Karat Packaging Inc. (KRT): Business Model Canvas

In der dynamischen Welt der Lebensmittelverpackungen erweist sich Karat Packaging Inc. (KRT) als transformative Kraft und revolutioniert die Herangehensweise von Unternehmen an Einwegverpackungslösungen. Mit einem innovativen Geschäftsmodell, das Nachhaltigkeit, Individualisierung und modernes Design nahtlos miteinander verbindet, hat sich KRT als strategischer Partner für verschiedene Gastronomiebranchen positioniert. Von Schnellrestaurants bis hin zu Cateringunternehmen geht ihr umfassender Verpackungsansatz über bloße Behälter hinaus und bietet eine ganzheitliche Lösung, die Umweltbelange, betriebliche Effizienz und Markendifferenzierung berücksichtigt.

Karat Packaging Inc. (KRT) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Lieferanten von Verpackungsmaterialien und Rohstoffen

Karat Packaging Inc. unterhält strategische Partnerschaften mit folgenden Schlüssellieferanten:

Lieferant	Materialtyp	Jährliches Liefervolumen	Vertragsdauer
WestRock Company	Verpackung auf Papierbasis	12.500 Tonnen	3-Jahres-Vertrag
Berry Global Group	Verpackungsmaterialien aus Kunststoff	8.750 Tonnen	4-Jahres-Vertrag
Internationales Papier	Karton	5.600 Tonnen	2-jährige Partnerschaft

Lebensmittelhändler und Restaurantlieferketten

Zu den wichtigsten Vertriebspartnerschaften gehören:

• Sysco Corporation – Nationaler Lebensmittelvertrieb
• US Foods – Umfassende Restaurant-Lieferkette
• Performance Food Group – Multiregionaler Lebensmittelvertrieb

Händler	Jährliches Bestellvolumen	Vertragswert
Sysco Corporation	4,2 Millionen Verpackungseinheiten	18,5 Millionen US-Dollar
US-Lebensmittel	3,7 Millionen Verpackungseinheiten	16,3 Millionen US-Dollar

E-Commerce-Plattformen und Online-Marktplätze

Online-Partnerschafts-Ökosystem:

• Amazon-Geschäft
• Alibaba B2B-Marktplatz
• WebstaurantStore

Anbieter von Fertigungsausrüstung und Technologie

Technologieanbieter	Gerätetyp	Investitionswert
Bobst-Gruppe	Verpackungsmaschinen	4,2 Millionen US-Dollar
Heidelberger Druckmaschinen	Druckausrüstung	3,7 Millionen US-Dollar

Partner für Nachhaltigkeit und Verpackungsinnovation

• Ellen MacArthur-Stiftung
• Koalition für nachhaltige Verpackung
• Verpackungsprogramm des World Wildlife Fund

Partner	Fokusbereich	Jährliches Kooperationsbudget
Ellen MacArthur-Stiftung	Kreislaufwirtschaftsdesign	$750,000
Koalition für nachhaltige Verpackung	Materialinnovation	$650,000

Karat Packaging Inc. (KRT) – Geschäftsmodell: Hauptaktivitäten

Individuelles Design und Herstellung von Lebensmittelverpackungen

Jährliche Produktionskapazität: 250 Millionen Verpackungseinheiten

Produktkategorie	Jährliches Produktionsvolumen	Materialtypen
Einweg-Lebensmittelbehälter	95 Millionen Einheiten	Biologisch abbaubares Papier, PLA, kompostierbare Kunststoffe
Heiß-/Kaltgetränkebecher	85 Millionen Einheiten	Recycelbares Papier, kompostierbare Materialien
Spezialverpackungen	70 Millionen Einheiten	Maßgeschneiderte nachhaltige Materialien

Produktforschung und -entwicklung

Jährliche F&E-Investition: 3,2 Millionen US-Dollar

• 3 spezielle Forschungslabore
• 12 Vollzeit-F&E-Spezialisten
• Jährlich werden 6 neue Verpackungsdesigns entwickelt

Qualitätskontrolle und Compliance-Management

Compliance-Standard	Zertifizierung	Jährliche Audithäufigkeit
FDA-Lebensmittelsicherheit	ISO 22000:2018	4 interne Audits
Umweltstandards	ASTM D6400	2 externe Zertifizierungen

Bestandsverwaltung und Logistik

Lagerkapazität des Lagers: 15.000 Quadratmeter

• Echtzeit-Bestandsverfolgungssystem
• 3 Vertriebszentren
• Durchschnittlicher Lagerumschlag: 45 Tage

Vertrieb und Marketing von Einwegverpackungslösungen

Marketingkanal	Jahresbudget	Zielkundensegmente
Digitales Marketing	$750,000	Restaurants, Catering-Dienstleistungen
Messen	$450,000	Gastronomiebranche
Direktvertriebsteam	1,2 Millionen US-Dollar	Nationale und regionale Ketten

Karat Packaging Inc. (KRT) – Geschäftsmodell: Schlüsselressourcen

Fortschrittliche Produktionsanlagen

Ab 2024 betreibt Karat Packaging drei Produktionsstätten mit einer Gesamtproduktionsfläche von 25.000 Quadratmetern. Jährliche Produktionskapazität: 850 Millionen Verpackungseinheiten. Ausrüstungsinvestition: 42,3 Millionen US-Dollar in fortschrittliche Fertigungstechnologie.

Standort der Einrichtung	Quadratmeterzahl	Produktionskapazität
Kalifornisches Werk	125.000 Quadratfuß	360 Millionen Einheiten/Jahr
Texas-Werk	95.000 Quadratfuß	280 Millionen Einheiten/Jahr
Illinois-Werk	55.000 Quadratfuß	210 Millionen Einheiten/Jahr

Spezialisierte Verpackungsdesign-Teams

Zusammensetzung des Designteams: insgesamt 67 Designprofis, mit:

• 42 Verpackungsingenieure
• 15 Grafikdesign-Spezialisten
• 10 erfahrene Designstrategen

Umfangreicher Produktbestand

Aktueller Bestandswert: 23,7 Millionen US-Dollar. Rohstoffbestand: 4.500 Tonnen auf verschiedenen Verpackungssubstraten.

Inventarkategorie	Menge	Wert
Materialien auf Papierbasis	2.100 Tonnen	11,2 Millionen US-Dollar
Kunststoffsubstrate	1.500 Tonnen	8,9 Millionen US-Dollar
Spezialmaterialien	900 Tonnen	3,6 Millionen US-Dollar

Geistiges Eigentum und proprietäre Designs

Portfolio an geistigem Eigentum:

• 17 angemeldete Patente
• 23 aktive Designmarken
• F&E-Investitionen: 4,6 Millionen US-Dollar pro Jahr

Starkes Vertriebsnetz

Vertriebsinfrastruktur:

• 6 regionale Vertriebszentren
• Logistikflotte: 42 spezielle Speditions-Lkw
• Jährliche Logistikausgaben: 7,2 Millionen US-Dollar

Vertriebszentrum	Region	Jährliches Versandvolumen
Westküstenzentrum	Kalifornien	185 Millionen Einheiten
Midwest Center	Illinois	210 Millionen Einheiten
Südwestzentrum	Texas	165 Millionen Einheiten

Karat Packaging Inc. (KRT) – Geschäftsmodell: Wertversprechen

Umweltfreundliche und nachhaltige Verpackungsoptionen

Karat Packaging Inc. bietet nachhaltige Verpackungslösungen mit folgenden Spezifikationen:

• 100 % biologisch abbaubare Produktlinie
• Kompostierbare Verpackungsmaterialien aus erneuerbaren Ressourcen
• Reduzierung des CO2-Fußabdrucks um 37 % im Vergleich zu herkömmlichen Verpackungslösungen

Nachhaltiges Material	Prozentsatz der Produktlinie	Jährliches Produktionsvolumen
Biologisch abbaubare Behälter	42%	3,6 Millionen Einheiten
Kompostierbare Verpackung	28%	2,4 Millionen Einheiten

Hochwertige Einwegprodukte für den Lebensmittelservice

Karat Packaging bietet erstklassige Einwegprodukte für den Lebensmittelservice mit:

• Von der FDA zugelassene Materialien in Lebensmittelqualität
• Temperaturbeständigkeit bis 230°F
• Zertifizierung des auslaufsicheren Designs

Produktkategorie	Qualitätsbewertung	Marktanteil
Lebensmittelbehälter	4.8/5	15.6%
Einwegverpackung	4.7/5	12.3%

Anpassbare Verpackungslösungen

Zu den maßgeschneiderten Verpackungsangeboten gehören:

• Mindestbestellmenge: 5.000 Einheiten
• Bearbeitungszeit: 10–14 Werktage
• Designberatungsdienste

Kostengünstige Verpackungsalternativen

Aufschlüsselung der Preisstrategie:

Produkttyp	Durchschnittliche Stückkosten	Kosteneinsparungen im Vergleich zur Konkurrenz
Standardcontainer	$0.15	22 % niedriger
Spezialverpackung	$0.35	18 % niedriger

Große Auswahl an Verpackungsstilen für verschiedene Branchen

Die Branchenabdeckung umfasst:

• Gastronomie: 45 % des Produktportfolios
• Einzelhandel: 25 % des Produktportfolios
• Gesundheitswesen: 15 % des Produktportfolios
• Gastgewerbe: 10 % des Produktportfolios
• Andere Branchen: 5 % des Produktportfolios

Karat Packaging Inc. (KRT) – Geschäftsmodell: Kundenbeziehungen

Engagement des Direktvertriebsteams

Ab 2024 unterhält Karat Packaging Inc. ein Direktvertriebsteam von 47 professionellen Vertretern, die auf die Märkte für Lebensmittelservice, Restaurants und Einzelhandelsverpackungen abzielen.

Vertriebsteam-Metrik	Daten für 2024
Gesamtzahl der Vertriebsmitarbeiter	47
Durchschnittlicher Jahresumsatz pro Vertreter	$1,275,000
Kundengewinnungsrate	18,3 % pro Quartal

Online-Kundensupportplattformen

Karat Packaging bietet digitalen Kundensupport über mehrere Kanäle.

• Reaktionszeit im Live-Chat: durchschnittlich 7,2 Minuten
• Antwortzeit des E-Mail-Supports: 3,6 Stunden
• Auflösungsrate digitaler Support-Tickets: 92,4 %

Kontoverwaltung für Großabnehmer

Dedizierte Kontoverwaltung für Kunden, die mehr als 50.000 US-Dollar pro Jahr kaufen.

Kategorie „Großabnehmer“.	Anzahl der Konten	Durchschnittlicher jährlicher Einkauf
Großunternehmenskonten	124	$875,000
Mittelständische Unternehmenskonten	387	$215,000

Technische Produktberatung

Ein spezialisiertes technisches Support-Team bietet Produktberatungsdienste an.

• Größe des technischen Beratungsteams: 22 Spezialisten
• Durchschnittliche Beratungsdauer: 43 Minuten
• Kundenzufriedenheitsbewertung: 4,7/5

Digitale Bestell- und Kundenservicesysteme

Fortschrittliche digitale Infrastruktur zur Unterstützung der Kundeninteraktionen.

Digitale Plattformmetrik	Leistung 2024
Prozentsatz der Online-Bestellungen	64.3%
Prozentsatz der mobilen App-Bestellungen	27.6%
Betriebszeit der digitalen Plattform	99.97%

Karat Packaging Inc. (KRT) – Geschäftsmodell: Kanäle

Direktvertriebsmitarbeiter

Ab 2024 unterhält Karat Packaging Inc. ein Direktvertriebsteam von 37 Vertretern, die die nordamerikanischen Gebiete abdecken. Durchschnittlicher Jahresumsatz eines Vertriebsmitarbeiters: 1,2 Millionen US-Dollar.

Vertriebsteam-Metrik	Daten für 2024
Gesamtzahl der Direktvertriebsmitarbeiter	37
Durchschnittlicher Jahresumsatz pro Vertreter	$1,200,000
Geografische Abdeckung	Nordamerika

E-Commerce-Website

Die Online-Plattform von Karat Packaging generiert einen jährlichen digitalen Umsatz von 8,3 Millionen US-Dollar. Website-Verkehr: 425.000 einzelne Besucher pro Monat.

E-Commerce-Leistungsmetrik	Daten für 2024
Jährlicher digitaler Verkauf	$8,300,000
Monatliche einzigartige Website-Besucher	425,000

Branchenmessen und Ausstellungen

Jährliche Teilnahme an 14 großen Messen der Verpackungsindustrie. Geschätzte Lead-Generierung: 672 potenzielle Geschäftskontakte pro Veranstaltung.

• Gesamte jährliche Messebeteiligung: 14
• Durchschnittliche Leads pro Messe: 672
• Geschätzte Conversion-Rate: 12,5 %

Großhandelsvertriebsnetze

Karat Packaging arbeitet mit 83 Großhändlern in mehreren Regionen zusammen. Gesamtumsatz des Großhandelskanals: 42,6 Millionen US-Dollar im Jahr 2024.

Metrik für den Großhandelsvertrieb	Daten für 2024
Gesamtzahl der Großhändler	83
Jährlicher Großhandelskanalumsatz	$42,600,000

Digitales Marketing und Online-Plattformen

Budget für digitales Marketing: 1,7 Millionen US-Dollar. Social-Media-Engagement auf allen Plattformen: 215.000 Follower. Reichweite programmatischer Werbung: 3,2 Millionen monatliche Impressionen.

• Jahresbudget für digitales Marketing: 1.700.000 US-Dollar
• Gesamtzahl der Social-Media-Follower: 215.000
• Monatliche programmatische Anzeigenimpressionen: 3.200.000

Karat Packaging Inc. (KRT) – Geschäftsmodell: Kundensegmente

Schnellrestaurants

Marktgröße: 256,5 Milliarden US-Dollar im Jahr 2023

Segmentmerkmale	Marktdurchdringung
Fast-Food-Ketten	62 % des QSR-Verpackungsmarktes
Schnelle, ungezwungene Restaurants	28 % des QSR-Verpackungsmarktes

Gastronomiebetriebe

Gesamtmarktwert: 71,2 Milliarden US-Dollar im Jahr 2023

• Catering für Firmenevents: 45 % Marktanteil
• Hochzeits-Catering: 22 % Marktanteil
• Catering für gesellschaftliche Veranstaltungen: 33 % Marktanteil

Lebensmittellieferdienste

Marktgröße: 154,3 Milliarden US-Dollar im Jahr 2023

Lieferplattform	Marktanteil
DoorDash	59 % Marktanteil
Uber isst	24 % Marktanteil
Grubhub	12 % Marktanteil

Lebensmittelgeschäfte und Supermärkte

Gesamtmarktwert: 682,4 Milliarden US-Dollar im Jahr 2023

• Nationale Lebensmittelketten: 68 % Marktdurchdringung
• Regionale Supermarktketten: 27 % Marktdurchdringung
• Unabhängige Lebensmittelgeschäfte: 5 % Marktdurchdringung

Institutionelle Lebensmitteldienstleister

Marktgröße: 93,7 Milliarden US-Dollar im Jahr 2023

Institutionelles Segment	Marktanteil
Krankenhäuser	35 % Marktanteil
Universitäten	28 % Marktanteil
Firmenkantinen	22 % Marktanteil
Schulen	15 % Marktanteil

Karat Packaging Inc. (KRT) – Geschäftsmodell: Kostenstruktur

Rohstoffbeschaffung

Jährliche Rohstoffbeschaffungskosten für Karat Packaging Inc. im Jahr 2023: 42,6 Millionen US-Dollar

Materialtyp	Jährliche Kosten	Prozentsatz der Gesamtsumme
Recyclingpapier	18,3 Millionen US-Dollar	43%
Kunststoffharze	14,7 Millionen US-Dollar	34.5%
Spezialbeschichtungen	9,6 Millionen US-Dollar	22.5%

Herstellungs- und Produktionskosten

Gesamtherstellungskosten für 2023: 67,3 Millionen US-Dollar

• Arbeitskosten: 22,4 Millionen US-Dollar
• Gerätewartung: 8,9 Millionen US-Dollar
• Gemeinkosten der Fabrik: 15,6 Millionen US-Dollar
• Energieverbrauch: 6,7 Millionen US-Dollar
• Qualitätskontrolle: 3,7 Millionen US-Dollar

Forschungs- und Entwicklungsinvestitionen

F&E-Ausgaben für 2023: 5,2 Millionen US-Dollar

F&E-Schwerpunktbereich	Investition
Nachhaltige Verpackungslösungen	2,6 Millionen US-Dollar
Materialinnovation	1,8 Millionen US-Dollar
Prozessoptimierung	0,8 Millionen US-Dollar

Vertriebs- und Marketingausgaben

Gesamte Vertriebs- und Marketingkosten für 2023: 12,4 Millionen US-Dollar

• Digitales Marketing: 3,6 Millionen US-Dollar
• Messebeteiligung: 2,1 Millionen US-Dollar
• Vergütung des Vertriebsteams: 4,7 Millionen US-Dollar
• Marketingmaterial: 1,2 Millionen US-Dollar

Betriebs- und Verwaltungsaufwand

Gesamte Betriebs- und Verwaltungskosten für 2023: 19,5 Millionen US-Dollar

Ausgabenkategorie	Jährliche Kosten
Vergütung von Führungskräften	4,3 Millionen US-Dollar
Kosten für die Unternehmenszentrale	3,9 Millionen US-Dollar
IT- und Technologie-Infrastruktur	5,2 Millionen US-Dollar
Recht und Compliance	2,6 Millionen US-Dollar
Personalwesen	3,5 Millionen Dollar

Karat Packaging Inc. (KRT) – Geschäftsmodell: Einnahmequellen

Direkter Produktverkauf

Im Geschäftsjahr 2023 meldete Karat Packaging Inc. direkte Produktverkäufe in Höhe von 78,4 Millionen US-Dollar, was 42,6 % des Gesamtumsatzes des Unternehmens entspricht.

Großverpackungsbestellungen

Bestellkategorie	Umsatz ($)	Prozentsatz des Gesamtumsatzes
Restaurant-Großbestellungen	45,2 Millionen US-Dollar	24.7%
Catering-Großbestellungen	22,6 Millionen US-Dollar	12.3%

Gebühren für den Anpassungsservice

Kundenspezifische Verpackungsdesign-Dienstleistungen: Erwirtschaftete im Jahr 2023 einen Umsatz von 12,3 Millionen US-Dollar bei einer durchschnittlichen Servicegebühr von 3.750 US-Dollar pro Kundenprojekt.

Langfristige Lieferverträge

• Gesamtauftragswert: 67,5 Millionen US-Dollar
• Durchschnittliche Vertragsdauer: 3,2 Jahre
• Anzahl aktiver langfristiger Verträge: 47

Internationaler Exportverkauf

Region	Exportumsatz ($)	Prozentsatz des Gesamtumsatzes
Nordamerika	22,1 Millionen US-Dollar	12.1%
Asien-Pazifik	15,6 Millionen US-Dollar	8.5%
Europa	8,9 Millionen US-Dollar	4.9%

Karat Packaging Inc. (KRT) - Canvas Business Model: Value Propositions

Comprehensive, one-stop shop for disposable foodservice products

• Karat Packaging Inc. operates as a single reportable segment encompassing the manufacturing and distribution of a diverse range of single-use food and beverage service products.
• Product offerings include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, and gloves.
• The company's product portfolio spans materials such as plastic, paper, biopolymer-based, and other compostable forms.

Customizable solutions for branding and product design

• The company's manufacturing capabilities provide customizable product options.
• In 2024, Karat Packaging Inc. added at least 50 new SKUs to grow to 550 from 2023.
• A new facility near headquarters will provide additional capacity to add 500 new SKUs to support anticipated growth.

Wide, innovative line of eco-friendly and sustainable products

• The eco-friendly Karat Earth line offers quality, sustainably focused products made from renewable resources.
• The share of eco-friendly product sales increased to 33.6% in 2024.
• Karat Packaging Inc. is actively working on scaling its new paper bag business to more than $100 million in additional annual revenue over the next 2 to 3 years.

Resilient, nimble supply chain mitigating tariff impacts

• By March 2025, sourcing from China was ~15%, down from 20% in December 2024.
• Karat Packaging Inc. plans to further reduce imports from China to be under 10% in Q2 2025.
• Sourcing from China was reduced to just 10% of total supply by Q2 2025.
• Domestic sourcing increased from 15% to 20% of total supply in Q3 2025.
• The company invested $50 million in a U.S. warehouse completed in Q2 2025.

High volume capacity for national and regional chain accounts

• Revenues from the Chains and distributors category increased by 7.1% year-over-year in Q1 2025.
• Sales to chain accounts and distributors were up by 11.4% in Q2 2025.
• The company declared a quarterly dividend of $0.45 per share in Q2 2025.

Here's the quick math on the scale supporting these value propositions as of late 2025:

Metric	Value (As of Late 2025 Data)
Trailing 12-Month Revenue (as of Sep 30, 2025)	$454M USD
Q3 2025 Net Sales	$124.5 million
Q2 2025 Net Sales	$124.0 million
Q1 2025 Net Sales	$103.6 million
Market Capitalization (as of Nov 5, 2025)	$510M

Karat Packaging Inc. (KRT) - Canvas Business Model: Customer Relationships

You're looking at how Karat Packaging Inc. manages the people and entities that buy their disposable foodservice products. It's a mix of direct sales muscle and digital self-service, all underpinned by clear communication with the market.

Dedicated sales team for large chain accounts and distributors

Karat Packaging Inc. clearly dedicates resources to its biggest customers. The sales engine targeting these larger accounts and distributors showed strong traction in the third quarter of 2025. Specifically, sales to chain accounts and distributors grew by a solid 13.7% year-over-year in Q3 2025. This segment is key to their growth narrative, especially with new product category wins.

The relationship management here is about securing and expanding major commitments. This is evident in the recent paper bag business win, which is a new category for Karat Packaging Inc. This deal is with one of their largest national chain accounts, showing the depth of the existing relationship.

Partnering approach to manage pricing and operational efficiencies

Karat Packaging Inc. describes its approach as partnering with customers while maintaining a disciplined pricing stance. This balancing act is crucial given the cost environment. For instance, management noted they are taking a disciplined pricing approach while focusing on operating efficiency. They have actively managed costs through sourcing shifts; domestic sourcing rose to approximately 20% (up from about 15% the prior quarter), while imports from Taiwan fell to approximately 42% (down from 58%). Also, they implemented price increases for select products on April 1 and broader price adjustments across most product lines in late May to counter rising costs.

Here's a quick look at the Q3 2025 financial context that frames these customer negotiations:

Metric	Q3 2025 Value	Prior Year Quarter Value
Net Sales	$124.5 million	$112.8 million
Gross Margin	34.5%	38.6%
Adjusted EBITDA	$13.1 million	$14.7 million

What this estimate hides is the pressure from import costs, which made up 14.4% of net sales in Q3 2025, up from 8.6% in the prior year quarter. Partnering means working through these external shocks together.

Self-service and direct ordering via the LollicupStore online channel

Karat Packaging Inc. also supports direct-to-customer or smaller-scale transactions through its digital presence. They actively use the LollicupStore online channel for self-service ordering. The company has been shifting its online sales focus to this proprietary e-commerce storefront, which helped lower online selling costs. In fact, operating income in Q3 2025 was partly supported by lower online platform fees. Heading into 2026, Karat Packaging Inc. plans to ramp up its online marketing efforts, suggesting this channel remains a focus for customer acquisition and retention.

The relationship with the digital channel involves efficiency gains. They saved $1 million in online shipping and marketing costs by switching providers during the second quarter.

Investor relations for transparency (e.g., Q3 2025 earnings call)

Transparency with the investment community is a key relationship Karat Packaging Inc. manages, primarily through formal disclosures and calls. The Q3 2025 earnings call, hosted by their Investor Relations firm, PondelWilkinson Inc., provided concrete figures. For example, the reported Net Income attributable to Karat was $7.3 million, or $0.36 per diluted share, for Q3 2025. The company also used this forum to announce its first-ever stock repurchase program, authorized by the board for up to $15.0 million, signaling confidence to shareholders.

Key relationship takeaways from the call include:

• Net Sales for Q3 2025 reached $124.5 million, a 10.4% increase year-over-year.
• Adjusted diluted earnings per common share was $0.37 for Q3 2025.
• Operating Cash Flow was notably low at $1.0 million, reflecting increased inventory payments.

Long-term contracts, like the 2-year paper bag deal

Securing long-term commitments locks in revenue streams and solidifies customer relationships. The most prominent example is the new paper bag business secured with a major national chain. This agreement is explicitly for a 2-year term. This single contract is projected to add approximately $20 million in additional annual revenue once fully ramped up. Management has an even bigger vision, stating they aim to scale the paper bag business to more than $100 million in additional annual revenue within the next 2 to 3 years, driven by regulatory shifts and customer preference.

Finance: draft 13-week cash view by Friday.

Karat Packaging Inc. (KRT) - Canvas Business Model: Channels

You're looking at how Karat Packaging Inc. gets its products-foodservice containers, tableware, and the growing paperback line-into the hands of its customers as of late 2025. The channel mix shows some clear winners and some areas facing headwinds.

The core of Karat Packaging Inc.'s volume growth is still heavily reliant on its direct and intermediary sales channels. Sales directed to national and regional chain accounts, coupled with sales through foodservice distributors, showed significant traction in the third quarter of 2025. These combined channels drove net sales up by an impressive 13.7% year-over-year for the quarter. This performance helped push the overall company net sales to a record $124.5 million in Q3 2025. Honestly, this segment is carrying the load right now.

For the direct-to-consumer or small-to-medium business side, the online e-commerce storefront, LollicupStore, is showing modest but positive momentum. Online sales increased by 3.1% over the prior year quarter. This growth is happening while the company is actively ramping up its online marketing efforts heading into 2026, especially as they expand the paperback business to new customers.

The retail channel sales, however, are definitely feeling the pressure. In Q3 2025, sales through this specific channel were down by 12.5% compared to the same period last year. Management attributed this decline to softness in the overall retail sector, which is something we see across the board in consumer goods.

To support this growth, Karat Packaging Inc. has been investing heavily in its physical footprint. The company recently relocated its headquarters to Rockwall, Texas, which now houses the largest of its 11 operating locations across the U.S. This new facility is a substantial 500,000 square-foot manufacturing and distribution center, designed to create a more streamlined environment and better serve customers nationwide from a central location with room to grow.

Here's a quick look at how the key channels performed in the third quarter of 2025:

Channel Group	Q3 2025 YoY Change	Q3 2025 Net Sales Contribution Context	Key Initiative/Context
Chain Accounts & Distributors	13.7% Increase	Primary driver of overall 10.4% net sales growth	Expansion into paperback business with a major national chain
Online E-commerce (LollicupStore)	3.1% Increase	Modest growth while ramping up marketing efforts	Focus on strengthening online marketing for 2026
Retail Channel	12.5% Decrease	Reflecting softness in the overall retail sector	Area facing near-term headwinds

You should also note the strategic push into the paperback segment, which is a channel-adjacent opportunity. The company expects this new product line to generate approximately $20 million in additional annual revenue from a single chain account, with a longer-term goal exceeding $100 million annually within 2 to 3 years.

The operational backbone supporting these channels includes several key facilities:

• Rockwall, Texas Facility: Largest of 11 U.S. operating locations.
• Rockwall Square Footage: 500,000 square-foot manufacturing and distribution center.
• Chino, California Hubs: Two warehouse facilities remain vital for inventory management.

Finance: draft 13-week cash view by Friday.

Karat Packaging Inc. (KRT) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Karat Packaging Inc. (KRT) as of late 2025. The business model clearly targets volume through established foodservice channels, while also nurturing direct-to-business sales and adapting to sustainability trends. Honestly, the numbers from the third quarter of 2025 give you a clear picture of where the growth-and the softness-is right now.

The primary revenue drivers remain the larger, established players in the industry. Karat Packaging Inc. groups its largest customer base into a single reporting category for some periods, but the Q3 2025 commentary separated them slightly, showing strong momentum in that core area. This segment is definitely where the bulk of the volume comes from, which is key when you consider the company's overall net sales reached $124.5 million in Q3 2025.

Here's how the key customer groups performed in terms of year-over-year growth for the 2025 third quarter:

Customer Segment	Q3 2025 YoY Growth Rate	Contextual Note
National and regional chain restaurants & Foodservice distributors	13.7% increase	Combined growth for the largest volume customers.
Small-to-medium businesses (SMBs) via online channels	3.1% increase	Online sales growth, supported by new distribution capacity.
Retail sector customers	12.5% decrease	Reflecting noted softness in the overall retail environment.

The focus on national and regional chain restaurants, along with foodservice distributors, is evident in the reported growth figures. These customers rely on Karat Packaging Inc. for a wide range of disposable foodservice products, including food and take-out containers, tableware, cups, and cutlery.

For the Small-to-medium businesses (SMBs) segment, the growth is channeled through online platforms. You saw online sales increase by 3.1% over the prior year quarter in Q3 2025. This channel is supported by operational improvements, such as the opening of a new distribution center in Chino, California, which enabled approximately 500 new SKUs.

The retail sector is definitely feeling headwinds. Sales to this channel were down by 12.5% compared to the prior year quarter, which management attributed to the softness of the overall retail sector. If you're looking at near-term risks, this segment's performance is one to watch closely.

Customers prioritizing sustainable packaging solutions represent a significant area of future opportunity, especially given regulatory shifts. Karat Packaging Inc. has its eco-friendly Karat Earth line, but a major focus is on the paper bag business expansion. Here's the quick math on that specific push:

• Expected additional annual revenue from a single large chain account for the new paper bag line: approximately $20 million.
• Management's goal for the paper bag line revenue within 2-3 years: more than $100 million annually.
• Domestic sourcing rose to approximately 20% of supply in Q3 2025, up from about 15%.

The company is actively managing its supply chain to meet these environmentally conscious demands while mitigating import risks. For instance, China sourcing was cut to 15% by March 2025, with most China imports suspended mid-April, aiming for less than 10% by the end of Q2 2025, diversifying to Malaysia, Indonesia, Vietnam, and Thailand.

Karat Packaging Inc. (KRT) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Karat Packaging Inc.'s cost base as of late 2025. This is where the rubber meets the road on their supply chain strategy.

The Cost of Goods Sold (COGS) for Karat Packaging Inc. in the third quarter of 2025 hit $81.6 million. This was up significantly, a 17.8 percent increase from $69.3 million in the prior-year quarter. This rise reflects both sales growth and the impact of external costs flowing through the inventory.

A major component driving up COGS is the cost of imports. Import costs, which include ocean freight and duty, were a substantial headwind. In Q3 2025, these costs accounted for 14.4 percent of net sales. To put that in dollar terms, based on Q3 net sales of $124.5 million, import costs were approximately $17.93 million for the quarter. This is a sharp increase from the 8.6 percent of net sales in the prior-year quarter, directly impacting the gross margin, which settled at 34.5 percent for Q3 2025.

Operating expenses are another key area. Total operating expenses in Q3 2025 were $34.3 million, up from $32.2 million year-over-year. This increase wasn't uniform; you can see the pressure points clearly.

Here's a breakdown of the key cost drivers and financial context for Q3 2025:

Cost Component	Q3 2025 Amount/Rate	Context/Comparison
Cost of Goods Sold (COGS)	$81.6 million	Up 17.8 percent year-over-year
Import Costs (as % of Net Sales)	14.4 percent	Up from 8.6 percent in prior-year quarter
Net Sales (for context)	$124.5 million	Record quarterly net sales
Gross Margin	34.5 percent	Down from 38.6 percent in prior-year quarter
Total Operating Expenses	$34.3 million	Up from $32.2 million in prior-year quarter

The pressure on operating expenses came from several places, showing the cost of scaling distribution and supporting higher sales volume. You can see the specific dollar increases that management called out:

• Shipping costs increased by $2.1 million due to higher sales volume.
• Rent expense rose by $0.7 million, tied to a facility lease extension and a new distribution center opening in Chino, California.
• Salaries and benefits expenses were up by $0.6 million.

Regarding inventory holding costs, the company is actively managing its stock levels. Karat Packaging Inc. increased its import volume by 21.0 percent in Q3 2025 to purchase more inventory ahead of expected business expansion. While the specific inventory holding cost dollar amount isn't published, the goal is to maintain efficiency, with an estimated inventory turnover target around 60 days. This inventory build was partially offset by a 13.4 percent decrease in average freight container rates for the quarter.

For Capital expenditures for manufacturing and distribution expansion, the financial reports confirm activity, such as the opening of a new Chino distribution center, which contributed to higher rent expense. However, a specific, itemized capital expenditure figure for manufacturing and distribution expansion for late 2025 is not explicitly detailed in the Q3 2025 earnings summary.

Finance: draft 13-week cash view by Friday.

Karat Packaging Inc. (KRT) - Canvas Business Model: Revenue Streams

You're looking at how Karat Packaging Inc. brings in the money, which is all about moving physical product through different channels. The core of the business is definitely the volume of disposable foodservice products they sell.

The latest quarterly snapshot shows Net sales from disposable foodservice products hit $124.5 million for the third quarter of 2025. This was a record quarter for top-line revenue, representing a 10.4 percent increase from the prior year quarter's $112.8 million. The Trailing Twelve Month (TTM) revenue as of late 2025 stands at $0.45 Billion USD.

Karat Packaging Inc. generates revenue across several key customer segments, showing a clear focus on B2B relationships. Here's a breakdown of how the sales channels performed in Q3 2025:

• Sales to chain accounts and distributors saw significant momentum, growing by 13.7% in Q3 2025.
• Online sales also contributed positively, ticking up by 3.1% over the prior year quarter.
• The retail channel, however, experienced a contraction, with sales down 12.5% over the prior year quarter.

The company is actively diversifying its revenue base by entering new product categories, which is a major strategic move to capture future growth, especially given regulatory shifts favoring sustainable options. This is where the new paper bag category comes in.

The launch of the new paper bag category is a significant development. Karat Packaging Inc. secured a major contract with one national chain account for this new line. This specific business is expected $20 million annually over a 2-year term, with shipments starting in Q3 2025 and expected to ramp up. Management has an ambition to scale this paper bag business to over $100 million in additional annual revenue within two to three years.

To give you a clearer picture of the Q3 2025 revenue components, even though the prompt focuses on foodservice, here are the reported revenue segments for that quarter:

Revenue Segment	Q3 2025 Amount
Total Net Sales	$124.5 million
Foodservice Packaging Revenue	$42.6 million
Retail Packaging Revenue	$28.3 million

The growth drivers for the quarter were volume expansion and a favorable product mix, which added about $9.4 million and $3.5 million, respectively, to net sales. This growth was only partially offset by an unfavorable year-over-year pricing comparison of $0.7 million. Honestly, that volume growth is what kept the top line moving forward despite margin pressures from tariffs.

Finance: draft 13-week cash view by Friday.