Circular Economy Startups: How the Zero Waste Culinary Business Model Creates a Competitive Advantage in the City of Medan
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Aditiya Pratama Daryana*
Amalia Akita
Vina Gabriella
Zero waste business models have become an important part of the circular economy that aims to reduce waste, improve resource efficiency, and support environmental sustainability. The city of Medan, as the center of the culinary industry, faces major challenges related to the surge in food waste and the high use of single-use materials, which have an impact on the sustainability of the restaurant industry. Therefore, this study aims to analyze the application of the zero-waste business model in culinary startups in Medan City and its impact on operational efficiency, financial benefits, and customer preferences. This study uses a mixed-method research approach, combining qualitative and quantitative methods. The data was collected through in-depth interviews with culinary business owners, customer surveys, hands-on observations at zero-waste restaurants, as well as analysis of business documents. NVivo thematic analysis was used to extract insights from interviews, while descriptive statistical analysis and linear regression (SPSS & PLS-SEM) was applied to measure the correlation between zero waste strategies and operational efficiency. The results of the study show that zero-waste-based restaurants have succeeded in reducing waste by up to 70% compared to conventional restaurants. In addition, the zero waste strategy has a significant correlation with improved operational efficiency (r = 0.72, p = 0.001) and financial benefits (r = 0.65, p = 0.003). On the customer side, 68% of respondents are willing to pay more for food from zero-waste based restaurants, with the main factors influencing consumption decisions being environmental awareness (58%), food prices (25%), and food quality (17%). The conclusion of this study emphasizes that the zero-waste business model can improve business competitiveness through operational efficiency and increased customer loyalty. This research also proposes policy strategies that can support zero-waste-based businesses, such as tax incentives, innovations in the supply chain, and the use of digital technology in waste management. These findings provide a foundation for further research in the development of sustainable business models for culinary MSMEs as well as the integration of the circular economy on a wider scale.
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