Circular economy in practice: A case study of a food service SME in Central and Eastern Europe

This thesis aims to explore how circular economy principles are integrated into the business model of a food service SME in Central and Eastern Europe. Using the three principles established by the Ellen MacArthur Foundation (Eliminate Waste and Pollution, Circulate Products and Materials, and Regenerate Nature), the study examines the practices of a Hungarian food delivery company and identifies areas where circular strategies are applied or could be improved. A qualitative case study approach was chosen, involving semi-structured interviews with key decision-makers of the company. Thematic analysis of the interviews reveals that while the company does not consciously follow a circular business model, many of its practices are aligned with circular economy goals. These include accurate inventory planning using the FIFO method, minimized preparation waste through processed ingredient sourcing, redistribution of unsold food to charities, and efforts to optimise delivery routes to reduce emissions. However, several challenges were also identified. These include packaging waste, limited use of renewable energy, barriers imposed by hygiene and food safety regulations, and a lack of focus on regenerative sourcing. While there are ongoing efforts, such as planning for solar panels and considering recollection programs for packaging, environmental concerns often remain secondary to cost, food safety, or logistical efficiency. The study concludes that SMEs in the food service sector can adopt circular practices even without a formal CE strategy, but a more deliberate approach is needed to maximise environmental and economic benefits. The findings also highlight the need for greater regulatory support, customer education, and industry collaboration to enable wider adoption of circular business models.