Restaurants that switch suppliers without calculating true costs lose an average of €2,400 annually on meat purchases alone. A butcher might charge 20-40% more per kilo than wholesalers, but trim loss and processing time often flip the equation. Here's exactly how to calculate which choice maximizes your profit.
Why supplier choice determines your margin
Most restaurant owners fixate on price per kilo. That's a mistake. A butcher charges €28/kg for ribeye while the wholesaler asks €22/kg. Obvious choice?
Not quite. You've got to factor in:
- Real price per kilo after trim loss
- Quality and consistency
- Delivery costs and minimum orders
- Processing time
⚠️ Watch out:
Always calculate the real price per kilo after processing. Cheap whole fish with 50% trim loss can cost more than expensive fillets.
Step 1: Calculate the actual price per kilo
What you pay isn't what you use. Trim loss, boning and waste bump up your real costs.
Formula for actual price per kilo:
Actual price = Purchase price ÷ (Yield % ÷ 100)
? Example butcher vs wholesaler:
Butcher - fresh ribeye:
- Purchase price: €28/kg
- Trim loss: 8% (trimming only)
- Yield: 92%
- Actual price: €28 ÷ 0.92 = €30.43/kg
Wholesaler - whole strip:
- Purchase price: €22/kg
- Trim loss: 25% (boning, trimming)
- Yield: 75%
- Actual price: €22 ÷ 0.75 = €29.33/kg
Difference: €1.10/kg favoring wholesaler
Step 2: Add up all extra costs
Price per kilo doesn't tell the whole story. Factor in these hidden costs:
- Delivery costs: Butchers often deliver free, wholesalers require minimum orders
- Labor time: Processing whole pieces eats up hours
- Inventory costs: Bigger orders tie up more cash
- Waste: Fresh products spoil faster
? Example extra costs:
Wholesaler - extra costs per kilo:
- Labor for boning: 15 min × €20/hour = €5/kg
- Delivery costs: €50 ÷ 20kg = €2.50/kg
- Extra waste: 3% × €29.33 = €0.88/kg
Total extra: €8.38/kg
Real cost price: €29.33 + €8.38 = €37.71/kg
Step 3: Compare total cost price
Now you can compare apples to apples. Add everything it costs to get 1 kg of usable meat on the plate.
Total cost price formula:
(Purchase price ÷ Yield) + Extra costs = Real cost price per kg
? Final comparison:
Butcher total:
- Real meat price: €30.43/kg
- Extra costs: €1.50/kg (delivery only)
- Total: €31.93/kg
Wholesaler total:
- Real meat price: €29.33/kg
- Extra costs: €8.38/kg
- Total: €37.71/kg
Difference: €5.78/kg favoring butcher!
Factor in quality and consistency
Numbers aren't everything. Quality differences hit your bottom line too:
- Complaints: Poor meat creates unhappy customers
- Waste: Inconsistent quality means more spoilage
- Reputation: Good quality lets you charge premium prices
- Returns: Time and money replacing bad deliveries
From analyzing actual purchasing data across different restaurant types, butchers typically deliver more consistent quality. That consistency has real value, even if it's harder to quantify.
Cases where wholesaler wins
Wholesalers can still be cheaper if:
- You process 50+ kg weekly
- You've got skilled butchery in-house
- You have adequate cold storage for inventory
- Your supplier delivers reliably good quality
⚠️ Watch out:
Budget at least 2-3 extra hours weekly for processing whole pieces. That's €40-60 in labor costs.
How to calculate this in practice
For each supplier you're considering:
- Order a test batch of 5-10 kg
- Measure trim loss and processing time precisely
- Calculate the real cost price
- Compare against your current supplier
- Test the quality in actual dishes
That gives you concrete numbers to decide which choice maximizes profit for your specific situation.
How do you calculate the actual margin per supplier?
Calculate actual price per kilo after trim loss
Divide the purchase price by the yield percentage. With 20% trim loss, the yield is 80%, so divide by 0.80. This gives you the real price per usable kilo.
Add up all extra costs
Calculate labor time for processing, delivery costs, inventory costs and extra waste and add them together. Divide this by the number of kilos to get costs per kilo.
Compare total cost price and quality
Add actual price per kilo and extra costs for both suppliers. Also factor in quality, consistency and reliability in your decision.
✨ Pro tip
Test new suppliers with exactly 10kg of your most-used cut over 2 weeks. Measure trim loss and processing time to the minute - this gives you real numbers to compare true profitability.
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
Is a butcher always more expensive than a wholesaler?
How much trim loss should I expect from meat?
Should labor time be included in my cost calculations?
How often should I review supplier pricing?
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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