Today (7/2/18) a plastics ban goes into effect in the Seattle that would prevent local food service businesses from using plastic straws, utensils, and cocktail picks in their establishments. This move comes as researchers continue to provide estimates that roughly 8 million pounds of plastics find its way into our oceans and water each year.


ALSO READ: Campbell Soup starts pouring out dividends

Seattle is the first metropolitan area to ban the use of plastic utensils, but follows California on a statewide ban of plastic shopping bags (like the ones you find at checkout). While the Seattle ban does not look like it includes the cups and actual serving containers, there is a real possibility that the ban could be amended or another resolution could be put in place that would expand the scope.


Right now, food service operators have to offer products that are now made from “compostable” compressed paper, or compostable plastic. This is a good thing for the environment, but expect this move to impact the businesses as widespread manufacturing is limited to a few major players, and could drive COGS up as operators now face higher costs.

Some food service operators such as McDonalds have already committed to moving away from traditional plastics in their UK and Ireland stores, so we are starting to see a growing shift towards voluntary changeover vs forced regulation. One company to watch is Precision Products Group, who has had to increase lead times to nearly double what they were before, due to growing demand from SME’s, as well as large companies for their biodegradable straw products. While they are a private company now, increased demand could lead to being listed publicly if need for capital outstrips capacity.

Who this effects

*** SPECIAL ALERT -- May 10, 2020 -- Motley Fool Stock Picks On FIRE! ****

The recent Motley Fool stocks picks, even with this COVID crisis, are STILL performing well and beating the SP500! Here are some of their most recent picks and their performance:
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 90%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 16%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 17%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 77% compared to the SP500 -12% so it is ahead of the market by 89%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 4%
  • Netflix (NFLX) picked November 21, 2019 and it is up 37%
  • Trade Desk (TTD) picked November 11, 2019 and up 50%
  • Zoom Video originally picked Oct 3 and it is up 87%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 20%
  • Zoom was also picked October 3, 2019 and it is up 95% since then.
The average stock they've recommended is up a life-changing 346% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

Hurry! Order now so you will get their next stock pick! Here is the expected schedule of release dates for their stock picks...:

  • June 4 - Tom's New Recommendation
  • June 11 - Tom's New Best Buys Now
  • June 18 - David's New Recommendation
  • June 25 - David New Best Buys Now

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

This isn’t just a ban within smaller companies, this is a major ban affecting some major retailers, who would face fines of up to $250 per infraction in Seattle. Companies that are affected are McDonalds ($MCD), Starbucks ($SBUX), Yum Brands ($YUM) (Taco Bell, Pizza Hut, KFC), Wendy’s ($WEN), Restaurant Brands ($QSR) (Tim Hortons, Burger King, Popeyes), Dunkin Donuts ($DNKN), Papa Johns ($PZZA), Dominoes ($DPZ), Darden Restaurants ($DRI) (Olive Garden, LongHorn Steakhouse, Capital Grille), Chipotle ($CMG), and Buffalo Wild Wings ($BWLD).

While this ban may not have an effect company wide, or on the latest earnings report, keep an eye out on proposed legislation at local, state, and federal levels as it would indicate more regulations, as well as increased costs for items on a massive scale, which could start to eat into margins.


Get Up To $1,000 in Free Stock with Robinhood--the Commission-Free Brokerage!

Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer! USE THIS LINK to get started with Robinhood!
Previous articleCampbell Soup starts pouring out dividends
Next articleEtsy marches into Europe