Used Cooking Oil Collection
Restaurants beg you to take their waste — then pay you for it
Used cooking oil (UCO) collection businesses pick up spent fryer oil from restaurants, food manufacturers, and cafeterias, then sell it to biodiesel refineries or rendering plants. The kicker: restaurants either pay you to haul their grease, or you pay them a small amount per gallon and resell at a significant markup. At scale, a single truck running 25–30 restaurant stops can generate $300K+ annually. It's one of the few waste businesses where the 'waste' has commodity value that fluctuates with fuel prices.
Avg Revenue
$350K
Profit Margin
35%
Acquisition Multiple
2x - 3x
Startup Cost
$30K - $80K
Difficulty
2/5
How It Works
Install grease storage containers (provided free) at restaurant back-of-house locations. Collect on a scheduled route (weekly or bi-weekly). Transport to a biodiesel refinery or rendering facility that pays $0.20–$0.50/lb for clean UCO (price fluctuates with diesel commodity markets). Revenue model: either charge restaurants a pickup fee ($50–$150/stop) or pay them $0.10–$0.20/lb and resell at market price. The best operators do both — restaurants in high-grease-theft areas pay to be serviced; premium clients get a small rebate.
Revenue Range
Pros
- +Recurring route revenue — restaurants need pickups every 1–2 weeks indefinitely
- +Low customer acquisition cost — cold walk-ins to restaurants close fast
- +Commodity upside: UCO prices spike with fuel markets
- +Minimal overhead once route is established
Cons
- -Commodity price risk — UCO prices drop during low-fuel-price environments
- -Grease theft is rampant — competitors will steal your restaurant accounts
- -Permits required in most municipalities for waste handling and transport
Best For
Route business operators; entrepreneurs comfortable with commodity price exposure
Operating Costs
Key costs: vacuum truck or pump truck ($40K–$80K), fuel ($1,500–$3,000/mo for a full route), storage containers (leased or purchased), disposal/refinery fees or rebates, and driver labor. Revenue fluctuates with UCO spot prices — hedge by locking in forward contracts with buyers where possible.
Where to Buy
Search grease and waste collection routes listed for sale
Broker-listed route businesses including grease collection operators
Quick Facts
- Category
- route
- Difficulty
- 2/5
- Acquisition Price
- $700K - $1.1M
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Used Cooking Oil Collection
$350K/yr • 35% margins • 2x–3x multiple
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