How much should you charge clients for catering delivery and transport? Most caterers underestimate true travel costs, focusing only on fuel while ignoring insurance, depreciation, and driver wages. Proper mileage calculation protects your margins from hidden transport expenses.
Why calculate mileage allowance?
Transport isn't free, even though it feels that way. Each kilometer drains money through fuel, insurance, maintenance and your vehicle's declining value. Catering events can easily require 50-200 kilometers of travel. Without accurate calculations, you'll hemorrhage hundreds of euros annually - one of the most common blind spots in kitchen management.
⚠️ Note:
Don't just calculate fuel costs. Insurance, road tax, maintenance and depreciation typically exceed fuel expenses by 200-300%.
The complete cost breakdown
A realistic mileage rate includes these elements:
- Fuel costs: Petrol or diesel per kilometer
- Insurance: Annual premiums divided by total kilometers
- Road tax: Convert yearly fees to per-kilometer rates
- Maintenance: MOT tests, repairs, tire replacements
- Depreciation: Your vehicle's value loss over time
- Driver wages: Hourly rate × total travel duration
💡 Example calculation:
Catering van, 20,000 km annually:
- Fuel: €0.12 per km
- Insurance: €1,200/year = €0.06 per km
- Road tax: €600/year = €0.03 per km
- Maintenance: €800/year = €0.04 per km
- Depreciation: €3,000/year = €0.15 per km
Vehicle costs: €0.40 per km
Personnel costs for transport
Your driver's time costs money. Travel hours are working hours that require compensation, including employer contributions and benefits. Factor in the full hourly cost, not just base wages.
💡 Example personnel costs:
Event 60 km away (120 km round trip):
- Travel time: 2.5 hours (including loading/unloading)
- Driver hourly wage: €18.00
- Personnel costs: 2.5 × €18.00 = €45.00
Per kilometer: €45.00 ÷ 120 km = €0.38 per km
Building your total mileage rate
Combine vehicle expenses with personnel costs for your true cost per kilometer. Then add your desired profit margin on top.
- Vehicle costs: €0.40 per km
- Personnel costs: €0.38 per km
- Total cost price: €0.78 per km
- With 25% margin: €0.78 × 1.25 = €0.98 per km
💡 Practical example:
Wedding 80 km away:
- Round trip: 160 km
- Mileage rate: €0.98
- Transport costs: 160 × €0.98 = €156.80
Add this amount to your catering quote
Alternative pricing methods
Some caterers prefer fixed rates by distance zones rather than per-kilometer calculations. This approach simplifies quoting while maintaining profitability.
- 0-25 km: €75 flat fee
- 25-50 km: €125 flat fee
- 50+ km: €150 + €1.00 per additional km
Tracking transport costs systematically
Tools like KitchenNmbrs let you store transport expenses as standard cost items for each event. You'll never overlook mileage charges in quotes again. Plus, you can analyze the real profitability of every catering job, including complete transport expenses.
How do you calculate mileage allowance? (step by step)
Calculate annual vehicle costs
Add up: fuel, insurance, road tax, maintenance and depreciation. Divide by the number of kilometers you drive per year. This gives you the vehicle costs per kilometer.
Calculate personnel costs per kilometer
Determine the average travel time per kilometer and multiply by the driver's hourly wage. Don't forget to include employer contributions in the hourly wage.
Add costs and add profit margin
Vehicle costs + personnel costs = cost price per kilometer. Add 20-30% profit margin for your final mileage rate that you pass on to customers.
✨ Pro tip
Update your cost breakdown every 4 months, especially after fuel price changes or major repairs. Track actual expenses against your calculated rate to ensure you're not losing money on distant events.
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
Can I use the tax authority mileage allowance?
Do I charge VAT on mileage allowance?
What if I have multiple events the same day?
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
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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