26/03/2025
"We don't want reusable cups because it's expensive!"
Yes, true. But also no.
Reuse is definitely not (yet) competitive with single-use. But we need to break the barriers.
Let us present a case study where REUSE CAN MAKE MONEY.
Real data:
๐น 15k cups with RFID tags for โฌ0.44 each
๐น 10 Cuploop automated return kiosks (RFID-enabled)
๐น โฌ0.10 per cup washing
๐น โฌ0.10 for handling and logistics per cup
Assumptions:
๐น 10k cups used per week, i.e., 40k per month
๐น 95% return rate
๐น 2k new cups purchased each month for replacement
๐น 40k single-use cups eliminated per month at โฌ0.05 each (โฌ2k total)
๐น Trash pickup & services reduced by โฌ2k per month
Monthly operational costs are nearly โฌ11k in each case. Cup replacement, washing, logistics, and servicing account for 87% of the expenses.
1๏ธโฃ ๐ฆ๐ฐ๐ฒ๐ป๐ฎ๐ฟ๐ถ๐ผ ๐ญ: ๐ง๐ต๐ฒ "๐ก๐ผ ๐๐ต๐ฎ๐ฟ๐ด๐ฒ" ๐ ๐ผ๐ฑ๐ฒ๐น
In this case, the business saves & earns โฌ6k per month.
How?
By:
๐น eliminating single-use cups,
๐น reducing trash, and
๐น earning from unpaid deposits (95% return rate means 2k cups are not returned each month, and the company gets to keep the deposit).
Still, the costs outweigh the savings and the business loses โฌ59k per year by implementing reusables. In the name of ESG and a cleaner world, it's a minor cost for some, major for others.
Note: If instead of single-use plastic cups, one is swapping out compostable cups for reusables, the loss shrinks to โฌ35k.
2๏ธโฃ ๐ฆ๐ฐ๐ฒ๐ป๐ฎ๐ฟ๐ถ๐ผ ๐ฎ: ๐ง๐ต๐ฒ "๐ฅ๐ฒ๐๐๐ฒ ๐ฆ๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ ๐๐ต๐ฎ๐ฟ๐ด๐ฒ" ๐ ๐ผ๐ฑ๐ฒ๐น
This time the business implements a Reuse Service Charge. A mere 20 cents that covers operations and washing. Customers pay โฌ1.20 (or ~โฌ1.25 with VAT) deposit and are refunded โฌ1.
๐ฒ Immediately, the business is โฌ41k in profit. Cost elimination and reduction add up nicely. The CFO is happy and customers don't care much. ๐
โผ๏ธ Obviously, this approach doesn't fit all. Economies of scale can drastically change the outcome. For a smaller business, unit costs may be higher, which could change the financial picture.
Weโve tried to provide a balanced, objective case study, but if you spot any issues or flaws, we welcome your feedback.
Note: We haven't included other potential savings and earnings, such as:
๐น Kiosks can be branded for sponsorship opportunities.
๐น Automating cup returns minimizes the need for extra staff at collection points.
๐น Avoid penalties for single-use plastics (though not relevant everywhere, yet).
Are you willing to pay 20 cents for a well-working reuse system? If you are, then probably your customers are too. As long as the price isnโt inflated. Setting a 1 โฌ fee, for example, would likely turn customers away.