Phillips 66 and Restaurant Technologies Turn Fryer Oil into Jet Fuel

Used cooking oil collected from restaurant fryers is finding a new life at 30,000 feet. Phillips 66 and Restaurant Technologies have formed an industry collaboration aimed at converting used cooking oil (UCO) into sustainable aviation fuel (SAF), creating a value chain that stretches from commercial kitchen to commercial aircraft.

The partnership underscores a growing reality for foodservice operators: the grease trap is no longer just a liability. As demand for low-carbon feedstocks accelerates across the energy sector, used cooking oil has become one of the most sought-after inputs for next-generation fuels — and restaurants sit at the very start of that supply chain.

Why Operators Should Pay Attention

For restaurant and hospitality operators, the significance of this collaboration goes beyond environmental optics. Restaurant Technologies already works with thousands of foodservice locations across the country, managing bulk oil delivery and used cooking oil collection as part of its core service model. That existing infrastructure positions the company as a critical aggregator of UCO feedstock at scale — a role that becomes increasingly valuable as refiners like Phillips 66 seek reliable, traceable sources of lower-carbon inputs.

Operators who participate in managed oil programs stand to benefit as UCO gains commodity value in the SAF supply chain. While pricing details were not disclosed, the broader market trend points toward used cooking oil commanding stronger economics as aviation and energy companies compete for sustainable feedstocks. This dynamic makes professional oil management — rather than informal grease hauling — a strategically important operational decision for multi-unit restaurant groups and contract foodservice providers alike.

Scaling the SAF Supply Chain

Sustainable aviation fuel produced from waste fats and oils is widely recognized as one of the nearer-term pathways for decarbonizing commercial aviation, given that it can be blended with conventional jet fuel without modifications to existing aircraft or airport infrastructure. The challenge has always been feedstock volume and traceability — exactly the problem that a structured foodservice collection network can help solve.

By connecting a major refiner with an established foodservice oil services platform, the collaboration attempts to address both the upstream aggregation challenge and the downstream processing capacity in a single integrated model. For the broader food and beverage industry, it signals that sustainability-linked supply chain partnerships between foodservice operators and energy companies are moving from pilot programs toward commercial-scale ambitions.

The announcement reflects a wider trend in restaurant sustainability and waste reduction that is reshaping how operators think about byproduct streams. It also aligns with the direction of food and beverage industry supply chain reporting that has tracked the rising value of agricultural and culinary co-products across multiple sectors. As more foodservice brands face ESG reporting pressure from parent companies, franchisors, and investors, programs that convert kitchen waste into verified low-carbon fuel could become a meaningful part of sustainability disclosures — turning back-of-house operations into a front-of-mind business consideration.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.