The Economics of Eco-Friendly Containers: An Actual Case Study
In depth analysis of how one established local F&B brand X’s use of Team Recycler Malaysia’s eco-friendly food packaging contributed to an additional profit on the amount they spent on containers and how it contributed to their overall weekly sales of RM 825,000.00 on Grabfood alone.
Facts & Figures:
- Average number of containers used per week - 33,000 pieces
- Ranges from rectangular lunch boxes 750ml and 1000ml, round bowls 450ml and 800ml, and 4 compartments bento boxes for their varieties of food in the menu
- Total money spent per week RM 27,030.00 - range from RM 0.52 to RM 1.28 per piece above listed
- Grabfood take-away packaging charges - RM 1.00 per piece
- Profit from eco-friendly packaging alone RM 5970.00 (RM 33,000.00 - RM 27,030.00)
Based on the numbers above, the total cost of all the containers per week is RM 27,030 and the total profit is RM 5,970.00. This means that the brand X’s profit margin and ROI of the containers alone are +22%.
However, it is important to note that only 4 out of 5 containers are profitable while 1 is making a loss, but it is offset by the profits made from the other containers.
Now if we compare the cost of the containers to the sales figure of RM 825,000.00 - we can see it is only 3.27% of the total sales revenue. This is a relatively small percentage, indicating brand X’s investment in eco-friendly containers did not significantly impact their profitability. In fact, it helped further boost their weekly sales number and gained widespread positive ratings and raving reviews from their customers on Grabfood’s app leading to even more sales.
Moreover, using eco-friendly containers provides the brand with several benefits. For one, it aligns with the brand's values and image, which could attract customers who are environmentally conscious. It also differentiates the brand from its competitors, giving it a unique selling point. Furthermore, eco-friendly containers are more sustainable and have a lower environmental impact than traditional plastic containers, which is an added benefit for the brand's overall sustainability efforts.
In conclusion, brand X’s investment in eco-friendly containers was a smart move that contributed to their profitability and sustainability efforts. The cost of the containers was relatively low compared to the total sales revenue, and the average cost per container per pack of food sold was also low. The benefits of using eco-friendly containers, such as aligning with the brand's values and image, differentiating from competitors, and promoting sustainability, far outweigh the cost of the containers.