Can small hospitality businesses combine sustainability and economic performance?

The hospitality and restaurant sector, often seen as a pillar of the local economy, also generates a significant share of pollution and waste. Small and medium-sized enterprises in this field, although less visible than large groups, contribute significantly to the global environmental footprint. Yet, they still struggle to adopt sustainable practices, despite growing consumer demand and potential economic benefits.

A recent analysis of 228 scientific studies reveals that research on sustainable consumption in the hospitality industry remains scattered and poorly coordinated. The most frequent studies focus on three main areas: waste reduction and resource optimization, the gradual adoption of a circular economy, and the integration of sustainability into business strategy to enhance competitiveness. The circular economy, which aims to reuse and recycle materials rather than discard them, emerges as a key solution to reduce costs while limiting environmental impact. For example, hotels and restaurants now use energy-efficient lighting systems, reduce food waste, or favor local suppliers to minimize transportation.

However, several obstacles hinder this transition. Small businesses often lack the financial resources and technical knowledge to implement profound changes. Additionally, the absence of standardized methods for assessing sustainable practices makes it difficult to compare efforts between establishments. Despite these challenges, initiatives are emerging, such as the use of renewable energy or the digitization of processes to reduce paper consumption. These actions, though modest, enable cost savings while meeting the expectations of an increasingly eco-conscious clientele.

Studies also show that effectively communicating environmental commitments can strengthen brand image and foster customer loyalty. Businesses that successfully combine sustainability and transparency gain a competitive advantage, particularly among travelers concerned about their environmental impact. Public authorities also have a role to play by facilitating access to funding or offering training tailored to the specific needs of small businesses.

Finally, green innovation, such as the adoption of clean technologies or the development of eco-responsible services, is identified as a lever to improve both environmental performance and profitability. Although these practices are still not widespread, they offer promising prospects for reconciling economic growth and environmental respect in a constantly evolving sector.

Data and Sources

Official Study Source

DOI: https://doi.org/10.1186/s43093-026-00782-0

Title: Sustainable consumption in hospitality: the nexus between circular economy, strategic orientation, and economic resilience—a bibliometric analysis

Journal: Future Business Journal

Publisher: Springer Science and Business Media LLC

Authors: Kok Wai Cheng; Jing Yi Yong; Woon Leong Lin; Mohd Yusoff Yusliza