Deposit system for reusable cups: a practical guide

Deposit system for reusable cups: the complete guide to organising it well

Setting up a deposit system is today the most effective way to make a fleet of reusable cups pay for itself while guaranteeing a high return rate. Festivals, brasseries, bars, restaurants, local authorities and associations are adopting it on a large scale, for economic and environmental reasons as well as regulatory ones linked to the AGEC law in France. But how do you set the right deposit amount? How do you organise collection points in practice? Which mistakes should you avoid? This complete guide takes you through every stage of setting up a high-performing deposit system for your business.

What is a deposit system for reusable cups?

The principle is simple: when buying a drink, the customer pays an additional amount corresponding to the value of the cup (generally between €1 and €2). When they bring their cup back to a collection point, this amount is refunded in full. The cup is then washed and put back into circulation.

This mechanism fulfils several complementary functions:

  • Guarantee the return of cups by giving customers a financial incentive to return them
  • Protect the investment of the event organiser or venue manager
  • Reduce waste left on the ground and in bins
  • Allow immediate reuse of the cup for another customer
  • Improve the eco-responsible image of the venue or event

A well-designed deposit system can achieve return rates of 80 to 95% at an event, compared with only 30 to 40% without a deposit. The difference is considerable, both economically and environmentally.

For which uses should you set up a deposit?

For festivals and large events

Deposits have become the norm at almost all French festivals. With audiences ranging from several thousand to several hundred thousand people, the challenge of recovering cups is massive. Without a deposit, the cost of lost cups would far exceed their purchase value.

For bars and brasseries serving on the premises

In a bar or brasserie, a deposit is rarely applied internally because drinks are consumed on the premises and the cups stay in the venue. It can, however, apply to one-off events organised by the bar (after-work drinks, special evenings, tastings).

For food trucks and mobile sales

For a stationary food truck (park, public square, recurring event), a deposit works well. For a roaming food truck, the system is trickier to organise because the customer may be far from the final return point.

For local authorities and municipal events

Many town halls equip their events departments with a fleet of deposit cups shared across all the events of the year. This approach optimises the investment and considerably reduces municipal waste.

For weddings and private events

At private events, a deposit is less common because guests are sensitive to image. An interesting variant is to give the cup as a keepsake, including its cost in the price of the catering service, without asking for it back.

How do you set the right deposit amount?

The deposit amount is a delicate balance between several parameters. Too low, and it does not provide enough incentive to return the cup. Too high, and it puts customers off buying or creates a feeling of mistrust.

Type of event Recommended amount Rationale
General public festival €1 Affordable for all, sufficiently motivating
Premium or music festival €1 to €2 Audience with higher purchasing power
Sporting event €1 Smooth service is the priority
Brasserie or bar €1 Industry standard
Corporate event €2 B2B audience, stronger incentive
Market or town fête €1 Accessible to all audiences
Upmarket / VIP event €2 to €3 Reflects the quality of the glassware

The amount should be at least equal to the purchase cost of the cup to you, and ideally slightly higher to absorb logistics costs (washing, transport, staff). With a 50 cl cup bought for around €0.30, a €1 deposit gives you ample protection even in the event of loss.

The different deposit models

The classic model: refundable deposit

This is the most widespread model. The customer pays a €1 deposit when buying their drink and gets €1 back when they return the cup. The system is understood by everyone, simple to set up and effective in terms of return rate.

The "first cup paid, the rest exchanged" model

The customer pays the deposit only on their first cup. With each subsequent order, they swap their empty cup for a clean one, without having to pay or reclaim a deposit. Very smooth for service, this model is ideal for high-turnover festivals.

The "keepsake cup" model with a declining deposit

The cup deposit decreases over the course of the event, encouraging visitors to keep the cup as a keepsake at the end of the event. This model highlights the communication value of the personalised cup.

The "deposit included in the price" model

The price of the drink directly includes the cost of the cup, with no visible deposit transaction. The customer can either return the cup to get the amount back, or keep it as a keepsake. A model often used at premium events or brand operations.

The digital model: tokens, wristbands or apps

The most modern festivals use digital systems: physical tokens, RFID wristbands or mobile apps. The customer buys credits at the start of the event, and each cup is tracked digitally. An expensive system to set up but very effective for very large volumes.

How do you organise the collection points?

The effectiveness of a deposit system depends largely on the quality of the collection set-up. Here are the best practices to follow.

1. Multiply the return points

The more numerous and accessible the collection points, the higher the return rate. Ideally, provide:

  • A return point at every bar or drinks outlet
  • A central point near the main exits of the event
  • Roving mobile points that move through the crowd at large events

2. Clearly identify the return points

Clear signage, visible from afar, in a consistent colour code. Visitors should never have to wonder where to return their cup. Multilingual signage is useful for international events.

3. Make returns smooth

Customers should be able to return their cup in under 30 seconds, without queuing. If returning takes too long, many will give up and keep the cup. Provide enough trained staff.

4. Plan for evening operations

At events that finish late, many cups are returned just before the end. Collection points must stay open and operational until the last minute, or even beyond if possible.

5. Manage refund payments

Cash refunds require a large float and change logistics. Some events offer alternatives: a gift card usable at the next event, a donation to a partner charity, or conversion into an extra drink.

How many cups should you plan for with a deposit system?

The major advantage of a deposit system is that it significantly reduces the number of cups to order. Thanks to the fast rotation of cups (collection, washing, return to service), the same cup can be used several times at a single event.

With a deposit and on-site washing, the logistics coefficient falls to 1.2 to 1.5 cups per participant instead of 2.5 to 3 without a deposit. For the full calculation, see our guide How many reusable cups should you plan for your event?

At a festival of 3,000 people consuming 5 drinks on average, the requirement thus falls to 19,500 cups with a deposit, compared with 37,500 without. The saving is huge, both in initial investment and in storage and transport logistics.

Organising cup washing

Washing logistics is the key link in the deposit system. Several options are possible depending on your set-up.

On-site in-house washing

For large events or permanent venues (brasseries, concert halls), an on-site washing facility allows fast rotation. Equipment needed: commercial dishwasher, sorting bins, drying area, dedicated staff.

Outsourced washing

More and more specialist providers offer a service of collecting, washing and delivering clean cups between two days of an event. Convenient for a multi-day festival, this service adds a cost but simplifies logistics.

Deferred washing after the event

For one-off events where immediate washing is not critical, you can store the dirty cups and wash them after the event. This option requires more cups in stock to ensure rotation during the event.

Whichever option you choose, follow good hygiene practice: wash at a maximum of 65 °C to preserve the polypropylene, use non-abrasive products, and dry completely before returning cups to circulation. For more technical details, see also our article Reusable or disposable cup: which should you choose?, which covers the question of washing costs.

The role of personalisation in a deposit system

Personalising deposit cups with your event or brand logo has several advantages:

  • Keepsake effect that can turn an economic loss into a marketing investment
  • Prolonged visibility of the logo after the event (cups that are kept are reused elsewhere)
  • Differentiation from the generic cups of other events
  • Preventing mix-ups with other cup fleets at multi-organiser events

Note that personalisation changes the economic trade-off: a personalised cup that is not returned is not a dead loss if it contributes to your post-event communication. For your personalisation projects, see our dedicated range of personalised reusable cups.

Communicating the deposit to the public

A successful deposit system is a well-explained system. Communication with participants must be clear, multilingual if necessary, and rolled out at several levels.

Before the event

Mention the deposit system on your website, your social media and your e-tickets. State the amount and the return arrangements. This prepares participants mentally and makes service smoother on the day.

At the event entrance

Visible display explaining how it works in a few pictograms. Possibly welcome staff on hand to answer questions about the system.

At drinks outlets

Clear price signage including the deposit in the displayed price. Avoid surprises at the point of payment.

At return points

Multilingual signage, visible from afar, with universal icons. Friendly, trained staff to handle refunds quickly.

Calculating the profitability of your deposit system

Here is a simple method for estimating the return on investment of a deposit system at an event of 3,000 people.

Item Without deposit With deposit
Cups needed 37,500 19,500
Cup investment (€0.30/unit) €11,250 €5,850
Estimated return rate 30% 90%
Cups recovered for reuse 11,250 17,550
Residual value of cups €3,375 €5,265
Net event cost €7,875 €585

In this example, the deposit system delivers a net saving of more than €7,000 at a single event. Even after including the cost of running the deposit scheme (staff, signage, washing), the return on investment is massive.

Mistakes to avoid

1. Under-sizing the return points

The most common mistake. If visitors have to queue for 15 minutes to return their cup, many give up and keep it. Multiply the points and the staff.

2. Running short of change for refunds

Prepare a large float. €1 refunds across thousands of visitors require professional change logistics.

3. Not training staff on the system

Staff at bars and return points must master the system, be able to explain it quickly and handle special cases (damaged cup, lost cup, request to keep it as a keepsake).

4. Communicating the deposit amount poorly

If customers discover the deposit at the point of payment, they may see it as an unpleasant surprise. Clearly display prices incl. VAT with the deposit included.

5. Underestimating washing logistics

Without fast washing, the system clogs up. Plan flows and the capacity of your washing set-up precisely against the peak of attendance.

6. Forgetting the end of the event

The last hours are critical: many visitors try to return their cup as they leave. Plan ahead for the end-of-evening arrangements and the closing of return points.

FAQ — Deposit system for reusable cups

How much does it cost to set up a deposit system?

Beyond the purchase cost of the cups, allow for: signage (€200 to €1,000 depending on scale), dedicated staff (1 to 5 people depending on the size of the event), a float for refunds (€500 to €5,000), and washing equipment if managed in-house (from €2,000 for a professional dishwasher). The initial investment is more than offset by the savings made.

What is the ideal deposit for a festival?

For a general public festival in France, €1 is the standard amount. It ensures a high return rate without discouraging purchases. At premium or very upmarket events, €2 may be appropriate.

Can you keep a cup as a keepsake?

Yes, it is a common practice, particularly with cups personalised with the event logo. The customer simply gives up reclaiming the deposit. Many organisers see this as a sign of the event's communication success.

How do you handle visitors who lose their cup?

No refund is due if a cup is lost or not returned: that is the very principle of the system. This rule must be clearly displayed to avoid disputes.

What return rate should you aim for?

A well-organised deposit system should achieve a return rate of between 80 and 95%. Below 70%, the set-up has flaws that need fixing (insufficient return points, poor signage, deposit too low).

Is a deposit required by law?

No. In France, the AGEC law requires the use of reusable tableware for on-site dining, but does not prescribe the exact mechanism for ensuring its return. A deposit is an operational solution widely adopted in the sector but remains at your discretion.

Can you combine a deposit with personalisation?

Yes, and it is even strongly recommended. Personalisation gives the cup added value in the visitor's eyes (they may want to keep it as a keepsake) and sets your fleet apart from other events. Discover our range of personalised reusable cups for your branding projects.

Discover our reusable cups for your deposit system

At Covr, we support event organisers, brasseries, restaurants and local authorities in choosing cups suited to a deposit system. Our range covers the 4 standard capacities on the market in food-grade polypropylene that withstands hundreds of washing cycles:

To go further on strategy around reusable cups, see our complementary guides:

Is your event coming up? Our team supports you with sizing your cup fleet, choosing capacities and shipping logistics. Contact us for a personalised quote within 24 hours, delivered in 2 to 5 working days.