ICFAI School of Management Studies

Dissertation Thesis
On
UNDERSTANDING THE SCOPE AND BARRIERS FOR
SUSTAINABILITY IN THE RESTAURANT SECTOR OF SIKKIM

SUBMITTED BY: SALONI GUPTA

PROGRAMME: MBA
ENROLMENT No.: 19FMPCSKSG02012
SEMESTER: 4
BATCH: 2019-2021
FACULTY GUIDE: Ms. Sweta Chettri
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DECLARATION

I hereby declare that the matter in the thesis project titled “Understanding the scope and
barriers for sustainability in the restaurant sector in Sikkim” which is submitted for the
partial fulfilment of award for degree, MBA (Finance and Human Resource), ICFAI
University, Sikkim, School of Management Studies is a bonafide and genuine research
project under the guidance of Ms. Sweta Chettri. The work done in this report is original and
has not been submitted earlier for the award of any degree, diploma or fellowship of any
other university or institution.

Date: 30.06.2021

Name: Saloni Gupta

Enrolment No.: 19FMPCSKSG02012
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CERTIFICATE OF APPROVAL

This is to certify that the report entitled “Understanding the scope and barriers for
sustainability in the restaurant sector in Sikkim” which is submitted by Ms. Saloni Gupta
in partial fulfilment requirement for the degree of Master of Business Administration, School
of Management Studies 2019-2021, affiliated to ICFAI University, Sikkim is a record of the
candidate’s own work done by her under my supervision. The matter written in this thesis is
original and has not been submitted for any other degree.

Date:
Supervisor: Ms. Sweta Chettri
(Faculty guide)
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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Ms. Sweta Chettri, my faculty guide, for
guiding and supervising me, helping me, and providing relevant information regarding my
thesis.

Lastly, I thank my parents and friends for their constant support, encouragement, motivation,
and guidance for without them it would have been difficult to complete this report.
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INDEX
S.no Topic Page
no.
1 Chapter I: Introduction 1-8
• Sustainable development Goals 1
• Indian Restaurant Sector, Trends and Statistics 2-3
• Sikkim: Economy, Tourism and Hospitality Sector and 3-4
Environment
• Restaurant and Sustainability 5-8

2 Chapter II: Review of literature 9-14

3 Chapter III: Elaboration of Problem 15-16
• Objectives 16
4 Chapter IV: Research Methodology 17-19
• Data Collection 17
• Research Design 18-19

5 Chapter V: Data Analysis 2-31

6 Chapter VI: Findings and Conclusion 32-36

7 Chapter VII: Limitations and Scope for Future Research 37-38

8 References 39-41
9 Annexure 42-52
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CONTENTS OF GRAPHS AND TABLES

S.NO Graphs and Tables Page

No.
1. Table 1.0 - Review of Literature 8
2. Table 2: Review of Literature 9-14
3. Table 3.0 – Number of food outlets bearing license and registered under FSSAI 20
4. Table 3.1 Demography 21
5. Table 3.2 Descriptive Analysis of the result 22
6. Table 3.3 Descriptive analysis of the ranking by the respondents 28
7. Table 3.4: Response to interview questions by restaurant managers. 30-31
8. Figure a. Opinions of restaurant experts on consciousness in Indian restaurants 3
during covid-19 pandemic in 2021
9. Figure b. Responses to the questions in Section A of the questionnaire 21
10. Figure c – Factors related to sustainability in restaurants 23
11. Figure d. Response to question on sustainable restaurants in Sikkim. 24
12. Figure e. No. of respondents who would visit sustainable restaurants in Sikkim 24
13. Figure f. Section B, Q1 25
14. Figure g. Section B, Q2 25
15. Figure h. Section B, Q3 26
16. Figure i. Section B, Q4 26
17. Figure j. Section B, Q5 27
18. Figure k. Section B, Q6 27
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CHAPTER I: INTRODUCTION

The Covid-19 pandemic has led to a slowdown in global economy. During the lockdown,
many economic activities slowed down, and some came to a halt. While a few industries
boomed, like pharmaceutical industry, digital marketing industry, online education industry,
etc., many businesses could not sustain and had to shut down.
One of the industries that the Covid-19 pandemic caused a heavy burden on was the Tourism
and Hospitality industry, almost crippling the entire industry. Many hospitality businesses
closed as there was almost no cash flow in the year 2020.

In the end of 2020, as the lockdown eased and the number of cases decreased, the business
was just beginning to pick up again, the restaurants opened with limited capacities and food
deliveries gained traction. There was a change in the way the restaurants operated. The
question is whether the majority of the people are ready to head out back to the restaurants,
especially after the second wave which has left the country in chaos.

On the other hand, the researchers started to look at the impact on the environment. There
were many reports and news and posts all over the online platforms comparing the air quality
and the pollution level in different cities. Delhi, one of the most polluted cities in the world
with an elevated level of air pollution and smog, started to get viral, as pictures comparing the
clear skies during the lockdown and the smoggy skies with low visibility during the normal
times went viral on the online platforms. Focus on ‘sustainability’ has increased in all the
sectors as awareness level is growing, encouraging to adopt to sustainable practices in our
daily lives and having a sustainable economic model as a whole. rethinking of the way we
live and operate which has adverse consequences in the long term. Focus on ‘sustainability’
has increased in all the sectors as awareness level is growing, encouraging to adopt to
sustainable practices in our daily lives and having a sustainable economic model as a whole.

Sustainable Development goals:

The 2030 Agenda for Sustainable Development, adopted by all United Nations Member
States in 2015, provides a shared blueprint for peace and prosperity for people and the planet,
now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs),
which are an urgent call for action by all countries - developed and developing - in a global
partnership. They recognize that ending poverty and other deprivations must go hand-in-hand
with strategies that improve health and education, reduce inequality, and spur economic
growth – all while tackling climate change and working to preserve our oceans and forests.

India is one of the countries committed to achieve the 17 SDGs and the 169 associated
targets, which comprehensively cover social, economic, and environmental dimensions of
development and focus on ending poverty in all its forms and dimensions.

In September 2020, Sikkim's Chief Minister Prem Singh Tamang, informed that Gangtok city
and its periphery, have been selected in 25+5 SDGs (Sustainable Development Goals) cities
to fulfil the SDGs goals and targets by 2025.
The United Nations Global Sustainability Index Institute (UNGSII), in co-operation with the
United Nations Sustainable Development Solution Network (UNSDSN) and others are SDG
related partners.
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Indian Restaurant Sector, Trends and Statistics

India accounts for 11.8% of the Asia Pacific restaurants industry value. The market value
grew by 11% in 2014 to reach a value of USD$151.6 billion.

India has about 53000 hotels and 70 lakh restaurants in organised sector and 2.3 Crore
restaurants in the unorganized sector.

The organized segment comprises of quick-service restaurants, fine dining, casual dining,
restaurants in hotels, bars, lounges, cafes, and food courts.
As per the 2013 India Food Service report published by the National Restaurant Association
of India, in terms of market segments, Quick Service Restaurants (QSR) and Casual Dine in
formats account for 74 percent of the total market, while Cafés make up 12 percent, and Fine
Dining Pub Bars Clubs& Lounges (PBCL) comprise the rest

The market value of the Indian restaurants and food service industry was about four trillion
Indian rupees as of fiscal year 2019. While the restaurants and food service market in the
country is divided into two segments, the unorganized segment accounts for the major share
of the market size. The unorganized segment comprises of individuals or families selling
ready to eat food through vendors, dhabas, food carts, street stalls and more.

The market value of the organised segment stands at ₹1.6trillion and unorganized sector at
₹2.5trillion. The segment with the largest market share is the casual dining restaurants, with
about 52.1 percent as of the fiscal year 2019.

In 2019, full-service restaurants in India had a market share of 64 percent while street food
had a market share of 29 percent. This was the highest share among those countries with the
biggest foodservice markets worldwide. Cafes and bars as well as quick service restaurants
had only market shares of three percent each.

Challenges due to COVID-19 for restaurants in India 2020.

As of September 2020, around 65 percent of restaurant operators in India stated in a survey
conducted by Posit those high operational costs was the major challenge for their businesses
in 2020. Only 22 percent said that an increasing competition was challenging.

As of September 2020, over 50 percent of restaurant operators in India stated in a survey

conducted by Posit that they invested in an own cloud or ghost kitchen. This is a separate
space where food is prepared for delivery only. Additionally, 44 percent of operators said that
they invested in delivery facilities in their regular restaurant.

In 2019, cloud kitchen start-ups in India received funding worth around 165 million U.S.
dollars. It was the first time that cloud kitchen providers received more funding than online
food delivery companies, which attracted over two billion U.S. dollars in total between 2014
and 2019. The food tech segment is completed by online table reservation providers which
reached their peak in 2018 with 34 million U.S. dollars funding. Overall, 2018 had been the
most successful year for food tech companies in terms of funding with a total of over 1.7
billion U.S. dollars.
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Consciousness trends in restaurants in India 2021

Nearly 80 percent of restaurant and food service experts in India expected buying from local
farmers and food producers to be the most important trend with regard to consciousness in
restaurants in 2021. Due to the coronavirus (COVID-19) pandemic and limited supply chains,
most of the introduced trends focused on local ingredients and products.

Figure a. Opinions of restaurant experts on consciousness in Indian restaurants during covid-19

pandemic in 2021 (https://www.statista.com/statistics/1236259/consciousness-trends-in-restaurants-in-india/)

Sikkim: Economy, Tourism and Hospitality Sector and Environment

Sikkim is an India’s first organic state situated in the North-East region. It is the least
populous state in the country and the second smallest in area after Goa. In the past few years,
the Sikkim Government has tried its level best to promote tourism in the state and has been
successful in its task as well. The world's third highest mountain, Mt. Kanchenjunga,
dominates this tiny Himalayan State with its beauty and majesty. The State is one of the 18
biodiversity hotspots in the world. It includes nearly one third of the total species of
angiosperm found in the country; around 4,000 species of flowering plants; 300 species of
ferns and allies; 144 species of mammals; 500 to 600 species of birds and so on. Rare Blue
Sheep, Tibetan Mastiff, Yaks and Red Pandas are also found here. Such natural beauty along
with ideal climatic condition of the State augurs well for the tourism industry. The green
image of the State has made it an attractive investment destination. UNESCO has recognised
Sikkim ‘s Khangchendzonga National Park as a world heritage site with tremendous natural
and cultural importance.

According to the India Brand Equity Foundation, Sikkim’s economy is driven by the
secondary and tertiary sectors. The tertiary sector alone is at about 48 percent, and includes
trade, hotels, real estate, transportation, and communication as the main drivers, all of which
are related to the tourism industry11. Tourist influx, and consequently, revenues from the
sector have also gradually increased with better physical connectivity, and effective branding
and promotion strategies.

It is a popular tourist destination owing to its culture, scenery, and biodiversity.

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Sikkim is also the least populous state of India having a population of 6, 10,577 in 2011, The
population is unevenly distributed within the state’s four districts, East, West, North, and
south.
Sikkim's population is still largely rural whereas 60 percent of the population is directly or
indirectly dependent on agriculture and allied sectors. Sikkim's literacy rate has had a jump
from less than 7 percent in 1951 to 82 percent in 2011. The state’s per capita income for
2015-2016 is recorded as Rs. 2, 59,950 (at current price) which is the highest among the
north-eastern states.

However, the state was wary of the impact that unregulated tourism could have on the
environment and the communities affected by this influx of visitors. The concept of
Ecotourism took centre-stage in the state in 2002 when The International Ecotourism Society
organised the South Asian Regional Conference on Ecotourism here. Immense focus was
given to developing community-based tourism in the state, which grew around traditional
village homestays to channelize benefits to rural communities. With the growth of tourism
sector, there has been some negative impacts on the environment of Sikkim in terms of waste
generation, exploitation of natural resources and over construction of buildings. In 2017
alone, the total tourist arrivals touch 14.25 lakh in 2017. These have led to some serious
concerns about the environment. One of the contributing industries is the hospitality sector
under with the restaurants come. The numbers of hotels and restaurants in Sikkim has
increased significantly over the years. There is numerous food outlet throughout the main
market of Gangtok (the capital of Sikkim). Restaurants are extremely popular here among
both the locals and the tourists.

Competition is increasing as more restaurants open. During the tourist seasons the dustbins of
M.G. Marg is filled with waste from the restaurants. There is no proper analysis of how much
food is wasted, the amount of plastic and paper waste generated. Slowly some outlets have
started to switch to paper straws, plates, and wood spoons, but the very idea to reduce the
generation of waste is lacking. This paper explores in more details from the perspective of
both the customers and well as the owners of the restaurant, the sustainability approach of
running the restaurant business, and if it could add to the competitive advantage of a
business. The other aspect is to see whether adopting sustainable approaches is beneficial in
financial terms exploring the scope and opportunities in this area.
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Restaurants and Sustainability

A restaurant is a business which prepares and serves food and drinks to customers in
exchange for money, either paid before the meal, after the meal, or with an open account.
Traditionally, Indians tended to eat at home and eat Indian cuisine. However, in the past few
years the trend has changed with Indian consumers eating out more frequently and younger
generation has shed the bias of their elders against international franchises and foreign foods.
It is estimated that Indians spend 8 to 10 percent of their food expenditure outside the home
in restaurants, cafeterias, and other food establishments.

The competition in the restaurant sector is intensifying with an increasing need for
differentiating itself apart from the food quality, price, and service. Many restaurants are
realizing the pressing need to augment store operations through innovation, strategy, and
better technology enablement, which reinforces operational excellence and enhances team
member capabilities and the operations within the restaurant. Benefits include increased store
performance, enhanced “on-brand” guest experience, and stricter adherence to regulatory
requirements.

Sustainability simply means the way to focus on meeting the present needs without
compromising the ability for the future generations to meet their needs.

Sustainability for restaurants means operating in a way that protects, preserves, or restores the
natural environment, promotes social equity, enhances the lives of people and communities,
and contributes to economic prosperity for shareholders and stakeholders.
One way to measure sustainability to measure the carbon footprint generated as a result of the
operations and activities generated by the business. The carbon footprint is the total amount
of greenhouse gases (including carbon dioxide and methane) that are generated by our
actions

With the emergence of three interrelated and interconnected trends that include a decline of
our planet’s natural resources, an increased demand for transparency and increasing
consumer expectations, implementing sustainable practices is not just a good opportunity for
restaurants, but it will be imperative for the long-term health and success of the industry. The
restaurant industry is facing many challenges today including slowing growth, high operating
costs, employee recruitment and retention and the need to attract a younger demographic
customer. A corporate commitment to sustainability for a restaurant business could help
directly addresses each of these issues.

The majority of restaurants are small-to-medium enterprises (SMEs). Review of

sustainability and industry literature revealed that considering restaurants as businesses with
sustainable development options is the most appropriate way to evaluate their sustainable
practices or lack thereof. Sustainable development is the means by which a company
progresses towards achieving an identified set of sustainability goals and harnesses
competitive advantage. The purpose of this thesis is to identify barriers to implementing
sustainable practices in restaurants and explore ways that restaurateurs can incorporate
sustainable business practices and the scope for adoption of an overall sustainable business
model for a restaurant.
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Inventory management, Waste Management, Food and Consumer Perception are the four
sustainability indicators used to identify the barriers to implementing sustainable practices in
the restaurant and the scope for adoption of an overall sustainable business model for a
restaurant.
To understand these indicators both primary and secondary data is used.
Interviews were conducted with 5 restaurant managers to understand how the traditional
business model of restaurant operates and comparing with the option of sustainable business
model available.

Inventory Management – Inventory management refers to the process of ordering, storing,

and using a company's inventory. This includes the management of raw materials,
components, and finished products, as well as warehousing and processing such items.

For small and medium restaurant businesses supply chains and manufacturing processes are
relatively simpler. A well-run restaurant is like a well-run manufacturing business balancing
the risks of inventory excess and shortages, especially the perishable inventory.
The two methods for inventory management which are useful to adopt are just-in-time (JIT)
and materials requirement planning (MRP).

Restaurants have a large, fast-changing inventory with a limited shelf life, which affects your
bottom line. Inventory management allows your restaurant to account for and manage the
value of these raw materials and reduce the cost of goods sold.

Restaurant inventory management is the process of monitoring restaurant’s food and

beverage ingredients in real time. Tracking inventory enables to see what is coming into the
restaurant, what is leaving your kitchen as sales, and what is left over on the shelf and
refrigerator. Understanding these metrics allows to make more informed inventory orders,
avoidance of food wastage, efficient and economic procurement of raw materials.

Unlike other industries that count inventory quarterly or annually, restaurants must take
inventory counts frequently – ideally daily or minimally weekly. These inventory counts
allow you to calculate the beginning and ending inventory values for specific periods.

Here we focus on effectiveness of the supply chain to procure the perishable inventory and its
storage.

Waste Management – The key sustainable way to manage waste is to generate no or low
waste.
The solid and liquid wastes generated are extremely high in pollutant levels and cannot be
discharged directly into municipal dumping sites or rivers. Some 18,000 tonnes of carbon
emissions are generated by food-related road traffic each year, much of it linked to
restaurants; 75 per cent of the 600,000 tonnes of glass bottles junked every year by
restaurants, cafés, bars, hotels, and clubs never gets even close to a recycling plant; and a
third of the food ordered by the trade is thrown away. (McIvor, 2010)
Besides incineration and recycling, the strategy of waste minimization which is aimed
specifically at reducing waste at source before it is produced is also adopted. These measures
are taken to achieve the ideals of zero landfills and zero waste society. As Delhi is renowned
for being a food haven, the food retail industry can be considered a major contributing factor
in the generation of waste. Simple methods of waste management like composting of food
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waste, recycling plastic and glass waste, segregation of waste to more complex methods of
installing grey and black water recycling systems, replacing fossil fuels with biogas could
also help to make business sustainable and profitable.

Waste indicators (Legrand et al., 2010) in the assessment matrix are:

1.The approach “reduce, reuse, and recycle” is followed; staff as well as suppliers are trained
and encouraged accordingly.
2.Sorting and collecting systems for waste with separate bins exist.
3.Paper products contain recycled content.
4.The use of plastic, aluminium, and polystyrene foam is discouraged.
5.Organic waste is reused or composted.
6.Grease and oil waste is collected and properly disposed or reused.

Food - Restaurateur's view food as something they prepare, serve, and throw out. They do
not necessarily consider how the food they serve affects the food system as a whole.
Restaurants can affect what food is produced, in what portion it is to be served, farming
profitability, food waste, and the environmental intensity of food production. Indirect effects
impacts include resource origin, agricultural and harvesting practices, and the packaging and
distribution of goods.
Offering a seasonal menu is one-way restaurants communicate high quality of food and
decreased Enforcing seasonality in the menu is restaurants communicate the value they place
on high-quality of food and environmental stewardship.
Restaurants need a reliable supply of high-quality foods to provide consistent service to
consumers. The chef and those involved in the restaurant’s food procurement can influence
and communicate with local farmers about quality, taste, and demand for local and/or organic
foods in the restaurant.
The menu communicates sustainable practices and initiatives of the restaurant.

Consumer Perception on Sustainability - Consumer perception is defined as a process by

which consumers sense a marketing stimulus, and organize, interpret, and provide meaning to
it. The marketing stimuli may be anything related to the product and/or brand, and any of the
elements of the marketing mix. Consumer perception is important to be understood and
identified. There are being a shift in consumer behaviour towards a more sustainable and eco-
friendly products and services. However, it is still a niche in India. There is a niche category
of consumers who are willing to purchase products and avail services that are sustainable
even at a higher price than the normal products and services. The increasing awareness and
consciousness of the people towards the environmental issues is leading to a change in the
consumer perception towards sustainable products seeking a long-term benefit. The younger
population has adapted more to the sustainability element. A positive change in the consumer
perception towards sustainable practices, opens up opportunities and scope to the sustainable
restaurants. The varied factors that can affect the consumers perception are the image of the
restaurant, the packaging used, the menu, organic food, waste management, promotions, use
of renewable energy, and CSR activities.
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Table 1.0: Some of the major restaurants that are adopting sustainable practices
Source:
Economic Times (Millennial India is slowly and steadily advocating sustainable dining)
Outlook traveller (5 Restaurants known for their Sustainable Gastronomy Practices)
The Better India (5 Eco-friendly Eateries in Mumbai That You Need Check Out Right Now)
S.no Restaurant Operations

1 Restaurants in ITC Hotels was among India’s first participant in World Wildlife Fund’s (WWF)
ITC Hotels Choose Wisely programme aimed at promoting informed choices on fish
consumption.

WWF has designed visual indicators — red (endangered), orange (declining) and
green (healthy)— to help customers. The ITC Hotels has taken this a step further by
eliminating the red species from its kitchen.

ITC is the only hotel chain to introduce at its establishments zero-mile travelled water
in glass bottles to reduce plastic waste.

At 11 of its hotels, leftover oils from the kitchens are shared with companies engaged
in generating biofuels through oil. Fernandes too is looking at eliminating plastic —
cups, takeaway packets — from his restaurants by year-end and is looking at working
with bamboo and banana alternatives.
2 The Oberoi, They Choose crops well-suited for their local growing conditions, minimise use of
Gurgaon synthetic pesticides, and avoid groundwater for irrigation

3 The restaurant serves sweet dishes like rabadi and jalebi in kulhads (clay pots) or
29- Twenty- banana leaves.
Nine, Kemps
Corner, The restaurant, which has 29 outlets across India, is famous for offering 29 regional
Mumbai dishes native to different states. Every 16 weeks they offer a different thali and when
it is time to serve a south Indian meal, banana leaves make an entry.

Takeaways are packaged in a biodegradable container made from paper and corn-
starch.
4 Black Sheep Serving “Globally inspired, locally created” dishes.
Bistro and
Black-Market Sukhtankar, the owner of the restaurants works with Triple O Farms, an organisation
Goa that is helping the tribes from the Sahyadri valley go back to their traditional
agricultural practices, revive the lost varieties of crops, and market the produce.

Lost varieties of grains revived by Triple O Farms have found their way into the
restaurants’ menu.
5 Sienna Store Rooted in supporting local arts and crafts, the menu focused on using ingredients
& Café, sourced from local organic farms.
Kolkata
a zero-waste policy as we use peels and bones for stock, gravy, paste and sauce.
6 Mei-Ramew The North-East Slow Food and Agrobiodiversity Society (NESFAS), which emerged
Café- Mother from a collaboration between the Indigenous Partnership for Agrobiodiversity and
Earth Café, Food Sovereignty (TIP) and Slow Food International, is working to spread awareness
Meghalaya among people regarding the importance of locally produced wholesome food.

One of the major activities includes the Mei-Ramew Café. These indigenous cafes
not only serve local food but also encourage the formulation of ‘local recipes with
maximum use of locally available ingredients.
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CHAPTER II: REVIEW OF LITERATURE

Table 2.0

Name of Year Name of the Title of the Abstract Methodology Major arguments highlighted in the paper Conclusions drawn in the
the author Journal paper Adopted paper
Cheryl The Restaurant There is no clear guidance A model was developed to categorize the The impacts could be
Baldwin, International and food for responsible food service numerous operational activities of the food reduced with various
Nana Journal of service lifeoperations to reduce their service into 4 subsystems in a farm-to-fork preferable practices.
Wilberfor 2011 Life Cycle cycle environment footprint. Descriptive study: Further, operations that
ce, Amit Assessment assessment Therefore, Green Seal research 1. Food procurement meet the requirements in
Kapur and conducted life cycle 2. Food storage the GS-46 standard have
development assessment research on Surveys 3. Food preparation and cooking demonstrated significant
of a restaurants and food service and 4. Food service and operational support reduction in their
sustainability
operations to define interviews Food procurement contributed largest and food environmental impact.
standard priorities for environmental storage contributed least in any of the impact Environmental impact
improvement. This categories examined. Impacts of food services reduction can be done
information was then used were dominated by land use, respiratory without added cost (e.g.,
to develop a sustainability inorganics, and fossil fuels. The environmental cost neutral, with
standard and certification impacts to some extent also came from, energy potential for financial
program. use and plastic disposable product use. gains).
Willy 2015 Emerald A review of Purpose is to develop and The gap analysis of these already ‘‘sustainable’’ There is still a lot of
Legrand, restaurant review a set of indicators Descriptive restaurants was made and showed that a lot of room for improvement
Philip sustainable that measure the level of Research good aspirations to make the business more to make the indicator set
Sloan, indicators sustainable performance sustainable seem to exist in these particular more accurate and
Claudia achieved by individual Survey restaurants. The analysis shows that these four balanced in regard to the
Simons- restaurants and to provide a (Telephonic restaurants primarily seem to connect three dimensions of
Kaufman means by which all Interviews) sustainability with sourcing of food. Terms such sustainability. Applying
n, Sarah restaurant operations can as organic, local, and seasonal are most relevant the indicator set to
Fleischer implement sustainable and coincide with the general concept that numerous restaurants
practice. The set of trendy restaurants offer healthy and nutritional and finding out what
indicators, derived from food. However, indicators such as the type of works and what does not
extensive literature review, electricity used, furniture sourcing, types of should produce a well-
were tested on four London fixtures and fittings as well as fair-trade and harmonized indicator
restaurants purporting to be community support received relatively lower set.
sustainable. attention from these four London restaurants.
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Name of Year Name of Title of the Methodology Major arguments highlighted in Conclusions drawn in the paper
the the paper Abstract Adopted the paper
author Journal
2016 Emerald The cost Sustainability is becoming Descriptive Hospitality industry is highly There is a gap in the existing studies on
Madhu competitive- more important in the Research competitive. Controlling cost cost competitiveness, competitiveness and
Vij ness, tourism industry. For without lowering service quality sustainability in the hotel industry and the
competitive- several leading hotels Survey is challenging while making long importance of various innovative
ness and chains, sustainability is term decisions. Understanding strategies to securing competitive
sustainability integrated into their how sustainability can be strategic advantage. The best service quality helps
-ty of the corporate strategies and for the hotel industry is important create new customers and retain old ones.
hospitality supports the growth of for hotel managers as The service quality is important for
industry in their businesses. sustainability helps to reduce customer loyalty. Managerial
India Sustainability can bring costs, remain competitive and competitiveness and human resources
several positive outcomes improve their reputation. were mentioned as two principal factors
for organizations, which Adoption of green technologies that determine competitiveness.
in turn, enhance their such as using solar panels on is Sustainability needs to be an integral part
competitive advantage. another trend observed. of the corporate strategy.
EunHa 2010 University Effects of Restaurant industry is Descriptive The specific objectives of this Customers perceived green image of the
Jeong Libraries, restaurant witnessing the green Research study were to identify customers’ restaurant can mainly be affected by
And University green movement as well. perceived importance of green companies’ green advertisements rather
SooCheon of Nevada, practices: Restaurateurs strive to get Survey practices in the restaurant than customers’ perception of green
g (Shawn) LA Which this competitive industry, examine customers’ practices in the restaurant. Depending on
Jang, practices are advantage by introducing perceptions the green segments, the top green
Purdue important green practices into their regarding the performance of strategies effective for the specific
University and restaurants. This study green practices and relationship restaurant should be executed.
effective? attempted to find out the between restaurant customers’ Maximizing customers’ involvement in
answer to the question perception of green practices and executing green practices can be the key
whether green practices their perception of green image of strategy to improve the green image of the
have strong effects on the the restaurant, along with how this restaurant. The study results indicate,
image of the company and relationship is affecting the ‘offering recycling bins for cups and
customers’ behavioural customers’ ecological behavioural sleeves in the store’ ranked most
intentions in the intentions. important in evaluation of green practices
hospitality industry. in coffee house.
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Name of the Year Name of Title of the Abstract Methodology Major arguments highlighted in the paper Conclusions
author the Journal paper Adopted
Seyoung Ju The Korean Consumer With the rapid growth Sustainable practices classified with factor analysis The impact could
and Hyeja Nutrition perceptions of the food service consisted of 6 dimensions of green food material be reduced with
Chang Society and on industry, wiser usage procurement, sustainable food preparation, green packaging, various preferable
2016 the Korean sustainable of input sources such Descriptive preservation of energy, waste management, and public practices. Further,
Society of practices as food, utilities, and research relations on green activity, with a total of 25 green activities operations that
Community implemented sole use packaging in foodservice operations. Consumers were not familiar with meet the
Nutrition in should be reconsidered Survey the green activities implemented in the foodservice unit, requirements in the
foodservice for future generations. and with the lowest awareness of green food material GS-46 standard
organizations Therefore, this study interviews procurement and the highest awareness of green packaging have demonstrated
in Korea aims to investigate the and waste management. The factors influencing the significant
customer’s perceptions Factor perception of social contribution by foodservice reduction in their
on sustainable Analysis organizations among 6 sustainable practice dimensions were environmental
practices and to found to be public relations on green activity, waste impact.
identify the management and sustainable food preparation. Green
relationship between packaging and the social contribution of the food service
social contribution and organization had strong relationships with the image of the
purchase intention organization.
Kirti Dutta, 2008 Journal of A The study investigates Descriptive Elevated level of green consciousness noted in India. Lack Consumers in India
Venkatesh Food Comparative the psychological research of emphasis of Green Practices in US. US consumers are have a higher
Umashankar, service Study of factors (consumers’ concerned more about environmental issues such as degree of GP
Gunae Choib Business Consumers' attitudes, behavioural Survey pollution than about energy conservation. Indian subjects consciousness in
& H.G. Parsa Research Green intentions, and are more attuned to energy conservation and recycling than health and visibility
Practice involvement) in pollution and smog. Unlike their Indian counterparts, than consumers in
Orientation relation to Green American consumers appear to discriminate between social the United States.
in India and practices (GP) in the and environmental issues. U.S. consumers are more willing Indian consumers
the United restaurant industry as to pay for green practices than are Indian consumers. are relatively more
States: A measured by three willing to engage in
Study from concerns (health, GP than are
the social, and Americans, but a
Restaurant environmental) and majority of them
Industry their willingness to pay are not willing to
for GP pay for GP.
 12

Name of the Year Name of the Title of the Abstract Methodology Major arguments highlighted in the paper Conclusions drawn in the
author Journal paper Adopted paper
Emily 2011 Arizona Restaurant The majority of Descriptive Traditional restaurants’ most common barriers Sustainable business
McConnell State Industry restaurants are SMEs. Method are cost, lack of awareness, and space. practices must not only
Freeman University Sustainability: Considering restaurants as Sustainability-marketed restaurants barriers meet certain performance
Barriers and businesses with Survey varied by location. State-level incentives can criteria, but also be part of
Solutions to sustainable development help decrease the payback period for purchasing the restaurateur’s value
Sustainable options is the most efficiency-rated equipment. The principal structure. Indicators are
Practice appropriate way to barriers to recycling identified by the restaurants useful as measurements of
Indicators evaluate their sustainable in this study are cost, space, and concerns of performance but fail to
practices or lack thereof. convenience. Restaurants that do not have fully integrate the core
Energy consumption, comingled recycling believe that it would be concerns of sustainability
water use, waste easy to add a glass-recycling program. and sustainable
production, and food Miscommunication or misunderstanding development.
throughput are the four between the property management company and
sustainability indicators implementation at the restaurants may be a
addressed in this thesis. primary factor in why this restaurant only
believes that it can recycle cardboard.
Juliana 2020 International Route to Environmental concern Descriptive This current study has revealed that Malaysian Restaurant business
Langgat Journal of Green has influenced the and ANOVA is ready to accept if the restaurant operations in should hold a
Faculty of Business and Restaurant: selection of restaurant analyses Malaysia moving towards green practices. responsibility in operating
Business, Social Malaysian among customers. Thus, In supporting the green management practices in their businesses more
Economics Science Perceptions restaurant that are a restaurant, Malaysian belief that by reducing ethical by considering the
and and Attitudes implementing green the energy usage and the restaurant waste are the impact of their operations
Accountancy management practices in two most critical aspect to considered. towards environment.
University their operations. In order Malaysian women were identified to be more Besides that, the
Malaysia to capture this issue, this favourable if restaurants are moving towards consumer nowadays was
Sabah study aims to explore into more eco-friendly also concerned about how
customer perceptions and operations. Both hospitality and tourism industry sustainable restaurant are
attitudes towards in Malaysia should focusing to have more operating.
implementing green sustainable
management practices in operations.
Malaysia restaurants.
 13

Name of Year Name of the Title of the paper Abstract Methodology Major arguments highlighted in the Conclusions drawn in the
the author Journal Adopted paper paper
Nathaniel 2016 International Sustainability With the rise in awareness of Descriptive This study examined the extent to The results indicate that
D. Linea, Journal of communication: The sustainability, studies in the Research which the construal of information messages congruent with
Lydia Hospitality effect of message complex relationship between green about the company’s CSR initiative the consumer’s
Hanks, Management construal on practices and consumer behaviour (Sampling introduced via marketing messaging perception of
LuZhang consumers’ in the hospitality industry has method) activates systematic or heuristic sustainability result in a
attitudes towards increased. From a consumer information processing, more positive attitude
green restaurants marketing standpoint, an essential subsequently influencing the toward the company
underlying question remains customer’s attitude toward the
unanswered: What is it about company. The results demonstrated
sustainability messaging that leads
a significant three-way interaction,
to positive consumer attitudes? The
such that when temporal distance in
purpose of this research is to
explore this question via the
the CSR marketing message was
complementary theoretical high, there was no significant
perspectives of construal level difference in attitude toward the
theory and information processing company across conditions.
theory.
Olga 2018 SSRN Opportunities to This report examines the Descriptive Understanding and defining the Eagerness of customers
Mancheva Electronic Achieve a opportunities for restaurant Research concept of sustainability by the of restaurant service to
-Ali Journal Sustainable business in the tourism system restaurant service consumers; the take part in the process
Restaurant and its importance in the Survey perception of implementing a of achieving sustainable
Iliyan Business formation and realization of the change in the way of service restaurant product. The
Lilov tourist product. Due to its leading consumption in restaurants; key role sustainable restaurant
role in tourism, opportunities are of the waiter, with regard to the business is a problem
being sought to apply new tools decisions, made by the consumers; detected by American
and methods to achieve the price of the food box is and East European
sustainable development, irrelevant to the consumer’s authors. In Bulgaria,
including reducing its harmful attitude; consumers’ motivation to such research has not
impact on the environment and take the food left is much stronger if been found and this
creating new, more favourable they know this helps improve the gave extra motivation
habits for consumers. environment. for conducting such
empirical research.
 14

Name of Year Name of the Title of the paper Abstract Methodology Major arguments highlighted in the Conclusions drawn in the
the author Journal Adopted paper paper

Susanta 2019 International Towards the It studied to map the state of Empirical The Tourism sector is one of the Sikkim became a highly
Das Journal of Development of progress, prospects, and patterns Observation significant parts of Sikkim’s GDP. valued responsible
Research in Sustainable of tourism in the state. Tourism in The unregulated tourism sector has tourism destination
Social Tourism in Sikkim, Sikkim is predominant by Personal a pressure on the infrastructure, while conserving its
Sciences India: Issues and domestic and foreign tourists that Observation environment, and culture of the natural and cultural
Challenges shot up by nearly 77 percent to state. heritage. The Human
14.25 lakh during 2017, total Explorative The challenges include – Ecological Development Report
tourist influx in the north-eastern Method Impact, Connectivity and (HDR) 2014 has
state. A vast number of tourist communication, Limited identified certain
influxes would also have pressure Analytical employment opportunities to the potential sectors for
on the infrastructure, Method local, Lack of regulations/ growth and livelihood
environment, and culture of the standards. creation, of which
state. Sustainable planning Some of the Suggestions- tourism ranks the
involving optimal use of Tourism should be planned and highest. Sustainability in
management is required for a managed within environmental tourism, through the
viable symbiosis of tourism and limits. Local communities should be promotion of quality
environment, and sustainability of encouraged and expected to involve tourism and enhanced
tourism in the state. As Sikkim is in the planning, development. All participation of local
also under threat from climate tourists, organisations, and stakeholders. As with
change, land degradation, individuals should respect the other green policies of
overexploitation, and natural culture, the economy, and the way the state, this tourism
disasters, and devastating of life, the environment, and mission statement
consequences. Limited political structures in the destination elucidated strong
infrastructure in Sikkim is to area. All stakeholders of tourism political will to guide
identify new and sustainable should be aware about sustainable Sikkim tourism towards
opportunities to arrest further practices. Research and awareness a sustainable future.
environmental degradation and program on sustainable tourism to
initiate an innovative approach to be focused on.
planning in the region.
 15

CHAPTER III: ELABORATION OF PROBLEM

Even though the restaurant sector had a bump in the year 2020 and is still struggling on in
2021, the Food and beverage outlets are raised to more than 1 million in India, with a growth
rate of 16%. Whereas, the Quick Service Restaurant reached to a 21% growth rate, and it is
estimated that the Food outlets will nearly ₹5Lakh Crores worth by the end of 2021, marking
a growth rate of 10% yearly and this sector will contribute almost 2.1 percent to the India’s
GDP according to a 2020 research study.

In Sikkim, in the six years from 2011-2017, the annual influx of domestic tourists into
Sikkim more than doubled, from 550,000 to 14,24,965. Some studies identify a positive
correlation between the tourists ‘influx and growth of GSDP in the state, with the Tourism
sector contributing 7.68% to the Gross State Domestic Product of Sikkim in the year 2016-
17. The sector also provides direct employment to some 40,000 people in the state, roughly
6.5% of the total population.
However, with the increasing awareness and emphasis on the impact of global warming and
the climate crisis, business is starting to move or at least project themselves to be sustainable.
Sikkim is already witnessing the change in the climate and the increasing temperatures every
summer impacting the agriculture productions, water shortage and increased rate of glacier
melting.
A major issue concerning in the regard of restaurant sector’s impact on the environment is the
disposal of the waste generated from the restaurant facilities. As quoted in the study, “Waste
Management in Restaurants A Review” - The solid and liquid wastes generated are very high
in pollutant levels and cannot be discharged directly into municipal dumping sites or rivers.
Some 18,000 tonnes of carbon emissions are generated by food-related road traffic each
year, much of it linked to restaurants; 75 per cent of the 600,000 tonnes of glass bottles
junked every year by restaurants, cafés, bars, hotels, and clubs never gets even close to a
recycling plant; and a third of the food ordered by the trade is thrown away. So, right now,
that distracting dinner for two is very much part of the problem. (McIvor, 2010)
Metropolitans, with their limited land area and high population density, face a major
challenge in the disposing of municipal solid waste.
Another study suggested that “Unregulated expansion is manifested as ecological
degradation of land and water resources, and threats to native biodiversity.
Local people struggle to reap the benefits of economic opportunities created by their
resources. A stark reflection is that 61% of workers in the tourism sector workforce are from
outside the state.”
Restaurants have increased significantly in the last decade leading to demand of more
resources. The major operations of the restaurant that contributes to the carbon emissions
leading to climate change is identified to be the supply chain of the restaurant industry which
includes procurement of raw materials and delivery of their products and services, the land
usage and the waste generated. The supply chain would include the source of food
procurement, the ways by which it is procured, the packaging material used, till the food is
 16

ultimately delivered to the customers. In the process of providing food and services by the
restaurant, the amount of waste generated and the way it is processed and disposed. The
restaurants from organized sector are included.
In September 2020, Sikkim's Chief Minister Prem Singh Tamang, informed that Gangtok city
and its periphery, have been selected in 25+5 SDGs (Sustainable Development Goals) cities
to fulfil the SDGs goals and targets by 2025.
The United Nations Global Sustainability Index Institute (UNGSII), in co-operation with the
United Nations Sustainable Development Solution Network (UNSDSN) and others are SDG
related partners.
Interesting to note the second and third points of SDGs mention Zero Hunger and Good
Health and Well-Being which, the restaurants can contribute to. The eighth and twelfth point
i.e., decent work and economic growth and responsible consumption and production is also
relevant to the restaurant sectors.
In this study both the customers and the restaurant owners are surveyed to find out their
perspective on a sustainable restaurant business and the challenges they face to adopt to
sustainable methodologies.
The report will also explore the opportunities for restaurants to have a competitive edge with
respect to sustainability from the business point of view.

Objectives:
Focus on ‘sustainability’ has increased in all the sectors as awareness level is growing,
encouraging to adopt to sustainable practices in our daily lives and having a sustainable
economic model as a whole. Gangtok city and its periphery, have been selected in 25+5
SDGs (Sustainable Development Goals) cities to fulfil the SDGs goals and targets by 2025.
Sikkim is moving towards eco-tourism and therefore this could be an opportunity for the
restaurant sectors to step up their game in the sustainability sector and use it as a
differentiator and competitive advantage. The objective of the study is to identify and
measure the factors that act as a barrier to a sustainable business model and if it could be an
opportunity to adopt to a sustainable business model.

1. To identify the opportunities for the restaurant businesses in India

2. To identify the competitive factor of restaurants in Sikkim.
3. To understand the level of awareness about sustainability among the consumers and
restaurant owner.
4. To understand the feasibility of sustainable business model for restaurants.
5. To identify the challenges to shift to a sustainable model of restaurant business
6. To predict the changes of the restaurant business operations in the future.
 17

CHAPTER IV: RESEARCH METHODOLOGY

TYPE OF RESEARCH
Combination of Exploratory research, Qualitative research and Descriptive research, Personal
Observation.

DATA COLLECTION
This study is based on the combination of the primary data and secondary data. Costumers of
restaurant were surveyed through questionnaires and a semi-structured interview was
conducted with restaurant managers in the organised sector.
The survey of 100 consumers of the restaurant services is conducted to know the consumer
perspective.
The secondary data has been used to collect information for understanding sustainability in
restaurant using 4 indicators – Inventory Management, Waste Management, Food and
Consumer Perception.

SAMPLING METHOD
The Samples are taken from East District of Sikkim, assuming that most modern restaurants
are concentrated in this part of the region.
Deliberate Sampling of the customers of the restaurant sector in Sikkim to understand the
business model and consumer perception. Deliberate Sampling refers to choose subjects
according to what is available readily, as the population base under research is large enough.
Simple Random Sampling: Choosing the samples from the restaurants in the organized
segment of the restaurants in Sikkim. Every restaurant in the population base has equal
probability of selection for interviewing them.
 18

RESEARCH DESIGN
The tools of descriptive statistics were used to analyse the results of the questionnaire. The
methods and tools used in this study are as follows:

a. Likert Scale Analysis

In this analysis, diverse types of rating scales to measure the attitudes directly (i.e., the person
knows their attitude is being studied) have been developed. Likert developed the principle to
measure the attitudes by asking people to respond to a series of statements about a topic, in
terms of the extent to which they agree with them, and so tapping into the cognitive and
affective components of attitudes. Likert-type scale assumes that the attitudes can be
ascertained, and the strength/intensity of experience is linear, i.e., on a continuum from
strongly agree to strongly disagree. In this study respondents are offered a scale ranging from
Strongly disagree to Strongly agree. There are five options for each statement and the
respondents have to choose the option which he/she feels is most suitable for the statements
which is analysed later on by allocating numerical points to these options i.e.,
Strongly disagree-1
Slightly disagree- 2
Neutral- 3
Slightly agree- 4
Strongly Agree- 5

Here 1 and 5 are the two extreme responses which would provide better results.
The percentage frequencies have been plotted in a bar chart for graphical representation.

b. Descriptive tools:

• Mean: Mean implies average and it is the sum of a set of data divided by the amount
of data. Mean can prove to be an effective tool when comparing different sets of data;
however, this method might be disadvantaged by the impact of extreme values.

• Mode: Mode is the value that appears the most. A given set of data can contain more
than one mode, or it can contain no mode at all. Extreme values have no impact on
mode in data comparisons, however, the effectiveness of mode in data comparisons
are compromised in the presence of more than one mode.

• Median: Median is the middle value when the data is arranged in numerical order. It is
another effective tool to compare different sets of data, however, the negative impact
of extreme values is lesser on median compared to mean.

• Standard Error: the standard error (SE) is the estimated standard deviation of the
sampling distribution of a statistic. It indicates the reliability of the mean, by showing
 19

how accurately a sample represents the total population. In statistics, any sample
mean deviates from the actual mean of a population, and the standard error tells us
how confident we can be in the observed sample mean.

• Sample Variance: Variance is the expectation of the squared deviation of a random

variable from its mean. In other words, it measures how far a set of numbers is spread
out from their average value.

• Standard Deviation: A standard deviation is a statistic that measures the dispersion of

a dataset relative to its mean.

• Kurtosis: Kurtosis is a measure of whether the data are heavy-tailed or light-tailed

relative to a normal distribution. That is, data sets with high kurtosis tend to have
heavy tails, or outliers. Data sets with low kurtosis tend to have light tails, or lack of
outliers. A uniform distribution would be the extreme case.

• Skewness: Skewness is a measure of symmetry, or more precisely, the lack of

symmetry. A distribution, or data set, is symmetric if it looks the same to the left and
right of the centre point.

• Confidence Level: n statistics, the confidence level indicates the probability, with
which the estimation of the location of a statistical parameter (e.g., an arithmetic
mean) in a sample survey is also true for the population. In this survey the confidence
level is established as 95%.
 20

CHAPTER V: DATA ANALYSIS

Table 3.0 – Number of food outlets bearing license and registered under FSSAI

Central Licenses, State Licenses and Registrations (Issued) at the end of 2017-18, 2018-19 and 2019-20 & Active as on date
Central Licenses Issued as on State Licenses Issued as on Registration Certificates Issued as on Active as on 31-03-2021
State 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 18 31 Mar 19 31 Mar 20 CL SL Registrations
Sikkim 22 23 26 39 47 148 242 283 1,314 22 450 4,593
Source: Food License & Registration System (FLRS) to FoSCoS

As per the data of FSSAI license, there are 4,593 food outlets in Sikkim active as on 31
March 2021. The FSSAI license is an important license for any entity involved in the
production, storage, manufacturing, transfer or transportation of food and food products.
FSSAI license is issued by the Food Safety and Standards Authority of India (FSSAI) and the
FSSAI license for most restaurants would have to be obtained from the State FSSAI
department.

Consumer Survey - through online questionnaire with 100 respondents.

The questionnaire had three sections:
1. Section A – ordinary questions about Sikkim restaurants and sustainability to get
insights about the factors determining the choice of restaurant and awareness level on
sustainable restaurants.
2. Section B- 6 affirmative questions to understand consumer perception about
sustainable restaurants, impact of restaurant on environment and their likelihood to
visit sustainable restaurants.
3. Section C – Demographic information (Name, Age, Gender, Occupation, Education)
and Feedback/ Additional inputs

Sample Size (Total number of respondents) = 100

 21

Table 3.1 Demography

Profiles Options Frequency (%)

1.Gender Male 52
Female 48
2.Age 18-22 21
22-26 59
26-30 9
30-34 5
35 and above 6
3.Occupation Student 62
Business 12
Professional 17
Government 6
Other 3
4.Education Postgraduate 42
Undergraduate 49
Higher Secondary 9

Section A
Figure b. Responses to the questions in Section A of the questionnaire
 22

From the data collected most of the respondents went to eat out at restaurants more than once
in a week, which is very significant to the study, with most respondents belonging to the
generation Z (born in or after the 1990s), followed by millennials with 91% having at least a
graduation degree.
65% of the total respondents visited restaurants at least once a week.

Question 2 - Please rank how important these factors for you while choosing a restaurant you
would go to. (1 being not important at all and 7 being extremely important/ the most
important.)
Table 3.2 Descriptive Analysis of the result

Service
and Value
Quality Menu employee for
of food options behaviour money Ambience Hygiene Wi-Fi Sustainable

Mean 5.2800 4.3900 4.8200 4.9600 4.6900 5.2200 2.6000 4.2200

Standard Error 0.1881 0.1717 0.1794 0.1825 0.1779 0.1878 0.1589 0.1873
Median 6.0000 4.0000 5.0000 5.5000 5.0000 6.0000 2.0000 4.0000
Mode 7.0000 6.0000 6.0000 7.0000 6.0000 7.0000 1.0000 4.0000
Standard Deviation 1.8807 1.7168 1.7944 1.8253 1.7792 1.8780 1.5891 1.8726
Sample Variance 3.5370 2.9474 3.2198 3.3317 3.1656 3.5269 2.5253 3.5067
-
Kurtosis -0.5407 0.9535 -0.6962 -0.8406 -0.8792 -0.8907 0.1235 -1.0385
-
Skewness -0.7784 0.2370 -0.5268 -0.5193 -0.3634 -0.5875 0.8538 -0.0913
Confidence Level `
(95.0%) 0.3732 0.3406 0.3560 0.3622 0.3530 0.3726 0.3153 0.3716

The factors are listed below from the most important to the least important according to the
mean ranking by the respondents:
1. Quality
2. Hygiene
3. Value for money
4. Service and employee behaviour
5. Ambience
6. Menu Options
7. Sustainable
8. Wi-Fi

The result suggests that Wi-Fi is the least crucial factor of choosing a restaurant with a low
mean of 2.60. Quality still ranks number one, followed by hygiene and value for money. The
sustainability factor is not really considered for choosing a restaurant. The standard deviation
is on the higher side, which means the factors are not very closely related.
 23

Figure c – Factors related to sustainability in restaurants

According to the response the factors that people mostly related to the sustainability aspect of
the questionnaire to the least related is listed below:
Waste management (reduce, reuse, recycle) -63%
1. Type of food served (local, organic) – 52%
2. Energy and water usage-47%
3. The portion of the food (option to pack leftovers) – 47%
4. Type of packaging used 35%
5. Type of Cutleries used- 28%
6. Supply chain and logistics (ex. using ingredients imported from other state/country)-
23%
 24

Figure d. Response to question on sustainable restaurants in Sikkim.

91% of the respondents did not know if there are any sustainable restaurants in Sikkim. This
indicated two things:
1. Lack of awareness
2. There is no such operation.
Of the 9% who were aware of such restaurant mentioned few homestays serving local and
organic food, with 2 other cafes which were found to some extent implementing some
sustainable practices.

Figure e. No. of respondents who would visit sustainable restaurants in Sikkim

Majority of 71% were willing to visit more of sustainable restaurants, while 3% weren’t. 26%
were not sure.
 25

SECTION B
Pictorial Representation of data

Figure f. Section B, Q1

Figure g. Section B, Q2
 26

Figure h. Section B, Q3

Figure i. Section B, Q4
 27

Figure j. Section B, Q5

Figure k. Section B, Q6
 28

Questions:
1. I am extremely concerned about the environmental issues.
2. I am extremely concerned about the impact of the restaurant and food service industry
on the environment.
3. I believe that switching to more sustainable/ eco-friendly restaurants will actually
make a difference to the environment.
4. I am more likely to eat in a restaurant that is conscious about the environment and
does not use single use plastic utensils.
5. I am willing to spend a little more on a restaurant which is environment friendly.
6. I strongly feel the need of the restaurants in Sikkim to be more Sustainable.

Table 3.3 Descriptive analysis of the ranking by the respondents

Q1 Q2 Q3 Q4 Q5 Q6

Mean 3.9730 3.5135 3.9730 3.7568 3.6757 4.2973

Standard Error 0.1129 0.1321 0.0908 0.1662 0.1345 0.1015
Median 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000
Mode 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000
Standard Deviation 0.6866 0.8035 0.5521 1.0112 0.8183 0.6176
Sample Variance 0.4715 0.6456 0.3048 1.0225 0.6697 0.3814
Kurtosis -0.7622 -0.2898 0.5974 0.2119 0.0802 -0.5444
Skewness 0.0342 -0.5557 -0.0191 -0.6704 -0.6045 -0.2765
Confidence Level (95.0%) 0.2289 0.2679 0.1841 0.3372 0.2728 0.2059

The average respondents of the survey are conscious about the environmental issues,
however their concern about restaurants role in the environment is slightly on the lower side.
There were 0 respondents who completely disagreed with the questions. However, only
around 5% fully agreed to the statements which indicates real commitment followed by a
rating of 4, where the respondents agreed to the statements. This implies that there is a
positive consumer perception towards sustainable restaurants. The standard deviation
suggests that the respondents are concerned with the environmental issues but the relatability
with restaurant factors is not very high.
Semi-Structured Interview with restaurant managers:
The managers of 5 restaurants located in M.G. Marg and Tadong, Gangtok were interviewed
with semi structured questionnaire, to basically understand their knowledge about restaurant
sustainability and if the restaurant had implemented any restaurant practices. The 5
restaurants are represented by the 5 letters- A, B, C, D, E.
 29

All the restaurants were sit-and-dine restaurants with 2 of them mentioned by respondents in
the survey form in the organised sectors and varied in the size of operation.
The Restaurant Managers were asked about the following:
1. Their understanding on the term sustainability
2. The inventory management system of the restaurant to minimise wastage.
3. From where the food ingredients were sourced
4. Waste Management System of the restaurant
5. Packaging Used
6. Rating the restaurant from a scale of 1 to 5 in terms of sustainable business.
 30

Table 3.4: Response to interview questions by restaurant managers.

Restaurants A B C D E

Understanding Limited to business for it Focus on customers. Not aware. Willingness Association with organic Relationship between
of Sustainability to survive in long run Not clear on the whole to learn more on it. food and technology. nature and business
concept of activities and how it
sustainability affects others

Inventory Based on experience. Manual management/ Use of software to track Use of technology/ On a daily basis. No
Management Stocking after every 2 paper format. 15 days inventory. Use of auto software for inventory stocking of perishable
days inventory for semi inventory system and just management for goods
perishable goods and 2 in time strategy. minimum wastage
days inventory for
perishable goods

Source of food Locally from the Sourced mostly from Locally as well as from 80% locally sourced Vegetables and meat
ingredients vegetable market Siliguri to cut down Siliguri sourced locally.
cost.

Waste Waste handed over to Waste given to GMC Waste given to GMC Reducing waste. Reducing waste.
Management Gangtok Municipal every morning. every morning. Waste given to GMC Waste given to GMC
System Corporation (GMC) Leftovers distributed to Leftovers distributed to every morning. every
every morning. dogs. dogs.
Left over fed to dogs. Focus on waste
Kitchen waste deposited reduction
in the flowerpots

Packaging used Aluminium containers, Plastic containers, Plastic containers. Cloth Only paper and Mostly food grade paper
paper bag Aluminium containers carry-bags cardboard used, paper and carboard boxes and
bags, aluminium foils cups.
 31

Restaurants A B C D E
Willingness to Low. Yes Yes Yes. On the process to Yes. Finding alternatives
adapt to making changes and to plastic packaging
sustainable learning more about it
practices
Barriers to Lack of Awareness and Lack of Awareness, Lack of Awareness and Lack of Awareness and Lack of Awareness and
sustainability in knowledge, Lack of knowledge, Shift in the knowledge, Lack of knowledge, Lack of knowledge, Lack of space,
the restaurant space. traditional and cultural space. space. scalability.
business values, lack of suppliers
and logistics for
sustainable materials,
inflated cost.
Additional Current business focus Opportunities are there For small business,
Comments on customers and their and very willing to adapt provisions made through
priorities. the business to collaboration to be more
Opportunity of sustainable practices. It sustainable
technology would be good for
applications, employee business.
training.
Rating restaurant 5 5 3 2.5 4
from a scale of 1
to 5 for
sustainability
 32

CHAPTER VI: FINDINGS AND CONCLUSION

Gangtok city and its periphery in Sikkim, have been selected in 25+5 SDGs (Sustainable
Development Goals) cities to fulfil the SDGs goals and targets by 2025.
In the year 2018, the Tourism and Civil Aviation Department drafted the Sikkim Tourism
policy grounded on the environmental sustainability and preservation of cultural heritage.
The report suggested various policies, guidelines, and goals for Sikkim to practice
sustainable/ Eco- Tourism during the time when Sikkim was under the former Chief Minister
of Sikkim, Shri Pawan Chamling.
Sikkim had already achieved the status of an organic state by the year 2016. But with the
passing years the acceleration of environmental issues of global warming and climate crisis
has affected the environment, economy, and the lifestyle of the people, in the recent years. As
the awareness is increasing about the impacts the world is facing more focus and importance
on Sustainability.
Sustainability simply means the way to focus on meeting the present needs without
compromising the ability for the future generations to meet their needs.
From major multinational companies, political leaders to the individuals and students are
transitioning to sustainable practices in every field possible to lower their carbon footprint to
avert the present Crisis of Climate Change and Global Warming, along with the Covid-19
Pandemic.

Hospitality industry has been hit hard by the Covid-19 Pandemic; however, it is still expected
to recover once the situation starts to become normal. The Finance Minister Miss Sitharaman
recently announced 5 lakh free tourist visas to be given in order to increase the activities in
the tourism sector. Afterall it is one the major source of revenue and which brings in foreign
currencies.

In Sikkim, in the six years from 2011-2017, the annual influx of domestic tourists into
Sikkim more than doubled, from 550,000 to 14,24,965. Some studies identify a positive
correlation between the tourists ‘influx and growth of GSDP in the state, with the Tourism
sector contributing 7.68% to the Gross State Domestic Product of Sikkim in the year 2016-
17. The sector also provides direct employment to some 40,000 people in the state, roughly
6.5% of the total population. There are numerous restaurants in the main town Gangtok
serving Bengali food to cater specifically to the tourists from West Bengal.
 33

Some statistics from “Waste Management in Restaurants A Review” reveal concerning

matters due to restaurant operations-
• The solid and liquid wastes generated are very high in pollutant levels and cannot be
discharged directly into municipal dumping sites or rivers.

• Some 18,000 tonnes of carbon emissions are generated by food-related road traffic
each year, much of it linked to restaurants; 75 per cent of the 600,000 tonnes of glass
bottles junked every year by restaurants, cafés, bars, hotels, and clubs never gets even
close to a recycling plant.

• And a third of the food ordered by the trade is thrown away.

• Another study suggested that “Unregulated expansion is manifested as ecological

degradation of land and water resources, and threats to native biodiversity.

• Local people struggle to reap the benefits of economic opportunities created by their
resources. A stark reflection is that 61% of workers in the tourism sector workforce
are from outside the state.”

The people are moderately aware about the environmental issues like climate change, global
warming and also experiencing hotter summers every year with more erratic climate.
However, sustainability still seems to relatively a new term. The respondents of this research
study had a minimum education qualification of high school graduation. The knowledge and
feedback of the respondents were insightful.
Some the feedbacks and input from the respondents in an open-ended question suggested that
they are very conscious and aware about the sustainability aspect of the environment and that
the sustainable restaurants would add value to the state and be a part of the status of Sikkim
as an organic state, with sourcing vegetables and meat locally, benefitting the economy.
Another analysis was that sustainability might be a differentiating factor for a restaurant
business, the customers are less willing to pay a premium price for the sake of it. However,
the organic local vegetables fruits and meant is relatively expensive compared to what is
sourced from Siliguri.
The awareness level on the factors that are associated to sustainability in restaurants were
comparatively good, yet the data analysis shows willingness to the initiative yet hesitate to do
so.
An interesting point discussed with one of the restaurant managers was lack of appreciation
and acceptance of the local tradition and culture, adopting more western culture was also a
concern to sustainability. As people adopt to more of western and continental cuisines, the
cultural practices of serving in brass utensils, using hands to eat, are not very well received.
In the past year during the pandemic two restaurants selling authentic local Nepalese food
were shut down. One of them was a branch of the same restaurant, of whose manager I
interviewed. While the other was transformed to a North Indian cuisine restaurant.
 34

The sit-and-dine restaurants mostly serve R/O filter water in glass rather than providing
mineral water. Mostly tourists ask for mineral water. Few restaurants still don’t sell mineral
water and if asked, they purchase from other stores.
On the other hand, small casual restaurants and fast-food chains sell more of the drinks
packed in disposable plastic bottles and mineral water for convenience.
The homestays and farmhouse in the outskirts of the town are operating more sustainably in
terms of sourcing and producing their food locally, supporting local people with traditional
elements.
The restaurant managers were mostly not very well informed about sustainability and
sustainable practices of restaurant around the country despite working outside Sikkim in
metropolitan cities. This is due to the very low numbers of restaurants that exist to adopt
green practices in and around the world.
Association of sustainability for the managers were mostly with the organic food and
technology and they had not thought much about it before.
Use of plastic in packaging as well as mineral water was very low in the restaurants
interviewed. However, the small casual restaurants and fast-food shops, around 20 of them
which I visited were mostly selling cold drinks and water packaged in plastic bottle. Even
though some of them had paper plates, the use of plastic cutleries was still very relevant.
The restaurant managers were very keen to idea of waste management and composting and
were willing to adopt to any such techniques if available that could also solve the problem
relating to space.
A few of the big restaurants were already using software for efficient inventory management.
2 restaurants that were interviewed were already practicing many sustainable operations and
planning to adopt a few new practices too.
Among 5 different restaurants in India mentioned in an article on sustainable gastronomy,
helping revitalise the restaurant scene via food diversity, resurrecting forgotten grains, and
supporting the local economy through their sustainable gastronomy practices, there was one
Sikkimese restaurant that was mentioned who have initiated the same in Gangtok, sourcing
food from local farms. The owner mentions the variety of foods and ingredients available to
them were shocking with over 10 varieties of lettuce, when she was ordering some for the
salad from the farms.
 35

Scope to sustainable Restaurants:

• Waste Management – with the amount of waste generated from the restaurants, there
is a scope to better utilise the waste, by ways of composting, reusing, and recycling
and efforts towards reduction of waste.

• Environmentally friendly-Biodegradable packaging – Replacement of plastic

packaging with eco-friendly materials.

• Sourcing of food locally – Partnerships with local farmers and sourcing local food
• Supply Chain and Logistics: Scope to manage the supply chain and logistics more
efficiently through use of technology.

• Energy and water resources: Research of renewable energy which could be used in
restaurants to cut down cost of bills.

• Building more conscious customers and suppliers- by spreading more awareness.

• Scope for other industries too that could start to fill some of the gaps in the supply
chain.

• These practices in the long run could cut down the cost of operations as well as
increase profitability. If adopted properly, these sustainable practices can generate
ideas for backward integration to the business to grow their own food in a limited
space and also have options open to them with a secondary income. Also, there is a
scope for sustainable restaurants as Gangtok is a part of the UN SDGs, the projections
of tourists to be visiting after the pandemic and the 2018 action plan of Sikkim to be
Sustainable.

• Growing Conscious customers: AS people are growing more aware of sustainable

practices, the scope and opportunity to leverage on a sustainable business seems
bright.

• Growth projections in tourism is an opportunity to leverage sustainable restaurants as

a part of eco-tourism
 36

Barriers to sustainable restaurants.

• Lack of Knowledge and Awareness among the restauranteurs: The restaurant
managers have limited knowledge about sustainability and sustainable practices. The
perception of sustainability in the business being a fundamental necessity is lacking.

• Lack of incentives for consumers: The consumers perception of sustainability is

limited and even with some knowledge about the sustainable practices, the other
factors like price and quality of the food, ambience, rank as a priority to them.

• Lack of resources and incentives for restaurants: The restaurants don’t have adequate
resources for information, finance, and technology to help build a sustainable business
model.

• Lack of Space for composting and storage of waste after segregation, so they have no
choice but to hand it over to the GMC.

• High Cost: The initial cost of adoption to sustainable practices and operations are high
due to lack of suppliers in the nearby states, inflated cost of eco-friendly products and
organic and local food.

• Government Policies: There aren’t any government policies or regulations to support

sustainable practices in restaurants

• Lack of expertise and consultants to educate and make people aware about sustainable
restaurant practices.

The adoption to sustainable business model for restaurants can open up opportunities for
other sectors like packaging, waste management, supply chain and logistics of perishable
goods, consultancies etc. in Sikkim as well as the neighbouring states creating jobs and
employment post pandemic and help contribute to reviving the economy. Government
policies should be supporting the businesses adopting sustainable practices, for in the long
run the cost would go down and the benefits would be both quantitative and qualitative,
increasing the standard of living. There is opportunity to leverage on sustainable business if
done right. There is also an opportunity for collaboration of businesses to find sustainable
solutions that could be used jointly for the community and society welfare. There is however
a gap between the knowledge and action on the part of consumers, as they may be aware of
the environmental impacts and issues related to restaurant businesses, yet the transitions are
slow to adapt to sustainable businesses. With time there is a possibility of increase in the
demand for sustainable restaurants as the people are getting more health conscious and
environment conscious.
 37

CHAPTER VII: LIMITATIONS AND SCOPE FOR FUTURE

RESEARCH

Limitations
• The Covid-19 pandemic and lockdowns made it difficult to visit and interview a
greater number of people in Sikkim.

• The availability of secondary data pertaining specifically to restaurants in Sikkim was

very less.

• The genuineness of the responses of the respondents cannot be guaranteed as the

degree of their honesty and way of interpreting the questions cannot be determined.
Hence the accuracy of analysis may not be 100 per cent.

• The interpretation of questions by the respondents might differ from surveyor’s

interpretation of the questions. Hence results may not be objective

• Some respondents whose English language is weak find it difficult to comprehend and
interpret the meaning of the questions. So, circulation of questionnaire was limited to
respondents with command over English.

• It is difficult for getting answers to follow up questions of a particular question as, the
questionnaire becomes long. When there are too many questions, there are chances
that respondents answer randomly without reading the questions properly.

• Most of the respondents avoid choosing the extreme options on the scale, even though
it would have been more accurate for the study.
 38

Scope

• There is a scope for quantitative research on how restaurants of Sikkim are

contributing to the environment and their carbon footprint generated, compared to an
existing sustainable restaurant in other part of India.

• The opportunities in restaurants food waste management and supply chain

management are another area of research.

• Formulation an analysis of sustainable restaurant model in Sikkim to understand the

practicality of the concept.

• Exploration and study of hotel industry and homestays in the outskirt of town and
their take on sustainability.

• North Sikkim has banned use and sale of disposable plastic bottles and cold drinks
completely in view of the risk to its environment, but not in other districts of Sikkim.
Study on the economic losses and benefits and long-term sustainability in regard to
the banning drinks packaged in disposable plastic bottles.

• Role of Artificial Intelligence and Data Science in restaurant sustainability.

 39

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 42

ANNEXURE

Semi Structured Interview Questions for Restaurant Managers

1. What do understand by the term 'sustainability'? Do you think it is relevant for

restaurant businesses?

2. How do you manage your inventory of perishable goods?

3. From where do you source your food ingredients?

4. How do you manage waste?

5. What kind of packaging is used? Any use of plastic disposable cutleries?

6.Are you familiar with any sustainable practices in restaurants in other places?

7. What are the challenges to adopt sustainable practices, and do you see an
opportunity to it?

8. Any plans to adopt more of sustainable/green practices in future?

9. From a scale of 1 to 5 how much will you rate your overall business in terms of
being sustainable at present?
 43

Questionnaire for consumers

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Time Stamp
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