Your supplier determines your margin more than you think. A butcher can be 20-40% more expensive than a wholesaler, but often delivers better quality with less trim loss. In this article you'll learn exactly how to calculate which choice is most profitable.
Why supplier choice determines your margin
Many restaurant owners only look at the price per kilo. But that doesn't tell the whole story. A butcher charges €28/kg for ribeye, the wholesaler €22/kg. Seems clear, right?
Not so fast. You need to account for:
- Actual price per kilo after trim loss
- Quality and consistency
- Delivery costs and minimum orders
- Processing time
⚠️ Watch out:
Always calculate the actual price per kilo after processing. A cheap whole fish with 50% trim loss can end up costing more than expensive fillets.
Step 1: Calculate the actual price per kilo
The price you pay is not the price you use. Trim loss, trimming and waste make meat more expensive.
Formula for actual price per kilo:
Actual price = Purchase price ÷ (Yield % ÷ 100)
💡 Example butcher vs wholesaler:
Butcher - fresh ribeye:
- Purchase price: €28/kg
- Trim loss: 8% (trimming only)
- Yield: 92%
- Actual price: €28 ÷ 0.92 = €30.43/kg
Wholesaler - whole strip:
- Purchase price: €22/kg
- Trim loss: 25% (boning, trimming)
- Yield: 75%
- Actual price: €22 ÷ 0.75 = €29.33/kg
Difference: €1.10/kg in favor of wholesaler
Step 2: Add up all extra costs
The price per kilo isn't everything. There are more costs to consider:
- Delivery costs: Butchers often deliver free, wholesalers have minimum orders
- Labor time: Processing whole pieces takes time
- Inventory costs: Larger orders mean more money tied up
- Waste: Fresh products have shorter shelf life
💡 Example extra costs:
Wholesaler - extra costs per kilo:
- Labor for boning: 15 min × €20/hour = €5/kg
- Delivery costs: €50 ÷ 20kg = €2.50/kg
- Extra waste: 3% × €29.33 = €0.88/kg
Total extra: €8.38/kg
Actual cost price: €29.33 + €8.38 = €37.71/kg
Step 3: Compare total cost price
Now you can compare fairly. Add up everything it costs you to get 1 kg of usable meat on the plate.
Total cost price formula:
(Purchase price ÷ Yield) + Extra costs = Actual cost price per kg
💡 Final comparison:
Butcher total:
- Actual meat price: €30.43/kg
- Extra costs: €1.50/kg (delivery only)
- Total: €31.93/kg
Wholesaler total:
- Actual meat price: €29.33/kg
- Extra costs: €8.38/kg
- Total: €37.71/kg
Difference: €5.78/kg in favor of butcher!
Factor in quality and consistency
Numbers aren't everything. Quality differences also have financial impact:
- Complaints: Poor meat leads to unhappy guests
- Waste: Inconsistent quality means more waste
- Reputation: Good quality justifies higher prices
- Returns: Time and money to replace bad deliveries
A butcher knows your business and often delivers more consistently. That's hard to put in numbers, but it's valuable.
When wholesaler is still cheaper
Wholesaler can be cheaper if:
- You run large volumes (50+ kg per week)
- You have butchery experience in-house
- You have enough cold storage for inventory
- Your supplier is reliably good quality
⚠️ Watch out:
Budget at least 2-3 extra hours per week for processing whole pieces of meat. That costs €40-60 in labor.
How to calculate this in practice
For each supplier you're considering:
- Buy a test order of 5-10 kg
- Measure trim loss and processing time precisely
- Calculate the actual cost price
- Compare with your current supplier
- Test the quality in real dishes
That way you know for sure which choice is most profitable for your situation.
How do you calculate the actual margin per supplier?
Calculate actual price per kilo after trim loss
Divide the purchase price by the yield percentage. With 20% trim loss, the yield is 80%, so divide by 0.80. This gives you the real price per usable kilo.
Add up all extra costs
Calculate labor time for processing, delivery costs, inventory costs and extra waste and add them together. Divide this by the number of kilos to get costs per kilo.
Compare total cost price and quality
Add actual price per kilo and extra costs for both suppliers. Also factor in quality, consistency and reliability in your decision.
✨ Pro tip
Always test new suppliers with a small order of your most popular meat. Measure trim loss and processing time precisely, then you'll know if they're really cheaper.
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
Is a butcher always more expensive than a wholesaler?
No, not if you count all costs. With less trim loss, no processing time and smaller minimum orders, a butcher can work out cheaper for small restaurants.
How much trim loss is normal for meat?
With whole pieces of meat, 15-25% trim loss is normal. With fish this can go up to 50%. Butchers usually deliver already trimmed pieces with 5-10% loss.
Should I include labor time in my cost price?
Yes, definitely. If your chef spends 2 hours boning at €20/hour, that's €40 extra per order. Divide this by the number of kilos for the actual cost price.
How often should I compare my suppliers?
Check your main suppliers at least quarterly. Prices change regularly and new suppliers come along. A better deal can save you hundreds of euros per month.
What if quality differs between suppliers?
Factor quality differences into your cost price. Better quality means less waste, fewer complaints and you can charge higher prices. That often makes up for a higher purchase price.
📚 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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