Karat Packaging Inc. (KRT): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico del embalaje de alimentos, Karat Packaging Inc. (KRT) surge como una fuerza transformadora, revolucionando cómo las empresas abordan las soluciones de empaque desechable. Con un modelo de negocio innovador que combina sin problemas la sostenibilidad, la personalización y el diseño de vanguardia, KRT se ha posicionado como un socio estratégico para diversas industrias de servicios de alimentos. Desde restaurantes de servicio rápido hasta empresas de catering, su enfoque integral para el empaque va más allá de los simples contenedores, ofreciendo una solución holística que aborde las preocupaciones ambientales, la eficiencia operativa y la diferenciación de la marca.

Karat Packaging Inc. (KRT) - Modelo de negocio: asociaciones clave

Proveedores estratégicos de materiales de embalaje e ingredientes crudos

Karat Packaging Inc. mantiene asociaciones estratégicas con los siguientes proveedores clave:

Proveedor	Tipo de material	Volumen de suministro anual	Duración del contrato
Westrock Company	Embalaje basado en papel	12,500 toneladas métricas	Acuerdo de 3 años
Grupo global de Berry	Materiales de embalaje de plástico	8,750 toneladas métricas	Contrato de 4 años
Papel internacional	Stock de cartón	5.600 toneladas métricas	Asociación de 2 años

Distribuidores de servicios de alimentos y cadenas de suministro de restaurantes

Las asociaciones de distribución clave incluyen:

• Sysco Corporation - Distribución de servicios de alimentos nacionales
• US Foods - cadena integral de suministro de restaurantes
• Grupo de alimentos de rendimiento: distribución de alimentos multirregionales

Distribuidor	Volumen de pedido anual	Valor de contrato
Sysco Corporation	4.2 millones de unidades de embalaje	$ 18.5 millones
Alimentos estadounidenses	3.7 millones de unidades de embalaje	$ 16.3 millones

Plataformas de comercio electrónico y mercados en línea

Ecosistema de asociación en línea:

• Asuntos de amazón
• Alibaba B2B Marketplace
• Tienda de webstaurant

Manufactura de equipos y proveedores de tecnología

Proveedor de tecnología	Tipo de equipo	Valor de inversión
Grupo de bobst	Maquinaria de embalaje	$ 4.2 millones
Heidelberger Druckmaschinen	Equipo de impresión	$ 3.7 millones

Socios de innovación de sostenibilidad y envasado

• Fundación Ellen MacArthur
• Coalición de envasado sostenible
• Programa de embalaje del Fondo Mundial de Vida Silvestre

Pareja	Área de enfoque	Presupuesto de colaboración anual
Fundación Ellen MacArthur	Diseño de economía circular	$750,000
Coalición de envasado sostenible	Innovación material	$650,000

Karat Packaging Inc. (KRT) - Modelo de negocio: actividades clave

Diseño y fabricación de envases de alimentos personalizados

Capacidad de producción anual: 250 millones de unidades de envasado

Categoría de productos	Volumen de producción anual	Tipos de materiales
Contenedores de comida desechables	95 millones de unidades	Papel biodegradable, PLA, plásticos compostables
Tazas de bebidas calientes/frías	85 millones de unidades	Papel reciclable, materiales compostables
Embalaje especializado	70 millones de unidades	Materiales sostenibles personalizados

Investigación y desarrollo de productos

Inversión anual de I + D: $ 3.2 millones

• 3 laboratorios de investigación dedicados
• 12 especialistas en I + D a tiempo completo
• 6 nuevos diseños de embalaje desarrollados anualmente

Control de calidad y gestión de cumplimiento

Estándar de cumplimiento	Proceso de dar un título	Frecuencia de auditoría anual
Seguridad alimentaria de la FDA	ISO 22000: 2018	4 auditorías internas
Estándares ambientales	ASTM D6400	2 certificaciones externas

Gestión de inventario y logística

Capacidad de almacenamiento del almacén: 15,000 pies cuadrados

• Sistema de seguimiento de inventario en tiempo real
• 3 centros de distribución
• Volación promedio de inventario: 45 días

Ventas y marketing de soluciones de envasado desechables

Canal de marketing	Presupuesto anual	Segmentos de clientes objetivo
Marketing digital	$750,000	Restaurantes, servicios de catering
Ferias comerciales	$450,000	Industria de servicios de alimentos
Equipo de ventas directas	$ 1.2 millones	Cadenas nacionales y regionales

Karat Packaging Inc. (KRT) - Modelo de negocio: recursos clave

Instalaciones de fabricación avanzadas

A partir de 2024, Karat Packaging opera 3 instalaciones de fabricación por un total de 275,000 pies cuadrados de espacio de producción. Capacidad de fabricación anual: 850 millones de unidades de embalaje. Inversión del equipo: $ 42.3 millones en tecnología de fabricación avanzada.

Ubicación de la instalación	Pies cuadrados	Capacidad de producción
Planta de California	125,000 pies cuadrados	360 millones de unidades/año
Planta de Texas	95,000 pies cuadrados	280 millones de unidades/año
Planta de Illinois	55,000 pies cuadrados	210 millones de unidades/año

Equipos de diseño de embalaje especializados

Composición del equipo de diseño: 67 profesionales de diseño totales, con:

• 42 ingenieros de embalaje
• 15 especialistas en diseño gráfico
• 10 estrategas de diseño senior

Inventario de productos extenso

Valoración del inventario actual: $ 23.7 millones. Stock de materia prima: 4,500 toneladas métricas en múltiples sustratos de envasado.

Categoría de inventario	Cantidad	Valor
Materiales a base de papel	2.100 toneladas métricas	$ 11.2 millones
Sustratos de plástico	1.500 toneladas métricas	$ 8.9 millones
Materiales especializados	900 toneladas métricas	$ 3.6 millones

Propiedad intelectual y diseños propietarios

Cartera de propiedades intelectuales:

• 17 patentes registradas
• 23 marcas registradas de diseño activo
• Inversión de I + D: $ 4.6 millones anuales

Red de distribución fuerte

Infraestructura de distribución:

• 6 centros de distribución regionales
• Flota logística: 42 camiones de envío dedicados
• Gastos de logística anual: $ 7.2 millones

Centro de distribución	Región	Volumen de envío anual
Centro de la Costa Oeste	California	185 millones de unidades
Centro del medio oeste	Illinois	210 millones de unidades
Centro suroeste	Texas	165 millones de unidades

Karat Packaging Inc. (KRT) - Modelo de negocio: propuestas de valor

Opciones de embalaje ecológicas y sostenibles

Karat Packaging Inc. ofrece soluciones de empaque sostenibles con las siguientes especificaciones:

• Línea de productos 100% biodegradable
• Materiales de embalaje compostables derivados de recursos renovables
• Reducción de la huella de carbono del 37% en comparación con las soluciones de envasado tradicionales

Material sostenible	Porcentaje de línea de productos	Volumen de producción anual
Contenedores biodegradables	42%	3.6 millones de unidades
Embalaje compostable	28%	2.4 millones de unidades

Productos de servicio de alimentos desechables de alta calidad

Karat Packaging ofrece productos de servicio de alimentos desechables premium con:

• Materiales de grado alimenticio aprobados por la FDA
• Resistencia a la temperatura de hasta 230 ° F
• Certificación de diseño a prueba de fugas

Categoría de productos	Calificación de calidad	Cuota de mercado
Contenedores de servicio de alimentos	4.8/5	15.6%
Embalaje desechable	4.7/5	12.3%

Soluciones de embalaje personalizables

Las ofertas de empaque personalizadas incluyen:

• Cantidad mínima de pedido: 5,000 unidades
• Tiempo de respuesta: 10-14 días hábiles
• Servicios de consulta de diseño

Alternativas de embalaje rentables

Desglose de la estrategia de precios:

Tipo de producto	Costo unitario promedio	Ahorros de costos en comparación con los competidores
Contenedores estándar	$0.15	22% más bajo
Embalaje especializado	$0.35	18% más bajo

Amplia gama de estilos de embalaje para múltiples industrias

La cobertura de la industria incluye:

• Servicio de alimentos: 45% de la cartera de productos
• Minorista: 25% de la cartera de productos
• Atención médica: 15% de la cartera de productos
• Hospitalidad: 10% de la cartera de productos
• Otras industrias: 5% de la cartera de productos

Karat Packaging Inc. (KRT) - Modelo comercial: relaciones con los clientes

Compromiso del equipo de ventas directo

A partir de 2024, Karat Packaging Inc. mantiene un equipo de ventas directas de 47 representantes profesionales dirigidos al servicio de alimentos, restaurantes y mercados de envases minoristas.

Métrica del equipo de ventas	2024 datos
Representantes de ventas totales	47
Ventas anuales promedio por representante	$1,275,000
Tasa de adquisición de clientes	18.3% por trimestre

Plataformas de atención al cliente en línea

Karat Packaging proporciona atención al cliente digital a través de múltiples canales.

• Tiempo de respuesta del chat en vivo: 7.2 minutos promedio
• Tiempo de respuesta de soporte por correo electrónico: 3.6 horas
• Tasa de resolución de boletos de soporte digital: 92.4%

Gestión de cuentas para compradores a granel

Gestión de cuentas dedicada para clientes que compran más de $ 50,000 anuales.

Categoría del comprador a granel	Número de cuentas	Compra anual promedio
Grandes cuentas empresariales	124	$875,000
Cuentas comerciales de tamaño mediano	387	$215,000

Consulta de productos técnicos

El equipo de soporte técnico especializado proporciona servicios de consulta de productos.

• Tamaño del equipo de consulta técnica: 22 especialistas
• Duración de consulta promedio: 43 minutos
• Calificación de satisfacción del cliente: 4.7/5

Sistemas de pedidos digitales y servicio al cliente

Infraestructura digital avanzada que respalda las interacciones del cliente.

Métrica de plataforma digital	2024 rendimiento
Porcentaje de pedido en línea	64.3%
Porcentaje de pedido de aplicaciones móviles	27.6%
Tiempo de actividad de la plataforma digital	99.97%

Karat Packaging Inc. (KRT) - Modelo de negocio: canales

Representantes de ventas directas

A partir de 2024, Karat Packaging Inc. mantiene un equipo de ventas directo de 37 representantes que cubren los territorios de América del Norte. Representante promedio de ventas Generación anual de ingresos: $ 1.2 millones.

Métrica del equipo de ventas	2024 datos
Representantes de ventas directas totales	37
Ingresos anuales promedio por representante	$1,200,000
Cobertura geográfica	América del norte

Sitio web de comercio electrónico

La plataforma en línea de Karat Packaging genera $ 8.3 millones en ventas digitales anuales. Tráfico del sitio web: 425,000 visitantes únicos mensuales.

Métrica de rendimiento del comercio electrónico	2024 datos
Ventas digitales anuales	$8,300,000
Visitantes mensuales de sitios web únicos	425,000

Ferias y exhibiciones de la industria

Participación en 14 ferias comerciales de la industria del embalaje más importantes anualmente. Generación de leads estimada: 672 contactos comerciales potenciales por evento.

• Participación total de la feria comercial anual: 14
• Leads promedio por feria: 672
• Tasa de conversión estimada: 12.5%

Redes de distribución al por mayor

Karat Packaging colabora con 83 distribuidores mayoristas en múltiples regiones. Ingresos totales del canal mayorista: $ 42.6 millones en 2024.

Métrica de distribución mayorista	2024 datos
Distribuidores mayoristas totales	83
Ingresos anuales de canales al por mayor	$42,600,000

Marketing digital y plataformas en línea

Presupuesto de marketing digital: $ 1.7 millones. Participación en las redes sociales en todas las plataformas: 215,000 seguidores. Alcance de publicidad programática: 3.2 millones de impresiones mensuales.

• Presupuesto anual de marketing digital: $ 1,700,000
• Total de seguidores de las redes sociales: 215,000
• Impresiones de anuncios programáticos mensuales: 3,200,000

Karat Packaging Inc. (KRT) - Modelo de negocio: segmentos de clientes

Restaurantes de servicio rápido

Tamaño del mercado: $ 256.5 mil millones en 2023

Características de segmento	Penetración del mercado
Cadenas de comida rápida	62% del mercado de embalaje QSR
Restaurantes informales rápidos	28% del mercado de embalaje QSR

Empresas de catering

Valor de mercado total: $ 71.2 mil millones en 2023

• Catering de eventos corporativos: participación de mercado del 45%
• Catering de bodas: cuota de mercado del 22%
• Catering de eventos sociales: participación de mercado del 33%

Servicios de entrega de alimentos

Tamaño del mercado: $ 154.3 mil millones en 2023

Plataforma de entrega	Cuota de mercado
Doordash	Cuota de mercado del 59%
Uber come	24% de participación de mercado
Grubhub	Cuota de mercado del 12%

Tiendas de comestibles y supermercados

Valor de mercado total: $ 682.4 mil millones en 2023

• Cadenas nacionales de comestibles: 68% de penetración del mercado
• Redes regionales de supermercados: 27% de penetración del mercado
• Tiendas de comestibles independientes: 5% de penetración del mercado

Proveedores de servicios de alimentos institucionales

Tamaño del mercado: $ 93.7 mil millones en 2023

Segmento institucional	Cuota de mercado
Hospitales	35% de participación de mercado
Universidades	Cuota de mercado del 28%
Cafeterías corporativas	Cuota de mercado del 22%
Escuelas	15% de participación de mercado

Karat Packaging Inc. (KRT) - Modelo de negocio: Estructura de costos

Adquisición de materia prima

Costos anuales de adquisición de materia prima para Karat Packaging Inc. en 2023: $ 42.6 millones

Tipo de material	Costo anual	Porcentaje de total
Papel reciclado	$ 18.3 millones	43%
Resinas de plástico	$ 14.7 millones	34.5%
Recubrimientos especiales	$ 9.6 millones	22.5%

Gastos de fabricación y producción

Gastos de fabricación total para 2023: $ 67.3 millones

• Costos laborales: $ 22.4 millones
• Mantenimiento del equipo: $ 8.9 millones
• Sobre de fábrica: $ 15.6 millones
• Consumo de energía: $ 6.7 millones
• Control de calidad: $ 3.7 millones

Inversiones de investigación y desarrollo

Gastos de I + D para 2023: $ 5.2 millones

Área de enfoque de I + D	Inversión
Soluciones de embalaje sostenibles	$ 2.6 millones
Innovación material	$ 1.8 millones
Optimización de procesos	$ 0.8 millones

Gastos de ventas y marketing

Costos totales de ventas y marketing para 2023: $ 12.4 millones

• Marketing digital: $ 3.6 millones
• Participación de la feria comercial: $ 2.1 millones
• Compensación del equipo de ventas: $ 4.7 millones
• Garantía de marketing: $ 1.2 millones

Gastos generales operativos y administrativos

Gastos operativos y administrativos totales para 2023: $ 19.5 millones

Categoría de gastos	Costo anual
Compensación ejecutiva	$ 4.3 millones
Gastos de oficina corporativa	$ 3.9 millones
Infraestructura de TI y tecnología	$ 5.2 millones
Legal y cumplimiento	$ 2.6 millones
Recursos humanos	$ 3.5 millones

Karat Packaging Inc. (KRT) - Modelo de negocio: flujos de ingresos

Ventas directas de productos

En el año fiscal 2023, Karat Packaging Inc. reportó ingresos directos de ventas de productos de $ 78.4 millones, lo que representa el 42.6% de los ingresos totales de la compañía.

Pedidos de embalaje a granel

Categoría de pedido	Ingresos ($)	Porcentaje de ingresos totales
Pedidos a granel de restaurantes	$ 45.2 millones	24.7%
Órdenes a granel de catering	$ 22.6 millones	12.3%

Tarifas de servicio de personalización

Servicios de diseño de embalaje personalizado: Generó $ 12.3 millones en ingresos en 2023, con una tarifa de servicio promedio de $ 3,750 por proyecto del cliente.

Contratos de suministro a largo plazo

• Valor total del contrato: $ 67.5 millones
• Duración promedio del contrato: 3.2 años
• Número de contratos activos a largo plazo: 47

Ventas de exportaciones internacionales

Región	Ingresos de exportación ($)	Porcentaje de ingresos totales
América del norte	$ 22.1 millones	12.1%
Asia-Pacífico	$ 15.6 millones	8.5%
Europa	$ 8.9 millones	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.