The area where more production than customer facing occurs. That area is mostly set up to be able to separate waste with little to no added labor.
Ask the meat dept what happens with the bone/fat/scrap/spoiled. Most likely* it gets picked up by a rendering plant for proteins to go to animal...
Meat departments have been doing it for many years. I don't think it would cause more labor cost in the back of house areas for other departments/venues. I agree though, that front of house areas could be problematic.