Most restaurant owners think switching to a cheaper supplier automatically equals instant savings. That's rarely the case. True savings calculations require factoring in quality differences, delivery costs, and hidden expenses that can turn a "bargain" into a costly mistake.
Why purchase price isn't the whole story
Plenty of restaurant owners fixate on price per kilo or unit. That's just scratching the surface of your real costs.
- Quality differences: Cheaper meat can have more trim loss
- Packaging sizes: Different portions mean different unit costs
- Delivery costs: Free delivery vs. delivery charges
- Payment terms: 30 days vs. cash can affect cashflow
⚠️ Watch out:
A supplier that seems 10% cheaper can end up being more expensive due to lower quality or higher additional costs.
Calculate total costs per supplier
Fair comparisons require including all costs. Grab your 10 most purchased products and compare total monthly expenses.
💡 Example comparison:
Supplier A (current) vs. Supplier B (new) - monthly:
- Beef: €800 vs. €720
- Fish: €600 vs. €650
- Vegetables: €400 vs. €380
- Dairy: €300 vs. €290
- Delivery costs: €0 vs. €40
Total A: €2,100 | Total B: €2,080
Savings: €20 per month = €240 per year
Factor in trim loss and quality
Cheaper products with excessive waste often cost more than premium options. Always test small quantities before making complete switches. I've seen this mistake cost the average restaurant EUR 200-400 per month - owners get excited about lower unit prices but ignore yield differences.
💡 Trim loss example:
Salmon comparison:
- Supplier A: €18/kg, 45% trim loss → €32.73/kg fillet
- Supplier B: €16/kg, 55% trim loss → €35.56/kg fillet
Supplier A is €2.83/kg cheaper despite higher purchase price!
Calculate the impact on your food cost
A 2% saving on purchases doesn't automatically translate to 2% lower food cost. It depends on usage volume for that specific product.
Formula: Food cost savings = (Savings per kg × Kg per month) / Monthly revenue × 100
💡 Food cost impact:
You save €2/kg on beef:
- Usage: 50 kg/month
- Monthly revenue: €25,000
- Savings: €2 × 50 = €100/month
Food cost drops by: €100 / €25,000 × 100 = 0.4%
Don't forget the hidden costs
Switching suppliers often involves one-time expenses that need recovery time.
- Old supplier inventory: Still needs to be used up
- New contracts: Possible deposit or minimum purchase requirements
- Team training: Different products means different preparation
- Menu adjustments: If quality is different
⚠️ Watch out:
Calculate how many months it takes to recoup the switching costs. Only then will you see the real profit.
Test before switching completely
Start with a trial period of 2-4 weeks. Order from both suppliers and compare real-world performance.
- Keep track of how much you actually use of each product
- Pay attention to feedback from your chef and guests
- Measure actual trim losses and portion sizes
- Check if deliveries arrive on time
Food cost calculators can track exactly what the real cost per dish becomes with the new supplier during this trial period.
How do you calculate supplier savings? (step by step)
Make a list of your top 10 products
Take your 10 most purchased ingredients and note how much you buy per month. These products account for 80% of your purchases.
Compare all costs, not just purchase price
For each supplier, add up: product price + delivery costs + any service charges. Also account for differences in packaging sizes.
Test quality in practice
Order a small quantity and measure actual trim loss. Calculate the real cost per usable kilo after processing.
Calculate total monthly savings
Multiply the savings per product by your monthly usage. Add up all savings for the complete picture.
Deduct switching costs from the first months
Calculate how many months it takes to recoup one-time costs (old inventory, deposit). Only after that will you see real profit.
✨ Pro tip
Track your actual cost per dish for 3 weeks during the trial period using a detailed spreadsheet. You'll spot exactly which menu items become more profitable and which ones might need price adjustments due to ingredient changes.
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 need to switch all suppliers at once?
No, start with one or two product categories where you expect the biggest savings. This approach lets you test carefully without disrupting your entire purchasing workflow.
How long should I test before switching completely?
Test for at least 2-4 weeks to experience different deliveries. Pay special attention to consistency in quality and delivery time. Some suppliers perform well initially but struggle with consistency.
What if the new supplier raises prices after a few months?
Make agreements about price stability in your contract. Ask for price guarantees for at least 6-12 months. Get these commitments in writing before switching.
Can I go back to my old supplier if it doesn't work out?
Usually yes, but old suppliers don't always offer the same terms. Don't end old relationships until you're completely sure about the new one.
How do I handle different packaging sizes between suppliers?
Convert everything to cost per gram or per portion for accurate comparisons. A 2kg package vs. 2.5kg package can significantly affect your actual unit costs.
Should I negotiate with my current supplier before switching?
Absolutely - use competitive quotes as negotiation tools. Your current supplier might match or beat new pricing to keep your business, saving you the hassle of switching.
📚 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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