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📝 Inventory management & stock control · ⏱️ 2 min read

What is shrinkage and how does it differ from normal waste?

📝 KitchenNmbrs · updated 14 Mar 2026

Most restaurant owners think waste only happens from spoiled food or kitchen mistakes. But there's a hidden cost eating into your margins every single day: shrinkage. This natural weight loss during storage can quietly drain EUR 200-400 monthly from the average restaurant's profits.

What exactly is shrinkage?

Shrinkage describes the natural weight loss of food during storage. This happens through dehydration, evaporation, and other natural processes. The key difference from normal waste? Shrinkage is inevitable - you can reduce it, but never completely prevent it.

💡 Example:

You buy 10 kg of steak for €180. After 3 days in the cooler it weighs 9.6 kg:

  • Weight loss: 0.4 kg (4% shrinkage)
  • Purchase price: €18/kg
  • Actual price after shrinkage: €18 / 0.96 = €18.75/kg

Extra costs from shrinkage: €0.75 per kg

Shrinkage vs. normal waste

You need to distinguish shrinkage from other forms of waste:

  • Shrinkage: Natural weight loss, product remains usable
  • Trim loss: Unusable parts (bones, peels, fat)
  • Spoiled food: Stored too long, wrong temperature
  • Kitchen waste: Incorrectly prepped, overcooked
  • Plate waste: What guests leave behind

Shrinkage is the only form you must factor into your food cost, because it always happens and the product is still sellable. I've seen this mistake cost restaurants EUR 200-400 per month - they calculate their food costs without accounting for this invisible weight loss.

⚠️ Watch out:

Many entrepreneurs ignore shrinkage in their food cost calculations. This makes their food cost appear lower than it actually is. With products that have high shrinkage, this can make a difference of several percentage points.

Typical shrinkage percentages

Different products lose weight at different rates. Here are common values:

  • Meat (beef, pork): 2-5% per week
  • Poultry: 1-3% per week
  • Fish: 3-6% per week
  • Vegetables (carrot, onion): 2-4% per week
  • Leafy greens: 5-10% per week
  • Cheese (hard): 1-2% per week
  • Bread: 3-8% per day

💡 Example calculation:

Restaurant with €8,000 meat purchases per month at 3% shrinkage:

  • Shrinkage costs: €8,000 × 0.03 = €240/month
  • Per year: €240 × 12 = €2,880
  • You need to factor this into your selling prices

Forget to include shrinkage? Then you're missing €2,880 in costs.

How to factor shrinkage into food cost

The formula for shrinkage is similar to trim loss, but for weight loss during storage:

Actual purchase price = Nominal price / (1 - Shrinkage%)

💡 Practical example:

Steak at €22/kg with 4% shrinkage:

  • Actual price: €22 / (1 - 0.04) = €22 / 0.96 = €22.92/kg
  • Extra costs: €0.92 per kg
  • Per 200g portion: €0.18 extra per plate

On 100 steaks per week: €18 extra costs from shrinkage

Reducing shrinkage

You can't prevent shrinkage, but you can limit it:

  • Correct temperature: Cooler at 2-4°C, not colder or warmer
  • Good packaging: Vacuum or airtight sealed where possible
  • FIFO principle: First In, First Out - use oldest products first
  • Smaller deliveries: Order more frequently, store less long
  • Correct humidity: Especially important for vegetables

With proper storage, you can often cut shrinkage in half, which directly impacts your food cost.

How do you calculate shrinkage in your food cost?

1

Measure weight loss

Weigh products when they arrive and after a few days of storage. Calculate the difference as a percentage of the original weight. Do this for different products to determine averages.

2

Calculate the actual purchase price

Use the formula: Actual price = Nominal price / (1 - Shrinkage%). At 3% shrinkage and €20/kg this becomes €20 / 0.97 = €20.62/kg.

3

Adjust your recipes

Use the actual purchase price in your food cost calculations instead of the nominal price. This gives you a more realistic picture of your food cost per dish.

✨ Pro tip

Weigh your 3 most expensive proteins every Monday morning after weekend storage. Track this for 4 weeks to establish your baseline shrinkage rates.

Calculate this yourself?

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Frequently asked questions

Is shrinkage the same as trim loss?

No, shrinkage is weight loss during storage through dehydration. Trim loss is unusable parts like bones and peels that you discard during preparation.

How often should I measure shrinkage percentages?

Measure shrinkage quarterly for your main products. Season and supplier can influence the percentages, so regular checks ensure accuracy.

Does shrinkage affect frozen products differently than fresh?

Yes, frozen products have lower shrinkage through sublimation (ice that evaporates directly). This is usually 50-70% lower than with chilled products, but still needs accounting for.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

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.

JS

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.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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