Joint purchasing can lower your procurement costs by 10-20% by working together with other independent hospitality entrepreneurs. Many small restaurants overpay for ingredients because they order small quantities. By purchasing together, you get access to wholesale prices and better delivery terms.
What is joint purchasing?
Joint purchasing means that multiple hospitality businesses order together from the same supplier. Instead of each business ordering 10 kilos of beef separately, 5 businesses order 50 kilos together. This way you get discounts that are normally only available to 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 discounts from certain volumes. By ordering together, you reach those volumes faster.
2. Better quality
Wholesale quality is often more consistent than small deliveries. You get access to better products.
3. Lower delivery costs
Many suppliers charge minimum delivery fees or have a minimum order value. By ordering together, you split these costs.
4. More negotiating power
As a group, you can negotiate better payment terms and respond faster to price increases.
💡 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 long shelf life:
- Rice, pasta, flour, sugar
- Canned goods, sauces, oil
- Frozen products
- Beverages (beer, wine, soft drinks)
Fresh products (with good planning):
- Meat and fish (if you use them the same day)
- Dairy with longer shelf life
- Vegetables that you process quickly
⚠️ Note:
Fresh products require good coordination. If one business doesn't take their share, you're left with extra perishable inventory.
How do you organize joint purchasing?
Step 1: Find like-minded colleagues
Start with 3-5 hospitality businesses in your area that use similar products. Too many participants makes coordination complicated.
Step 2: Make agreements about distribution
Decide in advance how you split the costs. Usually proportional to quantity purchased, but you can split delivery costs equally.
Step 3: Appoint one coordinator
One person collects all orders, places the order, and divides the invoice. Rotate this to stay 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 take their share
Make agreements about cancellations. For example: cancellations allowed up to 24 hours before delivery, otherwise you still pay your share.
Problem: Quality differences
Have the coordinator check quality upon delivery. If there are problems, contact the supplier immediately, before distribution.
Problem: Administrative hassle
Use a simple app or spreadsheet to track orders and payments. Keep it simple.
⚠️ Note:
Make clear agreements about payments. One non-payer can disrupt the entire system. Consider prepayment for new participants.
Alternatives to joint purchasing
If joint purchasing is too complicated, there are other ways to lower procurement costs:
- Purchasing cooperatives: Existing organizations that arrange purchasing for hospitality
- Cash & carry: Pick up yourself from the wholesale supplier for better prices
- Compare suppliers: Regularly request quotes from different suppliers
- Seasonal purchasing: Buy large quantities when products are cheap
With a system like KitchenNmbrs, you can easily track what joint purchasing brings you. You immediately see how your purchase prices change and what this means for your food cost per dish.
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 with one supplier and three products you use a lot. If this goes well, you can expand to more products and suppliers.
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 can I save with joint purchasing?
On average 10-20% on products you order together. For dry products and beverages it can reach up to 25%. The exact savings depend on your current supplier and the volumes you reach together.
What if a colleague doesn't take their share?
Make agreements about cancellation and payment in advance. A good rule: cancellations allowed up to 24 hours before delivery, otherwise you still pay your share. Consider prepayment for new participants.
Which products are best for joint purchasing?
Start with dry products like rice, pasta, oil, canned goods, and beverages. These have long shelf life and are easy to divide. Fresh products can work too, but require better planning.
How do I prevent administrative hassle?
Keep it simple with a spreadsheet or app to track orders. Appoint one coordinator per order and rotate this. Make clear agreements about payment terms.
Can I also purchase together if I have a different type of kitchen?
Yes, many basic products are the same: oil, rice, pasta, beverages, cleaning supplies. You don't need the same concept to purchase basic ingredients together.
📚 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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