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📝 Purchasing, suppliers & strategy · ⏱️ 2 min read

How do I calculate the margin on ready-made sauces versus making them from scratch?

📝 KitchenNmbrs · updated 14 Mar 2026

Over 70% of restaurants miscalculate their sauce costs by ignoring labor expenses. Most kitchens stick to scratch cooking out of habit, never crunching the real numbers. Factor in wages, prep time, and utilities - suddenly that €4.50 hollandaise jar looks pretty reasonable.

The hidden expenses of scratch cooking

Scratch cooking costs more than ingredient tallies suggest. You're missing labor expenses, gas bills, dishwashing time, and opportunity costs - what else could your chef accomplish instead?

💡 Example: Making hollandaise from scratch

For 1 liter of hollandaise you need:

  • Butter: 500g at €8/kg = €4.00
  • Egg yolks: 6 pieces at €0.25 = €1.50
  • Lemon, spices: €0.50
  • Chef 20 minutes at €25/hour = €8.33
  • Gas, dishwashing: €0.50

Total: €14.83 per liter

Ready-made: the actual price tag

Quality hollandaise from wholesalers runs €12-15 per liter. But here's the kicker - just heat and go. Your chef's freed up for more critical tasks.

💡 Example: Ready-made hollandaise

  • Purchase price: €13.50 per liter
  • Chef 2 minutes heating at €25/hour = €0.83
  • Total: €14.33 per liter

Difference from making it yourself: €0.50 cheaper and 18 minutes saved.

Your comparison formula

Run this calculation for any sauce comparison:

Homemade = Ingredient costs + (Prep time × Chef hourly wage) + Utility expenses

Ready-made = Purchase price + (Heating time × Chef hourly wage)

⚠️ Watch out:

Hidden expenses bite hard: dishwashing labor, ruined batches, spoiled inventory. Ready-made eliminates these risks entirely.

Scratch cooking wins here

From tracking this across dozens of restaurants, homemade typically beats ready-made for:

  • Basic sauces (vinaigrette, marinara)
  • High-volume needs (2+ liters daily)
  • Signature recipes that differentiate your brand
  • Slow periods with available kitchen capacity

Ready-made makes financial sense for

Commercial products often win with:

  • Technical sauces (hollandaise, béarnaise)
  • Low-volume usage (under 0.5 liter daily)
  • Peak service periods where speed matters
  • Temperamental sauces prone to breaking

💡 Example: Tomato sauce for pizza

At 50 pizzas per day:

  • Homemade: €0.12 per pizza (bulk tomato purchase)
  • Ready-made: €0.28 per pizza
  • Difference: €0.16 × 50 = €8 per day

Annual impact: €2,400 savings through scratch production.

Beyond the numbers

Cost isn't your only consideration. Evaluate these factors too:

  • Flavor profile: does it match your concept?
  • Reliability: identical results every service
  • Storage life: waste reduction potential
  • Customization: can you tweak recipes?

Food cost calculators help you run both scenarios and identify your most profitable approach.

How do you compare making it yourself versus buying? (step by step)

1

Calculate the cost of making it yourself

Add up: ingredient costs + (preparation time × chef hourly rate) + energy costs. Don't forget to include the time for mise-en-place and dishwashing.

2

Calculate the cost of ready-made

Add up: purchase price + (heating time × chef hourly rate). Also check if there are minimum order requirements that increase your inventory costs.

3

Compare and decide per sauce

Make the comparison per sauce and per volume. A sauce you use 2 liters of per week can work out differently than one you need 10 liters of.

✨ Pro tip

Run side-by-side cost comparisons on your 3 most-used sauces every quarter - ingredient prices shift constantly, and what made sense 6 months ago might be costing you money today.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

Try KitchenNmbrs free →

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Frequently asked questions

Is ready-made always more expensive than homemade?

Not at all. Labor costs flip the equation for complex sauces, especially in smaller quantities. You'd be surprised how often ready-made wins financially.

How do I calculate labor costs per minute?

Take your chef's gross hourly wage and divide by 60. At €25 hourly, that's €0.42 per minute. Don't forget to add roughly 25% for social charges and benefits.

What if my guests notice I'm using ready-made?

Choose premium commercial products or use them as flavor bases. Finish with fresh herbs, wine reduction, or other signature touches that make them your own.

Should I switch all sauces at once?

Start with one high-volume sauce and test during slower service periods. Monitor guest feedback and kitchen workflow before expanding the program.

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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