The cheapest supplier per kilo rarely translates to the lowest dish cost. Trim loss, quality variations, and processing requirements determine your real expenses. Smart restaurant operators evaluate quotes based on actual portion costs rather than simple price comparisons.
Why price per kilo misleads restaurant owners
One supplier offers steak for €18/kg, another for €22/kg. Seems obvious to pick €18? Think again. That cheaper option might carry more fat and waste, pushing your usable meat cost to €28/kg.
💡 Example:
Steak comparison:
- Supplier A: €18/kg, 25% waste = €24/kg usable meat
- Supplier B: €22/kg, 10% waste = €24.44/kg usable meat
Difference: only €0.44/kg, but A seemed much cheaper
Calculate true cost price per portion
Focus on portion costs, not kilo prices. Add every ingredient - garnishes, sauces, oils included.
Formula for true cost price:
Cost price per portion = (Purchase price ÷ Yield %) × Portion weight + Other ingredients
💡 Salmon example:
180 gram portion:
- Supplier A: €16/kg, 45% trim loss → €29.09/kg fillet
- Supplier B: €20/kg, 35% trim loss → €30.77/kg fillet
- Portion cost A: €5.24 + garnish €1.50 = €6.74
- Portion cost B: €5.54 + garnish €1.50 = €7.04
A is €0.30 cheaper per portion despite higher waste
Factor quality into your food cost equation
Superior quality often supports higher menu prices. Premium steak might justify €35 instead of €28. Calculate whether that premium compensates for increased purchase costs.
- Standard steak: €8 purchase, €28 selling = 28.6% food cost
- Premium steak: €12 purchase, €35 selling = 34.3% food cost
- Difference: 5.7 percentage point higher food cost for premium
⚠️ Note:
Always calculate with selling prices excluding VAT. €28 incl. 9% VAT = €25.69 excl. VAT for your food cost calculation.
Account for processing time differences
Whole fish demands more prep than pre-filleted portions. Include labor costs in your ingredient comparison for accurate results. From years of working in professional kitchens, I've seen restaurants choose "cheaper" whole products only to discover their labor costs eliminated any savings.
Calculate labor costs:
Hourly wage chef × Processing time ÷ Number of portions = Extra cost per portion
💡 Fish processing example:
Processing 10 kg whole fish into 20 portions:
- Processing time: 1.5 hours
- Chef hourly wage: €18
- Extra cost: €18 × 1.5 ÷ 20 = €1.35 per portion
Add this to your ingredient costs for fair comparison
Build dish-level comparison tables
Skip product-level comparisons. Compare suppliers at the dish level instead. Create tables showing complete portion costs for your key menu items.
- Main ingredient (after trim loss)
- Garnish and sides
- Sauces and oil
- Processing time (labor costs)
- Total cost price per portion
- Food cost percentage at current selling price
Validate quality through small test orders
Order small quantities first to test quality and measure trim loss. Verify actual yield before committing to large contracts.
Many restaurant operators use systems like tools to compare different suppliers based on real portion costs rather than simple kilo prices.
How do you compare suppliers on food cost? (step by step)
Calculate actual kilo price after waste
Divide the purchase price by the yield percentage. At €20/kg and 30% waste: €20 ÷ 0.70 = €28.57/kg actual price.
Calculate cost price per portion
Multiply actual kilo price by portion weight and add all other ingredients. Don't forget garnish, sauces and oil.
Calculate food cost percentage
Divide total portion costs by your selling price excluding VAT and multiply by 100. Choose the supplier with the best food cost for your most important dishes.
✨ Pro tip
Focus your supplier comparison on your top 8 revenue-generating dishes over the past 3 months. These items drive 75% of your food cost impact and deserve the most attention.
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 supplier with the lowest food cost?
Not necessarily. Quality differences can justify higher selling prices, improving your overall profit margin. Focus on total profit per dish, not just food cost percentage.
How often should I re-evaluate supplier quotes?
Review quarterly or whenever suppliers adjust pricing. Market conditions shift regularly, so last year's optimal choice might no longer serve you well.
What if a cheaper supplier delivers inconsistently?
Unreliable deliveries cost more than you save through lower prices. Factor delivery reliability into your decision, especially for critical ingredients that could shut down menu items.
How do I accurately measure trim loss with new suppliers?
Order small test batches and weigh products before and after processing. Document exact waste percentages to calculate true usable costs per kilogram.
📚 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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