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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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With the fast trace of growth of Tourism and Hospitality industry, Legrand, Sloan & Chen (2017) said that this industry has created a million careers and enhanced a prosperity in the global during the past decades. This development is bringing opportunities for new enterprise and employment creation, which in turn stimulates further investment and supports the development of local services. Food and beverage industry is one of the part of this development. Restaurant section is a good instance which the annual growth has been increased 3.5% between 2013 and 2018 and the revenue reached AUD 20.8 billion in 2018. And while the economic impacts are significant, according Legrand, Sloan & Chen (2017), this industry has a lot of negative impacts on society and the environment as well and is faced with a range of increasingly pressing challenges. Pollution, waste, greenhouse gases and environmental hazards are some of the environmental outputs from this industry. Nowadays, food and beverage company owners or operation managers have turned their focus to the importance of sustainability in the hospitality industry as it relate to food and beverage operation and management including environmental,  economic and social effect. This business report aims to define the concept of sustainability on triple bottom line. It also analyzes and discuss about how this trend affects the food and beverage operations and their management from a consumer and operator perspective. There are some examples of practices that food and beverage establishments, whether Australian or international, are utilizing to address this trend.


The definition of sustainability:

Sustainability, in generally, can be defined as the capability to control and preserve at a certain rate or level. It is an avoidance of the depletion of natural resources in order to maintain an ecological balance. Kuhlman & Farrington (2010) said that our ancestors concern about conserving natural resources and early farmers must have been apprehensive about maintaining soil fertility. From that point, the first concept of sustainability was in forestry. It was understood that never harvests more than what the forest yields in new growth. In 1713, the German word “Nachhaltigkeit” was used as sustainability. In 1987, Brundtland defined a new concept of sustainable development as “economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs”. In Food and Beverage industry, Prigge (2017) give his perspective about sustainability as protecting and preserving a natural environment, encouraging social equity, improve the quality of society and the life of human.

The concept of sustainability in triple bottom line

Triple bottom line (TBL) is a term used to describe the economic, social, and environmental accountability of a firm. TBL is directly tied to the concepts and goals of sustainable development and is a relatively new measure of corporate performance that requires the public disclosure of social, economic and environmental indicators of organizational performance and is a concept that is closely related to social responsibility. A key element of TBL requires that corporate performance should be geared not only to benefit its shareholders but all of its stakeholders, including groups such as the local community within which business operations are conducted.

According to Kasmanian, Wells and Keenan (2011), there are three main pillars of sustainability such as environment, social and economy which company stakeholders or operation managers need to consider for their future business.

Environmental sustainability:

According to Jugend, Figueiredo & Pinheiro (2017), environmental sustainability is the control of natural resources, manage the usage of non-renewable resources, control of the emission of polluting agents. Kuhlman & Farrington (2010) also said that it maintains the planet biodiversity and conserve flora and fauna and the health of the inhabitants. In “Sustainability in the hospitality industry”, Legrand, Sloan and Chen (2017) said that environmental sustainability is aim to minimize or eliminate all practices that might adversely affect the enjoyment of the planet's resource by present and the future.   

Each step in the food industry system — food production, processing, transportation, storage, distribution and marketing has some impact on the environment and there is much concern about environmental pollution. For instance, food waste is one of the hard issue which needs to be controlled in this industry. According to Sellahewa and Martindale (2010), It has adverse effect on the environment because food waste contributes to the problem of landfill and when food is wasted, it also contribute to greenhouse gas emissions and water usage because energy and water are used in growing the raw material, processing the product and in storage and distribution.

Social sustainability:

Alhaddi (2015) defined that social sustainability conducting beneficial and fair business practices to the labor, human capital and to the community. the idea is that these practices provide value to the society and “give back” to the community. in general, future generations should have the same or greater quality of life benefits as the current generation do. it focuses on the interaction between the community and the organization and addresses issues related to community involvement, employee relations, and fair wages.

Berry and Burton (2017) mentioned about World Health Organization report in 2012 that childhood obesity is one of the most serious public health challenges of the 21st century. In their survey, one-third of American children and teenagers are overweight or obese. In the report of 2014-2015, ABS shown that there are 63.4% of Australians aged 18 years and over were overweight or obese (11.2 million people), comprised of 35.5% overweight (6.3 million people) and 27.9% obese (4.9 million people). Those children have a possibility to remain their overweight and obese when they grow up and it may cause to a significantly higher risk of cardiovascular disease. It is a main reason to drive them to type two diabetes, high blood pressure and high cholesterol. Berry and Borton (2017) said that fast food and sugar-sweetened drink consumption are main causes for those serious health issues.  

Economic sustainability  

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