I used to think supplier evaluations were too expensive until I realized my 'cheap' approach was costing me €400 monthly. Most restaurant owners underestimate evaluation costs and end up testing too few suppliers. Here's exactly how to calculate the real costs of supplier evaluation, including trial orders and time investment.
Why calculate supplier evaluation costs?
A thorough supplier evaluation seems expensive, but the wrong suppliers cost you much more. If your current supplier charges 15% more than alternatives, you're losing €450 monthly on €3,000 in purchases. That's €5,400 annually.
By calculating evaluation costs upfront, you can:
- Set a realistic budget
- Determine how many suppliers you'll test
- Estimate the ROI of the evaluation
- Allocate time more efficiently
The 4 cost components of supplier evaluation
A complete supplier evaluation consists of 4 cost items you need to include:
💡 Example cost breakdown:
Evaluation of 3 new vegetable suppliers:
- Trial orders: €180 (3x €60)
- Time investment: €200 (8 hours at €25)
- Extra logistics: €45
- Administration: €25
Total: €450
Trial orders: the biggest cost item
Trial orders typically represent 60-80% of your evaluation costs. Calculate this way:
Trial order costs = Number of suppliers × Average order × Waste percentage
⚠️ Note:
Calculate with 30-50% waste percentage. You can't use all trial products because quality, taste, or format differs from your current products.
Per supplier you ideally order:
- 3-5 main products you use frequently
- 1-2 new products to test assortment
- Minimum quantities (often 1 package per product)
Value your time investment at an hourly rate
Your time costs money, even if you don't pay yourself wages. Calculate with €20-30 per hour for evaluation time:
💡 Time spent per supplier:
- Initial contact and quote: 30 minutes
- Placing order: 15 minutes
- Checking delivery: 20 minutes
- Testing products in kitchen: 45 minutes
- Evaluation and decision: 30 minutes
Total: 2.5 hours per supplier
With 3 suppliers at €25/hour: 7.5 hours × €25 = €188
Extra logistics and administration costs
Don't forget these 'hidden' costs:
- Extra deliveries: More suppliers = more deliveries to check
- Storage: Trial products take up refrigeration space
- Administration: New supplier codes, contracts, VAT numbers
- Team training: Chef and kitchen staff need to learn new products
Calculate 10-15% of your total evaluation costs for this.
ROI calculation: determining if evaluation pays off
From analyzing actual purchasing data across different restaurant types, an evaluation pays off if monthly savings exceed evaluation costs divided by 12:
Minimum monthly savings = Evaluation costs ÷ 12
💡 ROI example:
Evaluation costs: €450
Minimum monthly savings: €450 ÷ 12 = €38
If new supplier saves €50/month, you'll recover the evaluation in 9 months. Every year after that nets €600 savings.
How to minimize evaluation costs?
Smart strategies to cut costs:
- Start with 2 suppliers: Don't test 5 suppliers at once
- Focus on volume products: Evaluate your largest purchase items first
- Use trial products maximally: Plan menus around trial products
- Combine evaluations: Test vegetables and fruit from the same supplier together
⚠️ Note:
Don't cut corners on quality control. A bad supplier will ultimately cost you much more than a thorough evaluation.
How do you calculate supplier evaluation costs? (step by step)
Determine number of suppliers and products per supplier
Choose 2-3 suppliers to test. Select 3-5 products per supplier that you use frequently, plus 1-2 new products. Note the minimum order quantities.
Calculate trial order costs including waste percentage
Multiply number of suppliers × average order × 1.4 (for 40% waste percentage). This gives you the total costs of all trial orders.
Value your time investment at €25 per hour
Calculate 2.5 hours per supplier for contact, ordering, checking, and testing. Multiply by number of suppliers and €25/hour for total time costs.
Add extra logistics and administration costs
Add 10-15% of your total costs for extra deliveries, storage, administration, and team training. This gives you the complete evaluation costs.
✨ Pro tip
Track your evaluation costs using a food cost calculator (like KitchenNmbrs) for the first 90 days after switching suppliers. This gives you accurate ROI data and helps justify future evaluations.
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 many suppliers should I evaluate at once?
Start with 2-3 suppliers. More becomes unmanageable and expensive. You can always do a second round later if none of the first suppliers work out.
Can I just throw away trial products if they're not good?
Try to use trial products maximally by planning specials or staff meals around them. Wasted food is wasted money, but do calculate with 30-40% loss.
How often should I evaluate suppliers?
For main suppliers: every 2-3 years. For smaller suppliers: every 3-5 years. Or sooner if you notice prices or quality declining.
What if the evaluation yields nothing?
Then you've confirmed that your current supplier is good. This knowledge is also valuable and prevents you from switching to a worse supplier later.
Should I evaluate multiple product categories simultaneously?
Only if they're related categories from potential multi-category suppliers. Testing produce and meat together makes sense, but don't mix produce with cleaning supplies.
Can I deduct evaluation costs from taxes?
Yes, evaluation costs are business expenses. Keep receipts from trial orders and note time spent. Ask your accountant for advice on the correct booking.
📚 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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