Are disposable cups profitable for cafés

Paper cups are convenient and widely used, but their financial and reputational impact could not be the same for any type of cafe. The profitability of using disposable paper cups in cafés depends on several interrelated factors, including cost efficiency, customer expectations, operational logistics and environmental policies. Even a café’s size and concept can make a difference.

Operationally, paper cups offer clear advantages. They simplify workflow, eliminate the need for washing and save space in smaller venues. This makes them especially suitable for kiosks, street cafés or events where infrastructure for dishwashing is limited. They also align with the fast-paced expectations of modern consumers, who prioritise speed and portability. For these business models, disposable cups can improve customer satisfaction and reduce turnaround time, thus indirectly supporting profitability through increased sales.

Considerations against the use of paper cups

1. From a cost perspective, disposable paper cups tend to be more expensive per serving than reusable alternatives in the long term. A single high-quality paper cup with a lid can cost between 10 and 25 cents, and this cost increases with daily sales volume. For small cafés with limited seating or a high proportion of takeaway customers, however, the additional expense may be justified by the convenience of not having to wash up. However, for establishments with significant dine-in business, using disposables for all drinks can lead to unnecessary recurring costs compared to the one-time investment in reusable cups, which last for years.
2. Concerns about sustainability are increasingly influencing consumer behaviour and government regulation. Despite their name, paper cups are usually lined with a thin layer of plastic to prevent leaks, which makes them difficult to recycle. Disposal fees and environmental levies are rising in many European cities, where municipalities are encouraging cafés to reduce their use of single-use items. Consequently, heavy reliance on paper cups can create financial and reputational disadvantages. Environmentally conscious customers may prefer cafés offering reusable or deposit-based cup systems, so ignoring this trend could damage a brand’s image.

Some cafés have successfully adopted hybrid strategies, using paper cups for takeaways while offering ceramic or glassware for on-site consumption. Others implement deposit systems, enabling customers to borrow reusable cups for a small fee and return them later. These solutions balance practicality with sustainability and can enhance customer loyalty.

Ultimately, using disposable paper cups can be profitable if the café’s business model is primarily takeaway-oriented and operational simplicity outweighs material costs. However, in markets where sustainability and long-term cost efficiency are priorities, shifting towards reusable or hybrid systems is often more advantageous, both economically and in terms of reputation.