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United UK non-food consumables for the hospitality industry

EPR & packaging law: What UK multi-site hospitality businesses need to know

  • Writer: Helen Colton
    Helen Colton
  • 3 days ago
  • 7 min read

The UK's Extended Producer Responsibility (EPR) scheme is imposing unexpected costs and complex compliance burdens on hospitality businesses. While larger pubs face £2,000 annual increases and medium venues see £750 rises, smart operators are turning regulatory compliance into a competitive advantage through strategic procurement and supplier consolidation.



Empty beer bottles as a metaphor for new packaging laws
What do UK multi-site hospitality businesses need to know about the new ERP rules?

 

The £2,000 problem hitting your bottom line

Picture this: You run a successful pub chain, your margins are already tight, and suddenly your suppliers start sending bills with substantial increases. A larger pub now faces around £2,000 in additional annual costs. Medium-sized outlets see increases of nearly £750, while even small venues can expect up to £350 per year.


Welcome to the reality of the UK's Extended Producer Responsibility (EPR) scheme—a well-intentioned environmental policy that's become a margin killer for hospitality businesses.


The frustrating part? You're often paying twice for the same packaging. Once through your supplier's EPR charges, and again through your commercial waste disposal contracts.


UKHospitality stated: "The consequences of the flawed Extended Producer Responsibility (EPR) scheme are now being felt by the hospitality sector. Bills from suppliers are now being received, resulting in significant cost increases because of EPR... This is in addition to their commercial waste contracts."

The double-charge trap explained

Here's how the system is unfairly penalising hospitality: EPR was designed to make businesses responsible for packaging waste that enters household recycling streams. But hospitality packaging—beer bottles, wine bottles, food containers—never leaves your premises. It goes straight into commercial waste.


Yet the current framework doesn't adequately exempt these non-household waste streams. So you pay your supplier's EPR costs (passed through in higher prices), then pay again when your commercial waste contractor collects the same packaging. It's a policy flaw that UKHospitality describes as "nonsensical rules" that unfairly burden the sector.


The industry is calling for urgent government action to exempt packaging supplied directly to hospitality businesses from EPR charges, but regulatory change takes time. Meanwhile, your costs are rising now.


Understanding EPR & packaging law: The regulatory reality

EPR and packaging law place responsibility for the packaging waste lifecycle on businesses that supply or import packaging. The requirements depend on whether you're classified as a 'small' or 'large' organisation:


Small organisations (must collect and report data):

  • Annual turnover between £1-2 million AND supply/import more than 25 tonnes of packaging. OR

  • Annual turnover over £1 million AND supply/import between 25-50 tonnes of packaging.


Large organisations (additional fees and obligations apply):

  • Annual turnover of £2 million or more AND supply/import more than 50 tonnes of packaging.


All affected businesses must report detailed packaging data; however, large organisations face additional waste management fees, recycling obligations, and more frequent reporting requirements (every 6 months vs. annually for small organisations).


For multi-site operators, this creates several compliance challenges:

  • Data tracking nightmare: Accurate monitoring of packaging types, sources, and materials across multiple locations.

  • Fragmented supply chains: Multiple suppliers make compliance more complex and costly.

  • Administrative burden: Detailed reporting requirements that drain management time.

  • Rising costs: Both direct EPR fees and supplier pass-through charges.


Why multi-site hospitality gets hit hardest

Unlike retail businesses, where packaging often enters household waste streams, hospitality operates differently. Your packaging waste is disposed of on-site via commercial contracts. Yet the regulatory framework treats all packaging the same way, creating an unfair cost burden.


Multi-site operators face additional complexity because:

  • Different suppliers across locations make data consolidation difficult.

  • Tracking packaging materials becomes exponentially more complex with scale.

  • Commercial waste costs compound across multiple sites.

  • Compliance monitoring requires significant administrative resources.


Turning compliance challenges into a competitive advantage

While the regulatory landscape can be frustrating, forward-thinking operators are utilising EPR compliance as a catalyst for operational improvement. The key is strategic supplier consolidation—bringing all non-food consumables under unified management.


The consolidation solution

By centralising procurement through United UK's Vantage service, multi-site hospitality businesses can:

  • Simplify compliance tracking: With fewer suppliers, monitoring packaging types, sources, and materials becomes manageable. Instead of tracking multiple suppliers across multiple sites, you have clear visibility of your entire packaging footprint.

  • Reduce delivery frequency: Consolidating orders means fewer shipments, directly reducing packaging waste and transport emissions. This reduces both your environmental impact and associated costs.

  • Access better data: Centralised procurement platforms provide 24/7 access to product, supplier, and packaging data, streamlining EPR reporting and enabling better cost control.

  • Identify sustainable suppliers: With all procurement data in one place, it's easier to prioritise suppliers using recycled materials, compostable packaging, or other environmentally responsible options.


Environmental benefits that matter

Supplier consolidation delivers measurable sustainability improvements:

  • Reduced carbon footprint: Fewer deliveries can cut indirect (Scope 3) emissions by up to 80%.

  • Less packaging waste: Consolidated shipments significantly reduce packaging materials entering waste streams.

  • Better sourcing decisions: Centralised data makes it easier to choose suppliers with strong environmental credentials.

  • Improved reporting: Transparent tracking supports both regulatory compliance and ESG reporting requirements.


Real-world success stories

Leading hospitality brands are already demonstrating that strategic procurement can transform EPR compliance from a burden to a benefit through partnerships with United UK.


Mowgli Street Food: Problem-solving partnership

Working with United UK's Vantage service, Mowgli Street Food has achieved significant cost savings by consolidating suppliers and improving procurement efficiency, optimising stock management with real-time oversight, and sustainability improvements, including custom packaging designed to enhance the food-to-go experience while supporting environmental goals.


As Andy Mountfield, Head of Quality & Supply at Mowgli Street Food, puts it: “Mowgli is a cohesive, high-performing team at every level, and United UK integrates seamlessly into this culture, proactively addressing issues before they arise.

 

KFC: Streamlined sourcing success

Through their partnership with United UK, KFC has experienced tangible advantages from this approach.


Their representative commented: "They've helped us save time by streamlining sourcing and recently carried out a review to identify cost-saving opportunities and fill any range gaps. Their proactive suggestions for alternative products have also been a welcome addition."

These examples demonstrate how strategic supplier partnerships can deliver operational and sustainability benefits even in challenging regulatory environments.


Making new site launches compliant from day one

For growing hospitality businesses, new venue launches present both opportunity and compliance risk. United UK's LaunchAssist service is designed to make new venue launches effortless and compliant from the start.


LaunchAssist delivers:

  • Single delivery setup: All non-food consumables arrive together, making tracking and compliance monitoring straightforward.

  • Integrated waste management: United UK takes back all delivery packaging waste, including pallets, so operators start with a clean slate.

  • Clean compliance records: Starting with proper tracking systems ensures regulatory requirements are met from day one.


The business case for strategic procurement

Smart hospitality operators are discovering that modernising procurement delivers benefits beyond EPR compliance:

  • Cost reduction: Administrative savings of up to 80% through streamlined processes

  • Lower emissions: Supply chain consolidation can reduce the carbon footprint by up to 80%

  • Product savings: Improved procurement can achieve up to 20% cost savings on products

  • Regulatory confidence: Proper tracking ensures full compliance with less effort


Consider a 50-site pub group managing dozens of suppliers. Each site receives multiple deliveries weekly, resulting in complex packaging tracking, high carbon footprints, and increased administrative overhead. By consolidating suppliers, the group simplifies compliance, reduces environmental impact, and creates a sustainability story that resonates with customers and stakeholders.


Practical steps: Getting started

1. Audit your current situation: Map non-food consumable suppliers, delivery frequencies, and packaging waste streams across your estate. Identify where double charging might be occurring.

2. Consolidate strategically with Vantage: Evaluate opportunities to bring multiple suppliers under unified management through United UK's Vantage service. Focus on areas where you can achieve both cost savings and compliance simplification.

3. Consider LaunchAssist for new sites: For upcoming venue openings, explore how LaunchAssist can streamline setup whilst ensuring compliance from day one.

3. Implement data tracking: Establish systems for monitoring packaging types, sources, and materials. This foundation supports both current compliance and future regulatory changes.

4. Set sustainability targets: Use consolidated data to benchmark your environmental impact and establish realistic goals for waste reduction and supplier improvement.

5. Communicate progress: Share your sustainability journey with staff, customers, and stakeholders to build engagement and enhance brand reputation.


Future-proofing your approach

The regulatory landscape will continue evolving. Future EPR updates may bring new exemptions, reporting requirements, or fee structures. By investing in supplier consolidation and data-driven procurement now, you build the agility needed to respond to whatever comes next.


More importantly, you demonstrate to customers, investors, and regulators that your business takes sustainability seriously, turning regulatory compliance into a competitive advantage.


The leadership opportunity

EPR compliance isn't just about avoiding penalties; it's about positioning your business for the future. While some operators struggle with regulatory complexity, forward-thinking leaders are using compliance requirements to drive operational excellence.


The hospitality businesses that thrive will be those that treat packaging regulation not as a cost burden, but as an opportunity to modernise operations, reduce environmental impact, and strengthen their market position.


Conclusion

The ERP scheme presents real challenges for UK multi-site hospitality businesses. Double-charging issues and complex compliance requirements are driving up costs across the sector. However, the operators who act strategically, consolidating suppliers, improving data tracking, and modernising procurement, are turning regulatory challenges into competitive advantages.


The regulatory landscape won't get simpler, but your approach to managing it can. By building efficient, data-driven procurement systems now, you protect your margins while strengthening your sustainability credentials.


The choice is clear: struggle with compliance complexity or use it as a catalyst for operational transformation.


Learn more about strategic procurement solutions at united-uk.com. Contact us:

 

References

 

Post by Helen Colton, Head of Marketing & Sustainability

A chartered marketeer with experience in business supplies and hospitality, combining channel marketing, strategy, account management, and finance. Passionate about CSR, leads our sustainability efforts.


 

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