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Published November 2, 2025 in Grease Trap & Oil

Used cooking oil recycling options for restaurants

By Restaurant Waste Disposal Team
5 min read
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What you can recycle—and why it matters

Used cooking oil (UCO) from fryers and griddles is easy to recycle, and when you handle it well, it can cut waste costs. Good UCO practices protect your drains, keep alleys clean, earn rebates tied to commodity markets, and lower theft risk. If you store a lot of oil on site, know that vegetable oils are regulated like other oils for spill prevention, not because they’re toxic, but because spills can harm waterways and wildlife.1 2

Storage options: choosing the right setup

Pick a setup that fits your menu volume, space, and service pattern.

  • Indoor caddy to outdoor tank: A wheeled, closed “caddy” moves hot oil to a sealed tank outside. It’s cleaner and safer than open drums.
  • Plumbed “direct‑connect” from fryers: Enclosed lines pump oil to a locked tank. Best for high‑volume fry work and tight back‑of‑house (BOH) routes.
  • Tote or cube tanks: 200–330‑gal intermediate bulk containers (IBCs) with steel lids or bolt‑down collars. They’re economical, modular, and easy to swap.
  • Corralled outdoor tank: Place the tank in a fenced, well‑lit corral away from storm drains, with a paved pad and a spill kit nearby.

Capacity planning tips

  • Start with 7–10 days of typical UCO output. Aim to keep tanks below ~80% to prevent overfills and odors.
  • If your total above‑ground oil storage is 1,320 gallons or more (count containers ≥55 gallons), an SPCC (Spill Prevention, Control, and Countermeasure) plan applies if there’s a reasonable chance of discharge to navigable water.2
  • Label the tank clearly (waste‑oil only) and keep lids locked between service calls.

Locked used cooking oil tank in fenced corral behind a restaurant

Pickup scheduling that actually works

Set simple, automated triggers so you’re never overflowing or paying for half‑empty runs.

  • Frequency: Weekly for busy fry programs, every 2 weeks for moderate volume, and ad‑hoc “call‑in” during seasonal peaks.
  • Triggers: Volume sensor at 70–80% full or a max‑days‑since‑last‑pickup threshold (e.g., 10 days).
  • Timing: Avoid rush windows, align with trash nights to cut site traffic, and give haulers gate codes and clear access notes.
  • Chain‑of‑custody: Require a dated manifest with container ID, volume/weight, and driver/vehicle ID. Keep these with grease‑trap records.
  • Multi‑unit playbook: Standardize container sizes and service cadence, and roll up monthly diversion totals across locations for sustainability reporting.

Single vs. multi‑tank: which is better?

Setup Best for Pros Cons
Single central tank Small sites, single fry line Lowest cost, easiest to service More hose runs, a single point of failure
Two smaller tanks Staggered volumes, limited alley space Redundancy; can rotate service Slightly higher rental/footprint
Split: indoor caddy + outdoor tank Tight kitchens Keeps BOH clean; safer hot‑oil moves Requires nightly discipline
Direct‑connect plumbed High‑volume QSR or food halls Lowest spill/theft risk; fast transfers Upfront install; plan for cleaning lines

Bottom line: If you generate steady fryer volume, a plumbed or two‑tank setup cuts mess and theft. Low‑volume kitchens do fine with a single locked tank and a reliable rhythm.

Rebates and contracts (read this before you sign)

UCO rebates usually track the “yellow grease” market, quoted weekly by USDA AMS (Agricultural Marketing Service), and they can swing with the season. Ask vendors how your payout is indexed and how contamination is handled.3

Contract checklist

  • Pricing model: Fixed cents/gal vs. indexed to USDA AMS yellow grease postings (with a clear basis and frequency). Caps/floors protect both sides.
  • Measurement: Net liquid gallons at pickup vs. certified weight. Require line‑item deductions for water/solids.
  • Fees: Container rental, early call‑in, after‑hours service, spill cleanup. Know which are included.
  • Term and exclusivity: 12–24 months is common. Ensure reasonable termination rights and container removal language.
  • Reporting: Monthly statements with pickup dates, volumes, and rebate totals, and an annual diversion summary for ESG (environment, social, governance).
  • Bundles: Some haulers discount grease‑trap pumping when paired with UCO service. Compare total cost, not just the rebate.

Theft prevention that actually works

UCO theft is common because the product has commodity value. Practical deterrents:

  • Hardware first: Locking lids, anti‑siphon baffles, and a steel cage or fenced corral.
  • Keep levels low: More frequent pickups leave less to steal.
  • Light and lenses: Motion lighting plus two cameras: one tight on the tank and one on the driveway for plates.
  • Staff playbook: Night crews verify collector ID, vehicle markings, and the manifest, and they report suspicious activity promptly.
  • Verify your hauler: States such as California require inedible kitchen grease transporters to be registered and display a current state decal and company name on the truck. CDFA also provides a theft‑reporting portal and guidance.4

Implementation checklist (quick start)

  • Choose container(s): size for 7–10 days of oil, lockable lid, spill kit adjacent.
  • Place smartly: Fenced, lit, away from storm drains, clear truck path.
  • Set service rules: Sensor alerts at ~75% full, weekly or biweekly pickups, manifests saved with trap logs.
  • Negotiate the contract: Index, measurement, deductions, fees, term, and reporting.
  • Train the team: Hot‑oil handling, caddy use, lock‑up routine, and theft protocol.

Conclusion

Choose the simplest secure tank setup you can keep locked and serviced on a schedule, index your rebate to a public benchmark, and theft‑proof the site with hardware, lighting, and disciplined manifests.

Glossary

  • UCO: Used cooking oil from fryers and griddles.
  • FOG: Fats, oils, and grease—kitchen residues that clog sewers if mismanaged.
  • SPCC: Spill Prevention, Control, and Countermeasure rule for oil storage.
  • Yellow grease: The commodity made from processed UCO; a pricing benchmark.
  • CDFA: California Department of Food and Agriculture, regulator for inedible kitchen grease in CA.

Sources

Footnotes

  1. https://www.epa.gov/emergency-response/vegetable-oils-and-animal-fats

  2. https://www.law.cornell.edu/cfr/text/40/112.1 2

  3. https://mymarketnews.ams.usda.gov/viewReport/3510

  4. https://apps1.cdfa.ca.gov/IKG/

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