Skip to main content
Enterprise AI Analysis: Carrot, stick, or both? Price incentives for sustainable food choice in competitive environments

Enterprise AI Analysis

Carrot, stick, or both? Price incentives for sustainable food choice in competitive environments

The global food system is a significant contributor to greenhouse gas emissions, with current consumption trends proving unsustainable. This study investigates the effectiveness of pricing interventions—discounts, surcharges, and combined schemes—to promote sustainable food choices in a competitive, real-world university environment. Findings reveal that while discounts are ineffective and surcharges risk customer churn and negated environmental benefits through spillover, a balanced combined approach significantly reduces CO2eq emissions and increases vegetarian meal uptake without adverse effects on sales or revenue. These insights are critical for designing scalable and economically viable sustainability interventions in competitive enterprise settings.

Executive Impact: Data-Driven Sustainability

Leverage precise insights to implement effective sustainability strategies that align with your enterprise's climate and financial goals. Our analysis highlights the measurable benefits and critical considerations for pricing interventions in food services.

0 Reduction in CO2eq Emissions Per Meal (Combined Strategy)
0 Increase in Vegetarian Meal Sales (Combined Strategy)
0 Impact on Overall Sales/Revenue (Combined Strategy)
0 Annual CO2eq Reduction Potential

Deep Analysis & Enterprise Applications

Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.

Intervention Strategies
Behavioral Insights
Implementation & Scale

Enterprise Process Flow

Define Pricing Strategies (Discount, Surcharge, Combined)
Select Cafeterias (4 out of 12)
Implement Sequential Crossover Design (6 weeks)
Match Menus Across Control/Treatment Weeks
Track Transactions & GHG Emissions
Analyze Environmental & Economic Outcomes
Strategy Environmental Impact Economic Impact Enterprise Implications
Discount
(-2.5 CHF on vegetarian)
  • No significant change in vegetarian uptake or CO2eq emissions (p=0.56-0.58).
  • 7.0% increase in sales but 8.9% decrease in revenue (economically unsustainable).
  • Ineffective for climate goals and leads to revenue loss; avoid standalone discounts.
Surcharge
(+2.5 CHF on meat)
  • 26.4% increase in vegetarian uptake, 7.4% reduction in CO2eq per meal initially.
  • However, spillover effects to non-treated sites (14.9% sales increase, 12.1% CO2eq increase) neutralized gains.
  • 12.3% reduction in sales (customer churn), no significant revenue drop (offset by higher prices).
  • Effective for shifting choices, but critical risk of customer churn and negated environmental benefits due to competitive spillover. Requires coordinated, wider implementation.
Combined
(-1.2 CHF veg / +1.2 CHF meat)
  • 16.6% increase in vegetarian uptake, 11.3% reduction in CO2eq per meal.
  • No significant spillover effects identified.
  • No significant impact on overall sales or revenue (p=0.19-0.28). Economically viable.
  • Most balanced and promising strategy. Achieves climate goals without harming economic viability or causing negative spillover.
YES Pricing interventions equally effective across dietary habits. Entrenched meat-eaters can be nudged towards more sustainable choices.
STAFF Senior staff (higher income) less responsive to price changes than students, indicating varied customer sensitivity.

EPFL: A Real-World Competitive Environment

The study at EPFL (18,000 individuals, 12 cafeterias, food trucks, off-campus options) represents a highly competitive real-world food environment where customers could 'vote with their feet'. This unique setting allowed the research to assess spillover effects and economic sustainability, providing robust insights beyond captive settings.

CRITICAL Coordination for Impact: Interventions in isolation may simply redistribute unsustainable behaviors rather than reducing them. Coordinated, campus-wide strategies are essential to maximize climate benefits and avoid unintended spillover effects.

Calculate Your Potential ROI

Estimate the economic and efficiency gains for your organization by implementing data-driven sustainability initiatives in your food services.

Estimated Annual Savings $0
Reclaimed Employee Hours 0

Your Implementation Roadmap

A phased approach ensures seamless integration and maximum impact for your customized sustainability solution.

Phase 1: Discovery & Strategy Alignment (Weeks 1-3)

Comprehensive assessment of current food service operations, existing sustainability initiatives, and organizational goals. Develop a tailored strategy for pricing interventions and supporting behavioral nudges.

Phase 2: Pilot Program Design & Setup (Weeks 4-8)

Identify pilot locations, standardize menus, and configure pricing systems for combined strategies. Train staff on new protocols and communication for transparency.

Phase 3: Controlled Pilot & Data Collection (Weeks 9-14)

Execute the combined pricing intervention in pilot cafeterias using a crossover design. Rigorously track sales data, revenue, vegetarian uptake, and GHG emissions per meal, alongside monitoring for spillover effects.

Phase 4: Analysis & Optimization (Weeks 15-18)

Analyze pilot results, evaluate environmental and economic impacts, and identify areas for refinement. Adjust pricing tiers, communication strategies, and menu offerings based on real-world data.

Phase 5: Scaled Rollout & Continuous Monitoring (Months 5+)

Implement optimized strategies across all relevant food service locations. Establish a framework for ongoing performance monitoring, impact assessment, and adaptive management to sustain long-term benefits.

Ready to Transform Your Enterprise's Sustainability?

Don't let climate targets remain aspirational. Our experts can help you design and implement data-driven, economically viable food service strategies that deliver measurable environmental impact.

Ready to Get Started?

Book Your Free Consultation.

Let's Discuss Your AI Strategy!

Lets Discuss Your Needs


AI Consultation Booking