As we continue auditing more waste removal statements for both new and prospective clients, it’s clear that certain industries are disproportionately charged more for trash removal services. Sometimes these costs are double, triple, and upwards of 4-5x what they should be.
And while these industries share some common reasons as to “why” the fees are higher, it does NOT mean that the high costs are actually justified.
Trash haulers know that they can get away with charging high rates without pushback simply because they’ve been doing it for years and know all the tricks when applying extra fees for certain business types.
So if you fall into any of the categories below, you need to keep an extra close eye on your waste hauling statements, as I can almost guarantee you’re overpaying somewhere.
1. Hotels and Hospitality
This is by far some of the highest rates we’ve seen on trash hauling statements. And it’s the same for all types of hotels and lodging, both large and small.
We’ve reviewed waste hauling statements for nationally-recognized chains, small boutiques, and everything in between.
So, why are waste hauling fees so high across the board in this category?
- Outdated contracts that auto-renew with escalation clauses (so your rates go up every year).
- Complex waste streams and mixed waste
- Contamination penalties, fuel surcharges, and other “extras”
- Frequent pickup schedules that don’t actually match your service needs
These issues are compounded for hotels with restaurants, conference center spaces, and arenas.
The biggest problem that we see here is that these costs are often neglected for so long. Even for hotels that run so well operationally, for some reason waste hauling fees just get treated like utility bills that are paid without thinking twice about it.
2. Grocery Stores
For obvious reasons, grocery stores produce a ton of waste. You’re dealing with daily shipments of boxes that need recycling, plus you need to properly dispose of food waste in large quantities.
Some larger grocery stores turn to commercial trash compactors to reduce pickup frequency. But contrary to popular belief, this can actually end up costing you more money if you’re being billed by weight.
Other common problems that lead to higher waste removal costs:
- Other tenants in your shopping plaza are contaminating your containers
- Poor employee training on separating waste
- Extra pickups, overflowing containers
- Regulatory compliance fees and bans in certain locations (forcing organic waste to be diverted from landfills)
- More volume produced when unable to sell expired items
- Heavy and wet waste adds to costs
And that doesn’t even account for the same stuff we see applied across all industries, like increased tipping fees, fuel surcharges, etc.
3. Restaurants
Restaurants and other businesses in the food service industry have a particularly interesting relationship with waste hauling costs because you’re essentially getting hit from multiple angles at once:
- Density of Waste — Unlike retail or office environments where trash is mostly paper and packages, restaurants deal with food scraps, grease, liquids, and organic materials that weigh significantly more.
- Grease Trap Servicing — Lots of haulers lock you into a contract that doesn’t allow you to shop around for competitive grease trap servicing separately, and they markup your rates 200-300% compared to standalone providers.
- Timing Issues — Waste volume isn’t the same every day, and fixed schedules don’t align with daily, weekly, monthly, or seasonal needs.
Another major problem that we see with restaurants has to do with back-of-house staff turnover.
If you’ve been running your restaurant or bar for a while, you know that this is fairly common industry-wide. But when you have a rotating door of staff, it means your waste handling is inconsistent (and short-term or part-time staff may not even care enough to follow proper directions).
When boxes aren’t broken down properly or recycling gets mixed with trash, you’re hit with contamination fees and potentially forced into using larger containers.
4. Real Estate and Property Management
Property managers are faced with the unique problem of managing costs across multiple properties. And each one can be unique in terms of needs and waste profiles.
Most residential tenants don’t have any incentive to control costs. They’re not the ones paying the bill, so it’s nearly impossible to get them to break down boxes and properly sort boxes to avoid contamination.
As the property owner or manager, this means you’re either going to absorb every contamination fee, overcharge, and extra pickup from tenant behavior you can’t control, or you’ll have to pay someone else on your team to try and sort things properly before pickups.
Another huge issue that we find is that large property management companies try to negotiate contracts at the portfolio level.
While this seems like you should be getting leverage for better pricing for your volume, it’s not always the case. Lots of haulers use this to hide inefficiencies. They’re not as aggressive about optimizing routes or right-sized containers because they know you’re less likely to scrutinize individual property costs when you’re looking at aggregate spend across dozens of locations.
5. Casinos
While it seems like most casinos feel like they have a license to print money, that’s no reason to overlook trash removal costs.
The biggest thing that we’ve noticed when auditing these statements is that haulers price base services accordingly based on the scale that casinos operate on. So rates are higher from day one.
- 24/7 operation means you need constant service and capacity for new waste
- Diverse waste streams from restaurants, bars, hotels, conference spaces, event centers
- Strict security and access protocols allow haulers to charge “special handling” fees claiming their drivers need additional clearance or supervised access
- Seasonality surcharges when you’re suddenly busier and require extra pickups
It’s also worth noting that the consolidation in the waste industry over the past decade or so has hit casinos particularly hard.
In many markets, there are only one or two haulers with the capacity and credentials to service large casino properties. This lack of competition gives you less leverage when negotiating terms (and haulers know it).
6. Event and Entertainment
The challenges in this category vary dramatically based on the type of venue you’re operating.
Sports Areas and Stadiums: Generate massive waste volume in short periods of time. You could produce a week’s worth of waste during a 4-hour game, which means you need oversized containers and immediate service following an event.
Concert Venues and Amphitheaters: Face similar issues but with additional complications around merchandise and packaging. Waste production can vary a ton between each event, but you’re locked into a fixed container size that doesn’t adapt to whether you’re hosting a small acoustic show or 3-day festival.
Convention Centers: Deal with exhibitor waste that’s different in volume and type. Trade shows can generate massive amounts of cardboard while consumer events may generate more food waste. So you need to have more flexibility in hauling services (that your contract doesn’t always account for).
Performing Arts Theaters: Typically generate lower waste volumes compared to other entertainment venues. But haulers don’t always price their services accordingly. You often pay similar rates to larger venues just because you’re categorized as “entertainment” even though your actual waste generation is a fraction of a sports arena.
One common issue across all event venues is that haulers build in “event premiums” that charge you more per pickup based on the anticipated volume. But they rarely scale down during off-seasons or when events are canceled.
So you’re paying event pricing year-round, even during slower periods.
What You Can Do About This to Save Money
Just because you’re in one of the high-cost trash removal industries listed above, it doesn’t mean that you should just sit back and accept your higher-than-normal fees.
Most businesses don’t realize that trash removal costs are 100% negotiable.
- Negotiate lower base rates
- Audit your statements for surcharges you shouldn’t be paying
- Adjust your pickup frequency based solely on your actual needs
- Get proper container sizes that match the volume of waste you generate
It helps to have a professional cost reduction consultant on your side when you’re going through this process. So if you need help negotiating with your hauler or want a second pair of eyes on your statement, you can reach out to me directly or request a free consultation, and someone on my team will get back to you.