Sustainability is essential for the longevity and competitiveness of small businesses in the foodservice sector. This article explores how innovation drives the transformation of business models and practices in small, entrepreneurial foodservice firms, with a focus on independent restaurants. By integrating insights from sustainability transitions theory and sustainability innovation, the study develops a practical framework for operational and business model innovations aimed at enhancing sustainability. The findings provide actionable strategies for practitioners and policy makers to address sustainability challenges, offering guidance on how to implement these innovations effectively within the unique context of small foodservice businesses.