Turning excess inventory into revenue beats tossing ingredients in the dumpster. The trick lies in pricing your surplus fairly - high enough to recover costs, low enough that buyers see value. You need a clear formula that works for both sides.
Why selling ingredients to colleagues is smart
Every kitchen occasionally overorders or faces ingredients nearing expiration. Rather than accepting total loss, you can move these products to other food service businesses. This practice happens daily between restaurants, especially those clustered in the same district.
- You prevent waste and recover investment
- You help a colleague who needs ingredients
- You build a network for future purchasing
The basic formula for resale price
Leftover ingredient pricing differs from standard markup calculations. Since you've already bought these items for internal use, any recovery represents salvaged value from what would be waste.
💡 Example:
You have 5 kg of salmon left that you purchased for €18/kg:
- Your purchase price: €18/kg
- Resale price: €15/kg (83% of purchase price)
- Revenue: 5 kg × €15 = €75
You save €75 that would otherwise be thrown away
Different pricing strategies
Strategy 1: Purchase price minus 15-20%
Most operators use this approach. You price at 80-85% of your original cost. The buyer gets a discount, you avoid complete loss.
Strategy 2: Market price minus discount
Research current supplier rates and offer 10-15% below market. This approach works particularly well for shelf-stable items.
⚠️ Note:
Always calculate with your actual purchase price, including any discounts or volume pricing you received from your supplier.
Margin calculation for resale
Reselling surplus ingredients requires a different margin calculation than standard menu pricing. From years of working in professional kitchens, I've seen operators make the mistake of applying normal markup formulas to surplus sales.
Formula:
Margin = ((Resale price - Original purchase price) / Resale price) × 100
💡 Example calculation:
Beef tenderloin resale:
- Your purchase price: €28/kg
- Resale price: €24/kg
- Margin: ((€24 - €28) / €24) × 100 = -16.7%
Negative margin, but you prevent 100% loss!
VAT and administration
Don't overlook VAT calculations on your resale price. Food products carry 9% VAT in the Netherlands.
- Resale price €20/kg excl. VAT becomes €21.80 incl. VAT
- Create an invoice or receipt for administration
- Keep track of what you resell for your own bookkeeping
Making practical agreements
Establish clear terms regarding quality standards, delivery logistics, and payment:
- Check the quality together upon delivery
- Agree on who handles transport
- Make agreements about payment terms
- Exchange contact details for future deals
💡 Practical tip:
Start a WhatsApp group with other restaurants in your area. That way you can quickly offer ingredients or ask what others have left over.
How do you calculate the resale price? (step by step)
Check your actual purchase price
Look at your invoice to see what you actually paid per kilo or per piece, including any discounts. This becomes your starting point for the calculation.
Determine your resale price
Calculate 80-85% of your purchase price for fresh products that need to move quickly. For shelf-stable products you can stay closer to your purchase price.
Calculate the margin and VAT
Even if the margin is negative, you prevent total loss. Add 9% VAT to your resale price and create an invoice for administration.
✨ Pro tip
Track which 3-5 ingredients you consistently oversupply each month, then build relationships with specific restaurants that regularly need those items. This creates predictable revenue streams from what used to be waste.
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
Can I resell ingredients that are about to expire?
Yes, as long as they're still within the expiration date and you're honest about the remaining shelf life. Always communicate this clearly with the buyer so they can plan usage accordingly.
Do I always have to sell below my purchase price?
Not necessarily. If your ingredients have extended shelf life and the buyer needs them urgently, you might ask full purchase price. Market conditions and timing affect pricing flexibility.
How do I find other restaurants that want to buy ingredients?
Start with nearby establishments, ask suppliers for connections, or create a local WhatsApp group. Many food service operators already network through industry associations and can facilitate introductions.
📚 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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