Karat Packaging Inc. (KRT): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da embalagem de alimentos, a Karat Packaging Inc. (KRT) surge como uma força transformadora, revolucionando como as empresas abordam soluções de embalagem descartáveis. Com um modelo de negócios inovador que combina perfeitamente a sustentabilidade, a personalização e o design de ponta, a KRT se posicionou como um parceiro estratégico para diversas indústrias de serviços de alimentação. De restaurantes de serviço rápido a empresas de catering, sua abordagem abrangente para as embalagens vai além de meros recipientes, oferecendo uma solução holística que aborda preocupações ambientais, eficiência operacional e diferenciação da marca.

Karat Packaging Inc. (KRT) - Modelo de negócios: Parcerias -chave

Fornecedores estratégicos de materiais de embalagem e ingredientes crus

A Karat Packaging Inc. mantém parcerias estratégicas com os seguintes fornecedores -chave:

Fornecedor	Tipo de material	Volume anual de oferta	Duração do contrato
Westrock Company	Embalagem baseada em papel	12.500 toneladas métricas	Contrato de 3 anos
Berry Global Group	Materiais de embalagem plástica	8.750 toneladas métricas	Contrato de 4 anos
Artigo internacional	Estoque de papelão	5.600 toneladas métricas	Parceria de 2 anos

Distribuidores de serviços de alimentação e cadeias de suprimentos de restaurantes

As principais parcerias de distribuição incluem:

• Sysco Corporation - Distribuição Nacional do Serviço de Alimentos
• US Foods - Cadeia de suprimentos de restaurantes abrangentes
• Grupo de Alimentos de Desempenho - Distribuição de Alimentos Multi -regionais

Distribuidor	Volume anual de pedidos	Valor do contrato
Sysco Corporation	4,2 milhões de unidades de embalagem	US $ 18,5 milhões
US Foods	3,7 milhões de unidades de embalagem	US $ 16,3 milhões

Plataformas de comércio eletrônico e mercados on-line

Ecossistema de parceria on -line:

• Amazon Business
• Alibaba B2B Marketplace
• WebStaurantStore

Fornecedores de equipamentos de fabricação e tecnologia

Provedor de tecnologia	Tipo de equipamento	Valor de investimento
Grupo Bobst	Máquinas de embalagem	US $ 4,2 milhões
Heidelberger Druckmaschinen	Equipamento de impressão	US $ 3,7 milhões

Parceiros de inovação de sustentabilidade e embalagem

• Fundação Ellen MacArthur
• Coalizão de embalagens sustentáveis
• Programa de embalagem mundial de fundos de vida selvagem

Parceiro	Área de foco	Orçamento anual de colaboração
Fundação Ellen MacArthur	Projeto de economia circular	$750,000
Coalizão de embalagens sustentáveis	Inovação material	$650,000

Karat Packaging Inc. (KRT) - Modelo de negócios: Atividades -chave

Design de embalagem de alimentos personalizados e fabricação

Capacidade anual de produção: 250 milhões de unidades de embalagem

Categoria de produto	Volume anual de produção	Tipos de materiais
Recipientes descartáveis ​​de alimentos	95 milhões de unidades	Papel biodegradável, PLA, plásticos compostáveis
Copos de bebidas quentes/frias	85 milhões de unidades	Papel reciclável, materiais compostáveis
Embalagem especializada	70 milhões de unidades	Materiais sustentáveis ​​personalizados

Pesquisa e desenvolvimento de produtos

Investimento anual de P&D: US $ 3,2 milhões

• 3 laboratórios de pesquisa dedicados
• 12 especialistas em P&D em tempo integral
• 6 novos designs de embalagem desenvolvidos anualmente

Controle de qualidade e gerenciamento de conformidade

Padrão de conformidade	Certificação	Frequência de auditoria anual
Segurança alimentar da FDA	ISO 22000: 2018	4 auditorias internas
Padrões ambientais	ASTM D6400	2 certificações externas

Gerenciamento de inventário e logística

Capacidade de armazenamento de armazém: 15.000 pés quadrados

• Sistema de rastreamento de inventário em tempo real
• 3 centros de distribuição
• Rotatividade média de estoque: 45 dias

Vendas e marketing de soluções de embalagem descartáveis

Canal de marketing	Orçamento anual	Segmentos de clientes -alvo
Marketing digital	$750,000	Restaurantes, serviços de catering
Feiras	$450,000	Indústria de serviços de alimentação
Equipe de vendas diretas	US $ 1,2 milhão	Cadeias nacionais e regionais

Karat Packaging Inc. (KRT) - Modelo de negócios: Recursos -chave

Instalações de fabricação avançadas

A partir de 2024, a embalagem Karat opera 3 instalações de fabricação, totalizando 275.000 pés quadrados de espaço de produção. Capacidade anual de fabricação: 850 milhões de unidades de embalagem. Investimento de equipamentos: US $ 42,3 milhões em tecnologia avançada de fabricação.

Localização da instalação	Metragem quadrada	Capacidade de produção
Planta da Califórnia	125.000 pés quadrados	360 milhões de unidades/ano
Planta do Texas	95.000 pés quadrados	280 milhões de unidades/ano
Planta de Illinois	55.000 pés quadrados	210 milhões de unidades/ano

Equipes especializadas de design de embalagens

Composição da equipe de design: 67 Profissionais de Design Total, com:

• 42 engenheiros de embalagem
• 15 especialistas em design gráfico
• 10 estrategistas de design seniores

Extenso inventário de produtos

Avaliação atual de inventário: US $ 23,7 milhões. Estoque de matéria -prima: 4.500 toneladas métricas em vários substratos de embalagem.

Categoria de inventário	Quantidade	Valor
Materiais à base de papel	2.100 toneladas métricas	US $ 11,2 milhões
Substratos plásticos	1.500 toneladas métricas	US $ 8,9 milhões
Materiais Especiais	900 toneladas métricas	US $ 3,6 milhões

Propriedade intelectual e projetos proprietários

Portfólio de propriedade intelectual:

• 17 patentes registradas
• 23 marcas comerciais de design ativo
• Investimento de P&D: US $ 4,6 milhões anualmente

Rede de distribuição forte

Infraestrutura de distribuição:

• 6 centros de distribuição regional
• Frota de logística: 42 caminhões de remessa dedicados
• Despesas de logística anual: US $ 7,2 milhões

Centro de distribuição	Região	Volume de envio anual
Centro da Costa Oeste	Califórnia	185 milhões de unidades
Centro Centro -Oeste	Illinois	210 milhões de unidades
Southwest Center	Texas	165 milhões de unidades

Karat Packaging Inc. (KRT) - Modelo de negócios: proposições de valor

Opções de embalagem ecológicas e sustentáveis

A Karat Packaging Inc. oferece soluções sustentáveis ​​de embalagem com as seguintes especificações:

• Linha de produto 100% biodegradável
• Materiais de embalagem compostáveis ​​derivados de recursos renováveis
• Redução da pegada de carbono de 37% em comparação com soluções de embalagem tradicionais

Material sustentável	Porcentagem de linha de produtos	Volume anual de produção
Recipientes biodegradáveis	42%	3,6 milhões de unidades
Embalagem compostável	28%	2,4 milhões de unidades

Produtos de serviço de alimentação descartáveis ​​de alta qualidade

A embalagem Karat fornece produtos de serviço de alimentação descartáveis ​​premium com:

• Materiais de qualidade alimentar aprovados pela FDA
• Resistência à temperatura em até 230 ° F
• Certificação de design à prova de vazamentos

Categoria de produto	Classificação de qualidade	Quota de mercado
Contêineres de serviço de alimentação	4.8/5	15.6%
Embalagem descartável	4.7/5	12.3%

Soluções de embalagem personalizáveis

As ofertas de embalagens personalizadas incluem:

• Quantidade mínima do pedido: 5.000 unidades
• Tempo de resposta: 10-14 dias úteis
• Serviços de consulta de design

Alternativas de embalagem econômicas

Redução da estratégia de preços:

Tipo de produto	Custo unitário médio	Economia de custos em comparação aos concorrentes
Contêineres padrão	$0.15	22% menor
Embalagem especializada	$0.35	18% menor

Ampla gama de estilos de embalagem para vários setores

A cobertura do setor inclui:

• Serviço de alimentação: 45% do portfólio de produtos
• Varejo: 25% do portfólio de produtos
• Saúde: 15% do portfólio de produtos
• Hospitalidade: 10% do portfólio de produtos
• Outras indústrias: 5% do portfólio de produtos

Karat Packaging Inc. (KRT) - Modelo de Negócios: Relacionamentos do Cliente

Engajamento da equipe de vendas direta

A partir de 2024, a Karat Packaging Inc. mantém uma equipe de vendas direta de 47 representantes profissionais direcionados aos mercados de serviços de alimentação, restaurante e embalagens de varejo.

Métrica da equipe de vendas	2024 dados
Total de representantes de vendas	47
Vendas anuais médias por representante	$1,275,000
Taxa de aquisição de clientes	18,3% ao trimestre

Plataformas de suporte ao cliente online

A embalagem Karat fornece suporte ao cliente digital por meio de vários canais.

• Tempo de resposta do bate -papo ao vivo: 7,2 minutos de média
• Tempo de resposta de suporte por e -mail: 3,6 horas
• Taxa de resolução do ticket de suporte digital: 92,4%

Gerenciamento de contas para compradores em massa

Gerenciamento de conta dedicado para clientes que compram mais de US $ 50.000 anualmente.

Categoria de comprador em massa	Número de contas	Compra média anual
Grandes contas corporativas	124	$875,000
Contas comerciais de tamanho médio	387	$215,000

Consulta de produto técnico

A equipe de suporte técnico especializado fornece serviços de consulta de produtos.

• TEQUILAÇÃO TEQUÉNICA TAMANHA DA EQUIPE DE CONSULTA: 22 Especialistas
• Duração média da consulta: 43 minutos
• Classificação de satisfação do cliente: 4.7/5

Pedidos digitais e sistemas de atendimento ao cliente

Infraestrutura digital avançada que suporta interações com os clientes.

Métrica da plataforma digital	2024 Performance
Porcentagem de pedidos on -line	64.3%
Porcentagem de pedido de aplicativo móvel	27.6%
Tempo de atividade da plataforma digital	99.97%

Karat Packaging Inc. (KRT) - Modelo de Negócios: Canais

Representantes de vendas diretas

A partir de 2024, a Karat Packaging Inc. mantém uma equipe de vendas direta de 37 representantes que cobrem territórios norte -americanos. Representante de vendas médias Geração anual de receita: US $ 1,2 milhão.

Métrica da equipe de vendas	2024 dados
Total de representantes de vendas diretas	37
Receita anual média por representante	$1,200,000
Cobertura geográfica	América do Norte

Site de comércio eletrônico

A plataforma on -line da Karat Packaging gera US $ 8,3 milhões em vendas digitais anuais. Tráfego do site: 425.000 visitantes únicos mensais.

Métrica de desempenho do comércio eletrônico	2024 dados
Vendas digitais anuais	$8,300,000
Visitantes de site exclusivos mensais	425,000

Feiras e exposições da indústria

Participação em 14 principais feiras de embalagens da indústria anualmente. Geração estimada de leads: 672 contatos comerciais em potencial por evento.

• Participação anual total da feira: 14
• Leads médios por feira de comércio: 672
• Taxa de conversão estimada: 12,5%

Redes de distribuição por atacado

A Karat Packaging colabora com 83 distribuidores atacadistas em várias regiões. Receita total de canais por atacado: US $ 42,6 milhões em 2024.

Métrica de distribuição por atacado	2024 dados
Total de distribuidores por atacado	83
Receita anual de canais por atacado	$42,600,000

Plataformas de marketing digital e online

Orçamento de marketing digital: US $ 1,7 milhão. Engajamento de mídia social entre plataformas: 215.000 seguidores. Alcance de publicidade programática: 3,2 milhões de impressões mensais.

• Orçamento anual de marketing digital: US $ 1.700.000
• Total de seguidores de mídia social: 215.000
• Impressões programáticas mensais de anúncios: 3.200.000

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

Restaurantes de serviço rápido

Tamanho do mercado: US $ 256,5 bilhões em 2023

Características do segmento	Penetração de mercado
Cadeias de fast food	62% do mercado de embalagens QSR
Restaurantes casuais rápidos	28% do mercado de embalagens QSR

Negócios de catering

Valor de mercado total: US $ 71,2 bilhões em 2023

• Catering de eventos corporativos: 45% de participação de mercado
• Catering de casamento: 22% de participação de mercado
• Catering de Evento Social: 33% de participação no mercado

Serviços de entrega de alimentos

Tamanho do mercado: US $ 154,3 bilhões em 2023

Plataforma de entrega	Quota de mercado
Doordash	59% de participação de mercado
Uber come	24% de participação de mercado
GRUBHUB	12% de participação de mercado

Supermercados e supermercados

Valor de mercado total: US $ 682,4 bilhões em 2023

• Cadeias nacionais de supermercado: 68% de penetração no mercado
• Redes regionais de supermercados: 27% de penetração no mercado
• Mercearias independentes: 5% de penetração no mercado

Provedores institucionais de serviço de alimentação

Tamanho do mercado: US $ 93,7 bilhões em 2023

Segmento institucional	Quota de mercado
Hospitais	35% de participação de mercado
Universidades	28% de participação de mercado
Cafeterias corporativas	22% de participação de mercado
Escolas	15% de participação de mercado

Karat Packaging Inc. (KRT) - Modelo de negócios: estrutura de custos

Aquisição de matéria -prima

Custos anuais de aquisição de matéria -prima para a Karat Packaging Inc. em 2023: US $ 42,6 milhões

Tipo de material	Custo anual	Porcentagem de total
Papel reciclado	US $ 18,3 milhões	43%
Resinas plásticas	US $ 14,7 milhões	34.5%
Revestimentos especializados	US $ 9,6 milhões	22.5%

Despesas de fabricação e produção

Total de despesas de fabricação para 2023: US $ 67,3 milhões

• Custos de mão -de -obra: US $ 22,4 milhões
• Manutenção do equipamento: US $ 8,9 milhões
• Interior da fábrica: US $ 15,6 milhões
• Consumo de energia: US $ 6,7 milhões
• Controle de qualidade: US $ 3,7 milhões

Investimentos de pesquisa e desenvolvimento

Despesas de P&D para 2023: US $ 5,2 milhões

Área de foco em P&D	Investimento
Soluções de embalagem sustentáveis	US $ 2,6 milhões
Inovação material	US $ 1,8 milhão
Otimização do processo	US $ 0,8 milhão

Despesas de vendas e marketing

Custos totais de vendas e marketing para 2023: US $ 12,4 milhões

• Marketing Digital: US $ 3,6 milhões
• Participação da feira de negócios: US $ 2,1 milhões
• Compensação da equipe de vendas: US $ 4,7 milhões
• Garantia de marketing: US $ 1,2 milhão

Overhead operacional e administrativo

Despesas operacionais e administrativas totais para 2023: US $ 19,5 milhões

Categoria de despesa	Custo anual
Compensação executiva	US $ 4,3 milhões
Despesas do escritório corporativo	US $ 3,9 milhões
Infraestrutura de TI e tecnologia	US $ 5,2 milhões
Legal e conformidade	US $ 2,6 milhões
Recursos Humanos	US $ 3,5 milhões

Karat Packaging Inc. (KRT) - Modelo de negócios: fluxos de receita

Vendas diretas de produtos

No ano fiscal de 2023, a Karat Packaging Inc. relatou receita direta de vendas de produtos de US $ 78,4 milhões, representando 42,6% da receita total da empresa.

Pedidos de embalagem a granel

Categoria de pedido	Receita ($)	Porcentagem da receita total
Ordens em massa de restaurantes	US $ 45,2 milhões	24.7%
Ordens em massa de catering	US $ 22,6 milhões	12.3%

Taxas de serviço de personalização

Serviços de design de embalagens personalizados: Gerou US $ 12,3 milhões em receita em 2023, com uma taxa média de serviço de US $ 3.750 por projeto de cliente.

Contratos de fornecimento de longo prazo

• Valor total do contrato: US $ 67,5 milhões
• Duração média do contrato: 3,2 anos
• Número de contratos de longo prazo ativos: 47

Vendas internacionais de exportação

Região	Receita de exportação ($)	Porcentagem da receita total
América do Norte	US $ 22,1 milhões	12.1%
Ásia-Pacífico	US $ 15,6 milhões	8.5%
Europa	US $ 8,9 milhões	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.