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Purchasing & suppliers

Price creep

Price creep is a series of small supplier increases — 2% here, 3% there — none of which is worth a phone call and which compound into a serious margin problem. Twelve monthly increases of 1.5% is 19.6% over a year on an item nobody ever flagged.

Worked example · Eighteen months on one item

Starting price
$8.40/lb
Average increase per delivery cycle
+1.2%
Delivery cycles
18
Ending price
$10.41/lb
Dish using 6 oz, sold 180/week
cost +$0.75/plate
Annual margin impact, one dish
$7,020

No single increase would have triggered a conversation. The cumulative one is a line cook's wages.

The two checks that catch it

  1. Compare unit price to the same item 90 days ago, not to last week. Creep is invisible at one-week resolution and obvious at ninety.
  2. Set a threshold and let it alert you. Any item up more than 8% in a quarter gets looked at. A rule with a number in it is the only version of this that survives a busy month.

Worth separating from market movement: when a commodity genuinely moves, every supplier moves with it and the answer is repricing the dish, not changing vendors. When one vendor drifts and the market didn't, that's a conversation. Our food cost index exists to tell those two cases apart.

Every invoice line, compared to the last one automatically.

Marji reads your invoices, tracks unit price per item over time, and tells you which dishes crossed your margin target because of it.

Try it free →

The guide that works it through

Why Is My Food Cost So High? A Diagnostic

Seven causes of a high restaurant food cost, in the order they're usually the answer — with the check that confirms or eliminates each one in under an hour.

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