ABSTRACTThe purpose of this study is to assess the environmental and economic impacts of the various food packaging systems offered in university food services in Canada. Toronto Metropolitan University's food service was chosen as a test case. Three systems exist in this setting: single‐use polypropylene (PP) containers, reusable PP clamshells and compostable bagasse clamshells. The goal is to understand which system has the most favourable impact regarding the Tool for the Reduction and Assessment of Chemical and other environmental Impacts' (TRACI 2.1) 10 impact categories and which system is the most financially viable through a cost analysis. The scope includes a cradle‐to‐grave life cycle assessment (LCA) consisting of raw material extraction and production, transportation, usage and end‐of‐life disposal. This study investigates the environmental impact of each packaging system for 10 000 meals consumed by students. This research follows two ISO standards, 14044:2006, and 14040:2006. These standards involve defining the goal and scope, completing a life cycle inventory (LCI) analysis, completing a life cycle impact assessment (LCIA) and interpreting the life cycle. LCI information is extracted using SimaPro v9.0. The study results reveal that the reusable PP clamshell has the least environmental impact when compared to the two other single‐use packaging alternatives for nine of the 10 environmental impact categories. The single‐use PP container has the most significant environmental impact due to its harmful material extraction, production processes and end‐of‐life emissions. The sensitivity analysis determined that if reused a minimum number of 37 times, the reusable clamshell (RU) remains favourable to the single‐use formats in nine of the 10 impact categories. Furthermore, the cost analysis reveals that the reusable packaging format is the most financially favourable when reused 16 times or more. This research concludes that single‐use food packaging options have a more significant environmental impact than reusable PP clamshells. Based on the research findings, purchasing a less harmful detergent, sourcing the packaging locally and reducing the loss rate of reusable PP clamshells could produce an even more favourable environmental impact for the reusable food packaging system.