by Nick Schlichting, Leuphana University of Lüneburg, Germany.
Restaurants, bakeries and grocery stores all face the same problem that at the end of the day, there is food left over that has not been sold. For example, a baker has five sandwiches left at the end of the day. Can they be sold the next day? Definitely not. Normally, the food would now be thrown away. But not anymore, since there is a company that has developed a solution to this problem: An application called “Too Good To Go” which turns an environmental issue into a business opportunity. The concept of the app is easy to understand and already has a large user community. During the day, customers can buy a “Magic Box” with fresh food that will be left over. The contents of the box are worth around three times as much as the price in the shop. But not only do customers benefit from the app. A notable share of the supplier’s revenue comes from the food surplus. And as the partners don’t know the amount of food surplus, the concept is ideal for both sides. Furthermore, the model works for small cafés as well as for large food retailers. Of course, TGTG benefits financially, as partners pay membership fees and a small share of the sold boxes. Turning food surplus into a value for businesses and consumers, the environmental impact is equally impressive. One box saves around 2.7 kilograms of CO2, hundreds of litres of water and valuable land resources. So TGTG can demonstrate concrete results, which is important for companies that want to strengthen their sustainability profile. To make everything smooth and possible, digitalisation plays a key role. As TGTG is an app, information gaps between businesses and consumers are reduced, and new technologies are therefore used for more efficiency. Communication and transparency are important for businesses to be successful. So TGTG positions itself as a purpose-driven brand with the focus to build a community with the idea that wasting food is “not normal”. Trust is reinforced by clear metrics, as you can see how many meals you saved, and the app also motivates people to participate with gamified elements to handle food waste more thoughtfully. To sum everything up, we can learn a lot from the brand and its development. For example, that companies should start to analyse their own waste streams. For future managers, the app can be an inspiration to act purpose-driven too, as profitability and sustainability can reinforce each other. Creating a social value through your business does strengthen margins and customers loyalty. In addition, the world is becoming faster and more digital, so the usage of digital tools is very important to unlock new opportunities and enhance efficiency.
I hereby certify that I have written this blog independently and have not used any sources or aids other than those specified. I have correctly cited all passages that I have quoted or paraphrased. I have not yet submitted the thesis in the same or a similar form for any other course or examination authority.
