What Hotels and Restaurants Need to Know About EPR Compliance

With the expansion of extended producer responsibility (EPR) packaging laws across the US, hospitality companies face new and often unexpected compliance challenges. One source of complexity is that each state defines a “producer” differently with obligations shifting based on who owns, manages, or supplies packaging within the business. For example, in one state, a hotel operator may be considered the producer, while in another, that responsibility may fall to the property owner, the management company, or even a third-party vendor. Given the industry’s complex ownership structures, including franchised properties, third-party managed hotels, and independent venues, these shifting definitions make it challenging to determine responsibility and establish a clear path forward.

To remain compliant and proactively address EPR requirements, hospitality companies must monitor evolving regulations, clarify their specific obligations, and implement systems to track and manage compliance effectively.

How EPR Packaging Laws Affect the US Hospitality Industry

EPR packaging laws are now active in seven states across the US, affecting hospitality companies, hotels, and restaurants that rely heavily on food service ware and packaging in California, Colorado, Maine, Maryland, Minnesota, Oregon, and Washington with additional states expected to implement similar EPR programs in the coming years. Under these laws, the financial responsibility for managing the end-of-life disposition of food service ware, certain paper products, and packaging materials is being defined as the companies introducing these “covered materials” or “covered products” into the market, referred to as “producers.”

To comply, producers must generally register with a state-approved Producer Responsibility Organization (PRO) or Stewardship Organization (SO); report the types and quantities of materials they use; and pay fees based on the packaging volume and composition introduced into commerce. PROs and SOs act as administering bodies for the state’s EPR program, establishing stewardship structures, fee methodologies, processes for reimbursing municipalities, and supporting state-level implementation of EPR requirements.

The scope of covered materials, including food service ware and packaging subject to EPR laws, varies by state and may encompass plastics, paper, glass, and other common packaging materials. As a result, hospitality businesses must evaluate their packaging footprint in each state where they operate, carefully ensure compliance and mitigate the risk of costly penalties.

The Financial Impact of EPR Compliance on Hospitality Businesses

In California, more than 13,000 registered producers are expected to contribute to the $500 million annual fund established under SB 54. On average, this equates to approximately $36,000 per producer each year; however, costs are distributed proportionally based on the type and volume of packaging placed into the market. Large hospitality brands and operators with substantial packaging footprints will likely bear costs well above the average, while smaller businesses may face lower financial obligations.

In Oregon, producer fees are already being invoiced with first payments already due. Colorado will begin payments in 2026. Maine, Maryland, Minnesota, and Washington are still in earlier stages of program development but are expected to implement comparable fee structures as their programs mature. These timelines highlight the importance of early preparation for hospitality EPR compliance to avoid unexpected expenses, mitigate compliance risks, and prevent potential operational disruptions.

Common EPR Compliance Challenges for Hospitality Businesses

Determining Producer Status Under EPR Laws

Hospitality companies often face unique challenges in determining producer status under EPR laws due to varied ownership and operating models. A single brand may own properties, manage them on behalf of franchisees, or outsource services while also using a mix of branded and unbranded packaging. These layers create uncertainty about who is legally obligated to register, report, and pay fees, and for which materials.

Understanding EPR producer responsibility for hotels and restaurants, and having a strategy for compliance, is critical to avoiding penalties and ensuring compliance across states. For example, to identify EPR obligations, large brand owners will likely need to evaluate their franchise agreements to determine the entity with the most control over packaging decisions and responsibility for the sales or distribution of covered materials in the state.

Complimentary gifts, branded food service ware, donated items, and materials used solely in business-to-business (B2B) transactions (e.g., a franchisor distributing branded packaging to franchisees) may also create different obligations depending on the state. These variations underscore the importance of closely reviewing state-specific definitions to determine producer obligations.

Types of Packaging Materials Covered by EPR Laws

Hospitality operations use a diverse range of packaging, from guest amenities and food service items to shipping materials, creating additional compliance complexity. Certain packaging types, particularly secondary packaging or non-traditional formats, may not initially appear subject to regulation but can still fall under EPR scope depending on material composition, intended use, and state definitions.

Example: A hotel offers toiletries in single-use plastic, reusable bottles, and lined cardboard.

How Hospitality Companies Can Use EPR Compliance as a Sustainability Opportunity

While EPR compliance can be challenging, it also creates opportunities for the hospitality industry to adopt more sustainable packaging, reduce waste, strengthen environmental performance, manage costs, and enhance brand reputation. By proactively managing packaging data, businesses can develop a clear baseline of their material footprint and identify sources of unnecessary waste. These insights enable businesses to streamline purchasing, target areas for waste reduction, and identify more sustainable packaging alternatives that deliver both operational efficiencies and cost savings. Refining packaging to be more environmentally responsible not only reduces expenses and environmental impact but also resonates with guests, investors, and other stakeholders who increasingly value brands committed to sustainability.

Example: Transitioning to reusable foodware

A large hotel chain shifted its lobby coffee bar from single-use service ware to a reuse-first model, featuring branded mugs, stainless steel stirrers, and bulk sweeteners and creamers. While to-go cups remained available, they were no longer the default, shifting guest behavior toward reuse. Guests responded positively, highlighting their appreciation for the elevated, waste-free experience. At the same time, the hotel cut procurement of disposable cups, stirrers, lids, and sleeves by 50%. The upfront investment in reusables was minimal, resulting in a quick return on investment and long-term annual cost savings. Through reuse initiatives and effective storytelling, the hotel turned sustainability into both a cost-saving and guest-pleasing strategy.

Steps for Hospitality Companies to Prepare for EPR Compliance

Now is the right time for hospitality businesses to assess organizational readiness, not only to meet current EPR requirements but to turn compliance into a catalyst for sustainable leadership and environmental stewardship.

APTIM and Nixon Peabody: Supporting Hospitality Businesses with EPR Compliance

Together, Nixon Peabody and APTIM offer end-to-end support for hospitality businesses navigating evolving EPR regulations. From legal guidance and regulatory reviews to packaging data management, compliance reporting, and program implementation, we help businesses interpret requirements, establish effective systems, and minimize risk. Beyond compliance, our team works with clients to explore sustainable packaging alternatives and leverage EPR as a catalyst for environmental leadership and competitive advantage.

Learn more about APTIM’s EPR, waste management, and environmental compliance and consulting services.

Questions about EPR laws? Reach out to our team at Sustainability@APTIM.com.

Published October 2025