Large catering orders can drastically shift your purchase prices and profit margins. Bigger volumes often unlock supplier discounts, but they can also push you toward pricier alternatives when capacity runs short. Calculate the financial impact before saying yes to that 200-person event.
Why large orders change your purchase prices
Catering revolves around volume, plain and simple. An order for 200 people demands different purchasing than your daily 50 covers. This shift can boost your margins—or crush them.
💡 Example:
Your normal purchase: 10 kg beef per week at €18/kg
Large order: 50 kg beef needed
- Scenario 1: Supplier gives 10% discount → €16.20/kg
- Scenario 2: Must use more expensive alternative → €22/kg
Difference: €290 on one ingredient!
Three factors that affect your purchase prices
1. Volume discounts
Most suppliers offer discounts on larger purchases. Expect 5-15% savings if you're doubling your normal order.
2. Supplier capacity limits
Your regular supplier might hit their ceiling. Then you're scrambling for pricier alternatives.
3. Timing and availability
Rush orders cost extra. Seasonal products can vanish just when you need them most.
⚠️ Watch out:
Always confirm your supplier's capacity before accepting a large order. A quick 'yes' doesn't guarantee they can deliver at normal prices.
Calculate the impact on your cost per person
Catering runs on cost per person instead of per plate. Use this formula:
Cost per person = Total ingredient costs / Number of people
💡 Example calculation:
Order: 150 people, 3-course menu
- Normal purchase: €12.50 per person
- With 10% volume discount: €11.25 per person
- With more expensive alternative: €15.00 per person
Impact on total order: €487.50 difference between best and worst scenario!
Negotiate smartly with suppliers
Large orders create negotiation opportunities. Suppliers want big orders, but they've got limits too.
- Always ask for volume discount - even 5% saves hundreds of euros
- Plan at least 1 week ahead - rush orders always cost extra
- Have a backup supplier - for when your regular one can't deliver
- Negotiate on total package - not per ingredient separately
From analyzing actual purchasing data across different restaurant types, suppliers typically offer their best discounts on orders placed 10-14 days in advance.
Recognizing unprofitable orders
Sometimes a large order becomes too expensive due to higher purchase prices. Rule of thumb: if your ingredient costs exceed 40% of your selling price, you're in trouble.
⚠️ Watch out:
Don't forget the extras: transport, setup, additional staff. These can eat 15-25% of your catering revenue.
Digital help with cost calculations
For large orders, manual calculations invite errors. A food cost calculator helps you quickly run different scenarios with varying purchase prices.
You can input alternative prices per ingredient and immediately see the impact on your cost per person. This makes it easy to decide if an order stays profitable.
How do you calculate the impact on your purchase prices? (step by step)
Make an ingredient list for the entire order
Write down all ingredients you need, including quantities. Don't forget garnish, sauces and oil. Add up everything you need to purchase for the total number of people.
Check prices with your regular supplier and alternatives
Request prices from your normal supplier for the large quantities. Ask about volume discount. At the same time, check prices with 1-2 alternative suppliers for backup.
Calculate cost per person for each scenario
Work out what each scenario costs per person. Divide the total ingredient costs by the number of people. Compare this with your normal cost per person to see the impact.
✨ Pro tip
Create a comparison sheet with your top 3 suppliers and their large-volume pricing within 48 hours of receiving any catering inquiry. This quick reference saves you from scrambling during negotiations.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How much volume discount can I expect with large orders?
Standard discounts range from 5-15% if you're doubling your normal order. This varies by supplier and product type. Fresh products typically offer smaller discounts than shelf-stable goods.
What if my supplier can't deliver enough?
Always have a backup plan ready. Identify 1-2 alternative suppliers beforehand and know their prices. Plan large orders at least 1 week in advance to secure alternatives.
How do I factor transport and extra staff into my cost price?
Calculate all additional costs (transport, setup, extra staff) and divide by the number of people. This gives you the extra cost per person beyond your ingredient costs.
Should I always choose the cheapest supplier for large orders?
Not necessarily. Quality and reliability matter just as much. A supplier that fails to deliver on time can cost you far more than the few euros you'd save.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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