Unresolved operational issues identified by hospitality businesses

This is a list of business-critical issues that have been highlighted by hospitality venues in relation to the implementation of the Deposit Return Scheme (DRS).

These are focused on operational matters that need to be resolved very quickly, if businesses are to be compliant with DRS on 16 April.

Over and above these, businesses report concerns in the lack of, or poor quality of, information and advice being given to them by Circularity Scotland and a general lack of direction on how businesses should be preparing for DRS.

These operational matters, which require resolution by lead stakeholders, are also in addition to the other challenges that DRS will bring to hospitality through time pressures on teams and finance. This is not a cost neutral scheme where only deposits are paid and returned, but will result in increased costs for products impacting cashflow and potentially credit terms for some smaller businesses, who may already struggling with their finances.

Producers also plan to pass their increased costs onto suppliers and then hospitality businesses – who will have no choice but to pass on to customers.

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Still no agreed method of collection of glass from venues. Assumption is that it will be weighed and reconciled against purchase/sales records or scanned by businesses.

CURRENT STATUS

Waiting for confirmation and understand the issue is sitting with the CSL Board for approval.

TO BE RESOLVED

ISSUE - NIGHTCLUBS

LEAD STAKEHOLDER - CSL

DETAILS OF ISSUE

Impossible for venues to ensure cans are left uncrushed by customers in a nightclub setting.

CURRENT STATUS

Raised with CSL to offer a view on how cans could be accounted for and deposits not lost to the business.

TO BE RESOLVED

ISSUE - MAJOR SPORTING EVENTS AND FESTIVALS

LEAD STAKEHOLDER - CSL

DETAILS OF ISSUE

So far no consideration given to how large scale events will manage DRS.

CURRENT STATUS

Issue of Murrayfield highlighted to CSL and site visit undertaken at 6 Nations. Waiting for feedback from CSL on solutions that do not leave the contractor covering costs of large numbers of lost deposits. Operating open loop not an option given volume of customers and no ability to give cash deposits back.

TO BE RESOLVED

ISSUE - FREQUENCY AND TIMINGS OF COLLECTION.

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

No KPIs in place for collections, only an outline timeframe for venues e.g. twice a week, but all subject to experience at go live.

Risk is that hospitality businesses with limited storage will quickly be overwhelmed by bags and bins of valuable scheme items. Also increases risk of theft.

Businesses looking to build secure storage need to know frequency of collections in order to specify dimensions. Also, may need to involve landlords and planning authorities.

Access for collection may be a challenge – city centre access

/ restricted access times / no early morning or late-night collections at hotels disturbing guests.

As 80% of scheme articles are expected to be returned via supermarkets there is a risk the closed- loop businesses (hospitality) will not be prioritised.

CURRENT STATUS

Until all return points are known unlikely any further assurances can be given by CSL or Biffa on this. Until all return points are known unlikely any further assurances can be given by CSL or Biffa on this.

RPO registration goes live on 1 March.

Businesses cannot plan until details are confirmed and they need guaranteed schedules to plan.

TO BE RESOLVED

ISSUE - COSTS OF BAGS AND TAGS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

These items need to be purchased from Biffa and no prices have yet been provided.

CURRENT STATUS

CSL committed at a recent information event to update on this asap.

TO BE ADVISED

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Businesses concerned that no process has been shared for raising queries or complaints at go live date. This is needed quickly so businesses can build into business operational plans.

CURRENT STATUS

Assume CSL and Biffa will create this, but no timescale has been given. In fact no sight of Biffa operational plan has been provided.

TO BE RESOLVED

ISSUE - PROCESS FOR DEPOSIT RETURNS AND MONITORING / ACCOUNTING PROCESS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

No clarity on how or when deposits will be returned to the businesses or how these will be monitored.

CURRENT STATUS

Waiting for operational procedure information.

TO BE RESOLVED

ISSUE - FINANCE AND ACCOUNTING SYSTEMS

LEAD STAKEHOLDER - CSL / BIFFA

DETAILS OF ISSUE

Impacts all business, and for larger operators between 5-7 IT systems may be impacted in some way across sales, supply chain, reporting, finance and change is not simple. Until there is accurate and comprehensive scheme requirements, they cannot complete effective discovery to make sensible business process changes and understand the time it will take to implement change, including staff training.

CURRENT STATUS

Unknown when this detailed information will be made available.

TO BE RESOLVED

ISSUE - BIFFA OPERATIONAL PRACTICE AND KPIS

LEAD STAKEHOLDER - BIFFA

DETAILS OF ISSUE

Businesses need to understand these so they can build operational policies, process and practice to then build communication and training to engage teams in the scheme.

CURRENT STATUS

Unknown

TO BE RESOLVED

ISSUE - CLARITY OF EXEMPTION PROCESS FOR NON-CORE OPERATIONS. (CONCESSIONS)

LEAD STAKEHOLDER - ZERO WASTE SCOTLAND

DETAILS OF ISSUE

Relates to hotels with third party onsite hospitality outlets and outlets at airports and train stations.

CURRENT STATUS

Issue raised with Zero Waste Scotland.

TO BE RESOLVED

ISSUE - EXEMPTIONS –H&S AND PROXIMITY

LEAD STAKEHOLDER - ZERO WASTE SCOTLAND

DETAILS OF ISSUE

Businesses applying for exemptions to act as RPOs –delivery / click and collect / small volume of off-sales. Won’t know about proximity exemptions until much closer to the time. Businesses already considering changing sales models to be exempt – i.e. not selling drinks as part of food to go offer – impact on sales and consumer choice etc.

CURRENT STATUS

Exemptions all rest with Zero Waste Scotland.

TO BE RESOLVED

ISSUE - REDUCED OFFER OF DRINKS TO HOSPITALITY CUSTOMERS.

LEAD STAKEHOLDER - CSL / SEPA

DETAILS OF ISSUE

Businesses are reporting that some products will not be available on the Scottish market post 16 August. This will impact sales at venues unable to provide customers with the same range of products. For example, some larger bottles beers will not be available due to low volumes. These generally provide a better profit margin for restaurants.

CURRENT STATUS

Producer registration scheme live. It remains to be seen how the £22 million for producers alters the intentions of producers contemplates not registering.

WAITING FOR CLOSE OF PRODUCER REGISTRATION SCHEME TO ASSESS THE SITUATION WITH OUR OPERATOR AND PRODUCER MEMBERS.