Potato and oil prices rarely creep. They lurch. One week a sack of chipping potatoes lands at a price your menu was built around, the next the oil quote has moved and the margin on a portion of chips has quietly thinned. Panic-buying a pallet of spuds and switching oil mid-service is not a plan. What works is walking into the conversation with your numbers, your contract terms and a second quote already in hand.
Suppliers take you more seriously when you talk in portions rather than feelings. "I'm not happy about the rise" gets a shrug. "This adds eight pence to a portion and I sell a lot of portions" gets a conversation.
Build a one-page sheet. List what you paid per kilo or per litre on your last three invoices, plus delivery charges and any surcharges, because the list price is rarely what leaves your account. Then work out what you actually get through in a week, not what you hope you get through. Include waste: peel loss, sprouting, blackening after storage, and the oil you drain because it went dark early.
That gives you two figures worth knowing by heart: cost per portion of chips, and oil cost per fryer per week. Everything in the negotiation hangs off those.
Most chip shops are on something looser than they think. Check for four things. First, the notice period, both yours and theirs. Second, any price variation clause: can they raise prices mid-term, and do they have to tell you in writing? Third, minimum volumes or shortfall clauses, which can bite if you agreed to a tonnage and then had a quiet quarter. Fourth, whether delivery is included or charged separately, and whether that charge has crept.
If you are on a rolling thirty-day arrangement, you have real leverage: you can leave. If you have signed up to a fixed volume for twelve months, you have less, and the honest move is to negotiate the things around the price instead. Diarise every renewal date. Shop owners who get caught out are usually the ones who never wrote the date down.
A supplier who genuinely cannot move on price can often move on everything else, and those terms are frequently worth more than a few pence a sack.
The supplier who will not move on price will often move on terms. Ask for the terms first, then revisit the price.
Potatoes are alive. Buy a season's worth and store them badly and you will lose more than you saved: chitting, greening, sugar build-up that turns chips dark, and soft tubers that break down in the fryer. Only buy in bulk what you can store properly, in the dark, cool, ventilated, and well away from the fryer and the boiler.
With oil, bulk means drums, larger containers or an IBC, and the questions change. What is the shelf life? Does it need to be stored above a certain temperature? Can you decant it cleanly without spilling or contaminating it? Does the deal include collection of your used oil, or is that a separate cost? And does the volume tie up cash you need for wages, VAT or the electric bill? A cheap pallet that leaves you short at the end of the month is not cheap.
A chat at the cash and carry is not a quote. Give every supplier the same brief: your weekly volume, the variety or an acceptable equivalent, the count size, the delivery days, whether the price includes delivery, and whether it is quoted before or after VAT. Then compare like with like.
Ask each one where their supply comes from and what happens if they cannot fill your order in a bad week. Anyone who cannot answer that is a risk. And factor in switching costs: a new oil behaves differently, needs different filtration and may need you to adjust your fryer routine before it settles down.
Some of the fix is on your side of the counter. Good filtration, skimming, not overloading baskets, keeping the fryer clean and frying at the right temperature all stretch oil life, and stretched oil is a real saving across a year. On the potato side, sharper portion control and less over-portioning does more for margin than most negotiations.
When you do need to move prices, one carefully explained rise lands better than two panicked ones. Be straightforward about it, keep it simple on the board, and do not apologise for running a business. If the numbers are genuinely tight, an accountant who knows hospitality can look at the whole picture with you. Contracts that lock you in for a long period are worth a professional eye before you sign.
After every call, confirm what was agreed by email, even if it is three lines. Diarise the next review so you are never negotiating at the worst possible moment. Keep a second supplier warm with a small regular order, because a stranger asking for a favour in a shortage gets a different answer from a customer they already know.
Pay on time. Give an honest forecast, and tell them early if you are expecting a quiet month. Suppliers remember the shops that are easy to deal with, and that goodwill is worth more than a few pence when the market turns.
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