If you're running a restaurant, managing a franchise system, or sourcing packaging for a food brand, you've probably started hearing more about EPR (Extended Producer Responsibility) laws. And if you haven't yet, you will.

Seven states have already passed packaging EPR legislation. More are actively drafting bills. The rules are live, the penalties are real, and the way restaurants think about packaging is shifting in ways that go well beyond just picking a box or a cup.

At SupplyCaddy, we work with foodservice brands every day, from fast-casual chains to national QSR names, and the conversations around packaging have changed significantly over the past 18 months. 

What EPR Laws Actually Mean for Restaurants

EPR stands for Extended Producer Responsibility. At its core, it's a policy framework that shifts the financial burden of managing packaging waste away from taxpayers and municipalities. It places it directly on the companies that produce or sell that packaging.

These laws fundamentally alter who pays for and manages packaging waste, shifting the financial and operational burden from local governments and taxpayers to manufacturers, importers, and distributors. Producers now bear responsibility for the entire lifecycle of packaging, from production to post-consumer disposal. 

Which States Are Already Live, and What Are the Deadlines

Seven states have enacted comprehensive EPR packaging laws: Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. 

Here's a quick look at where things stand:

Oregon's EPR program is notable for its penalties: producers who fail to register, report, or remit fees can face fines of $25,000 per violation, with each day counted separately for ongoing noncompliance. That's not a minor cost of doing business. That's a serious operational risk for any restaurant group that sources packaging without checking its compliance position. 

Several additional states are also laying the groundwork for packaging EPR laws, including Hawaii, Massachusetts, New York, Missouri, and Tennessee. The patchwork is growing, and it's doing so quickly. 

How This Affects Restaurant Chains Operating Across Multiple States

If you're a multi-location chain or a franchise system with restaurants in several states, you're not dealing with one set of rules. You're dealing with seven different frameworks, each with its own definitions, timelines, covered materials, and fee structures.

For national and regional restaurant groups, these differences complicate packaging procurement decisions and long-term planning. Distributors and manufacturers may also need to adjust packaging strategies depending on which jurisdictions they serve. 

What that looks like for you:

• A cup or container that's compliant and cost-effective in Texas may come with additional fees in Oregon or Colorado.

• A franchise system where individual franchisees manage their own packaging sourcing faces a serious risk if those franchisees aren't tracking compliance by the state.

• Local ordinances in cities like San Francisco, Seattle, and Washington, D.C. can add further complexity by imposing compostable standards, material bans, and reusable criteria on packaging that are in addition to or distinct from state standards. 

Franchisors can balance compliance, control costs, and strengthen brand resilience by adopting a systemwide regulatory strategy, including clear and effective communication to franchisees on packaging and food service ware management. 

• What "Eco-Modulation" Means for Your Packaging Costs

Eco-modulation is the fee structure that most EPR programs use, and it directly rewards or penalizes you based on the recyclability of the materials you choose.

Eco-modulation makes sustainable packaging cheaper and unsustainable packaging more expensive. Producers that proactively redesign packaging will reduce regulatory risk, lower EPR fees, and strengthen alignment with emerging circular economy expectations. 

For restaurants, this creates a real business case for switching to more recyclable or compostable packaging, not just as a sustainability talking point, but as a cost management strategy. The brands that get ahead of this now will be in a far better position as more states come online and fees increase.

What Most Restaurants Are Getting Wrong Right Now

• Assuming it only applies to manufacturers

Many restaurant operators assume EPR is purely a supplier or manufacturer problem. That's not entirely true. Under EPR laws, a "producer" is generally defined as any entity that manufactures, imports, or sells goods or products using packaging made from a list of covered materials. If you own the brand name on that packaging, the compliance obligation may fall on you. 

• Waiting for federal law to sort things out

Despite increasing state-level activity, efforts to pass a federal EPR law have stalled, and trade groups anticipate that no federal mandates are likely in the near term. Waiting for Washington to harmonize the rules is not a strategy. The state-by-state patchwork is the reality, and it's expanding. 

• Treating packaging as a pure cost play

Choosing packaging based solely on unit price without factoring in compliance, recyclability, and supplier credentials is getting more expensive over time, not less. Noncompliance risks include hefty fines and penalties, market access restrictions, reputational damage, and potential legal action. 

• Not auditing your supply chain

If you don't know what materials your packaging is made from, what percentage is recyclable, or whether your supplier is registered in the states you operate in, you're flying blind. That audit needs to happen before the deadlines, not after.

What to Look for in a Packaging Partner Under EPR

• Global Production Oversight Across Every Product Line

A supplier working closely with contract manufacturing partners has greater visibility into material composition, production standards, and compliance documentation across every product line.

When EPR fees are calculated based on what your packaging is made of and how recyclable it is, you need precise answers, not estimates passed through layers of suppliers or distributors.

At SupplyCaddy, we work directly with a global network of production partners across North America, South America, and Europe. This model gives us the flexibility to source the right solutions for each client while maintaining oversight across every stage of production and compliance. It also allows us to adapt quickly when regional disruptions, supply chain constraints, or changing market conditions impact availability. That means full control over every:

• Bag

• Box

• Cup

• Food container

• Wrap and liner

• Food boat

• They Can Document Everything You Need for Compliance

You'll need detailed data when EPR reporting kicks in. That includes:

• Packaging weight by material type

• Recyclability classifications

• Full material composition breakdowns

• Evidence files to support substantiation if requested by a PRO

A manufacturer who can't produce that quickly will slow down your compliance process and create gaps you can't afford.

At SupplyCaddy, we support brands like sweetgreen, Burger King, Popeyes, Cinnabon, Dave’s Hot Chicken, Krispy Krunchy Chicken, Huey Magoo’s, Tijuana Flats, and others operating at a scale where documentation gaps can quickly become costly.

• They're Tracking Regulatory Changes Before You Have to Ask

The rules are moving fast. A few recent examples:

• Oregon went live with active penalties in July 2025

• California's rulemaking was restarted and is still in flux

• Maryland's producer deadlines kick in mid-2026

• Washington requires PRO registration by July 2026

A packaging supplier who isn't watching these developments in real time is going to hand you a compliance problem disguised as a packaging order. By the time you find out, the deadline may have already passed.

• They Can Pivot at Scale When Materials Change

If a material gets restricted under PFAS bans or becomes cost-prohibitive under eco-modulation rules, how quickly can your supplier offer a compliant alternative?

For brands running across multiple locations, a slow pivot means:

• Supply disruption

• Rushed sourcing decisions

• Higher per-unit costs under pressure

• Potential compliance gaps during the transition

Our manufacturing presence across multiple continents means we're not dependent on a single supply chain or a single materials market when things shift.

• They've Done This at the Size You Actually Operate

This isn't the time to work with someone still figuring it out. When you're sourcing packaging at volume across multiple states, you need a partner who has already solved the problems you're about to face.

At SupplyCaddy, we have successfully delivered over 1 billion products to foodservice brands globally. A few things that come with that:

• Free custom branding and low minimum runs 

• Continuity of supply

• Global production capabilities across all categories of food service packaging… a true one stop shop!

SupplyCaddy Is Built for This

We've spent years building global manufacturing capability specifically to serve foodservice brands at scale. From Burger King to Dave's Hot Chicken to sweetgreen, the brands we work with need packaging that performs, is cost effective, and as of late, holds up against a rapidly evolving regulatory environment.

Ready to review your packaging setup? Whether you want to explore more compliant alternatives, understand where your current materials stand against EPR requirements, or just have a straightforward conversation about what's coming, we'd love to help.

Reach out at hello@supplycaddy.com or visit supplycaddy.com to get started.

Frequently Asked Questions About EPR Laws and Restaurant Packaging

• What is EPR, and why does it matter for restaurants?

EPR stands for Extended Producer Responsibility. It's a policy framework that makes the businesses responsible for putting packaging into the market, also responsible for its end-of-life management, including recycling and disposal costs. For restaurants, it matters because it's changing what packaging you can use, how much it will cost, and what compliance obligations you or your suppliers carry.

• Which states have active EPR packaging laws?

Seven states currently have comprehensive packaging EPR laws: Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. Oregon and Colorado are the furthest along in enforcement. Several more states, including New York, Hawaii, and Massachusetts, are actively developing similar legislation.

• Does EPR apply to the restaurant directly or just the packaging supplier?

It depends on the state and where in the supply chain you sit. In many cases, EPR obligations fall primarily on the manufacturer or brand owner of the packaging. However, if your restaurant brand owns or licenses the packaging design or distributes private-label packaging, you may also carry compliance obligations. It's worth getting legal and supplier guidance specific to your structure.

• How will EPR change the cost of food packaging?

Costs are expected to increase in EPR states as suppliers pass through registration fees, reporting costs, and PRO dues. The increase will vary depending on the material. Recyclable packaging attracts lower fees under eco-modulation rules, so switching to more sustainable materials can actually offset some of the cost pressure over time.

• What is eco-modulation, and how does it affect packaging decisions?

Eco-modulation is the fee structure built into most EPR programs. It charges lower fees for packaging that is easier to recycle and higher fees for materials that are difficult to recover. In practice, this creates a financial incentive for restaurant brands to move toward recyclable or compostable packaging, since the material choice directly affects how much they or their suppliers pay.

• What happens if a packaging supplier isn't EPR-compliant?

In states like Oregon and Colorado, non-compliant producers can be barred from selling covered products in the state. For restaurants, that could mean supply disruption if your current packaging supplier loses access to a market. Choosing a supplier who is registered and compliant in all active EPR states protects you from that risk.

• Are PFAS bans separate from EPR laws?

Yes, but they're closely related. PFAS restrictions on food packaging exist independently in states like California, Colorado, Minnesota, New York, and others. EPR laws focus on end-of-life responsibility and recyclability. PFAS bans focus on chemical content. Both affect which packaging materials are legal to use and sell in those states.

• What packaging types are covered by EPR laws?

Coverage varies by state but generally includes plastic packaging, glass, paper, paperboard, and single-use food serviceware. Some states, including Oregon, explicitly include food serviceware like cups, containers, wraps, and bags. Items like bags, boxes, cups, food containers, wraps, liners, food boats, and lids are all typically within scope in at least some EPR states.

• How should a multi-location restaurant chain approach EPR compliance?

The most effective approach is to centralize packaging decisions at the brand or franchisor level, conduct a full audit of packaging materials and supplier compliance status, and work with a manufacturer who can provide compliant options across all active EPR states. Decentralized sourcing makes compliance significantly harder to manage and audit.

• Will a federal EPR law eventually replace state-by-state rules?

Possibly, but not anytime soon. Federal EPR legislation has stalled in Congress, and the current state-by-state approach is expected to continue for at least the near to medium term. Restaurants and foodservice brands should plan around the current patchwork rather than waiting for federal harmonization.