Innovation

In Germany and many other countries, single-use plastic packaging is used heavily with little to no sustainable substitutes available. Because of this, reCup is on a mission to kick-off a new era for takeaway cups (RECUP) and bowls (REBOWL). reCup is a German company that offers a sustainable solution to single-use packaging, with reusable cups, lids and bowls in many different sizes and colors. The company, founded by Florian Pachaly and Fabian Eckert in Munich, Germany, in 2016, launched its first prototype just four months after embarking on their mission. Today, the company has grown significantly and employs roughly 50 people in Germany alone. With a strong team of sustainable entrepreneurs, the company aims to keep fighting against waste production, foster responsible consumption and production while allowing consumers to keep enjoying the present “to-go” culture.

The innovation of reCup is simple and efficient. reCup works with the principle of circular economy by providing its cups and bowls primarily to restaurants and other catering businesses on a borrowing basis. The partners lend cups and bowls to the end consumers until they return the products. The end users can enjoy their coffee or meal wherever they want and then return the cup or bowl to one of reCup’s partners. In addition, reCup has developed an app that lists all partner stores so that consumers can save time searching for return points.

The company has been able to create a lifestyle brand and a cool image around reusable cups which helps to spread the message. Initially, the design of the cups was outsourced, but later reCup acquired the design company, Crafting Future. However, the production is still outsourced. The cups and bowls are made from 100% recyclable polypropylene, which is an extremely break-resistant material. As a result, the cups and bowls can be washed in the dishwasher more than 1,000 times.

With its innovative solution, reCup clearly addresses several UN SDG goals, with a particular focus on goal number 11 on sustainable cities and communities, goal number 12 on strengthening responsible consumption and production, and number 13 on climate action.

Inspiration

Spending a lot of time at the university and relying on takeaway coffee inspired Florian, one of the co-founders, to think about a reusable cup system for to-go coffee. Meanwhile, the other co-founder, Fabian, first thought of a business idea around reusable cups when he had to develop a sustainability solution for a Swedish university. However, the university rejected the idea, believing there wasn't enough consumer demand. At the time, Fabian and Florian did not know each other. However, luckily they told the same person about their ideas, which led the two entrepreneurs to connect on their joint interests. After that, they quickly started with a pilot project by approaching a few coffee shops in the area. During this kick-off, one of the first customer feedback they received was: “Guys, no matter if you continue or not, you won’t get my cups back”, with their customer expressing her overwhelming happiness with her user experience. Since then, reCup has been able to collaborate with more and more businesses.

Since the beginning, the founders of reCup have had four core principles that have helped them in the pursuit of their mission: Lifeblood – being passionate about what you do because you care about the environment and people; Togetherness – living a personal, happy and humorous life together; Transparency – being honest about what you can do and cannot do to create a working relationship of equals; Kawumms – being vibrant, dynamic and having the courage to change. With these principles in mind, the company is currently looking to expand further, develop a more recyclable material and work closely with cities and communities to reduce waste.

Overall impact

A total of 13 billion disposable packages – consisting of 4.5 billion disposable food boxes and 5.8 billion plastic cups per year – this is the reality for the German consumer goods industry. In light of this environmental threat, the German government has decided that from 1st January 2023, it will be compulsory for restaurants in Germany to offer reusable packaging. Without reCup, this law would probably not be in place, as the company’s innovative approach has proven that the move away from disposable cups and bowls is feasible for restaurants and other catering businesses.

reCup stands for togetherness and collaboration and now sees new entrants to the industry not as competitors trying to steal its market share, but as an opportunity to work together, develop better solutions and spread the message of a zero-waste future more quickly around the world. After all, reCup is trying to reduce the carbon footprint that is causing global warming, rising sea levels and extreme weather conditions which is certainly not a one-man mission. Their products can contribute to a reduction of tonnes of CO2 emission every year. However, reCup has struggled to truly measure its positive impact due to the difficulty of tracking its bowls and cups. That is why the founders of reCup are trying to address this issue and come up with an innovative solution to be able to say for sure what positive impact their innovation will have on the overall consumption and production of reusable products, so stay tuned for their upcoming advancements. What is certain, however, is that reCup is contributing to a sustainable future, and is also leading the way in demonstrating that sustainability and profit can go hand in hand.

Business benefit

Florian emphasizes, “Profitability is also a lever for more independence,” which is very valuable for for-profit changemakers like reCup. Embracing this philosophy, the reCup team has taken significant steps in its recent economic development. From its beginnings as a small pilot project, reCup has grown to 20,000 distribution points across Germany and has recently expanded into Austria. As a part of this growth, a major milestone was securing Shell as a customer, bringing about 2,000 petrol stations on board. This partnership enabled reCup to expand massively, reaching previously untapped regions, but more importantly, it positioned reCup as a credible partner for other large businesses. Today, reCup collaborates with major companies like IKEA and Burger King. Additionally, by listing these partner businesses on their platform and providing marketing materials, reCup supports its collaborators in promoting sustainability, creating a mutually beneficial ecosystem that drives continuous growth and market expansion.

However, there are also externalities working in reCups favor, most notably the law passed by the German government mandating reusable packaging for all catering establishments. This law has made reCup’s products indispensable nationwide, thereby ensuring stable demand, securing the company's market position, and fostering further expansion. And this national development is surely just the first step towards a less single-use based economy, hinting at great prospects for reCup and businesses alike.

While the business is already successful, reCup continues to reinvest the majority of its profits into further developing its business practices. In 2023, for example, they acquired Crafting Future, the company that developed their reusable bowls, in order to realize several synergies, enhance reCup's operational capabilities, increase flexibility as well as product development efficiency. Now, their joint goal is to develop the best reusable packaging options possible, underscoring the importance of collaboration for sustainable change once more.

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Social and environmental benefit

While reCup is working on achieving its economic goals, the business is built on the idea of advancing societal and environmental development, addressing the issue of single-use plastic waste like few other businesses can: "With every partner we acquire, we create another place where disposable plastic is avoided." - Florian Pachaly

Consequently, reCup achieves the greatest benefit in their everyday business by shaping and increasing their reach. In this mission, cities are crucial partners. For instance, in Hamburg, every tenth rubbish bin is emptied because of coffee-to-go packaging, resulting in significant local costs. By reducing this waste, reCup eases the burden on municipal waste management systems, addressing littering and wider environmental impacts. Consequently, reCup has forged strong relationships with governmental representatives, joining forces on this important mission.

reCup also contributes to the United Nations Sustainable Development Goals, as mentioned above. However, as Florian states, “Working on sustainability always poses an additional challenge alongside profitability, and it requires energy.” The answer might not always be as straightforward as it is for other businesses. Despite facing challenges in tracking their overall impact, reCup quantifies their impact per business partner by the number of cups and bowls saved. For instance, over 5,000 single-use plastic cups were saved in collaboration with a German bakery, and over 55,000 plastic packaging items were saved through a partnership with a car manufacturer.

Even going beyond their everyday mission, reCup participates in the Entrepreneurs For Future movement, advocating for climate strikes and other actions to raise climate awareness. Furthermore, they share their business expertise with others, helping entrepreneurs replicate their business model and exemplifying true social entrepreneurship.

Interview

Florian Pachaly, Founder & Shareholder (previously CEO) of reCup