A single bowl of homemade soup can cost €0.81 more than you think. Most restaurant owners compare ingredient costs against ready-made prices but completely ignore labor expenses. That's how profitable items turn into money losers without anyone noticing.
The hidden costs of making from scratch
When your chef spends 2 hours making stock, you're paying for more than vegetables and bones. Those 2 hours carry a real cost that needs calculating. At €18 per hour, that's €36 in labor expenses before you even taste the stock.
⚠️ Watch out:
Most operators calculate ingredient costs and stop there. Time gets ignored, making homemade options appear cheaper than reality.
Calculate your actual kitchen hourly rate
Fair comparisons require knowing your true labor costs per hour. You'll need these numbers:
- Gross hourly wage: base pay per hour
- Employer contributions: approximately 25% above gross wages
- Vacation pay and 13th month: typically 15% additional
? Example hourly rate calculation:
Chef earns €16 per hour gross
- Gross hourly wage: €16.00
- Employer contributions (25%): €4.00
- Vacation pay/13th month (15%): €2.40
True cost per hour: €22.40
Compare total costs
For homemade items, add ingredient costs plus (prep time × true hourly rate). Then compare against ready-made purchase prices. This reveals the actual financial difference.
? Example: Homemade vs ready-made tomato soup
Option 1: Make from scratch (10 liters)
- Ingredients: €12.50
- Labor: 1.5 hours × €22.40 = €33.60
- Total: €46.10
- Per liter: €4.61
Option 2: Buy ready-made
- 10 liters professional soup: €38.00
- Per liter: €3.80
Difference: €0.81 per liter advantage for ready-made
Making from scratch makes sense when
Homemade becomes cost-effective under specific conditions:
- Large batch production: making 20 liters takes barely more time than 5 liters
- Using waste products: bones and vegetable scraps destined for disposal
- Downtime utilization: staff present with minimal tasks during slow periods
? Example: Making from scratch during quiet periods
Your chef works 2:00 PM to 4:00 PM with minimal tasks. He's scheduled regardless of activity level. Here, additional labor costs for stock preparation approach zero.
Homemade becomes significantly cheaper than purchasing.
Factor in quality and flexibility
Cost isn't everything in this decision. Homemade offers complete control over flavor profiles and ingredient selection. Ready-made provides speed and consistency. A pattern we see repeatedly in restaurant financials shows operators who balance both approaches perform better than those using only one strategy.
⚠️ Watch out:
Storage costs and shelf life matter too. Homemade typically requires use within 3 days, while ready-made lasts considerably longer.
Digital tools for cost calculations
Food cost calculators like KitchenNmbrs automatically include labor expenses in recipe costing. You input preparation time, and the system calculates complete costs including wages. This immediately shows whether homemade or purchased options deliver better value.
Related articles
How do you calculate making from scratch vs buying? (step by step)
Calculate your actual kitchen hourly rate
Add 25% employer contributions and 15% vacation pay/13th month to the gross hourly wage. A chef at €16/hour actually costs €22.40 per hour.
Measure the time needed for making from scratch
Keep track of how much time you spend on prep, cooking, and finishing. Include cleanup time too. Be realistic and measure a few times.
Calculate total costs for both options
Making from scratch: ingredients + (time × hourly rate). Buying: purchase price of ready-made product. Calculate per portion or per liter to compare.
✨ Pro tip
Track your 3 most time-intensive homemade items over the next 30 days. Time each preparation session and calculate true costs including labor - you'll often find 1-2 items where ready-made actually saves money.
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
Do I always need to factor in labor costs for homemade items?
How do I calculate labor costs when I'm doing the cooking myself?
What if ready-made quality is significantly inferior?
How frequently should I recalculate these comparisons?
Should energy costs be included in these calculations?
How do I handle recipes that use both homemade and ready-made components?
What about equipment wear and cleaning time for homemade items?
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
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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