Curbing Food Waste in China: The Balancing Act Between Reducing Food Waste and Managing Successful Business-to-Business Banquets

Purpose Food waste in Business-to-Business (B2B) banquets has become a pressing issue in China due to cultural practices such as mianzi (face-saving) and guanxi (relationship building). The Chinese government has implemented stringent food waste regulations to curb this problem. However, these regulations pose challenges for foodservice operators, who must balance compliance with traditional business hospitality norms. The purpose of this study, therefore, is to explore how foodservice businesses in China navigate these regulations while maintaining successful B2B relationships.Methodology/Approach A qualitative approach was adopted, utilizing in-depth semi-structured expert interviews with 18 industry professionals, including foodservice managers and B2B banquet hosts. Participants were selected through purposive sampling based on their extensive experience in managing B2B banquets under evolving food waste policies. Thematic analysis was conducted to extract key insights regarding the interplay between regulatory compliance, cultural expectations, and operational strategies.Findings Stricter food waste regulations increase hosts’ reliance on foodservice providers that can preserve mianzi while ensuring compliance. Trust is recalibrated through providers’ regulatory expertise, benevolence, and integrity, and providers use menu consultation, policy communication, and staff training to reduce waste while sustaining banquet success, guest satisfaction, and long-term business relationships.Research Implications This research extends Social Exchange Theory by identifying regulatory pressure as a boundary condition that reshapes how reciprocity and trust operate in inter-organizational relationships. Under such conditions, reciprocity shifts from visible expressions of generosity to responsible behaviors that align with institutional expectations. The study also shows that trust acquires an institutional dimension when compliance expertise becomes important to relationship maintenance. In this context, ability includes regulatory knowledge, benevolence includes protecting partners from relational and resource-related risks, and integrity includes a credible commitment to broader institutional goals. These changes, in turn, reshape dependency and collaboration between exchange partners.Practical Implications Foodservice operators must adopt proactive communication and menu engineering to balance waste reduction with guest satisfaction. Staff training on food waste prevention, suggestive selling techniques, and sustainability commitments are crucial. Additionally, the study emphasizes the importance of centralized kitchen operations and external nudging (e.g. displaying food waste policies and encouraging guests to take leftovers) to comply with regulations while maintaining business success. Policymakers should foster industry collaboration forums to help foodservice operators navigate regulatory challenges.Originality/Value/Contribution This study offers one of the few empirical examinations of how foodservice providers in China reconcile cultural hospitality norms with sustainability mandates imposed by government policy in B2B banquet settings. Unlike prior studies that examine policy, culture, or food waste separately, this research integrates them through Social Exchange Theory to explain how reciprocity, trust, and collaboration are recalibrated under legal constraints. It contributes a contextually grounded refinement of SET by showing how compliance expertise and relational assurance replace visible excess as key signals of successful exchange. It also provides operationally relevant solutions, grounded in senior industry interviews, for aligning banquet success with waste reduction.