How Tariffs Affect Restaurant Packaging Costs — And What You Can Do About It.
- Orama Digital Design
- Apr 7
- 3 min read
Vasilios Sinagridis • Founder + CEO, Orama Business Solutions
April 7, 2025 • 4 min read
The Problem: Rise of Paper Products due to Tariffs
If you’ve been feeling the pinch when restocking your restaurant’s take-out containers, napkins, or paper bags lately — you’re not alone.
Recent shifts in tariffs and trade regulations are making a noticeable impact on the cost of paper goods in the food industry, especially for small and medium-sized restaurants.
Take-out containers are killing your profits, one order at a time.
Why Are Prices Going Up?
Several factors are contributing to the rising costs, but a key driver has been tariffs on imported paper products and raw materials like pulp. These tariffs, designed to protect domestic industries, often come with an unintended side effect — higher prices for businesses that rely on imported goods.
Here’s what’s happening:
Tariffs on raw materials like wood pulp increase production costs for manufacturers.
Increased demand for eco-friendly packaging and paper alternatives adds pressure.
Supply chain disruptions and inflation continue to affect global shipping and manufacturing.
For restaurants that rely heavily on disposable items for takeout, delivery, and fast-casual service, even a small increase in cost per container adds up fast.
How It’s Impacting Restaurants
Restaurants are already juggling tight margins, and the added cost of paper goods — especially compostable or eco-conscious options — can feel like one more burden. A take-out container that cost $0.20 last year might now be $0.30 or more, depending on materials and suppliers.
This can lead to:
Higher overall food packaging expenses
Pressure to raise menu prices
Less flexibility to offer discounts or promotions
Reduced profitability for high-volume, low-cost items
So, how can you protect your bottom line without compromising customer experience?
5 Ways to Offset Take-Out Container Costs Without Losing Customers
Offer Incentives for BYO Containers Encourage eco-conscious diners to bring their own containers or bags for takeout. Offer small discounts or loyalty points to customers who opt out of disposable packaging, but be careful- restaurants may be held liable if a customer brings in a container that has not been properly washed, rinsed and santized.
Have customer provide you dishwash-safe containers ahead of their meal to allow proper time for the restaurant to safely wash the containers and bring potential pathogens down to a minimal level.
Build Packaging Costs Into Pricing Strategically Instead of listing a “packaging fee,” which may turn customers off, calculate your container cost into menu prices — especially for take-out only items. A $0.25 increase on a $12 meal is hardly noticeable but helps balance out the cost.
Switch to Packaging That Doubles as Branding Invest in printed paper bags, cups, or containers with your restaurant’s logo. Branded packaging serves as mobile marketing and adds perceived value to your takeout — making customers more understanding of price increases.
Set a Minimum for Free Takeout Packaging Offer premium or compostable containers only for orders over a certain amount. For smaller orders, you can offer basic packaging or charge a small fee transparently.
Educate Your Customers
Transparency goes a long way. Share a small note on your menu, website, or receipt explaining your use of eco-conscious packaging and the rising costs. Customers are more likely to support you when they understand the “why.”
Final Thoughts: Transparency is Key
The tariff-driven increase in paper good pricing isn’t something most restaurants can control — but how you adapt is. By being smart with your packaging strategy and communicating clearly with customers, you can offset costs without sacrificing quality or loyalty.
As the restaurant industry evolves, flexibility and transparency are more valuable than ever.
About The Author
Vasilios "Billy" Sinagridis is the founder and CEO of Orama Digital Design, a Florida-based agency specializing in digital and print solutions for businesses.
He established the company in March 2020, leveraging his background in hospitality to create digital tools like QR menus and online ordering systems, assisting restaurants during the pandemic.
Under his leadership, Orama Digital Design has grown into a seven-figure enterprise, offering a wide range of services to empower small businesses across the globe.
He has shared insights from his entrepreneurial journey on platforms like the Seven Figure Journey, Tampa Bay Creator & The Small Bizz Buzz, discussing strategies for building resilient teams, leveraging market trends, and creating exceptional customer experiences.
