Most restaurant owners lose thousands each year by choosing the wrong purchasing schedule. You might think weekly bulk orders save money, but hidden costs tell a different story. Time to crunch the real numbers.
The total cost of purchasing
Purchase price is just the tip of the iceberg. The real costs hide below the surface:
- Time costs: How many hours do you spend ordering, receiving, checking?
- Storage costs: More inventory = more refrigeration space needed
- Waste: Longer storage = more risk of spoilage
- Cashflow: More purchases = more money tied up in inventory
- Delivery costs: Some suppliers charge per delivery
⚠️ Watch out:
Many entrepreneurs only calculate the purchase price and forget the hidden costs. That's why weekly buying always seems cheaper.
Calculate your time costs per order
Time equals money. Track how long one order actually takes:
- Ordering (selecting products, determining quantities): 15-30 min
- Receiving (checking, putting away): 20-45 min
- Administration (checking invoice, booking): 10-15 min
Formula for time costs: Total time × your hourly rate = cost per order
💡 Example:
One order takes you 1 hour. You charge €25/hour for your time.
- Daily (6x/week): €25 × 6 = €150/week
- Weekly (1x/week): €25 × 1 = €25/week
Difference: €125/week = €6,500/year
Calculate your storage costs
More inventory means more refrigeration space, higher electricity bills, and greater theft risk.
Standard storage costs: 15-25% of your inventory value per year
💡 Example:
Your average inventory value:
- Daily buying: €2,000 average
- Weekly buying: €8,000 average
Storage costs at 20%:
- Daily: €2,000 × 20% = €400/year
- Weekly: €8,000 × 20% = €1,600/year
Difference: €1,200/year
Calculate waste costs
Fresh products don't wait for your convenience. The longer they sit, the more you'll throw away.
Standard waste:
- Fresh vegetables: 5-15% with daily buying, 15-25% with weekly
- Meat/fish: 2-8% with daily buying, 8-15% with weekly
- Dairy: 3-10% with daily buying, 10-20% with weekly
💡 Example:
Weekly purchase of fresh products: €3,000
- Waste daily: 8% = €240/week
- Waste weekly: 18% = €540/week
Difference: €300/week = €15,600/year
Calculate delivery costs
Some suppliers charge per delivery. Others have minimum order amounts that force your hand.
- Fixed delivery costs: €15-50 per delivery
- Minimum order: €150-500 per order
- Discounts: Often with larger orders
⚠️ Watch out:
Check if your supplier gives discounts on larger orders. Sometimes a 5% discount on a weekly order is worth more than the extra storage costs.
The total calculation
Add up all costs to see what's really cheaper. Most kitchen managers discover too late that their "cost-saving" weekly orders actually drain profits.
Daily buying:
- Time costs: higher (more orders)
- Storage costs: lower (less inventory)
- Waste costs: lower
- Delivery costs: higher (more deliveries)
- Purchase prices: often higher (smaller volumes)
Weekly buying:
- Time costs: lower (fewer orders)
- Storage costs: higher (more inventory)
- Waste costs: higher
- Delivery costs: lower (fewer deliveries)
- Purchase prices: often lower (larger volumes)
💡 Total example:
Restaurant with €20,000 monthly purchases:
Daily buying:
- Time costs: €6,500/year
- Storage costs: €400/year
- Waste: €12,480/year (8%)
- Delivery costs: €1,560/year
Weekly buying:
- Time costs: €1,300/year
- Storage costs: €1,600/year
- Waste: €28,080/year (18%)
- Delivery costs: €520/year
Daily is €10,540/year cheaper!
When weekly buying can still be better
Weekly buying makes sense if:
- You mainly use shelf-stable products (pasta, rice, canned goods)
- You have excellent inventory control
- Your supplier gives large volume discounts (10%+)
- You have very limited refrigeration space (storage costs not relevant)
- You're far from suppliers (high delivery costs per trip)
The optimal compromise
Many restaurants choose a mixed approach:
- Daily: Fresh products (fish, vegetables, dairy)
- Weekly: Shelf-stable products (dry goods, canned items)
- Monthly: Cleaning supplies, paper
This gives you the benefits of both systems without the drawbacks.
How do you calculate what's cheaper? (step by step)
Measure your time costs per order
Track for a week how much time each order takes: ordering, receiving, putting away and administration. Multiply this by your hourly rate to get the cost per order.
Calculate your average inventory value
Add up your inventory value each week. Calculate the average over a month. Multiply this by 20% to get your annual storage costs.
Measure your waste percentage
Track for 4 weeks what you throw away and why. Calculate the percentage of your purchases that's wasted. Multiply this by your annual purchases to get total waste costs.
Compare total costs
Add up all costs: time, storage, waste and delivery costs. Compare daily vs weekly buying. The difference can be thousands of euros per year.
✨ Pro tip
Track your actual time for 2 weeks: how long does ordering, receiving, and admin really take per delivery? Most owners underestimate by 40%.
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
Should I buy all products the same way?
No, use a mixed approach. Buy fresh products daily and shelf-stable products weekly. This gives you the benefits of both systems without the major drawbacks.
How do I calculate my hourly rate for time costs?
Take your monthly salary and divide it by your working hours per month. Or use €20-30/hour as an average for a restaurant owner.
What if my supplier has minimum order amounts?
Calculate whether you reach the minimum with daily buying. If not, you'll have to order less frequently or find another supplier with lower minimums.
📚 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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