Karat Packaging Inc. is a specialty distributor and selective manufacturer of disposable foodservice products. The company offers a broad range of items including food containers, bags, tableware, cups, and eco-friendly products through its Karat Earth® line. Catering to both large and small customers, it emphasizes flexibility in operations, allowing it to quickly respond to shifting demand in the foodservice industry. This includes a growing e-commerce segment and customized solutions like product development and logistics, thus positioning itself as a comprehensive supplier to various food-related businesses.
The company's business model revolves around a two-pronged approach, focusing heavily on distribution while maintaining select in-house manufacturing capabilities. By generating most revenue through distribution, Karat is capable of adjusting its product offerings based on changing market conditions. The company also leverages a diverse customer base spanning major fast-casual and fast-food chains, which allows them to diversify their revenue streams while capitalizing on the increasing demand for sustainable products amid evolving consumer preferences and regulatory landscapes.