Information for hospitality businesses
Restaurants, bars and cafes will have new responsibilities for recycling in the future
Scotland will be the first part of the UK to introduce a deposit return scheme for drinks containers. This will change the way we recycle.
Scotland’s Deposit Return Scheme will go live on 16 August 2023. It will make it easier for everyone to recycle their used bottles and cans. This will help in the fight against climate change.
Hospitality businesses, like restaurants, bars, cafes and hotels sell millions of bottles and cans each year. These businesses will have a key role to play.
Businesses that sell drinks to take away (cafés and takeaways) and those that sell drinks to be consumed on-site only (pubs and restaurants) will have different obligations.
If you sell any drinks for off-site consumption, you will have to charge the deposit to your customers on those drinks and operate a return point (please refer to Businesses that sell drinks to take away).
On-site consumption is when a drink is sold with the intention that it is consumed on the premises.
All drinks producers must register with SEPA, who will publish a list on who is part of the scheme.
All products sold in scheme containers in Scotland are included, regardless of where they are bottled or produced.
All drinks – soft and alcoholic – are included in the scheme if they come in the following materials:
Containers between 50ml and 3 litres in size are included in the scheme.
Any milk or milk-related products which come in cans, PET or glass bottles will be included.
Deposits only apply to single-use containers, so re-usable glass milk bottle schemes will not be included.
All businesses acting as a return point will receive a handling fee to cover the costs of participating in the scheme. If you sell drinks to take away, you will receive the full handling fee.
When selling drinks for on-site consumption, the handling fee will be limited to the cost of materials used for collection and storage of containers at the return point. For hospitality businesses that sell drinks exclusively for consumption on-site, the fee will only cover any additional costs associated with participation in the scheme.
As these businesses already handle drinks containers, this will be the cost of materials used for collection and storage of containers at return point. This means a likely saving on waste collection costs for these businesses. In the case of a retailer providing a takeback service, they will receive a handling fee which covers the delivery costs associated with return of packaging.
The handling fee will be agreed by retailers and producers through the scheme administrator, Circularity Scotland Ltd.
The scheme administrator(s) will be responsible for collecting empty containers for recycling form all return points and on-site consumption businesses. This will be done free of charge: a saving for those businesses currently paying for the removal of containers by waste management companies.
Businesses that sell drinks to take away must charge the 20p deposit. All businesses selling drinks in scheme containers to be taken away will need to operate a return point.
The customer gets the 20p deposit back when they return the empty container to the place they bought it, or to another return point.
All businesses selling drinks in scheme containers to be taken away will need to operate a return point. This obligation applies to each store. So if you have multiple outlets, all of them must act as a return point.
As a return point you must:
It is also likely that return points will have to register with administrators of the scheme.
Retailers will be able to refuse to accept an empty bottle or can if:
You have two options for collecting containers for the public.
1. Manual return
The public hand over empty containers at the counter and you issue a cash refund. You store the empty containers until they are collected. All deposits you pay out will be reimbursed by the scheme administrator.
2. Reverse Vending Machines (RVMs)
People put their empty bottle or can in the machine and get the 20p deposit back. RVMs normally give out a voucher that can be used against the value of purchases, or to claim a cash refund at the till. All deposits you pay out will be reimbursed by the scheme administrator.
If you decide to get an RVM for a store or return point, there are a range of manufacturers to choose from.
The flow of deposits is cost-neutral. This is how they flow through the scheme.
You must:
You can apply to Scottish Ministers for an exemption from acting as a return point.
Retailers can apply to Scottish Ministers for an exemption from acting as a return point. Hospitality outlets that sell drinks exclusively for on-site consumption and duty free shops are automatically exempt.
There are two criteria which must be satisfied for any retailer to be granted an exemption. This is to ensure the core principle of accessibility in all local areas in maintained:
The first route is by getting agreement from another return-point operator to take back containers on your behalf. This might be a nearby store or voluntary return point established by someone other than a retailer. You have to show that:
The second route is to provide evidence to satisfy Ministers that there is no reasonable way for you to operate a return point on your premises without risking being in breach of relevant legal obligations such as food safety.
If you sell drinks for consumption on-site, for example in a bar or restaurant, you will be able to choose whether to charge the 20p deposit or not. This is because the container is not expected to leave the premises.
However, if you sell any in-scope drinks to be taken away, you will be required to charge a deposit and operate a return point.
If you sell only drinks for consumption on-site, you don’t have to operate as a general return point for scheme containers.
You will have to return the containers you’ve sold on-site to the scheme administrator for recycling. As such, you’ll pay the 20p container deposit to the retailer or wholesaler, which you get back from the scheme administrator when you return the containers.
Businesses selling drinks to be consumed on site that do not apply a deposit will not be expected to receive returns from outside their own business.
However, if you sell any in-scope drinks to be taken away, you will be required to charge a deposit and operate a return point.
The flow of deposits is cost-neutral. This is how they flow through the scheme:
Because you won’t be passing the deposit on to your customers, you will be responsible for collecting the empty bottles and cans from within your premises.
All businesses acting as a return point will receive a handling fee to cover the costs of participating in the scheme. If you sell drinks to take away, you will receive the full handling fee. When selling drinks for on-site consumption, the handling fee will be limited to the cost of materials used for collection and storage of containers at the return point.
The expectation is that the handling fee will be agreed by retailers and producers through a scheme administrator. Businesses will not be paid for staff time and storage because they already handle and store these containers. The handling fee covers only additional costs, e.g. consumables.
All deposits you pay out will be reimbursed by the scheme administrator.
The scheme administrator(s) will be responsible for collecting empty containers for recycling. This will be done free of charge: a saving for those businesses currently paying for the removal of containers by waste management companies.
If you own or run a bakery in Scotland, deposit return will also apply to you.
During the initial period of the scheme, it is anticipated that shops will have some stock that was purchased before the go-live date. If this applies to your products, you can sell them as normal.
However, it must be clearly shown at point of purchase that these are not part of the scheme and cannot be exchanged for a deposit.
It’s your responsibility to: