Rising fuel costs can crush your delivery profits if you're not tracking them properly. Every time gas prices jump, your margins shrink unless you adjust accordingly. Most restaurant owners underestimate how much these costs actually eat into their bottom line.
Why fuel costs eat into your margin
Running your own delivery service means you're covering both food costs and transportation expenses. Gas prices spike, every single delivery becomes more expensive. Too many restaurant owners set their delivery fees once and forget to update them.
⚠️ Heads up:
Fuel costs climb faster than most restaurants update their menu prices. Without regular adjustments, you'll lose money on every delivery.
Calculate your cost per kilometer
You need to know exactly what each kilometer costs to drive. This includes fuel plus vehicle wear and maintenance expenses.
💡 Example cost per km:
- Fuel (1 in 14, €1.85/liter): €0.13
- Wear and tear and maintenance: €0.07
- Insurance and taxes: €0.05
Total: €0.25 per kilometer
Measure your average delivery distance
Track your actual driving distance for each delivery over one full week. Record your odometer readings and count every single order.
- Write down odometer readings at the start and end of each shift
- Count total deliveries completed each day
- Calculate: total kilometers driven ÷ number of deliveries
💡 Example week:
- Total driven: 420 km
- Number of deliveries: 140
- Average per delivery: 3 km
Cost per delivery: 3 km × €0.25 = €0.75
Calculate the impact on your margin
Multiply your cost per delivery by weekly delivery volume. This reveals your true weekly fuel expenses. From analyzing actual purchasing data across different restaurant types, fuel increases hit smaller operators hardest because they can't optimize routes like larger chains.
Impact formula:
Cost per delivery × Weekly deliveries × 52 weeks = Annual fuel costs
💡 Annual impact:
- Cost per delivery: €0.75
- Deliveries per week: 140
- Per week: €0.75 × 140 = €105
Per year: €105 × 52 = €5,460
Compare before and after price increases
Calculate the difference between old and new fuel costs. This shows exactly how much your profit margin shrinks.
If gas jumps from €1.65 to €1.85 per liter (12% increase), your per-kilometer costs rise from €0.22 to €0.25. With 140 weekly deliveries, that's €21 extra each week, or €1,092 annually.
⚠️ Heads up:
These costs stack on top of your food costs. If you don't pass them through to customers, they come directly out of your profits.
Adjust your delivery costs
Raise your delivery fees or minimum order thresholds to cover the increase. Most customers understand and accept reasonable adjustments if you explain the reasoning.
- Increase delivery fees by €0.50 - €1.00
- Or bump minimum order amounts by €2-3
- Be transparent: "Due to rising fuel costs..."
Monitor and adjust regularly
Fuel prices fluctuate constantly. Review your delivery costs monthly and adjust pricing every quarter to stay profitable.
How do you calculate the impact of fuel costs? (step by step)
Calculate your cost per kilometer
Divide your fuel consumption by your tank capacity and multiply by the price per liter. Add wear and tear (approximately €0.07 per km for a delivery scooter).
Measure your average delivery distance
Track how many kilometers you drive for a week and divide by the number of deliveries. This gives you the average distance per order.
Calculate the annual impact
Multiply cost per delivery by your weekly deliveries and then by 52. This shows how much fuel costs you spend per year.
✨ Pro tip
Track your actual fuel costs per delivery over 30 days, then add a €0.15 buffer for seasonal spikes. This prevents constant price adjustments during volatile fuel periods.
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
Should I include wear and tear in my calculation?
Absolutely, budget around €0.05-0.10 per kilometer for maintenance, tires, and vehicle depreciation. These hidden costs add up fast and many owners forget to account for them.
How often should I adjust my delivery costs?
Review monthly but only adjust prices every 3 months maximum. Customers get frustrated with constant price changes, so batch your adjustments.
Can I charge different rates based on distance?
Yes, zone-based pricing works well. Try €2.50 for close deliveries, €3.50 for medium distance, and €4.50 for far zones.
What if customers leave because of higher delivery costs?
Raise prices gradually and explain the reason honestly. Most customers understand fuel cost increases, especially when competitors are doing the same thing.
Should I track fuel costs separately for different delivery zones?
Absolutely, especially if you serve both urban and rural areas. Rural deliveries often cost 40-60% more per kilometer due to longer distances and less efficient routing.
Do delivery fees need to include VAT?
Yes, delivery charges fall under the same 9% VAT rate as your food. Make sure you factor this into your pricing calculations from the start.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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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