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:
🔹 15k cups with RFID tags for €0.44 each
🔹 10 Cuploop automated return kiosks (RFID-enabled)
🔹 €0.10 per cup washing
🔹 €0.10 for handling and logistics per cup
Assumptions:
🔹 10k cups used per week, i.e., 40k per month
🔹 95% return rate
🔹 2k new cups purchased each month for replacement
🔹 40k single-use cups eliminated per month at €0.05 each (€2k total)
🔹 Trash pickup & services reduced by €2k per month
Monthly operational costs are nearly €11k in each case. Cup replacement, washing, logistics, and servicing account for 87% of the expenses.
1️⃣ 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝟭: 𝗧𝗵𝗲 "𝗡𝗼 𝗖𝗵𝗮𝗿𝗴𝗲" 𝗠𝗼𝗱𝗲𝗹
In this case, the business saves & earns €6k per month.
How?
By:
🔹 eliminating single-use cups,
🔹 reducing trash, and
🔹 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 €59k 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 €35k.
2️⃣ 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝟮: 𝗧𝗵𝗲 "𝗥𝗲𝘂𝘀𝗲 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗖𝗵𝗮𝗿𝗴𝗲" 𝗠𝗼𝗱𝗲𝗹
This time the business implements a Reuse Service Charge. A mere 20 cents that covers operations and washing. Customers pay €1.20 (or ~€1.25 with VAT) deposit and are refunded €1.
💲 Immediately, the business is €41k in profit. Cost elimination and reduction add up nicely. The CFO is happy and customers don't care much. 💁
‼️ 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.
We’ve 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:
🔹 Kiosks can be branded for sponsorship opportunities.
🔹 Automating cup returns minimizes the need for extra staff at collection points.
🔹 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 isn’t inflated. Setting a 1 € fee, for example, would likely turn customers away.