Restaurants and hospitality

How we worked it out

Average monthly saving

£262

£3,142 a year

In year five, every month

£544

Over five years

£15,709

Price creep over time

Every supplier's prices rise with the market. Price creep is the extra on top: overcharging, smaller packs and rises nobody questions. Supplee shows you the cheapest price across your suppliers, so you pay what the market charges and not the creep.

Without Supplee: market price plus creep (4.2% a year in all) With Supplee: you pay the market price (2.7% a year)

How much more than the market price you pay each month. The shaded area is what avoidable creep costs. Hover or tap the graph to see any month.

The numbers we used

Input	Symbol	Value	Source
Annual turnover of a typical independent	$T$	£200,000	ONS turnover bands for UK food and drink businesses
Share of turnover spent on supplies	$p$	38% (32% food and drink, 6% other supplies)	Typical UK hospitality cost structure
Market price inflation	$i$	2.7% a year	Foodservice Price Index, August 2026
Avoidable price creep	$c$	1.5% a year	Our estimate: overcharging, pack shrink and unchallenged rises
Typical time with one supplier	$N$	60 months (5 years)	RestaurantOwner purchasing survey of 550+ independent operators

The working

1Monthly supplier spend

S = \frac{T \times p}{12}

S = \frac{£200 , 000 \times 0.38}{12} = £6, 333.33 a month

2Monthly price growth

The yearly rates are converted to monthly rates: market prices only, and market prices plus creep.

m_{m} = (1 + i)^{1/12} - 1 m_{t} = (1 + i + c)^{1/12} - 1

m_{m} = (1.027)^{1/12} - 1 = 0.2223% a month

m_{t} = (1.042)^{1/12} - 1 = 0.3434% a month

3Extra cost in any month k

Market inflation affects every supplier, so it isn't counted as a saving. Only the gap between the two price paths is.

C_{k} = S [(1 + m_{t})^{k} - (1 + m_{m})^{k}]

4Total and average over the supplier cycle

Add up every month from 1 to 60, then divide by 60.

Average monthly saving = \frac{1}{60} k = 1 \sum 60 C_{k} \approx £262

5Worked example: the cost in month 60

C_{60} = £6, 333.33 \times [(1.042)^{5} - (1.027)^{5}]

= £6, 333.33 \times (1.22840 - 1.14249) = £6, 333.33 \times 0.08591 \approx £544

Results

Point in time	Extra cost that month	Total lost so far
Month 1	£7.67	£7.67
End of year 1	£95	£611
End of year 2	£197	£2,405
End of year 3	£305	£5,461
End of year 4	£421	£9,866
End of year 5	£544	£15,709
Average monthly saving: £15,709 ÷ 60		£261.81, about £262 a month (£3,142 a year)

These are modelled estimates for a typical UK independent hospitality business. Your savings depend on your spend and suppliers.