ROI & Business Case11 min read

Building a Business Case for Food Waste Reduction

Need to convince leadership to invest in waste reduction? Here's how to structure a compelling business case.

FT

FoodSight Team

January 2025

You're convinced that food waste reduction makes sense. But convincing finance, ownership, or the board requires a proper business case—one that speaks their language and addresses their concerns.

Here's how to build one that gets approved.

Structure of a Winning Business Case

A business case for waste reduction should cover:

  1. The problem — What's happening now and why it matters
  2. The opportunity — What could be achieved
  3. The proposal — Specific intervention and investment required
  4. The return — Financial payback with timeline
  5. The risks — What could go wrong and how to mitigate
  6. The ask — Clear next steps and decision required

Let's work through each section.

Section 1: Defining the Problem

Start with hard numbers. If you don't have them, run an audit (see our audit guide).

Current waste metrics:

  • Annual food purchases: €X
  • Estimated waste rate: Y%
  • Annual waste cost: €Z
  • Cost per cover from waste: €A

Context:

  • Industry benchmark waste rate: B%
  • Gap to benchmark: Y - B percentage points
  • Competitor positioning on sustainability

Hidden costs to quantify:

  • Labour cost of preparing wasted food
  • Disposal costs
  • Storage costs for ultimately wasted inventory
  • Environmental impact (if relevant to stakeholders)

Anchor the problem in pounds/euros, not percentages. Leadership responds to "we're wasting €180,000 per year" differently than "our waste rate is 11%."

Section 2: Quantifying the Opportunity

Now flip to what's possible.

Realistic improvement targets:

  • Conservative: 25% waste reduction
  • Moderate: 40% waste reduction
  • Aggressive: 60% waste reduction (achievable with technology and cultural change)

Financial impact of each scenario:

  • Conservative: €X saved annually
  • Moderate: €Y saved annually
  • Aggressive: €Z saved annually

Non-financial benefits:

  • Sustainability credentials and reporting improvements
  • Staff engagement (waste reduction programmes often boost morale)
  • Operational efficiency gains beyond waste
  • Risk mitigation (upcoming regulations)

Be realistic. Over-promising undermines credibility when results come in.

Section 3: The Proposal

What specifically do you want to do? Options might include:

Manual programme (lower cost, moderate impact):

  • Staff training
  • Audit and measurement system
  • Process improvements
  • Estimated cost: €X
  • Expected impact: 15-30% reduction

Technology-enabled programme (higher cost, larger impact):

  • Automated monitoring system
  • Analytics and reporting
  • Continuous improvement process
  • Estimated cost: €Y
  • Expected impact: 40-60% reduction

Phased approach (managed risk):

  • Phase 1: Manual audit and quick wins
  • Phase 2: Technology deployment if Phase 1 proves value
  • Estimated total cost: €Z over 18 months
  • Expected impact: 50%+ reduction

Be specific about what will happen, who will do it, and what resources are required.

Section 4: Return on Investment

This is the section leadership will scrutinise most.

Payback calculation:

  • Investment required: €X
  • Annual savings at moderate scenario: €Y
  • Payback period: X ÷ Y = Z months

5-year view:

  • Total investment: €A
  • Total savings (cumulative): €B
  • Net benefit: €B - €A
  • ROI: (B - A) ÷ A × 100

Sensitivity analysis:

  • What if we only achieve 20% reduction?
  • What if food costs rise?
  • What if timeline is delayed?

Include conservative scenarios. Showing you've stress-tested the numbers builds confidence.

Use our calculator to generate detailed ROI projections for your specific situation.

Section 5: Addressing Risks

Every investment has risks. Acknowledge them and show how you'll manage them:

Staff compliance risk: Mitigated through training, leadership commitment, and technology that reduces reliance on manual processes.

Implementation disruption: Phased rollout minimises operational impact.

Technology failure: Vendor track record, SLAs, contingency plans.

Savings not materialising: Staged investment tied to milestones, with decision points before major expenditure.

Being forthright about risks paradoxically increases credibility. Leadership knows projects have risks; they want to know you've thought them through.

Section 6: The Ask

Be crystal clear about what you need:

  • Specific budget amount
  • Timeline for approval
  • Decision-maker(s) required
  • Next steps if approved

Don't bury the ask. Put it upfront and in the executive summary too.

Making It Compelling

Beyond structure, some tips for persuasive business cases:

Lead with impact, not process. "This will save €150,000 annually" before "This is how waste monitoring works."

Use visuals. Charts showing payback curves, before/after comparisons, benchmark positioning.

Include peer examples. Case studies of similar organisations that achieved results.

Address unspoken concerns. Leadership might worry about staff workload, customer impact, or project failure. Address these proactively.

Make it easy to say yes. Clear decision points, staged investment options, low-risk starting points.

If You Need Help

Building a business case takes time and data. We can help:

A good business case doesn't just get approved—it sets up the project for success by establishing clear expectations and metrics from the start.

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