Plastic foam ban could raise business costs during continued COVID-19 financial struggles

(The Center Square) – Legislation that would prohibit restaurants from using plastic foam takeout containers could add more financial stress to businesses struggling to recover from the COVID-19 pandemic, according to members of the business community.

House Bill 1902 would ban polystyrene food service containers, commonly used by restaurants for takeout food. The legislation is designed to force the businesses into using containers that are more environmentally friendly. It passed both chambers of the General Assembly and is headed to Gov. Ralph Northam’s desk for his consideration.

Restaurant chains that have at 20 locations or more would be prohibited from using the containers by July 2023 and other locations would be prohibited by July 2025. Violating the law would result in a civil penalty of no more than $50 per day.

Gary Cohen, the executive vice president of a regional chain Glory Days Grill told The Center Square the legislation is another blow to the restaurant industry. The chain operates 15 locations in the commonwealth.

“Just like everyone else in the world, but particularly those in the hospitality business, we have been and continue to be devastated by the impact of COVID-19 on our business,” Cohen said. “The ban on styrofoam containers in our state at this moment in time simply adds insult to injury at a time we can least afford it. Styrofoam is the container of choice for almost every restaurant I am aware of. It is a low cost option that works well for us, but more importantly it keeps food at proper temperature and safe when transported.”

Glory Days Grill also operates seven locations in Maryland, which has a similar ban in place. Cohen said the prohibition cost them about $38,000 in added costs per year per store. With more takeout during the pandemic, he estimates the costs are currently even higher.

Many businesses, particularly restaurants, have lost a substantial amount of money because of the COVID-19 pandemic and subsequent economic restrictions. Although the legislation has a delayed effect, the added cost for alternative containers could hurt the recovery for some restaurants that may need several years to fully recover, according to Robert Melvin, the director of government affairs at the Virginia Restaurant, Lodging & Travel Association.

Melvin told The Center Square that a lot of restaurants are currently relying heavily on carry-out as people are concerned about entering into the stores. He said many restaurants use polystyrene containers because they cannot afford other options.

The financial burden will be felt on businesses and could be passed down to the consumer through increased prices, Melvin said. For some small businesses, he said this could be “the thing that puts them over the edge” and causes them to close.

Del. Betsy Carr, D-Richmond, the sponsor of the legislation, did not return several requests for comment from The Center Square.

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