Picture this: you're managing deliveries from eight different suppliers each week, drowning in invoices and watching your profit margins shrink. Most restaurants juggle 6-8 suppliers weekly, but smart operators know that 3-4 well-chosen partners often deliver better results. Calculate your potential savings and you might discover hundreds of euros sitting on your loading dock.
Why consolidating suppliers saves money
Every delivery drains your resources, even when the costs stay hidden. Consider what each one demands:
- Time to check and put away deliveries
- Administration per invoice
- Minimum order values that force you to buy more
- Less negotiating power with small volumes
Consolidate your suppliers and you'll boost order volume per vendor. Better volume equals better prices.
Calculate your current delivery costs
You can't measure savings without knowing your starting point. Track what deliveries actually cost you right now.
💡 Example current situation:
Restaurant with 6 suppliers per week:
- Vegetables: 2x per week (€15 delivery costs)
- Meat: 2x per week (€20 delivery costs)
- Fish: 1x per week (€25 delivery costs)
- Beverages: 1x per week (€10 delivery costs)
- Dry goods: 1x per week (€12 delivery costs)
- Dairy: 2x per week (€8 delivery costs)
Total delivery costs per week: €135
Don't forget the hidden expenses:
- Time per delivery: 15 minutes checking × €25 per hour = €6.25
- Administration: 6 invoices × 5 minutes = €12.50 per week
- Minimum order values: How much extra do you buy to meet the minimum?
Calculate savings from consolidation
Now crunch the numbers for a streamlined approach. Let's say you consolidate down to 3 suppliers.
💡 Example after consolidation:
Same restaurant, now 3 suppliers:
- Wholesale produce + meat: 2x per week (€25 delivery costs)
- Fish specialist: 1x per week (€25 delivery costs)
- Beverages + dry goods: 1x per week (€15 delivery costs)
New delivery costs per week: €90
Savings per week: €135 - €90 = €45
Savings per year: €45 × 52 weeks = €2,340
⚠️ Note:
Verify that your supplier can deliver all products at the quality standards you need. Cheaper isn't always better if quality takes a hit.
Also calculate purchase savings
Higher volumes with fewer suppliers typically unlock better pricing tiers. After managing kitchen operations for nearly a decade, I've seen this pattern repeatedly - consolidation almost always improves your negotiating position.
💡 Example purchase savings:
By higher volume with produce supplier:
- Was: €800 per week, 0% discount
- Now: €1,200 per week, 3% discount
Additional savings: €1,200 × 0.03 = €36 per week = €1,872 per year
Total savings per year: €2,340 (delivery) + €1,872 (purchase) = €4,212
Include minimum order values
Minimum order requirements often force unnecessary purchases. This ties up cash and storage space.
- Before consolidation: 6 suppliers × average €25 extra per week = €150
- After consolidation: 3 suppliers × average €40 extra per week = €120
- Savings: €30 per week = €1,560 per year
Remember: this money gets tied up in inventory that you'll eventually use, but it impacts cash flow immediately.
Time and administration savings
Fewer deliveries means less time wasted on:
- Checking and putting away deliveries
- Processing invoices
- Contact with suppliers
- Placing orders
💡 Example time savings:
From 9 deliveries to 4 deliveries per week:
- 5 fewer deliveries × 15 minutes = 75 minutes per week
- 75 minutes × €25 per hour = €31.25 per week
Time savings per year: €1,625
Risks of consolidation
Supplier consolidation brings real advantages, but you'll face some trade-offs:
- Dependency: If one supplier fails, you face a bigger crisis
- Quality: Not every supplier excels at everything
- Flexibility: Fewer options during problems or special requests
- Inventory: Higher minimum orders can bloat your storage needs
⚠️ Note:
Consolidate step by step. Test one supplier thoroughly to confirm quality and service standards before moving additional categories.
The total calculation
Here's your complete savings breakdown:
- Delivery cost savings: €2,340 per year
- Purchase discount: €1,872 per year
- Minimum order values: €1,560 per year
- Time savings: €1,625 per year
Total savings: €7,397 per year
For most restaurants, this represents significant profit improvement. But monitor your suppliers' quality and reliability closely throughout the transition.
How do you calculate savings from consolidating suppliers?
Inventory your current delivery costs
Add up all delivery costs per week: direct delivery costs, time for checking (15 min × €25/hour), administration per invoice, and extra purchases for minimum order values. Also note how many deliveries you currently have per week.
Calculate the new situation
Determine which suppliers you can consolidate with and calculate the new delivery costs. Note: higher volumes can result in better purchase prices, but also higher minimum order values.
Calculate total savings
Subtract the new costs from the old costs and multiply by 52 for annual savings. Don't forget to include time savings (fewer deliveries to check) and possible purchase discounts.
✨ Pro tip
Track your current supplier delivery schedule for exactly 4 weeks before making any changes. You'll discover hidden patterns in your ordering that could save an additional 15-20% beyond basic consolidation math.
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 many suppliers is optimal for a restaurant?
Most restaurants operate best with 3-5 suppliers. Fewer than 3 creates dangerous dependency, while more than 5 drives up delivery and admin costs. Your optimal number depends on volume and menu specialization.
What if my supplier can't deliver everything in good quality?
Always maintain backup suppliers for critical products. It's better to pay slightly more for consistent quality than to risk disappointing guests with subpar ingredients. Start new suppliers with small test orders first.
How do I negotiate better prices with higher volumes?
Present your current purchase data and request volume-based discounts. Most suppliers offer 2-5% reductions when you double your orders. Also negotiate payment terms and delivery schedules as part of the package.
What are the risks of having fewer suppliers?
You become more vulnerable if a key supplier fails or has quality issues. The disruption affects a larger portion of your menu. Always keep emergency contacts ready for your most critical product categories.
How often should I evaluate my supplier strategy?
Review your supplier mix twice yearly at minimum. Check pricing competitiveness, quality consistency, and service reliability. Market conditions shift rapidly, and new suppliers regularly enter the market with better terms.
Should I consolidate specialty items like organic produce or artisanal breads?
Handle specialty items more carefully during consolidation. These suppliers often provide unique quality or sourcing that mass distributors can't match. Consider keeping specialized suppliers for signature menu items while consolidating commodity products.
📚 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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