Multi-Location Restaurant Chain Achieves 32% Cost Reduction
How a 47-location fast-casual chain reduced packaging costs while meeting California's strict sustainability mandates
The Challenge
Problems Faced
- California AB 1200 compliance deadline approaching
- Rising costs of traditional plastic alternatives
- Customer demand for sustainable packaging
- Inconsistent quality from previous suppliers
- Complex logistics across 47 locations
Our Solution
- FDA & BPI certified bagasse products
- Consolidated 20-product SKU rationalization
- Direct container shipping to regional hubs
- Custom printing with brand logo
- Quarterly supply agreements with fixed pricing
Implementation Timeline
| Phase | Duration | Activities | Outcome |
|---|---|---|---|
| Discovery | 2 weeks | Audit current packaging, identify needs | Product specifications finalized |
| Sampling | 3 weeks | Test products in 5 pilot locations | 95% staff approval rating |
| Rollout | 6 weeks | Phased implementation across all locations | Zero disruption to operations |
| Optimization | Ongoing | Monthly reviews, inventory management | Continuous cost improvements |
Measurable Results
Switching to Bagasse Packaging UK was the best decision we made this year. Not only did we cut our packaging costs by nearly a third, but our customers love seeing our commitment to sustainability. The transition was seamless, and their team handled all the complexity of multi-location delivery.
Financial Impact
| Metric | Before (Plastic) | After (Bagasse) | Savings |
|---|---|---|---|
| Monthly Packaging Cost | $42,500 | $28,900 | $13,600/month |
| Annual Packaging Budget | $510,000 | $346,800 | $163,200/year |
| Waste Disposal Costs | $8,200/month | $3,400/month | $4,800/month |
| Total Annual Savings | — | — | $220,800 |