The Hidden Costs of Poorly Managed Reuse Systems
- Skye Blank
- 5 days ago
- 6 min read
Imagine this: it’s a busy weekend at your venue. Drinks are flowing, the crowd is enjoying themselves, and your branded reusable cups are everywhere… except where they’re supposed to be. Cups are missing, queues are growing, and staff are juggling returns while trying to serve new orders.
Sound familiar?
Here’s the truth: poorly managed reuse systems can cost more money and create more waste than single-use alternatives. Reusable items that never return mean replacement costs skyrocket, operation issues pile up, and the environmental benefits vanish.
These problems aren’t inevitable. With the right approach and structure, reuse can work as intended.
Key Takeaways:
Reusable items need to be used multiple times before they offset their environmental impact
It is important to measure how your reuse system is working
Technology enhances reuse systems, from fitting seamlessly into operations to encouraging returns and engaging consumers
Reuse Systems
When done right, reusable packaging are a massive win for both business and the environment. This is why it is vital that reuse systems function correctly, otherwise they do not deliver the benefits they promise.
Research shows that reusable packaging need to be used multiple times before they offset their environmental footprint. This means that if they are lost, damaged, or discarded after a single use, then the energy, water, and materials invested in producing them don’t pay off. Similarly, businesses and venues face replacement costs, staff time, and operational headaches that can add up.
Here are a few points to consider:
Replacement costs escalate quickly: a single lost item may seem minor, but across hundreds or thousands, costs can spiral.
Environmental gains disappear when return rates are low: Reusable packaging that is not returned often end up in landfill, the environment, or recycling streams that are not made for them.
Common System Mistakes
Even with the best intentions, many venues implement reuse systems that don’t align with real-world behaviour. The system created doesn’t represent the behaviour of their consumers. This causes unnecessary costs, frustrations and raises questions about whether reuse is right for the venue.
Incentives don’t work
Many venues utilise levies to encourage the return of items; however, this often doesn’t work successfully. At events, consumers don’t receive their money back when they return the reusable. With little motivation to return the item, low return rates are seen.
If consumers aren’t returning the reusable packaging, then the venues are left with a considerable amount of lost stock, undermining the financial and environmental case for reuse.
Returns are inconvenient
Even well-intentioned customers are unlikely to return reusable packaging if it’s inconvenient. In many venues, customers are expected to return reusable cups to the bar, for example. However, during busy periods, queues are long, and staff are busy with others, so returning a cup becomes a low priority. This leaves the customer with three options: keeping the cup, leaving it behind, or disposing of it incorrectly.
Unclear return points and poorly placed bins have a significant impact on return rates. If returning the item takes extra time or effort, participation drops.
Reuse isn’t communicated
You’ve got your reuse system in place, but no one is using it? Sounds like a case of miscommunication.
One of the most common and preventable failures is a lack of communication. Many venues introduce reuse systems with little to no explanation. Customers are left in the dark about:
How the system works
Where to return
Why returning them matters
Without clear signage, staff guidance, or onboarding, consumers default to their regular habits. And if your reusable looks like a single-use item, then it is likely to be thrown away.
Losses aren’t measured
One of the biggest issues with reuse systems is not knowing how many reusable items have been lost. Without tracking, losses remain invisible. They may be taken home as souvenirs, misplaced behind bars, or discarded accidentally; this all contributes to the shrinkage in stock.
Data is vital. Without using data, there is no way to identify how much stock is left, and where or how losses are occurring. This means that venues cannot identify where the problem is within the system, and what they can do to prevent more losses in the future.
Research shows that across reusable packaging and industries, untracked assets regularly experience significant losses, costing millions each year. Without measurement, venues cannot intervene and manage their reuse system.
Together, these challenges show that reuse systems don’t fail because people don’t care, but because systems lack visibility, simplicity, and alignment with real behaviour.
What Actually Works
The good news is that reuse systems don’t need to be complex to work effectively. When reuse systems are designed around real-world behaviour, reuse can deliver both financial and environmental benefits.
Common Problem | What works in practice | Why it matters |
Incentives don’t encourage returns | Clear, simple deposits that refund the consumer | Consumers are more likely to return reusable packaging when the incentive is obvious and immediate |
Returns are inconvenient | Multiple, clearly marked return points away from queues | Reduces friction and increases return rates during busy periods |
Reuse isn’t communicated | Clear signage, staff prompts, and simple explanations | Consumers understand how the system works and why participation matters |
Losses aren’t measured | Tracking the lifecycle of each reusable packaging item using technology | Visibility allows for spotting losses early and intervening before reusables are lost and costs escalate |
Reusables are taken home or discarded | Neutral designs and very little branding (if any) | Reduces souvenir behaviour and accidental disposal |
When these elements are in place, reuse systems become easier to manage, more predictable, and more cost-effective. Using technology to support reuse systems takes the manual labour out and allows venues to take a proactive approach, making adjustments based on data, not assumptions.
Designing reuse systems that work is one thing, but scaling it to work consistently across busy venues, events and teams is another. This is where technology, tracking, and a tailored system play a critical role.
How Circulayo Helps Reuse Systems in the Real World
Most of the challenges facing reuse systems aren’t caused by a lack of ambition; it’s caused by a lack of visibility, feedback and system design that reflects real-world behaviour. This is where our approach differs.
A Tailored Approach, Not a Template
Every event and venue operates differently. Footfall, layout, staffing, and customer behaviour all influence how reuse systems perform. We work with venues to scope and design systems that will work best for them, rather than applying a standard model.
Our tailored approach includes:
Assessing where return points should be placed to minimise friction
Engaging customers in the reuse system, using Circulayo Connect
Ensuring that the captured data aligns with operational reality
Reuse systems should work with existing operations, not against them. Technology can significantly enhance how reuse systems operate, removing manual work and making the system scalable.
Using Technology and Data to Strengthen Reuse Systems
The difference between a struggling reuse system and a successful one often comes down to visibility. Without data, venues are left guessing how many items are in circulation, where returns drop, or where losses occur. Technology turns assumptions into evidence, giving teams the clarity they need to act.
By tracking reusable items throughout their lifecycle, venues can identify popular return points, spot where adjustments are needed, and monitor overall performance. Data also demonstrates value, showing operational efficiency and environmental benefits in real terms.
Technology also supports consumer engagement, which is critical for success. When customers understand the system and see a clear benefit for participating, return rates improve. Digital touchpoints can guide behaviour at the right moment, removing confusion and making returns feel simple and intuitive.
Circulayo makes this actionable. Through lifecycle tracking with QR codes and RFIDs, the Flow Platform provides venues with clear insights, while Circulayo Connect and Tap & Return give customers simple ways to participate and be rewarded, from incentives and competitions to refundable deposits.
The result is a reuse system that is measurable, manageable, and trusted, turning potential losses into consistent returns.
Working in Partnership
Finally, Circulayo positions itself as a partner, not just a technology provider. Reuse systems evolve, especially as venues scale or host different types of events. Ongoing collaboration helps ensure systems continue to perform as intended, even as conditions change.
Getting reuse right isn’t just about switching from single-use to reusable items; it’s about designing systems that work in the real world. Without clear visibility, convenient returns, and engaged consumers, reuse can become more costly and wasteful than single-use.
The good news is that these challenges can be overcome. By combining smart system design, data tracking, and consumer engagement, venues can make reuse predictable, manageable, and truly sustainable; financially and environmentally.
Ready to turn your reuse system into one that works for both your venue and the planet? Book a demo to see how we can enhance your reuse system.
