Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter! I am not going to lie I’ve been getting quite used to all these bank holidays we had in May, why do they give us those bank holidays all at once?!

I had a lovely little break at a getaway called Retreat East, which is located in the Suffolk, a couple of hours from London. Green space, good walks and solid food, you can’t beat it. One thing I noticed on the menu while tucking into a wagyu beef Sunday roast was how close the farm was that supplied the beef - Earl Stonham Farm, just 3.4 miles down the road. I loved the fact that they were supporting local businesses and it got me reflecting on how important sustainable and ethical supply chains are in today’s climate.

The numbers tell a compelling story: 76% of travellers now say they want to travel more sustainably (source: Netsuite), while a staggering 85% of consumers are more likely to buy from companies that are transparent about their sourcing practices (source: The Future of Commerce). It goes to show that customers really do care! In today’s newsletter, we will explore how customers’ attitudes are changing, the benefits of sourcing sustainably and look at 3 brands where ethical sourcing is a big part of their ethos. Let’s get into it!

In today’s email: The Transparency Dividend: How Honest Supply Chains Are Outperforming the Competition

Read Time: Approx 3-4 mins

Why Customers Are Demanding More Than Just Great Food.

Source: The Future of Commerce / British Business Bank

The hospitality industry is experiencing a seismic shift in customer expectations, and it's not just about the quality of your Sunday roast anymore. Today's consumers are wielding their wallets like voting ballots, demanding transparency, sustainability, and ethical practices from every business they support.

This isn't just a trend among the avocado-toast-loving millennials. UK-specific data reveals that 66% of British consumers believe ethical considerations matter when choosing where to eat, while 58% would actively choose accommodation with green awards and environmentally friendly practices. In other words, your sustainability credentials aren't just nice-to-haves anymore, they're becoming non negotiable for customer acquisition and retention.

What's driving this shift? It's a perfect storm of increased environmental awareness, social media transparency and a generation that grew up understanding the connection between their choices and global impact. Customers no longer want to simply consume, they want to feel good about their consumption. They're asking harder questions: Where did this fish come from? Are your staff paid fairly? What happens to your food waste?

The Bottom Line Benefits: When Doing Good Actually Pays Well

Source: Deloitte / British Business Bank / The Future of Commerce / PKF Hospitality

The financial benefits of ethical sourcing aren't just about avoiding negative publicity, they're about unlocking new revenue streams, reducing costs, and building a more resilient business model.

• The premium pricing power is real and measurable. Data shows customers are willing to pay 9.7% more for sustainably sourced products, which is transformational for an industry where profit margins are traditionally super slim.

• Cost reduction happens across multiple areas. The World Economic Forum found that sustainable sourcing practices can decrease supply chain costs by 9-16%. How? Local sourcing cuts transportation costs. Energy-efficient practices reduce utility bills. Waste reduction programs slash disposal fees. Better supplier relationships lead to more favourable terms and reduced procurement risks.

• Take the operational efficiency gains: Hotels implementing smart technology and sustainable practices are seeing dramatic cost reductions. Meanwhile, hotels requesting guests reuse towels reduce laundry loads, energy consumption and labour costs by 17%.

• The investment community is paying attention too. ESG (Environmental, Social, Governance) criteria are increasingly important for accessing capital, insurance, and partnerships. The EU's Corporate Sustainability Reporting Directive now requires large companies to report on climate impact, making sustainability reporting not just good practice but a legal requirement.

Three Brands Getting It Right: The Sustainability Success Stories

The Pig Hotels: The 25-Mile Philosophy

The Pig Hotels have turned hyper-local sourcing into a luxury brand differentiator that allows them to command premium prices. Their "25-mile menu" isn't just marketing speak, it's a fundamental business model where everything they can't grow in their own kitchen gardens must be sourced within a 25-mile radius.

Each hotel's kitchen garden serves as the heartbeat of the operation, with chefs and gardeners collaborating in planning meetings to determine what to grow each year. Bar staff even have their own beds for growing aromatics for cocktails.

The business impact: The Pig achieved B Corporation certification and maintains a three-star Food Made Good Standard rating. Their teams contribute over 3,000 volunteer hours annually to local communities, creating goodwill that translates to business support.

Wahaca: Transparency as Competitive Advantage

Mexican restaurant chain Wahaca topped Which?'s sustainability rankings not through grand gestures, but through comprehensive transparency and smart sourcing decisions. They've made sustainability their core differentiator in the competitive casual dining market.

What sets them apart: Wahaca sources free-range chicken, pork, and eggs while deliberately reducing beef offerings to just one dish on their menu. All fish is MSC-certified, and they sustainably source palm oil, soya, tea, coffee, and sugar. The genius move? They're the only restaurant that lists carbon emissions for each dish on their menu, turning environmental impact into a customer decision-making tool.

The results: 60% of their menu is vegetarian, and their transparency has earned them the highest sustainability scores in the industry.

Pick Your Own: Regenerative Farming in the City

The newest player Pick Your Own, recently opened in the City of London with a model that champions regenerative farming practices while serving busy financial district workers. They've proven that sustainability messaging can work even in the most time-pressured, convenience-focused markets.

Their innovation: PYO partners directly with farmers and suppliers like the Ethical Butcher and Langridge Organic focused on regenerative practices and actively champions these producers to customers. It's not just about sourcing sustainably—it's about educating urban consumers about regenerative agriculture while they grab lunch.

By positioning themselves as both convenient and educational, PYO is capturing the growing market of consumers who want to make ethical choices but need the convenience of quick service.

Today we've had a quick run through of understanding why ethical supply chains are important in today’s climate, what the benefits are and some examples of brands embracing that approach. If you could improve one aspect of your supply chain, what would it be?

Now, in our next edition, we’re going to take a deep dive into the peri-peri powerhouse that is Nandos. Starting their life with humble beginnings in 1987 in Johannesburg, they’ve grown worldwide to over 1,200 locations and become an absolute staple of the UK fast-casual scene. We’re going to explore their remarkable journey and the factors that have shaped their success.

Ready to dive deeper and learn more about how Nando’s scaled into a global brand? Subscribe now to have it delivered straight to your inbox in our next edition!

Bon appétit,

Max Shipman, Founder, Hot Potato

P.S. Don't forget to add us to your safe senders list to ensure you don't miss out on any of our tasty content.