Abstract
Background: Sustainability is increasingly recognised as a cornerstone of entrepreneurship to achieve the United Nations Sustainable Development Goals by 2030. The water crisis in Cape Town highlighted the vulnerability of the urban system to climate change, which created significant challenges in implementing water-saving strategies.
Aim: The study examines the barriers that prevent fine dining entrepreneurs from achieving sustainable entrepreneurship during a water crisis, employing insightful analysis strategies to support sustainable entrepreneurship in combating future environmental crises.
Setting: Cape Town.
Methods: Using purposive and snowball sampling, qualitative face-to-face interviews with 10 (n = 10) fine dining restaurant owners were conducted. A thematic analysis presents the findings.
Results: Findings revealed key persistent challenges, including political dynamics, lack of financial support for sustainable ventures, limited access to the innovation ecosystem, resistance to change and regulatory inconsistencies or lack of governance accountability. These challenges, exacerbated by the ongoing water crisis, underscore the need for sustainability through industry collaboration and comprehensive stakeholder training.
Conclusion: Furthermore, findings highlighted practical recommendations for industry collaboration and stakeholder training to strengthen sustainability efforts in the tourism and hospitality sector.
Contribution: The study identifies strategic interventions that promote sustainable entrepreneurship and contribute to building long-term resilience within the hospitality sector for future crises.
Keywords: ecopreneurship; fine dining; hospitality; innovation; sustainability; water crisis.
Introduction
Cape Town’s ‘Day Zero’ was coined in anticipation that taps would be shut down in response to a persistent drought spanning 3 years. Though a singular event, it revealed the complex, interconnected challenges influencing the volatility of the hospitality sector, infrastructural pressures, shifts in post-pandemic consumer demand and increasing sustainability expectations. Research indicates that drought (Mokone & Gumede 2025; Visser 2018) and water scarcity (Brühl & Visser 2021) have long-lasting impacts on business systems. A critical evaluation of the tourism and hospitality industries exhibits significant vulnerability to climate-related shocks. In light of the water crisis, restaurants have adopted measurable strategies to enhance their resilience and have restructured their menus to navigate the uncertainties of this challenging period (Magida & Makoza 2023). This context underscores the need to revisit previous findings (Brühl & Visser 2021; Calverley & Walther 2022; He, Liu & Wu 2021), which depict a prolonged environmental crisis and suggest critical long-term management strategies to mitigate its impacts on businesses, including fine-dining restaurants. Mokone and Gumede’s (2025) recent study proposes an urgent sustainability framework that aims to promote sustainable consumption in alignment with the United Nations Sustainable Development Goals (SDGs) (United Nations [UN] 2021).
The operational resilience of high-end restaurants has been tested through the implementation of ecopreneurial practices. Whilst drought has historically constrained supply, the current challenge of load shedding introduces new limitations regarding customer experience and safety. Mabunda, Mukonza and Mudzanani (2023) have established a connection between rolling blackouts and widespread environmental health risks, which affects the performance of small- and medium-sized enterprises (SMEs). Load shedding remains a critical issue affecting various business operations, with some small enterprises forced to cease operations altogether (Mabunda et al. 2023). It is these situations that compelled restaurants to consider sustainable solutions such as solar systems, battery storage and gas redundancy (Brühl & Visser 2021). Consequently, capital expenditures in the fine-dining sector are increasingly prioritised towards on-site energy generation and off-grid cold-chain protection, often in conjunction with efficiency upgrades learned during the water crisis (Wright et al. 2024).
Cape Town’s water crisis, which peaked between 2015 and 2018, indeed, exposed the fragility of urban water infrastructure and the socioeconomic vulnerabilities (Brühl & Visser 2021). The announcement of ‘Day Zero’ marked a critical juncture, necessitating the cessation of water supply to both businesses and residents. This situation placed significant pressure on fine dining establishments, compelling them to implement measures to conserve water and innovate their practices, or face the possibility of closure. This ongoing environmental crisis challenge continues to affect the Western Cape region, including Knysna, and different regions of South Africa, such as Port Elizabeth, Limpopo and KwaZulu-Natal, leaving approximately 1.28 million people concerned about future water availability (National Department of Water and Sanitation [DWS] 2026; Visser 2018; World Meteorological Organization [WMO] 2023). Provinces such as Gauteng and the Eastern Cape highlight deteriorating infrastructure, posing survival challenges to businesses and local citizens who depend on water (Mokone & Gumede 2025). The World Economic Forum (2024) further highlights the urgency of rising global temperatures and stresses the importance of environmental awareness. The WMO (2023) further underscores the growing challenges in changing climate patterns, including persistent flooding in low-lying areas, raising concerns about future water crises. As Knysna continues to grapple with the water crisis challenges, the Western Cape government promises to work closely with the National DWS to safeguard water security and to mitigate the impact on businesses, residents and the tourism industry (DWS 2026).
In Cape Town, in an effort to mitigate the impacts of water crisis challenges, fine dining restaurants took significant steps to incorporate fair employment practices, comprehensive training, and supplier diversity into their sustainability initiatives. This approach effectively bridges the gap between urban water governance and firm-level actions (Rodina 2019). Survey data from Cape Town’s fine-dining establishments also revealed a strong focus on innovative strategies as key components of resilience within the hospitality and tourism industry (Magida & Makoza 2023; Rolker et al. 2022). This can be achieved through environmentally responsible practices, whilst being innovative in achieving the enterprise’s goals, which could also be considered as ecopreneurship.
The term ecopreneurship represents a distinct category of entrepreneurship where environmental responsibility is a primary driving force rather than a secondary consideration. According to Vola, Cantino and Gelmini (2022), this phenomenon encompasses the emergence of innovative practices amongst private-sector entities that place environmental focus at the heart of their business models, thereby achieving sustainable competitive advantage (Mtapuri et al. 2024; Rodríguez-García, Guijarro-García & Carrilero-Castillo 2019). Furthermore, underscores the role of entrepreneurs in cultivating new business ideas fundamentally grounded in sustainability. This article examines the barriers to sustainable entrepreneurship during a water crisis resilience in fine dining restaurants. The study employs insightful analytical strategies that support sustainable entrepreneurship to mitigate future water crises.
Literature review
Background and context
The concept of sustainability traces back to the Earth Summit held in Rio de Janeiro in 1992 (Ruggerio 2021). This marked a global commitment to integrating environmental protection into developmental agendas. The Kyoto Protocol built on this foundation, as an international treaty that obligates businesses globally and in South Africa to reduce greenhouse gas emissions contributing to climate change (Welter 2012). This agreement led to more stringent environmental regulations, aiming for environmental protection and improved business practices, by prompting numerous countries globally to consider environmental impact and gas emissions in decision-making processes (Kyrö 2015; Torres-Bagur, Ribas & Vila-Subirós 2019). Sustainability, as a fundamental element of the SDG agenda, guides Goal 6 and 12 in tackling the challenges of sustainable management and consumption by using resources efficiently (UN 2021). Sustainable entrepreneurship provides a framework to balance economic, social and environmental obligations (Shepherd & Patzelt 2011). During the Cape Town water crisis, ecopreneurship played a key role in driving innovation, promoting water efficiency and creating public awareness. Despite the potential of ecopreneurship in Cape Town’s fine dining restaurants, they faced numerous challenges during the water crisis.
Noting some of the challenges that exacerbated the impact of the water crisis, noted by Bischoff-Mattson et al. (2020) and Visser (2018), were political and institutional dysfunctions. Whilst poor governance, lack of strategic planning, growing population within the Western Cape province and delays from the National DWS further exacerbated the water crisis in Cape Town (Donnenfeld, Hedden & Crookes 2018). Furthermore, the dysfunctionalities within the Provincial DWS also intensified the situation, culminating in the so-called ‘Day Zero’ and the imposition of punitive water tariffs (Millington & Scheba 2020), which continue to cause discontent amongst Cape Town residents (Alessandri, Daddi & Iraldo 2024). Day Zero in 2018, when taps were expected to be shut down, became a global case for water resilience (GreenCape 2020). On the other hand, the Cape Town municipality implemented various changes, including tariff hikes, severe water restrictions and awareness campaigns. This dramatic shift affected tourism organisations, including fine dining entrepreneurs who were simultaneously trying to navigate maintaining fine dining standards.
Globally, many megacities continue to grapple with either seasonal or chronic water scarcity, including São Paulo, Mexico City, Istanbul, Karachi and Bangalore (Barbosa, Mushtaq & Alam 2017). South Africa ranked as one of the 40 driest countries in the world, a situation exacerbated by its inadequate infrastructure (Du Plessis 2023). Projections indicate that population growth and climate change are likely to compound the situation, potentially affecting a larger urban population by 2050 (WMO 2023). This problem necessitates an urgent focus on diversified water supply strategies, effective leakage control measures, demand management initiatives, governance reforms and the development of resilient business practices (He et al. 2021). There is a need for sustainable strategy interventions to ensure the resilience of fine dining restaurant businesses in Cape Town. Fine dining establishments play a crucial role in meeting visitors’ expectations who seek an exquisite dining experience, as well as showcasing local culinary traditions and ensuring that resilient practices are implemented to survive a water crisis (Magida & Makoza 2023). Existing research on sustainability in hospitality mainly focuses on implementation within individual establishments, with a limited focus on inter-organisational knowledge exchange. In fine dining, where resource intensity and brand prestige heighten sustainability challenges, there is no structured mechanism or platform for sharing best practices, leading to fragmented efforts and inefficiencies. Addressing this gap is essential to promote collective learning, hastening industry-wide progress towards SDGs, and aligning luxury dining with changing consumer expectations for environmental responsibility. Sustainable Development Goal 12 focuses on sustainable management of natural resources and promoting sustainable practice (UN 2021).
Tourism and hospitality economic perspective in South Africa
Both tourism and hospitality are fundamental sectors of global economies, drawing millions of visitors annually to experience a destination’s spectacular natural landscapes, rich culinary heritage and vibrant cultural offerings. Reviews indicate that gastro-tourism contributes significantly to tourist satisfaction and generates revenue for destination promotion (García-Pérez & Castillo-Ortiz 2024). TechSci Research (2024, 2026) reveals that the global fine-dining restaurant market is estimated to be valued at USD 166.9 billion and projected to reach USD 243.2bn by 2030. The fine dining restaurant market is indeed experiencing significant growth, driven by rising consumer demand for premium dining experiences, innovative culinary trends and an increasing focus on luxury. This expansion is outpacing many broader full-service segments and reflects a growing demand for premium, experience-based consumption, which aligns with high-end tourism industry forecasts (García-Pérez & Castillo-Ortiz 2024). The same increasing demand for tourism and residency in Cape Town necessitates careful consideration in business practices operating in the fine dining sector. This suggests a need for innovative and sustainable strategies to achieve resilience. Existing studies also indicate a significant lack of coherent strategies during the water crisis to achieve ecopreneurship.
Cape Town, as the second-largest city in South Africa (Worldometer 2025), is a major tourist destination that holds around 20% of the country’s restaurants (Welter 2012). The perceived image of a destination greatly influences tourist choices (Calverley & Walther 2022; Taing et al. 2019). The decline in visitor numbers following the announcement of ‘Day Zero’ during Cape Town’s water crisis explains the image of the destination for tourist choice. The study suggests that as part of the resilience strategy, the fastest-growing fine dining in the hospitality sector is to boost the economy whilst achieving sustainability. This mandate fosters ecopreneurship to cultivate new business ideas fundamentally grounded in environmental practices and innovation (Rodríguez-García et al. 2019).
Sustainable entrepreneurship and ecopreneurship in the hospitality industry
Sustainable entrepreneurship in urban spaces accentuates the vital role of an enabling environment, a supportive policy framework, access to funding and public–private partnership (Luederitz et al. 2023). It emphasises the need for collaborative crisis management rather than an ad hoc response to support a sustainable planning and innovation ecosystem. It is noted that entrepreneurs in the global South face complex challenges, over and above the water crisis, such as damaged infrastructure and limited institutional support (Du Plessis 2023; GreenCape 2020). The 2018 Cape Town water crisis, as a case study, revealed these gaps, highlighting the barriers to achieving sustainable entrepreneurship during crises. Fine dining restaurant enterprises in the metropole operate from a multifaceted industry that revolves around the art of welcoming and anticipating the needs of guests and visitors. Achieving a competitive edge in this dynamic sector involves surpassing expectations and ensuring sustainability across economic, social and environmental aspects (Kyrö 2015). This, however, challenges clean operations, as Doyle, Smith and Johnson (2017:5) state that sector emissions are around 38% of global gas emissions. The hospitality industry, with a larger share, has a major impact on the environment’s prevalent daily operations, such as cooking food and dishwashing. Scott, Gössling and Hall (2012), Welter (2012) and Terán-Yépez et al. (2020) illuminate the critical role of sustainability strategies in adapting to evolving consumer and environmental trends. To ensure successful compliance with environmental regulations, well-trained employees must adhere to business sustainability strategies. The food supply chain must be included in the sustainability strategy to achieve the sustainability goals (Baldwin 2009; Heikkurinen & Forsman-Hugg 2011). Baldwin further states that strategies to reduce environmental impact emphasise the importance of reusing, recycling and conserving usage. These critical factors have been affected by various issues in fine dining restaurants in Cape Town. The aspects of ecopreneurship are differentiated from the broader scope of sustainable entrepreneurship, which may encompass social or nonprofit objectives. It specifically emphasises eco-efficiency and the harmonious relationship between profitability and environmental enhancement (Kyrö 2015; Ljungkvist & Andersén 2020). Additionally, ecopreneurs are recognised as visionary change agents, motivated by green values and committed to innovations that not only transform markets, but also ensure profitability. Hence, ecopreneurship is a vital tool for businesses to achieve long-term business resilience.
Crisis management through creativity and innovation
To achieve resilience as an ecopreneur, creativity and innovation are essential components when operating in today’s competitive landscape (Bjerke 2007; Piperopoulos 2016; Rwigema & Venter 2004; Von Stamm & Trifilova 2009). Creativity is defined as the process of generating ideas to address challenges and serves as a foundation for innovation, crucial for achieving desired outcomes (Amabile 1996). In the competitive domains of tourism and hospitality, entrepreneurs ought to prioritise creativity and innovation for sustainability (Bjerke 2007; Van Aardt & Bezuidenhout 2014). Unfortunately, the significance of innovation within the tourism and hospitality sectors is frequently overlooked. The ability of tourism firms to innovate is influenced by a broader ecosystem, which encompasses tourism destinations, customers, organisations and government entities (Scott et al. 2012). In terms of strategic innovation, Lazenby (2018) argues that the success of every business depends on carefully planned, implemented, and evaluated strategies aligned with the enterprise’s vision, mission and values. Both creativity and innovation are indispensable in fostering business growth and development (Nordin & Svensson 2005). However, numerous new ventures encounter only a brief period of success before facing challenges in sustaining growth due to adverse conditions such as economic downturns, natural disasters and pandemics (Amankwah-Amoah et al. 2021). The imminent threat of global warming necessitates strategies that promote sound environmental practices (Enqvist & Van Oyen 2023; García-Pérez & Castillo-Ortiz 2024). Fine dining restaurant entrepreneurs had to be innovative and creative to manage their businesses during the water crisis in Cape Town, compelling new adopted strategies to overcome the barriers to sustainable entrepreneurship for fine dining restaurants. This article presents significant findings that provide valuable analytical strategies indicating how ecopreneurship plays a vital role in the resilience of fine dining restaurants in the face of impending water crises.
Research methods and design
This study employed a qualitative research methodology, focusing on the experiences of fine dining restaurant entrepreneurs. Purposive sampling was used to identify suitable participants. A total of 29 fine dining restaurants operating in the Cape Metropole were initially identified. Confirmation of the establishments in operation was conducted. At this stage, owners who were contacted directed researchers to other businesses operating in the area, which resulted in snowball sampling being implemented as a secondary sampling method (Creswell & Poth 2018). One restaurant owner, whose restaurant had been operating for over 23 years, subsequently referred owners of fine dining establishments within several five-star hotels across the Cape Town metropolitan area, highlighting the high-level networks of the sector. Purposive sampling, initially applied, helped in identifying suitable participants as well as mitigating any response bias, which would possibly be introduced by snowballing (Creswell & Poth 2018). Establishments were categorised, and those excluded did not fall under the category of fine dining. Others had closed down operations due to the emergence of the coronavirus disease 2019 (COVID-19) pandemic at the time of data collection. All the factors had an impact on the study’s sample size.
Ten suitable and willing participants emerged, whose in-depth experiences provided valuable data for this study. Permission was granted, and safety procedures for data collection were also followed during the pandemic. Data collection was carried out through face-to-face, semi-structured interviews, each lasting approximately 1 hour. Consent prior to participation in this study was obtained from participants. Submissions were made to the university ethics committee, where approval was granted for the commencement of the study.
Open-ended questions were employed to elicit in-depth insights into the challenges faced by fine dining restaurant owners during the water crisis. Qualitative research focuses on providing rich, contextual insights rather than statistical generalisation (Mason 2010). A thematic approach that identified recurring patterns within the responses was applied. At the end of the fourth interview, similarities in responses emerged (Mason 2010), leading to data saturation. Although saturation was achieved, the researchers continued analysing all 10 participants’ data to validate responses. The findings reflected the authentic expressions and experiences of the participating entrepreneurs.
Ethical considerations
Ethical clearance to conduct this study was obtained from the Faculty of Business and Management Sciences, Cape Peninsula University of Technology research ethics committee (No. 2019FOBREC708).
Results
As an extension of the previous study, examining the barriers to sustainable entrepreneurship (Magida & Makoza 2023), this study aims to share barriers to the resilience of fine dining restaurants during an environmental crisis. The study further employs insightful analytical strategies that support sustainable entrepreneurship to mitigate future water crises. Results below are presented in sub-themes to determine the barriers to sustainable strategies during a crisis, aimed at knowledge sharing of environmental eco-practices. The discussion includes direct extracts illustrating the perspectives of the respondents, as they navigated the challenges of the water crisis in their businesses during the amplified Doomsday moments, ‘Day Zero’ (Warner & Meissner 2021; Wolski 2018). The extracts adopted in the study are most relevant and presented in verbatim to reveal real-life experiences.
It articulates to the reader the vital role of effective sustainability in businesses. Presented in Figure 1 are the main themes that emerged from the study, with related sub-themes as Theme 1: Ecopreneurship (elements: environmental responsibility, reflect deeper structural, cultural and strategic dynamics), Theme 2: Strategic innovation (elements: crisis adaptability, resistance to change and fine dining standards) and Theme 3: Institutional Accountability (elements: lack of government support, financial constraints and staff buy-in, knowledge sharing of environmental eco-practices). Although the findings could assist on a global scale, the researchers caution that the exploratory nature of the study and the geographic context may limit the generalisability of the findings.
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FIGURE 1: The synergy of sustainability for business resilience. |
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Theme 1: Ecopreneurship
One of the elements related Theme 1 was the adoption of water-saving strategies. Although operating in harsh conditions, the entrepreneurs displayed environmental responsibility (Ecopreneurship) and took creative and/or innovative actions to ensure operations continued whilst enhancing fine dining standards. About 90% of the respondents in fine dining initiated sustainable management strategies through the adoption of water tanks, solar power, wind power, power battery backup systems and cooking headlights. Although the adoption of these technologies came at considerable financial cost, particularly in response to ‘Day Zero’, environmental stewardship was prioritised despite the financial strain (Kyrö 2015; Terán-Yépez et al. 2020). The role of ‘ecopreneurs’ is to innovate around resource scarcity whilst promoting ecological ethics in business. About 50% of fine dining ecopreneurs’ responses indicate being proactive in adopting these strategies before the water crisis sets in. This is a true definition of environmental stewardship and sustainable entrepreneurship, or ecopreneurship. Participant 1 and Participant 2 started to put water tanks in their backyards, but customers started noticing, and they started toilet flushing with rainwater as much as they could. They had to buy water tanks, solar power, wind power, power battery backup systems, and cooking headlights. They have started buying a lot of water and power-saving equipment and have two fine dining places, the wine cellar and the Function venues. They were the first people to install the 60 wind turbines for both businesses before the Hotel Verde in Cape Town Airport, and it cost a lot of money. They were quite happy to have an organic garden, green energy, a sustainable fish supply, and a free-range supply. They also implemented load-shedding menus and cold menus, using headlamps when cooking, and have built battery packs underground and green energy.
The findings also revealed that at least one respondent mentioned that his business did not adopt any water-saving strategies despite the water crisis. This was a clear indication that at least the majority of fine dining restaurants implemented, but not all adopted, environmental consciousness during the water crisis, despite the strict water tariff hike from the municipality.
The above accentuates a clear, distinctive role of ecopreneurship in comparison with an ordinary entrepreneur. The findings also represent a distinct category of entrepreneurship where environmental responsibility is a primary driving force rather than a secondary consideration. According to Vola et al. (2022), this phenomenon encompasses the emergence of innovative practices amongst private-sector entities that place environmental focus at the heart of their business models, thereby achieving sustainable competitive advantage (Rodríguez-García et al. 2019). The ecopreneurial practices motivated competition amongst the restaurateurs in the hospitality sector. The problem with this rivalry arises when the fine dining is operated under financial constraints.
Financial constraints shaping innovation and institutional accountability
The financial constraints emerged as a critical factor shaping both the scale of sustainable innovation and perceptions of internalised financial decision, or external support amongst fine dining entrepreneurs (issues that could impact Strategic Innovation and Institutional Accountability). Enqvist and Van Oyen (2023), Dube, Nhamo and Chikodzi (2022) and Magida and Makoza (2023) underscore that harsh water tariffs imposed by the municipality of Cape Town as a short-term measure could not be maintained over a long-term period, stating:
‘I feel that we pay a lot of money to the city of Cape Town, regardless of what we do to save water, and the future for our businesses is bleak.’ (Participant 1, Owner, 01 July 2019)
The respondents’ views about the water crisis came at a high cost, suggesting financial constraints in surviving the water crisis when there is a lack of government support. Innovation requires financial muscle, and the government acted upon, shifting the water crisis problem towards increased water tariffs. The findings from two of the respondents also revealed that operational standards of fine dining give the impression that intense water saving will lead to a loss of customers. The perceived impression of maintaining fine dining standards could mistakenly be perceived as ensuring that implementing water-saving strategies could mean deviating from set standards:
‘I did not implement any water-saving strategies; I am struggling as we speak. Business is not good; this is a bad year for me. For the first time.’ (Participant 5, Owner, 05 February 2020)
‘Before starting to compete with the rest of the world, it costs a lot of money, which is a demotivating factor rather than a push for new creations. We lost 10% of the business turnover each year since the water crisis in December 2017 to March 2019.’ (Participant 1, Owner, 01 July 2019)
Theme 2: Strategic innovation
Resistance to change in the application of fine dining standards is one of the elements highlighted in Theme 2. Maintaining fine dining standards is evident as a barrier for fine dining restaurateurs who expressed their concerns about creating a balance between fine dining standards and sustainable strategies. There was a lack of understanding or effort, or buy-in from staff and business owners (internal – Theme 3: Institutional Accountability). As noted in the interview, respondents expressed concerns that maintaining the fine dining standards is a crucial prerequisite for fine dining enterprises. This, they felt, made it difficult to create a balance between water-saving strategies and fine dining. Fine dining restaurants are characterised by high-end ambience and highly skilled chefs, which are distinctive features of fine dining restaurants (Lane 2014). The treatment of visitors plays a pivotal role in determining tourist influx (Cruz, Hodari & Raub 2024). These high-quality standards of the atmosphere and food are associated with the price of dining in fine dining restaurants. The customer’s expectations cannot be overlooked during operational decision-making. The decisions must consider customers’ needs and not jeopardise their expectations, despite challenges. The crisis spurred creativity for sustainable fine dining:
‘It poses a challenge to fine dining whereby customers go to the loo in numbers all at once, creating a problem as we started telling the customers about the water problem, not to flush toilets, i.e. if you have customers a day and all want to go to the loo, it’s not viable. If you are at a fine dining restaurant, as a customer, you do not want to use a dirty toilet because you want to save water and then go back to finish the main course meal. As a five-star restaurant, one cannot have a restaurant with stinking toilets due to saving water. Certain business things cannot be compromised for your guest’s requirements from five-star standards.’ (Participant 1, Owner, 01 July 2019)
Theme 3: Institutional accountability
A total of 80% of fine dining entrepreneurs expressed frustration with being left to manage the water crisis without government intervention. The lack of an effective innovation ecosystem strategy from the government to assist the fine-dining restaurants was noted as another challenge (external – Institutional Accountability). The respondents highlighted (as captured in Theme 1) that the government abruptly increased water tariffs without proper consultation, a lack of effective communication between stakeholders and a non-alignment of policies for business operations (Donnenfeld et al. 2018; Millington & Scheba 2020). This highlights a lack of governance accountability, further stating that ‘The city of Cape Town does not take us seriously, besides being threatened’. A statement indicating the frustration with the responses of the participants. Sustainability can only be achieved through collaboration amongst stakeholders, clearly lacking and effective communication from the government to enhance proper engagement about water crisis challenges. Supported by Dube et al. (2022), fine dining water-saving strategies from the Provincial DWS were ad hoc and lacked long-term sustainability, neglecting the impact on the most vulnerable citizens:
‘There is no help coming from the Cape Town city municipality besides being threatened, asserting that if we do not register the green saving systems, the city will not accept the implemented systems, making it extremely difficult for our businesses to survive. After the World Cup, we expected a lot, and the water crisis has created dents in our businesses and was quite nerve-wracking. The visitors are coming to Cape Town because we offer good wine and food, not only the mountains, but without water, this cannot be successful, and this is the result of a lot of mismanagement from the city and government, more than anything else. The speculated increased rates according to the value of the business are the problem facing the businesses, as the rates were increased based on the property values.’ (Participant 1, Owner, 01 July 2019)
Discussion
The discussions surrounding Theme 1 illustrate that fine dining restaurants played a crucial role in implementing sustainable strategies to address the water crisis. However, these efforts were met with significant challenges, primarily stemming from the increased water tariffs imposed by the Cape Town municipality. The insights collected underscore the essential function of ecopreneurship during this critical period.
Themes 2 and 3 illustrate that the implementation of water management strategies presents its own set of challenges, as these measures incur high costs for fine dining establishments. Despite the entrepreneurs’ commitment to sustainability, insufficient financial support remains a major obstacle to achieving sustainable entrepreneurship. Existing literature emphasises the need for policy coherence, infrastructure funding and collaborative efforts as critical components of environmental resilience (Dube et al. 2022; Warren et al. 2023). Critiques from Rawlins (2019) and Enqvist and Van Oyen (2023) highlighted the inconsistent support from the South African government during environmental crises. Warren et al. (2023) further stress that effective water management strategies, stewardship, advocacy, such as Biatree platforms, and strong leadership are vital in addressing water crises. The Provincial Department of Water and Sanitation’s punitive measures, including heightened water tariffs based on consumption levels, compelled restaurants to invest in water-saving technologies (Visser 2018). Only those fine dining restaurants with the financial capacity were able to implement innovative crisis management strategies. In Theme 3, it becomes evident that tourists are inclined to choose alternative destinations where water issues are less pronounced. Furthermore, the findings highlight a notable deficiency in staff training, which is essential for adequately preparing employees to tackle future crises. To ensure adherence to environmental regulations, it is imperative that well-trained staff effectively implement business sustainability strategies (Baldwin 2009). Staff resistance emerges as a significant hurdle, exposing a gap in training and awareness related to sustainable practices; this resistance may also stem from a lack of innovative approaches within entrepreneurial practices. The capacity of tourism and hospitality firms to innovate is significantly influenced by a broader ecosystem that includes tourism destinations, customers, organisations, government entities and the supply chain (DWS 2026; Heikkurinen & Forsman-Hugg 2011; Scott et al. 2012).
The findings highlight that sustainable entrepreneurship encompasses more than just innovative practices within individual businesses. It fundamentally relies on collaborative support and strategic partnerships with various stakeholders, ultimately driving enhanced business success. When ‘Day Zero’ was announced in 2018, the municipality was ready to introduce high water tariffs with minimal consideration of the implications on businesses and residents alike (Bischoff-Mattson et al. 2020), indicating how knee-jerk reactions by municipalities could be detrimental, rather than assistive.
Recommendations
The above findings underscore the need for sustainable entrepreneurship to thrive and achieve resilience for businesses that rely on water for survival. A strategic framework involving the government, restaurant entrepreneurs and local communities within the region is needed to promote water conservation and enhance resilience.
Adequate water management, as demonstrated by Brazil’s decentralised river basin committees, necessitates active stakeholder involvement. Policymakers in Cape Town are urged to practice effective governance by strategically allocating financial resources for infrastructure and water management, with continued funding necessary for SMEs. Additionally, providing financial incentives for restaurants to adopt water-saving technologies is recommended, as this could significantly improve responsible water usage. In line with the WMO (2023) report, this study highlights that poor management of freshwater supplies could have economic ramifications, projecting a potential loss of 6% of gross domestic product by 2050 (WMO 2023). Legislative frameworks are urgently needed to support the synergy of sustainability for business resilience. A major element is increased support for ecopreneurship through financial assistance, advocacy and support from municipalities for implementing water-saving strategies. The article advocates for a comprehensive and collaborative approach amongst all stakeholders to ensure a sustainable business future, innovative practices and resilience in the face of environmental challenges.
Future studies
Further studies may determine the readiness of the hospitality and tourism sectors in South Africa for any future environmental crisis. Most importantly, the ecopreneurship element of fine dining restaurants in South Africa and perceived impacts on service quality require further investigation. Future investigations could also be conducted on a large sample size and focus on consumers’ attitudes towards sustainable water management strategies at fine dining restaurants. The development of a more comprehensive model for water use to achieve sustainability in water crisis management is critical.
Research limitations
The study did not reach a larger sample size due to financial constraints and the impacts of the COVID-19 pandemic. This limited its generalisability to all fine dining restaurants in Cape Town. Potential bias in face-to-face interviews and a lack of triangulated data from staff, customers and policy actors are acknowledged in the study. Further studies can be conducted to include these elements, as well as to determine the readiness of businesses that rely on water for survival during a future water crisis in Cape Town. Other studies can further explore the sustainability framework for fine dining businesses introduced in this study.
Conclusion
As businesses navigate the challenges imposed by environmental constraints, there remains a pressing need for the development of a theoretical framework for sustainability through the lens of environmental impact. Firstly, this study underscores three critical dimensions for achieving eco-responsible responses to water crises within the framework of sustainable entrepreneurship: Ecopreneurship (environmental responsibility, reflect deeper structural, cultural and strategic dynamics), Strategic innovation (crisis adaptability, resistance to change, fine dining standards), and Institutional accountability (lack of government support, financial constraints and staff buy-in, knowledge sharing of environmental eco-practices). The view of sustainable practices for small businesses needs evolution, from a mere compliance issue to environmental stewardship. In this way, fine dining restaurant owners can build resilience against future environmental disruptions. This perspective aligns with the existing literature advocating for strategic foresight in sustainability planning.
Secondly, environmental stewardship should not come at a personal cost to the business owner or perceived loss of quality standards of fine dining offerings. Authentic experiences and environmental responsibility are not mutually exclusive; rather, they should be viewed as complementary objectives for long-term viability. Creating authentic experiences demands investment in specialised skills and sourcing of high-quality materials, which require high upfront costs. Financial backing empowers businesses to adopt proactive crisis management, thus reducing vulnerabilities to short-term environmental disruptions.
Thirdly, a strengthened collaborative effort amongst all stakeholders, highlighting the role of government accountability during times of environmental crisis, is imperative. This support, coupled with staff buy-in, comprehensive training and skills development for the entire value chain of suppliers, becomes vital. These partnerships must transcend traditional accountability structures to be integrated into crisis management frameworks as part of a long-term strategic approach. Aligning these insights with existing literature supports the perspective that government responsibilities should extend beyond a singular accountability structure.
Acknowledgements
This article is based on research originally conducted as part of Nobesuthu Magida’s, master’s thesis titled ‘Impact of water crisis on the financial performance of fine dining restaurants in the Cape Town Metropole’, submitted to the Business Administration in Entrepreneurship department, Cape Peninsula University of Technology in 2021. The thesis was supervised by Robertson Tengeh. The supervisors were not involved in the preparation of this article and were not listed as co-authors. Portions of the thesis have been revised, updated, and adapted for publication as a journal article. The original thesis is publicly available at: http://etd.cput.ac.za/handle/20.500.11838/3452.
Competing interests
The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article.
CRediT authorship contribution
Nobesuthu Magida: Data curation, Formal analysis, Investigation, Methodology, Project administration, Writing – original draft. Pavla P. Mokoena: Conceptualisation, Writing – original draft, Writing – review & editing. All authors reviewed the article, contributed to the discussion of results, approved the final version for submission and publication, and take responsibility for the integrity of its findings.
Funding information
The authors received no financial support for the research, authorship and/or publication of this article.
Data availability
The data that support the findings of this study are available on request from the corresponding author Nobesuthu Magida. The data are not publicly available due to ethical and privacy considerations, as they contain information that could compromise the privacy of research participants. The dissertation associated with this study is available in the institutional repository at https://etd.cput.ac.za/.
Disclaimer
The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency or that of the publisher. The authors are responsible for this article’s results, findings and content.
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