How Many Suppliers Should You Have in a Hospitality Business?
“How long is a piece of string?” That’s usually the answer when someone asks how many suppliers a hospitality business should have. But while the "perfect" number will always depend on your size, category mix, and setup, there are some common-sense benchmarks and real-world insights that can help you make better decisions.
Let’s break it down—using Double Puc Cafe as a working example.
Real-World Numbers: Double Puc Cafe
Double Puc is a multi-site hospitality operator with 4 locations. We currently purchase around 390 SKUs spanning:
Food and drink
Packaging and disposables
Cleaning products and sundries (things like mop heads, blue roll, and detergents—items that wear out or are consumed regularly but don’t go into your gross profit margin calculations)
This total spend is just over £60,000 per month, split across 18 suppliers. That means:
Average SKU spend: ~£160/month
Supplier spend range: £130 to over £9,000/month
Average spend per supplier: ~£3,400/month
This variation reflects both the diversity of categories and the realities of trading at scale.
Why Supplier Count Matters
Supplier count impacts your:
Price leverage: Fewer suppliers often means higher volume per supplier, which can improve pricing.
Admin burden: Fewer invoices, easier payment terms, and simplified procurement oversight.
Delivery logistics: Most suppliers have a minimum order value (MOV) (commonly ~£150/order) and may charge £30+ per delivery. More suppliers = more deliveries, more cost, more admin.
So why not consolidate everything?
The Practical Limits of Consolidation
Here’s where things get real:
Perishables like fruit & veg won’t last the week. You’ll still need multiple drops per week from certain suppliers.
Multi-site operations typically require each site to receive direct deliveries, especially when menus and trade patterns vary.
Specialist items—think niche ingredients, custom packaging, or cleaning products—often only come from one or two trusted suppliers.
That means weekly ordering from all suppliers is rarely feasible, but segmenting by category and identifying consolidation opportunities often is.
Sensible Benchmarks
From Double Puc and other multi-site ventures we’ve run, a sensible supplier range is 10–20:
1–5 suppliers = exceptionally lean and focused (perhaps a dark kitchen or highly simplified menu)
10–20 suppliers = solid middle ground for most active, multi-category, multi-site operators
20+ suppliers = time to review and consolidate, especially where spend is fragmented or minimum order charges are racking up
Use Data to Drive Decisions
By using a platform like Percy, you can:
See SKU-level supplier spend
Track supplier duplication across sites
Identify low-value suppliers or products with overlapping sourcing options
Simulate consolidation scenarios to predict savings
Final Thoughts: It’s a Balancing Act
Reducing supplier count is great for margins, logistics, and sustainability—but only if it doesn’t compromise quality, service, or stock availability.
So how many suppliers should you have?
Enough to meet your operational needs—but not so many you’re drowning in complexity. Somewhere between “just enough” and “not too many”.
Curious about how your supplier count stacks up?
📊 Upload your invoice data to Percy and we’ll show you where you can consolidate, save, and streamline.