Most restaurant owners think the cheapest supplier saves money – that's wrong. Supplier A looks cheaper at €8/kg but delivers smaller portions. Supplier B charges €10/kg but offers better quality with less cutting loss.
Why purchase price misleads you
Most restaurant owners pick the cheapest supplier. Every euro counts, right? But purchase price is just one piece of the puzzle. What happens when that cheap supplier delivers smaller portions? Or lower quality that creates more waste?
💡 Example:
You're comparing two salmon fillet suppliers:
- Supplier A: €18/kg - small fillets, lots of cutting loss
- Supplier B: €22/kg - large fillets, minimal cutting loss
At first glance, A is €4 cheaper. But is it really?
Calculate actual cost per portion
Fair comparisons require cost per portion calculations. You'll need:
- Purchase price per kg
- Portion size (grams per plate)
- Cutting loss percentage
- Waste from quality issues
The formula: Cost per portion = (Purchase price / 1000g) × Portion weight × (1 + Cutting loss%) × (1 + Waste%)
💡 Example calculation:
Salmon portion: 180 grams
Supplier A:
- Price: €18/kg = €0.018 per gram
- Cutting loss: 15% (small fillets)
- Waste: 8% (lower quality)
Cost per portion: €0.018 × 180g × 1.15 × 1.08 = €4.02
Supplier B:
- Price: €22/kg = €0.022 per gram
- Cutting loss: 8% (large fillets)
- Waste: 3% (better quality)
Cost per portion: €0.022 × 180g × 1.08 × 1.03 = €4.46
Supplier A seemed €4 cheaper per kilo, but per portion it's only €0.44 difference. That's 11% instead of 22%.
Consider other crucial factors
Cost per portion matters, but other factors can make or break your decision:
- Reliability: Do they deliver on time? Quality stays consistent?
- Flexibility: Can you order extra on short notice?
- Payment terms: 14 days vs 30 days affects your cash flow
- Minimum orders: Are you forced to buy more than needed?
- Delivery costs: Free from €X or always charges?
⚠️ Watch out:
A supplier that's 20% cheaper but delivers late 1 out of 10 times can cost you more than they save. You'll scramble for last-minute alternatives at higher prices.
Run parallel tests
Want the real comparison? Test both suppliers for a month on your key products. After managing kitchen operations for nearly a decade, I've learned this approach reveals the truth. Track:
- Real cost per portion
- Late delivery count
- Quality complaint frequency
- Waste amounts
This shows which supplier actually works in your kitchen.
💡 Example test result:
After 1 month of testing:
- Supplier A: €4.02/portion, 3× late, 12% waste
- Supplier B: €4.46/portion, 0× late, 3% waste
Supplier B costs €0.44 more per portion but saves you stress and waste. For many owners, that extra €0.44 is worth every cent.
Use digital tracking systems
Excel sheets with supplier data get outdated fast. Prices change, you forget updates, and suddenly you're calculating with old numbers.
Systems like KitchenNmbrs automatically track which supplier you use per ingredient, current prices, and real cost per portion. You instantly see which supplier works for which product.
How do you compare suppliers? (step by step)
Gather all costs per supplier
Note not just the purchase price per kg, but also delivery costs, minimum order quantity and payment terms. These 'hidden' costs can make the difference between suppliers.
Calculate cost per portion including loss
Use the formula: (Purchase price / 1000g) × Portion weight × (1 + Cutting loss%) × (1 + Waste%). This shows you the actual costs on your plate, not just the purchase price.
Test both suppliers in parallel for a month
Buy the same product from both suppliers and track: cost per portion, delivery reliability, quality and waste. This shows you which works best in practice.
✨ Pro tip
Test both suppliers on your 3 highest-volume ingredients for exactly 2 weeks. Track waste percentages daily – this reveals the true cost difference faster than any spreadsheet calculation.
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
Should I always choose the cheapest supplier?
No, the cheapest purchase price doesn't always mean the lowest cost per portion. Factor in cutting loss, waste and reliability in your comparison.
How often should I compare suppliers?
Check your main suppliers at least quarterly. Prices change regularly, and new suppliers can offer interesting alternatives.
What if a supplier suddenly raises their prices?
Immediately calculate what this means for your food cost per dish. If you go above 35% food cost, you either need to raise your menu prices or find another supplier.
Can I negotiate supplier prices?
Yes, especially with larger orders or long-term contracts. Ask for discounts on higher volumes or longer payment terms if your cash flow allows.
How do I avoid becoming dependent on one supplier?
Always keep at least two suppliers per main ingredient. That way you have a backup if problems arise, and you can keep comparing prices.
What's the biggest mistake when switching suppliers?
Not testing portion yields first. A supplier might seem cheaper but if their chicken breasts are 20% smaller, your actual cost per plate goes up significantly.
📚 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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