The Circular Economy as a Strategic Driver for Sustainable Competitive Advantage in Hospitality and Food Service

Abstract

The relevance of sustainability across all sectors of life is a defining feature of the 21st century, particularly in tourism, where environmental pressures and socio-economic challenges demand urgent transformation. In this context, the hospitality and restaurant industries must undergo a strategic transition toward sustainable management practices. The purpose of this study is to substantiate the necessity of implementing modern managerial approaches grounded in ecological responsibility and circular economy principles. The object of the research is the process of transitioning to sustainable hospitality and restaurant management, while the subject comprises the specific techniques and models that facilitate this transition. The central thesis posits that the successful adoption of sustainability-oriented practices in hotel and restaurant enterprises is a key driver of long-term economic viability, environmental stewardship, and socially responsible tourism development. The methodology is qualitative and conceptually descriptive, employing general scientific methods such as analysis, synthesis, comparison, and analogy. It is further enriched by an AI-assisted systematic review of academic literature and official documents from institutions such as the EU and UN Tourism, enabling the classification of transition techniques and formulation of actionable management recommendations. This process includes the analysis of leading industry benchmarks and official Best Environmental Management Practices (BEMPs), which serve as applied examples for defining operational optimization. The scientific novelty of the study lies in its integrative approach, combining macroeconomic frameworks (e.g., ESG and Triple Bottom Line) with micro-operational strategies (e.g., circular economy principles and Fourth Industrial Revolution technologies). This dual-level integration redefines sustainability not merely as a moral imperative but as a strategic economic model that enhances competitiveness, operational efficiency, and investment attractiveness. The main conclusion is that sustainable development should be embraced as a core mission of the tourism business. Enterprises that align their operations with sustainability principles demonstrate measurable success, validating the strategic and economic value of responsible hospitality and restaurant management. JEL: Q56, Z32; UDC: 640.4:[005.35+504.03]