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My business gave up $10m in bottled water sales. Here's why it made sense

39 0
20.03.2026

It's strange what we've come to accept as normal. We have the cleanest tap water in the world, yet somehow we've created a $700 million industry built on packaging it in single-use plastic bottles and selling it back to ourselves at an insane markup.

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Single-use plastics have become a shorthand for environmental concern, yet bottled water - one of the most avoidable forms of it - remains deeply embedded in how we design shops, cafes and public spaces. It's profitable, but it's selfish. Businesses can make a far bigger margin on selling plastic bottles than by investing in water stations.

Of course there are times where there isn't another option. Convenience is necessary for consumers who are in a pinch and have had too many sugary bubbles for the day. But as an industry, we can't be greedy. Even in single-use water, there are fewer environmentally damaging alternatives that don't fill our oceans (or us) with microplastics.

That's not a failure of individual responsibility, it's a design choice. Water stations in dine-in quick-service restaurants are not the norm, despite the new cultural norm of carrying an "emotional support" water bottle.

While we often place the burden of sustainability on consumers - bring your own bag, recycle properly - the reality is that businesses and policymakers shape those choices long before a customer reaches for a product. The layout of a store, the availability of alternatives, single-use plastic going un-taxed: these are the quiet levers that determine behaviour at scale.

A few years ago, we decided to stop selling plastic bottles in Yo-Chi venues, despite the revenue we would forgo in doing so.

From a purely commercial perspective, it didn't make much sense. Bottled water is one of the most profitable items in hospitality. It's inexpensive to buy, easy to store, and sells consistently. Walking away from it meant giving up a significant revenue stream - and today, at our scale with 69 venues, that decision by the end of 2026, will reach up to $10 million in foregone sales.

It was a no-brainer for us. In fact, we're really proud of that loss and are working hard at losing even more. As a business, we want to pay more, so the planet pays less.

We installed free filtered (delicious) still and sparkling water taps. Anyone can use them - no purchase required. Guests refill their bottles, grab a quick drink, or top up on their way through. It's a small operational change, but it connects us to our community and the environment and doesn't require anything from them, which is rare in today's commercial world.

It's not just the environmental benefits we've seen, though this year we are happy to say that we're on track for avoiding the equivalent of 5.76 million plastic bottles ending up in the waste cycle.

It also changes expectations. When refilling is easy - genuinely easy - people do it without thinking. We often talk about behaviour change as if it requires awareness campaigns or personal sacrifice. But in many cases, it's about defaults. Seatbelts became standard because cars were designed that way. Recycling improved when bins were provided and systems standardised.

Water is no different. If refill stations were as common as bottled water fridges - in shopping centres, fast food outlets, convenience stores and public spaces - the idea of buying water in plastic would start to feel outdated rather than normal. Not banned, not shamed, just unnecessary.

Of course, businesses won't make that shift overnight, and it's understandable why. Bottled water is reliable revenue. Margins matter, especially in a tough retail environment. But the planet matters more.

It's greedy and unnecessary to continue selling water in plastic bottles, and the whole industry needs a shakeup.

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There's also a role here for policy. Why isn't there a plastic tax? Right now, there's very little structural incentive for businesses to move away from bottled water. If anything, the system nudges in the opposite direction. Introducing standards or incentives that support water stations - whether through planning requirements, subsidies, or partnerships - could accelerate the shift. This shift shouldn't rely solely on individual businesses absorbing the cost.

Because there is a cost. We've deliberately chosen to "increase our water bill" to absorb the expense of providing free water because we believe the trade-off is worth it. Every refill represents one less plastic bottle produced, transported and discarded. But not every business is in a position to make that call on its own. That's where coordinated change becomes powerful.

World Water Day (March 22) is an opportunity to highlight global water scarcity. In Australia, we're fortunate to have access to safe, reliable drinking water. But that privilege comes with its own responsibility: to use that resource wisely, and to avoid unnecessary waste built around it.

Yo-Chi isn't perfect and what we're doing isn't groundbreaking, but it should be standard. This is why I want to invite other businesses and policy makers to join us. If more retailers replaced bottled water with refill stations, the cumulative impact would be significant. Fewer bottles produced. Less plastic in circulation. A subtle shift in how people interact with drinking water.

And perhaps just as importantly, it would signal that convenience and sustainability don't have to be at odds - that with the right systems in place, they can actually reinforce each other.

We've seen that play out in our own venues. What started as an environmental decision has also strengthened Yo-Chi's position as an alcohol-free third space in our community. People linger longer. They drop in more casually. The absence of bottled water hasn't detracted from the experience - if anything, it's made it more welcoming.

That's a reminder that doing less harm doesn't have to come at the expense of good business. Sometimes, it simply requires rethinking what we've accepted as normal. And in the case of bottled water in a country like Australia, normal might be the very thing that needs to change.

Entrepreneur Oliver Allis is co-owner and brand director of self-serve frozen yoghurt business Yo-Chi.

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