If you run one restaurant, you have probably seen the EPR headlines and wondered whether a registration notice or a fee invoice is coming your way. In most cases, it isn't. A single-location restaurant that buys standard takeout containers from a supplier is usually not the producer under the seven state packaging EPR laws in force today, and many independents also fall under small producer thresholds.

Selling your own bottled sauce, importing packaging, or opening a second site can make you the producer, and each state sets its own rules.

What a Producer Means Under Packaging EPR Laws

Extended producer responsibility (EPR) for packaging makes the businesses that put packaging on the market pay to collect and recycle it. If you are the producer, you typically join a producer responsibility organization (PRO), report how much packaging you supplied into the state, and pay annual dues based on weight and material.

Seven states have enacted these laws: Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. Each one names a single producer for every packaged item using a ranked list, usually in this order:

1. The manufacturer that owns or licenses the brand.

2. The brand owner or licensee.

3. The importer of record.

4. The business that first sells or distributes the item into the state.

The business highest on that list carries the obligation. If you run one restaurant, that is usually your manufacturer or distributor.

Why Most Single-Location Restaurants Are Not EPR Producers

Three features of these laws keep most independent restaurants out of scope, and you only need one of them to apply in a given state.

1. The Supply Chain Sits Above You

For empty food serviceware such as cups, clamshells, and bowls, some states put the obligation on your suppliers. In Oregon, the producer of food serviceware is the business that first sells it into the state, which DEQ says is usually the manufacturer or a distributor.

So when your distributor ships clamshells into Oregon, it reports and pays for them, and you simply use them.

2. Small Producer Thresholds

Every state exempts you if you fall below a revenue or volume floor, usually under one ton of covered packaging per year or gross revenue below a set figure between $1 million and roughly $5 million.

California has the lowest bar at $1 million in gross annual sales. Maryland, Minnesota, and Maine use $2 million, while Oregon, Washington, and Colorado use about $5 million. Oregon, Washington, Minnesota, and Maryland count global gross revenue, and Oregon also adds together the figures of related companies, such as a parent and its subsidiaries.

3. Restaurant Exemptions

Oregon, Colorado, and Maryland name restaurants or retail food establishments in their exemption lists, each with conditions. Oregon looks at your revenue mix and whether you sell food service ware into the state. Colorado requires a licensed retail food establishment at a physical location, and Maryland requires your headquarters to be in Maryland.

How Each EPR State Treats a Single-Location Restaurant

The thresholds and conditions below are current as of October 2026. Several states adjust them over time, so check them again each year.

• Oregon

You qualify for Oregon's restaurant exemption if you meet two conditions. According to DEQ's exemptions FAQ, updated October 26, 2026, you must earn at least 50% of your gross revenue from restaurant sales, and you must not be the first seller of food serviceware into Oregon.

Three more Oregon rules affect you:

• Single store exemption: If you operate one retail sales establishment, have no online sales, and are not part of a franchise or chain, you are exempt. This is a separate route from the restaurant exemption. Any online sales close it, so if you sell packaged goods or merchandise through your website, rely on the restaurant or revenue exemptions instead.

• Revenue is global: The $5 million small producer threshold counts your worldwide gross revenue, and related companies must combine their figures. If a larger hospitality group owns your Oregon location, you may not qualify on revenue, because DEQ adds together the revenue and packaging volumes of associated companies.

• Orphaned packaging: If you qualify as an exempt small producer, nobody else in your supply chain pays fees on those items. DEQ confirms your exemption does not shift those fees to your distributor or manufacturer.

• Colorado

Colorado's statute exempts an individual business operating a retail food establishment at a physical business location, licensed under state retail food law or the Denver code. You are also exempt if you earn under $5 million in revenue (not counting on-premises alcohol sales) or use under one ton of covered materials.

Colorado adjusts that dollar figure for inflation every July 1. The program is fully running, and producers began paying dues in January 2026.

• California

California's SB 54 covers single-use packaging and plastic single-use food serviceware. Its producer hierarchy starts with an in-state manufacturer that owns or licenses the brand.

The California Restaurant Association notes that if you use standard supplier-provided food serviceware, the June 1, 2026 registration deadline may not apply to you. If you sell branded packaged products or private-label items, or import covered materials, it likely does.

You have to apply for California's small producer exemption. If your gross annual sales are under $1 million, register in CalRecycle's PEPRS system and submit the application. CalRecycle still asks exempt producers to plan for all their packaging being recyclable or compostable by 2032.

• Maryland

Maryland's SB 901 excludes three groups from the producer definition:

• Maryland-based restaurants: Your restaurant, food cart, or similar establishment is excluded if it is headquartered in Maryland, primarily sells food to the public, and is not a producer of food serviceware. If you import cups or containers yourself, you can become the producer of that food serviceware and lose this exclusion.

• Single retail stores: You are excluded if you run one retail sales establishment with no online sales and no franchise or chain ties. This exclusion has no headquarters condition, so it can help if you are based out of state and run a single Maryland location.

• De minimis producers: You are excluded if you introduce less than one ton of covered material or earn under $2 million in global gross revenue. If your revenue is over the limit, check the one-ton test, since meeting either one is enough.

If your restaurant group is based outside Maryland, you cannot use the restaurant exclusion for your Maryland location, although the other two may still apply.

• Minnesota, Washington, and Maine

None of these three states has a restaurant-specific exemption. Their producer rules focus on the item being sold. When an item carries the maker's brand or no brand at all, the first in line is whoever manufactured it. For an independent restaurant, the small producer thresholds are the main protection:

• Minnesota: You are exempt if you introduced less than one ton of covered material or earned under $2 million in global gross revenue. Minnesota has no single-store exemption either, so if you are above both thresholds, confirm your status with the Minnesota Pollution Control Agency or Circular Action Alliance, the state's PRO.

• Washington: You are exempt if you introduce less than one ton or earn under $5 million in global gross revenue, excluding on-premises alcohol sales. Washington starts adjusting that figure for inflation in 2031. The law covers packaging supplied to consumers for personal, noncommercial use, so the takeout containers you hand customers are within its scope.

• Maine: You are exempt if you earn under $2 million in gross revenue (or $5 million during the program's early years) or use under one ton. Maine also exempts the first 15 tons of packaging used for perishable food, such as bakery products, dairy, meat, seafood, and fresh produce, which helps if you run a bakery, deli, or cafe. The state Department of Environmental Protection contracts a stewardship organization to run the program.

If you are above the thresholds in any of these states, contact the state agency or the PRO before you assume you are out of scope.

Situations That Can Turn a Single-Location Restaurant Into a Producer

Most of the risk comes from side businesses and growth. Look out for these situations.

• Retail Packaged Goods

If you sell bottled sauces, bagged coffee, or boxed cookies under your name, you are the brand owner of a packaged product. In Oregon, your restaurant exemption still holds as long as restaurant sales make up at least half your revenue. In states without a restaurant exemption, you only stay out of scope if you fall under the small producer thresholds.

• Private-Label Production

If a co-packer makes items under your brand, the obligation can stay with you as the brand owner, depending on your contract and the state. Oregon, for example, treats directing a manufacturer by contract as manufacturing, while a licensing agreement moves the obligation to the licensed manufacturer. Read your co-packer agreement before you assume anything.

• Direct Imports

If you buy packaging straight from an overseas factory, you can become the importer of record. When you order custom cups or bags with no U.S. company in between, nobody above you takes on the obligation, because most producer hierarchies fall back to the importer when no brand-owning manufacturer is based in the United States.

• Bringing In and Reselling Packaging

If you buy cups or containers out of state and resell them to other businesses, you can become the first seller into the state. In Oregon, that cancels your restaurant exemption, because DEQ requires that you are not the first seller of food serviceware into the state.

• Shipping Orders

In Minnesota, Washington, and Maine, whoever packs an item for shipment to a consumer is the producer of the shipping packaging, and Oregon applies a similar rule to items shipped into the state. If you ship bagels, cookies, or sauces to customers, the mailer boxes, tape, and void fill you use count separately from your product packaging.

• Growth

Opening a second location, signing a franchise agreement, or crossing a revenue threshold can each cost you an exemption. A second site ends the single-store exemptions in Oregon and Maryland. If you franchise, Minnesota, Washington, and Maine put the obligation on the franchisor when franchisees operate in the state.

How EPR Affects Your Packaging Even When You Are Exempt

Even when you are exempt, EPR still reaches your costs. Your manufacturers and distributors pay dues based on packaging weight and material, and you may see some of that in wholesale pricing over time.

Fee structures also favor certain designs. Eco-modulated EPR fees give producers a financial reason to use packaging that is easier to recycle or reuse, so expect your suppliers to rethink materials. Our guide on how EPR laws are changing how restaurants choose packaging covers that shift in more detail.

Four steps you can take now:

• Know your materials: Learn the difference between curbside recyclable and compostable takeout packaging before your supplier changes your spec. The two go to different bins and different facilities, so you need to know which one you use to give customers accurate disposal guidance.

• Review your core items: Clamshells, fiber bowls, paper hot cups, and paper wraps make up most of a typical takeout order. For each one, ask your supplier what the base material is, whether it has a coating or liner, and whether local programs in your state accept it.

• Watch related bans: Virginia's foam ban now reaches independent operators as well as chains. Foam bans are separate from EPR but affect the same containers, so you can review both in one pass.

• Plan further out: Long-term packaging planning saves you from rushed, expensive switches. If you settle specs and pricing early, you have time to test alternatives before a deadline arrives.

How SupplyCaddy Helps Restaurants Plan Packaging Around EPR

We are a foodservice packaging manufacturer and supplier headquartered in Miami, with manufacturing facilities in North America, South America, and Europe. We have delivered more than 1 billion products, and we give smaller operators the same attention we give large chains.

Sweetgreen, Burger King, Popeyes, Cinnabon, Tijuana Flats, H&H Bagels, Sidecar Doughnuts, Levain, Krispy Krunchy Chicken, Sushi Maki, and many more all trust us with their packaging, and our products are distributed through US Foods, Sysco, and PFG.

When you work with us, you get:

• Free branding: We customize your packaging at no extra cost, with no tooling, plating, or ink fees. You can put your logo and colors on bags, cups, and boxes without paying setup charges.

• Price locks: We forward-buy raw materials and can lock your pricing for up to one year, so you can budget for packaging without quarterly surprises.

• Plotter samples: You get a sample of your packaging before full production, so you can check fit and color and get your team's sign-off before large quantities are made.

• Expert guidance: Our product innovation and culinary advisors help you compare materials for cups, food containers, wraps, and bags. We also visit your test kitchen with a measuring tape to make sure the packaging fits your food.

If you want packaging that fits your food and carries your brand, get in touch with our team or learn more about SupplyCaddy. Contact us at hello@supplycaddy.com.

Frequently Asked Questions About EPR and Single-Location Restaurants

Do restaurants have to pay EPR fees?

Most single-location restaurants do not pay EPR fees directly. Your packaging manufacturer, brand owner, or first distributor usually carries the obligation, and you may also fall under small producer thresholds or the restaurant exemptions in Oregon, Colorado, and Maryland.

Does putting my logo on cups make me the producer?

It can in some states. In California, the hierarchy looks to the brand owner when no in-state manufacturer owns or licenses the brand. In Oregon, the first seller of food serviceware into the state is the producer, no matter whose logo is printed on it. Ask your supplier to confirm in writing who reports your branded items.

What is the EPR small producer exemption?

It is a revenue or volume limit, and if you fall below it, you have no producer obligations in that state. Limits range from under $1 million in gross annual sales in California to under $5 million in global revenue in Oregon and Washington, and most states also exempt you if you supply under one ton of packaging.

Is a food truck a producer under EPR?

If you run a food truck, you are usually not the producer of the containers you buy from suppliers. Oregon and Maryland mention food carts in their restaurant exemptions. Colorado's exemption refers to a physical business location, so confirm with CDPHE if you operate a mobile unit there.

Do I need to register if my restaurant is exempt?

It depends on the state. In California, you must register in PEPRS and apply for the small producer exemption. In Maine, you must send supporting information within 30 days if the state asks for it.

Which states have packaging EPR laws in 2026?

Seven states have enacted packaging EPR laws: Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. New Jersey and New York have pending bills, while Hawaii and Rhode Island have only passed study laws so far.

What happens to my exemption if I open a second location?

You may lose it. Oregon and Maryland exempt single retail establishments that are not part of a chain, so a second location removes that option, although the revenue and tonnage thresholds may still cover you.