87% of restaurants lose money on food costs because they don't track supplier price changes systematically. Without a proper system, you'll forget what you agreed to pay in three months. Your calculations will be off, and profits disappear without you noticing.
Why recording price agreements matters so much
Your supplier calls: "Beef is going from €18 to €21 per kilo." You think: I'll remember that. Three weeks later you're still calculating your steak's food cost at €18. Result: you lose €3 per kilo without knowing it.
⚠️ Watch out:
Suppliers raise prices 4-6 times a year. Without a system, you're always playing catch-up.
The three pillars of price registration
A solid system has three components that work together:
- Ingredient database: All products you purchase
- Supplier information: Who supplies what at what price
- Price history: When which price changed
These three need to connect to your recipes, so every price change automatically flows through to your food cost calculation.
Step 1: Build your ingredient database
Start with your 20 most important ingredients. These are usually:
- Meat and fish (biggest cost item)
- Cheese and dairy
- Olive oil, butter (you use everywhere)
- Special ingredients (expensive per kilo)
💡 Example ingredient registration:
Beef entrecote:
- Supplier: Van Dam Butcher
- Unit: per kg
- Current price: €24.50
- Effective date: March 15, 2024
- Previous price: €22.80 (until March 14)
Step 2: Link suppliers to ingredients
You can buy many ingredients from multiple suppliers. Record who your main supplier is and who your backup is.
💡 Example supplier linking:
Salmon fillet:
- Main supplier: North Sea Fish (€19.50/kg)
- Backup: Metro Wholesale (€21.20/kg)
- Seasonal alternative: Local fisherman (€17.80/kg, summer only)
This way you always know which price to use in your food cost calculation.
Step 3: Register price changes systematically
Every time a supplier gives you a new price, record:
- Which product
- Old price
- New price
- Effective date
- Reason (season, inflation, quality improvement)
⚠️ Watch out:
Apply price changes immediately to your recipes. Otherwise you'll be calculating with wrong numbers for weeks.
Linking to food cost calculation
The real advantage comes from a pattern we see repeatedly in restaurant financials: price agreements that automatically flow through to food costs. Then you immediately see:
- Which dishes become more expensive
- How much you need to adjust your menu price
- If you should switch to a different supplier
💡 Example impact calculation:
Beef rises from €18 to €21 (+16.7%):
- Steak (200g): food cost rises from €3.60 to €4.20
- At selling price €28: food cost rises from 28% to 33%
- Action: raise menu price to €32 or find another supplier
Digital vs manual tracking
You can track price agreements in:
- Excel: Clear, but you have to manually recalculate food costs
- Notebook: Quick, but hard to look things up
- Hospitality app: Automatic recalculation in recipes
The advantage of food cost software is that price changes automatically flow through all your recipes. You immediately see which dishes become too expensive.
Negotiating with suppliers
If you track price history, you can negotiate better:
- "You've already raised prices 3 times this year"
- "A competitor offers the same quality for €2 less"
- "At these volumes I expect a discount"
💡 Example negotiation:
"Your cheese went from €8.50 to €9.20 to €9.80 in 6 months. That's a 15% increase. My competitor is asking €9.40. Can we meet at €9.50?"
How do you record price agreements? (step by step)
Make a list of your top 20 ingredients
Start with your most expensive and most-used ingredients. For each ingredient note: name, unit (kg, liter, piece), current price and main supplier.
Register every price change immediately
When a supplier gives you a new price, note: product, old price, new price, effective date and reason. Apply this immediately to your food cost calculation.
Link prices to your recipes
Make sure every price change automatically flows through to the food cost of your dishes. This way you immediately see which dishes become more expensive and whether you need to adjust your menu price.
✨ Pro tip
Create written contracts for your 8 most expensive ingredients every quarter. Email confirmations aren't enough - suppliers "forget" verbal agreements when markets shift.
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
How often should I update prices?
Every time your supplier gives you a new price. On average this happens 4-6 times per year per supplier. Apply it immediately, otherwise you'll be calculating with wrong numbers for weeks.
What if I have multiple suppliers for the same product?
Register all prices, but mark your main supplier. This way you can quickly switch if one becomes too expensive and you always know which price to use in your food cost calculation.
How do I keep old prices?
Never throw away old prices. You need them for negotiations and to spot trends. Keep at least 2 years of history per ingredient.
What if my supplier suddenly asks 20% more?
First check other suppliers for the same product. Calculate the impact on your food cost. If there's no alternative, adjust your menu price or find a substitute ingredient.
📚 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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