Application of Green Practices and Circular Economy in Culinary SMEs in Bandung City

Abstract

The growing need for sustainable business practices makes green practices and circular economy (CE) principles increasingly relevant for small and medium enterprises (SMEs), yet how culinary SMEs apply them across business functions is still insufficiently understood. This study aims to explore how culinary SMEs in Bandung, Indonesia, implement green practices and CE principles in marketing, operations, finance, and risk management, and which barriers shape the implementation. A qualitative multiple-case study design was used with three culinary SMEs: Moms Bakery, Hutanika, and Canaya Resort. Data were collected through semi-structured interviews, open-ended questionnaires, and direct observation, then analyzed using content and thematic analysis supported by NVivo. The findings show that environmental awareness is present in all three cases, but implementation remains selective and is not yet integrated into business systems. Key constraints include the high cost and limited availability of environmentally friendly materials, dependence on third parties, consumer preferences, and limited government support. The study concludes that the gap between environmental intent and execution remains wide, and it recommends eco-innovation, stronger sustainability literacy, supply chain collaboration, and accessible incentives, including green financing.