Small restaurants typically overpay for ingredients by 15-25% compared to larger operations due to limited purchasing power. Joint purchasing flips this disadvantage by letting independent operators band together for wholesale pricing. You'll access the same volume discounts that big chains enjoy.
What is joint purchasing?
Joint purchasing means multiple hospitality businesses combine orders from the same supplier. Rather than each business ordering 10 kilos of beef separately, 5 businesses order 50 kilos together. This approach unlocks discounts typically reserved for large chains.
? Example:
5 bistros in the same city order together from their meat supplier:
- Individual: €18.50/kg for beef
- Joint (250 kg): €15.20/kg
- Savings per kilo: €3.30
At 50 kg per month per business: €165 savings per month
Biggest benefits of joint purchasing
1. Lower purchase prices
Suppliers offer volume discounts at specific thresholds. Pooling orders helps you hit those numbers faster.
2. Better quality
Wholesale products often show more consistency than smaller deliveries. You gain access to premium products previously out of reach.
3. Reduced delivery costs
Most suppliers impose minimum delivery fees or order values. Splitting these costs among multiple businesses cuts your overhead.
4. Enhanced negotiating power
Groups carry more weight in price negotiations and can push back against sudden price hikes more effectively.
? Example delivery costs:
Fish supplier charges €25 delivery per order:
- Individual: €25 for 15 kg fish = €1.67/kg extra
- Joint: €25 for 75 kg fish = €0.33/kg extra
Savings: €1.34 per kilo on delivery costs alone
Which products work best for joint purchasing?
Dry products with extended shelf life:
- Rice, pasta, flour, sugar
- Canned goods, sauces, oil
- Frozen products
- Beverages (beer, wine, soft drinks)
Fresh products (with careful coordination):
- Meat and fish (if you'll use them within 24 hours)
- Dairy with longer shelf life
- Vegetables that you process immediately
⚠️ Note:
Fresh products demand tight coordination. If one business can't take their share, you're stuck with excess perishable inventory.
How do you organize joint purchasing?
Step 1: Find compatible partners
Start with 3-5 local hospitality businesses that use similar ingredients. Too many participants creates coordination headaches.
Step 2: Establish cost-sharing rules
From years of working in professional kitchens, I've seen that proportional splitting based on quantity works best, though delivery costs can be divided equally.
Step 3: Designate a coordinator
One person handles order collection, supplier contact, and invoice distribution. Rotate this responsibility to keep things fair.
? Example organization:
4 restaurants order together from the greengrocer every Tuesday:
- Monday 12:00: everyone sends their order to the coordinator
- Monday 16:00: coordinator places total order
- Wednesday morning: delivery to coordinator
- Wednesday afternoon: distribution to other businesses
Pitfalls and how to avoid them
Problem: Someone doesn't collect their share
Set cancellation policies upfront. For instance: cancellations accepted up to 24 hours before delivery, otherwise you're still responsible for payment.
Problem: Quality inconsistencies
Have the coordinator inspect quality upon arrival. Contact suppliers immediately about problems, before distributing to other businesses.
Problem: Administrative burden
Use a straightforward app or spreadsheet for tracking orders and payments. Simplicity beats complexity every time.
⚠️ Note:
Establish clear payment terms. One non-paying partner can derail the entire arrangement. Consider requiring prepayment from new participants.
Alternatives to joint purchasing
If joint purchasing seems too complex, consider other cost-reduction strategies:
- Purchasing cooperatives: Established organizations that handle group buying for hospitality businesses
- Cash & carry: Self-pickup from wholesale suppliers for better pricing
- Supplier comparison: Regular quote requests from multiple suppliers
- Seasonal buying: Bulk purchases during low-price periods
Food cost management tools help you track joint purchasing results. You'll see exactly how your purchase prices shift and what that means for your per-dish costs.
Related articles
How do you start joint purchasing? (step by step)
Find 3-5 fellow entrepreneurs in your area
Start small with restaurants that use similar products. Check if they also want to save on purchasing and are willing to work together.
Choose 2-3 products to start with
Start with dry products with long shelf life such as rice, pasta, or oil. These are easy to divide and don't spoil quickly.
Make clear agreements about distribution and payment
Decide who becomes coordinator, how you split costs, and what happens with cancellations. Put this in writing to prevent disputes.
Test for 1 month with one supplier
Start with one supplier and one order per week. Evaluate after a month whether it runs smoothly and if the savings add up.
Calculate your actual savings
Compare your old purchase prices with the new prices. Also factor in time and administration to see if it's really worthwhile.
✨ Pro tip
Start your first joint purchase with exactly 2 other restaurants and focus on just 3 high-volume dry goods you all use weekly. Once this 4-week trial runs smoothly, you can expand to more partners and products.
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Frequently asked questions
How much can I save with joint purchasing?
What if a partner doesn't take their allocated share?
How do I prevent the system from becoming too complicated administratively?
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
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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