If you think that encourages people to make more waste and you can't like, tell the difference between normal waste and people doing that, you're oblivious
That's it, they are oblivious. They are disconnected from the actual day-to-day labor in such a way they don't actually know the 'average' amount of waste to expect. They have MBA brain and are trying to use abstract formulas and concepts to create 'lean' sigma chains or whatever the fuck, they are thinking idealistically not materialistically. At least that's how the managers and bosses have been at restaurants I worked at. Anybody above 'chef' doesn't know shit about cooking, they visit the site maybe a couple of times per year on surprise inspections, and General Managers/Principals don't know anything either but think they do. Corporate sets the policy.