An ABC analysis helps you prioritize your purchasing smartly. Instead of giving all ingredients equal attention, you focus on the products that have the most impact on your costs. This saves time and ensures your budget goes to the right places.
What is an ABC analysis?
In an ABC analysis, you divide all your ingredients into three groups based on their value:
- A-products: 20% of your ingredients, 80% of your purchasing value
- B-products: 30% of your ingredients, 15% of your purchasing value
- C-products: 50% of your ingredients, 5% of your purchasing value
The goal: spend most of your time and attention on your A-products, because that's where your money is.
💡 Example:
Restaurant with €8,000 monthly purchasing:
- A-products: meat, fish, premium ingredients - €6,400 (80%)
- B-products: vegetables, dairy, oils - €1,200 (15%)
- C-products: spices, garnish, small items - €400 (5%)
Focus on those A-products: that's where your profit or loss is.
Why do an ABC analysis?
Many restaurant owners spend as much time purchasing salt (€2/month) as they do beef (€800/month). That's inefficient.
With an ABC analysis:
- You negotiate harder with A-suppliers
- You check A-products weekly for price changes
- You keep A-inventory tighter
- You spend less time on C-products
⚠️ Note:
An ABC analysis is about purchasing value, not quantity. 1000 packets of salt are still C-category, even if you use a lot of it.
How do you calculate the categories?
You need three figures per ingredient:
- Monthly purchasing value: price × quantity per month
- Percentage of total: this ingredient / total monthly purchasing × 100
- Cumulative percentage: running total
💡 Example calculation:
Beef in your restaurant:
- Price: €32/kg
- Usage: 25 kg/month
- Monthly value: €32 × 25 = €800
- At €8,000 total: €800 / €8,000 × 100 = 10%
This is likely an A-product.
Practical application per category
A-products (daily attention):
- Check prices weekly
- Negotiate annual contracts
- Keep inventory records accurately
- Look for alternatives if prices rise
- Measure quality strictly
B-products (weekly review):
- Check prices monthly
- Standard suppliers
- Normal inventory control
C-products (monthly check):
- Bulk purchasing for discounts
- Order less frequently
- Spend less time on them
💡 Result:
By spending 80% of your time on 20% of your products (the A's), you get much better control of your biggest cost drivers. A 10% price increase on your A-products costs you much more than a 50% increase on C-products.
Maintaining your ABC analysis
Do this again every 3-6 months. Products can change categories due to:
- Seasonal fluctuations
- Menu changes
- Supplier price changes
- Different dish popularity
With a system like KitchenNmbrs, you can automatically analyze your purchasing data and see which ingredients deserve your most attention.
How do you create an ABC analysis? (step by step)
Gather all purchasing data from the past 3 months
Make a list of all ingredients with their monthly purchasing value. Calculate price × quantity per month for each product. Use invoices or your purchasing system.
Calculate the percentage per ingredient
Divide the monthly value of each ingredient by your total monthly purchasing × 100. Sort the list from highest to lowest percentage. The largest percentages are now at the top.
Divide into A, B and C categories
Count from top to bottom until you reach 80% (those are your A-products). The next 15% are B-products, the last 5% are C-products.
✨ Pro tip
Focus on your top 5 A-products and build a good relationship with your supplier for these. These 5 ingredients probably determine 50-60% of your total purchasing costs.
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 often should I update an ABC analysis?
Every 3-6 months, or after major menu changes. Seasons and new dishes can significantly change the ratios.
What if I have a lot of C-products?
That's normal. Try to combine C-products into bulk orders or choose suppliers that deliver many small items, so you spend less time ordering.
Should I always buy A-products from the cheapest supplier?
Not always. With A-products, quality is often more important than saving the last penny. Bad beef costs you more in reputation than you save on purchasing.
Can an ingredient change categories?
Yes, definitely. If you add a new popular dish with expensive ingredients, they can move from C to A. That's why you should check your analysis regularly.
How many A-products does an average restaurant have?
Usually 10-20 ingredients. Think of your main meats, fish, premium vegetables and special ingredients. If you have many more, consider whether your menu is too broad.
📚 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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