Recyclable is worse than reusable, both are worse than reducing use in the first place. Best option is giving a drink in a mug or cup. Customer can provide a takeaway container or bring their own mug. All behaviour needs to be adjusted -- individual, and corporate via regulation.

This whole expectation of disposability is the problem in the first place.

> paper bags cause more harm than plastic

Citation needed. As I understand it, they can be more harmful if unsustainable methods of production are used. Unbleached paper from sustainable forestry should be less harmful. It may not be cheaper. Cheapest should not be the only aim. c.f. regulation.