loss of customers

Hotel closure

Low income generation

9. Has this hotel ever experienced food spoilage before?

Yes

No

10. Which cuisine is mostly prepared in this hotel?

Chinese

French

African

Chart Title
60

50

40

30

20

10

0
Q1 Q2 Q3 Q4 Q5

No Yes YES2
 Chart Title
60

50

40

30

20

10

0
Q1 Q2 Q3 Q4 Q5

No Yes Yes2

FINDINGS

From the research, I got to find that, there are those people who have been working in the hotel for so
many years. 20% have worked for 5 years and 50% said they have worked for 20 years in the hotel. On
the other hand, the employees told me that some of the major link to food spoilage in hotel: 20% of the
workers said that poor maintenance of hygiene is mostly what comes to food spoilage and the 10%
proposed that poor storage of food is what causes food spoilage most because of poor storage facilities.

As per the research about hygiene in the hotel, 50% of workers agreed that, hygiene is not per the
hotel’s expectations due to poor cleaning skills, 20% opposed by saying that, hygiene is highly
maintained in the hotel because they have all facilities that help them to clean the hotel and hotel
premises. However, they rated the hotel’s hygiene as excellent. 20% rated as poor hygiene skills.

From the research, employees told me some of the food that spoils most, foods like meat, vegetables
and fruits spoil the most because of poor refrigeration. I also asked the kind of food spoilage they find
difficult in maintaining. These are some of the responses I got; 20% agreed that physical spoilage, 40%
proposed chemical spoilage and 10% were for microbial spoilage which is the most type of spoilage that
is difficult to handle.

I also went ahead to ask them the methods they use to preserve the food to avoid spoilage, 50% said
canning and 10% went for salting mostly dry foods like fish and a bit of some meat like beef.
Additionally, I asked them a case of food spoilage, how does the hotel get affected? These are the
responses I got; 50% based on loss of customers, 30% said that hotel closure, 60% said low income
generation.

Additionally, I interviewed a few workers and asked them if they have ever encountered a case of food
spoilage in the hotel, 30% said yes and 10% were for no. Lastly, I decided to ask them which cuisine is
mostly prepared in the hotel, 30% said Chinese, 20% French and 40% said African cuisine is the most
prepared cuisine in the hotel.

RECCOMENDATION

I recommend that, food prepared should be of an amount that can be finished during the day to avoid
food spoilage. Also, the hotel management should implement good storage of food e.g. installation of
refrigerators and other proper means of food storage to avoid food spoilage. Most employees of
improper hygiene, the management should employ health officers to advise them on proper hygiene
maintenance in the hotel.

Ideal hygiene maintenance can be achieved by proper keeping of utensils or tools, using detergents to
clean work area. The employees should be advised on hygiene so as to have excellent hygienic skills. The
management should also provide all the cleaning facilities to help the employees have easy time and
skills to clean the hotel.

To avoid all the food spoilages, i.e. physical spoilage, chemical spoilage and microbial spoilage, to
prevent physical spoilage is to avoid overstocking food stocks. Another prevention is to avoid
overproduction and also portion control i.e. serve food that a client can finish, some clients also leave
large amounts of untouched food leftovers. Furthermore, to prevent chemical spoilage consider the
following, keep meet uncut and wrapped until ready to avoid contamination, keep fruits and vegetables
separate because they give off different gases that can cause the other food items to deteriorate. Lastly,
to prevent microbial spoilage, one should stop reusing storage containers without washing to prevent
contamination.

Each food item should be stored in proper ways e.g. foods that should be refrigerated like vegetables
and fruits. There are foods that also need to be canned in order for them not to get spoilt. Foods that
have a poor life shelf should be stored using proper preservative methods. The management should
take any means to avoid food spoilage cases so as to avoid being affected resulting to closure of hotel,
losing customers and also low income generation.

Lastly, to prevent cases of food spoilage in the hotel, correct food preservation should be looked into
and all means of maintaining hygiene should be maintained. All cuisines should be prepared in order to
attract more customers and for the hotel to be more known by many people.