Cafe industry questions effectiveness of government's disposable cup ban

The government announced its plans to stop cafes and similar businesses from providing customers with disposable cups for free. While the industry agrees that plastic use must be reduced, many are questioning the effectiveness of the policy.

Two people hold disposable cups in Seoul on Oct. 13, 2023. [NEWS1]

Since the government announced its plans to stop cafes and similar businesses from providing customers with disposable cups for free, the industry has responded with confusion. While companies generally agree that the amount of plastic used must be reduced, many are questioning the effectiveness of the policy.

The Ministry of Climate, Energy and Environment on Thursday announced that it will revise the Act on the Promotion of Saving and Recycling of Resources next year to ban free disposable cups at cafes and similar establishments starting in 2027. Businesses that violate the rule could face fines or other penalties.

The plan allows cafes to set their own fees — typically 100 to 200 won (about 7 to 14 cents) per cup — but the government will set a minimum value based on production costs. Climate Minister Kim Sung-hwan described the approach as a “separate cup pricing system,” saying it would be less burdensome than the deposit program — currently implemented in some stores across the country — that requires customers to pay for cups upfront and return them for a refund.

But cafe operators and industry sources say the announcement has caused confusion and raised doubts about whether the policy will meaningfully cut the amount of wasted plastic.

Many franchise coffee shops already consider cup costs — often 100 to 200 won — when finalizing beverage prices. According to the ministry, the intent is to make those costs visible, not to charge customers twice. A ministry official offered an example: A drink currently listed at 4,000 won would, under the ban, be shown as 3,800 won for the drink plus 200 won for the cup.

Operators argue that this will be harder to accomplish in practice. Cup costs vary across brands and stores and include delivery, labor and other overhead expenses. A representative of a low-cost coffee franchise said customers could complain if they see that fees differ from one store to another.

Some owners also worry that separate fees could feel like a stealthy price increase. “If coffee prices stay the same but cups are charged separately, consumers are likely to feel that coffee prices have gone up,” an industry source said, predicting that sales would suffer.

Disposable cups are displayed at a cafe in Seoul on Dec. 18. [NEWS1]

Independent operators question if a fee that small will change consumers' behavior. Cho Sang-hyun, who runs a cafe in Uijeongbu, Gyeonggi, said customers who prefer disposable cups are unlikely to switch to tumblers to save 100 or 200 won. “The policy's effectiveness is low, and it could simply increase checkout time by requiring coffee and cup prices to be processed separately,” said Cho.

A cafe owner in Seoul, identified by the surname Park, said she has already hired a part-time worker dedicated to washing dishes since the store became busier after disposable cups were banned for in-store use. “If the separate cup pricing system is introduced, I worry it will just increase the number of in-store customers,” she said.

The industry is also growing tired of frequent changes to plastic reduction policies. A representative of a major cafe franchise said related policies keep changing with each administration, often before previous systems have had time to settle.

Under the Moon Jae-in administration, a disposable cup deposit system was introduced, requiring customers to pay a 300-won deposit when buying drinks in disposable cups, which was refunded upon return.

Beverages are served in disposable cups at a franchise coffee shop in Seoul. [NEWS1]

However, nationwide implementation was put on hold under the Yoon Suk Yeol administration. The Lee Jae Myung administration has since scrapped the deposit system and is pushing the separate cup pricing policy.

“Clear standards and consistent policy implementation are needed to minimize confusion on the ground,” said an industry source.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY LIM SUN-YOUNG [kim.minyoung5@joongang.co.kr]