As the last guests leave, restaurants discard untouched food, hotels toss barely-used toiletries, and cafes stack single-use plastic cups in overflowing bins—destined for landfills, not recycling.
Yet, just blocks away, farmers pay for fertilizer, manufacturers scramble for materials, and energy providers seek cleaner fuels. The resources exist—they’re just in the wrong place.
This isn’t just waste – it’s $1 trillion in lost value industry-wide. Georgia’s thriving HoReCa sector (GEL 2.9 billion in 2023) mirrors this global pattern, where efficiency and excess exist side by side in paradoxical harmony.
The circular economy reveals what has always been true but is rarely acknowledged: waste is nothing more than a failure of imagination. It’s a system that hasn’t yet embraced innovations like closed-loop reuse programs for glassware, containers, and packaging – solutions that are already working elsewhere. But what does that mean?
For HoReCa Businesses worldwide, the path is clear: They must transform waste into value or risk falling behind in an era that prizes regeneration. In this article, we’ll explore how hospitality businesses are already turning trash into treasure, including reuse systems for plastics and other materials, the challenges, and what to look forward to.
The Waste Challenge in the HoReCa Sector
The hospitality industry is booming—but so is its waste problem.
Let’s face it: restaurants, hotels, and cafés generate a staggering amount of waste. In 2021 alone, the global HoReCa sector was responsible for 28% of the 1.03 billion tonnes of food wasted worldwide. Hotels add another 290,000 tonnes of waste annually, with a third of that being perfectly good food.
And it’s not just about leftovers. Single-use plastics, poor recycling, and inefficient supply chains mean much of this waste ends up in landfills—or worse, burned, polluting our air and ecosystems.
If this continues, the environmental toll will be irreversible. The good news? The HoReCa sector has the power to change course, and the time to act is now.
The Circular Economy Is Relevant Now More Than Ever!
When discussing sustainability in the HoReCa sector, the circular economy is emerging as a powerful tool. Traditionally, we follow a linear economy, i.e., resources are used to make products, products are used, become waste, and are eventually discarded.
The circular economy, however, is designed to regenerate, reuse, and recycle resources and products, therefore minimizing waste production. And, in some cases, waste becomes a resource for new products.
Businesses that align with the circular economy can save costs, minimize waste production, and reduce environmental impact. Furthermore, it demonstrates a business’s commitment to social responsibility. Conversely, companies that fail to adapt to the circular economy struggle with resource scarcity, rising waste, and sustainability challenges.
How Smart Companies Are Closing the Loop
The circular economy isn’t just theory—it’s becoming the new standard for forward-thinking hospitality businesses. In Georgia, cultural hub Fabrika Tbilisi exemplifies this shift, having replaced disposable cups with reusable alternatives.
“We’re experiencing increased customer loyalty simply by prioritizing sustainability,” notes their team. “Our visitors care about their ecological footprint, and when they see us making these changes, it resonates with them.”
Their experience mirrors a global trend: 73% of consumers now prefer eco-conscious brands, proving that circular practices are essential for staying competitive.
This transition is being accelerated by initiatives like CENN’s Circular Lab in partnership with GIZ and ICLEI, which helps Georgian businesses implement circular solutions. Meanwhile, international chains like Starbucks demonstrate scalability—their Closed Loop partnership transforms millions of used cups into new products annually, from furniture to packaging.
The message is clear: companies treating waste as worthless are literally throwing away profits and customer goodwill.
Innovative platforms add another dimension to this transformation. Too Good To Go creates value from surplus food that would otherwise be discarded, benefiting both restaurants’ bottom lines and budget-conscious diners. It’s part of a broader movement where sustainability drives customer acquisition.
The Future is Circular – And It Starts With Us
The numbers don’t lie: the HoReCa sector’s waste problem is massive, but so is the opportunity. What if every restaurant, hotel, and café saw their “trash” as a treasure trove of resources? From Fabrika Tbilisi’s reusable cups to Starbucks’ cup-to-chair revolution, companies are proving that circular practices aren’t just good for the planet—they’re good for business.
The question isn’t whether the HoReCa sector can afford to embrace this shift, but whether it can afford not to. The tools exist, the consumers are ready, and the time to act is now—because in tomorrow’s economy, waste will belong to the past.