Making it yourself versus buying is often a cost question that decides between profit or loss. Many kitchens choose based on gut feeling, but the real costs hide in details you easily overlook. Here's how to calculate which choice is financially smartest for your new dish.
Why this calculation matters
A wrong choice between making it yourself and buying can cost you thousands of euros per year. Semi-finished products seem expensive, but factor in labor costs and buying often works out cheaper. The opposite is also true: making it yourself seems cheaper, but usually takes more time than you think.
💡 Example:
You're considering making mayonnaise yourself versus buying Hellmann's for your burgers:
- Making it yourself: €0.12 per portion in ingredients
- Hellmann's: €0.28 per portion
- But making it yourself takes 15 minutes for 20 portions
Which is actually cheaper?
Calculate all costs for making it yourself
Start with ingredient costs, but don't forget the hidden costs that kitchens often overlook.
Ingredient costs per portion:
- All raw materials (including salt, pepper, oil)
- Waste during preparation (5-10% markup)
- Cutting loss where applicable
Labor costs per portion:
- Prep time × hourly rate of chef
- Cleanup time × hourly rate
- Time to purchase additional ingredients
⚠️ Note:
Calculate with the actual hourly rate including social contributions. For a chef at €15 gross per hour, you calculate approximately €20 per hour in total costs.
Calculate the costs of the semi-finished product
Semi-finished products often carry hidden costs beyond the purchase price that you need to factor into your comparison.
Direct costs:
- Purchase price per portion
- Any packaging costs
- Extra delivery costs for special products
Indirect costs:
- Storage space (refrigeration/freezer)
- Energy costs for storage
- Waste due to short shelf life
💡 Example mayonnaise calculation:
Making it yourself (20 portion batch):
- Ingredients: €2.40 (€0.12 per portion)
- Labor: 15 min × €20/hour = €5.00 (€0.25 per portion)
- Total making it yourself: €0.37 per portion
Hellmann's buying: €0.28 per portion
Conclusion: Buying is €0.09 per portion cheaper
Compare quality and consistency
Cost isn't everything. Quality and consistency affect your guest satisfaction and therefore your revenue in the long term.
Advantages of making it yourself:
- Full control over ingredients
- Unique flavor as a distinguishing element
- Flexibility in seasonal adjustments
Advantages of semi-finished product:
- Always the same quality
- No dependence on team cooking skills
- Faster and easier during busy periods
Make the final calculation
Add up all costs and compare not just per portion, but on an annual basis to see the real difference. Based on real restaurant P&L data, most kitchens are surprised by the actual numbers.
💡 Example annual calculation:
If you sell 50 burgers per week (2,600 per year):
- Difference: €0.09 per portion
- Per year: €0.09 × 2,600 = €234 savings by buying
- Plus: 65 hours less work per year
Buying clearly wins
Use this formula: (Cost making it yourself - Cost buying) × Number of portions per year = Annual difference
Situations where making it yourself wins
Despite higher costs, making it yourself can still be the right choice in specific situations.
- Your signature dish needs a unique flavor
- Guests appreciate the craftsmanship and pay extra for it
- You have many quiet moments when the chef is present anyway
- No suitable semi-finished product available in the quality you want
⚠️ Note:
Always calculate with realistic time estimates. Chefs often underestimate how much time preparation actually takes, especially if they don't do it daily.
How do you calculate making it yourself vs buying? (step by step)
Calculate all costs of making it yourself
Add up ingredient costs and labor costs. Calculate €20 per hour total labor costs and add 5-10% waste to ingredients.
Calculate total costs of semi-finished product
Take the purchase price per portion and add any extra costs such as special storage or shorter shelf life.
Compare on an annual basis
Multiply the difference per portion by your expected annual volume. This shows the real financial impact.
✨ Pro tip
Calculate this comparison for your 3 most expensive ingredients over a 6-month period to see real patterns. You'll often discover that your time estimates were off by 40% or more.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I include labor costs if my chef is there anyway?
Yes, always. That time could be spent on other tasks. Calculate with the actual costs per hour including social contributions.
How do I account for seasonal fluctuations in ingredient prices?
Take the average over the year, or calculate per season separately. Pay special attention to products that fluctuate more than 30% in price.
What if the semi-finished product quality doesn't match my standards?
Then the choice is made and you make it yourself. Focus on efficient preparation: larger batches, smart planning, right equipment. Quality standards can't be compromised for cost savings.
📚 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.
Develop recipes with instant cost calculation
Every new recipe has a cost price. KitchenNmbrs calculates it while you build the recipe — so you know if it's profitable before it hits the menu. Try it free.
Start free trial →