Most restaurants bleed money through frequent small orders while others slash costs with strategic purchasing schedules. Daily ordering feels flexible but typically costs 20-30% more than bundling orders twice weekly. Here's how to calculate exactly what centralized purchasing saves your operation.
Why centralized purchasing pays off
Most restaurants order too often and in small quantities. This drains both time and money through inflated unit prices and delivery fees.
⚠️ Note:
Daily ordering seems flexible, but often costs you 20-30% more than ordering 2-3 times per week with good planning.
Calculate your current purchasing method
Before calculating savings, you need baseline numbers. Track these metrics for one week:
- Time per order: Calling, emailing, receiving goods
- Number of orders per week: From each supplier separately
- Average order value: Per order
- Delivery costs: Fixed costs per delivery
💡 Example current situation:
Restaurant with daily orders:
- 6 orders per week × 15 minutes = 1.5 hours
- Delivery costs: €8 per order = €48/week
- Small orders: average 15% higher purchasing prices
Total extra costs: €48 + time costs + 15% price difference
Calculate savings on delivery costs
Suppliers charge fixed delivery fees regardless of order size. Fewer orders mean direct savings on these fees.
Delivery savings formula:
(Current deliveries - New deliveries) × Cost per delivery
💡 Example delivery savings:
From 6x to 2x ordering per week:
- Savings: (6 - 2) × €8 = €32 per week
- Per month: €32 × 4.3 = €138
- Per year: €138 × 12 = €1,656
Delivery costs alone save you €1,656 per year
Calculate time savings and labor costs
Every order eats time - calling suppliers, checking deliveries, updating inventory. That's the kind of thing you only learn after closing your first month at a loss: small inefficiencies compound fast.
Time savings formula:
(Current orders - New orders) × Time per order × Hourly wage
- Time per order: Average 10-20 minutes
- Entrepreneur hourly wage: Calculate with €25-35 per hour
- Administration afterwards: Also include invoices and accounting
💡 Example time savings:
From 6x to 2x ordering per week:
- Savings: 4 orders × 15 minutes = 1 hour per week
- Hourly wage: €30 per hour
- Per week: €30 savings
- Per year: €30 × 52 = €1,560
Time savings generates €1,560 per year
Calculate savings on purchasing prices
Bigger orders unlock volume discounts. Suppliers reduce per-unit costs because they process fewer transactions for the same revenue.
Typical discounts on larger orders:
- 5-10% discount: Doubling order size
- 2-5% extra: Fixed purchase agreements
- Free delivery: Minimum order thresholds
💡 Example price savings:
Restaurant with €2,000 purchasing per week:
- 5% discount on larger orders
- Savings per week: €2,000 × 0.05 = €100
- Per year: €100 × 52 = €5,200
Price discount saves €5,200 per year
Calculate total savings
Add all categories to see your complete benefit:
Total savings = Delivery savings + Time savings + Price savings
💡 Total savings example:
Restaurant switching from 6x to 2x weekly ordering:
- Delivery savings: €1,656 per year
- Time savings: €1,560 per year
- Price savings: €5,200 per year
Total savings: €8,416 per year
Practical implementation
Successful centralized purchasing requires accurate demand forecasting. You'll need to predict usage across multiple days without running out or wasting product.
- Inventory planning: Calculate daily usage rates
- Safety stock: Buffer for unexpected busy periods
- Shelf life: Match order frequency to product longevity
- Storage space: Adequate refrigeration and dry storage
⚠️ Note:
Higher inventory ties up more capital. Calculate whether savings exceed the cost of increased working capital.
How do you calculate the savings? (step by step)
Add up your current costs
Write down how many orders you place per week, how much time each order takes and what you pay in delivery costs. Also calculate how much you purchase on average per week.
Plan your new purchasing moments
Determine how often you want to order (for example 2x per week instead of 6x). Check if your suppliers give discounts on larger orders and what the minimum purchase is.
Calculate all savings
Add up: savings on delivery costs, time savings (× your hourly wage) and any discounts on purchasing prices. Subtract any extra inventory costs if you need to store more.
✨ Pro tip
Track your ordering time for exactly 2 weeks before making changes - most owners underestimate by 40% how long purchasing actually takes. This baseline makes your savings calculations much more accurate.
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 maximum with centralized purchasing?
Savings of 10-20% on total purchasing costs are realistic, depending on your current method. Restaurants switching from daily ordering often save €5,000-15,000 annually.
How often should I order for optimal savings?
Most restaurants find 2-3 times per week works best. Less than twice weekly creates spoilage issues with fresh products. More than three times reduces economies of scale benefits.
What if my supplier doesn't offer volume discounts?
You'll still save on delivery costs and time. Consider shopping around - many suppliers do offer quantity breaks. Sometimes negotiating payment terms or longer contracts unlocks better pricing.
How do I prevent spoilage with larger inventory?
Design your menu to use ingredients across multiple dishes. Implement FIFO rotation and track inventory turnover carefully. Only buy highly perishable items for 2-3 days maximum.
📚 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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