Most caterers think they're profitable until they calculate their actual hourly earnings. Travel costs and setup time can quietly eat 15-25% of your catering rate. Many entrepreneurs skip these calculations and wonder why their bank account doesn't match their busy schedule.
Why travel costs and setup time are crucial
Catering isn't just cooking in your kitchen. You're hauling equipment, driving to locations, setting up displays, and breaking everything down afterward. These hours count just as much as your prep time.
⚠️ Watch out:
Many caterers only calculate food cost and forget travel time. This makes a job look profitable, but you end up earning less than minimum wage per hour.
Calculate travel costs
Travel costs hit you three ways: fuel, vehicle wear, and your time behind the wheel. Break it down like this:
- Fuel costs: €0.25 per kilometer
- Vehicle wear and tear: €0.15 per kilometer
- Travel time: Your hourly rate × travel time
💡 Travel costs example:
Job 30 km away (60 km round trip):
- Fuel: 60 km × €0.25 = €15.00
- Wear and tear: 60 km × €0.15 = €9.00
- Travel time: 1.5 hours × €25/hour = €37.50
Total travel costs: €61.50
Calculate setup time
Setup time covers unloading, arranging, serving, and packing up. This time blocks you from taking other jobs, so charge accordingly.
Here's what most kitchen managers discover too late - setup times vary dramatically by event type:
- Buffet (50 people): 1-2 hours setup, 1 hour breakdown
- Served lunch: 2-3 hours total
- Walking dinner: 3-4 hours total
- Wedding/large event: 4-6 hours total
💡 Setup time example:
Buffet for 40 people:
- Unloading and setup: 1.5 hours
- Maintaining presentation: 0.5 hours
- Cleanup and loading: 1 hour
Total: 3 hours × €25/hour = €75.00
Formula for total cost calculation
Here's your formula to capture every cost:
Total extra costs = Travel costs + (Setup time × Hourly rate)
Add these costs to your food cost and desired margin for your final rate.
💡 Complete example:
Buffet for 40 people, 30 km away:
- Food cost: €12.50 per person × 40 = €500.00
- Travel costs: €61.50
- Setup time: €75.00
- Desired margin (30%): €190.95
Total rate: €827.45 (€20.69 per person)
How to communicate this to customers
Be upfront about these costs. Most customers get that you need payment for time and travel. Break it down clearly in your quote:
- "Travel costs (30 km): €61.50"
- "Setup and service: €75.00"
- "Catering per person: €17.50"
This prevents arguments later and shows you run a professional operation.
⚠️ Watch out:
Always charge travel costs, even for "small" jobs. A €200 job with €60 travel costs suddenly has a very different margin.
Use a minimum amount
Set a minimum catering amount to dodge unprofitable small jobs. Standard minimums run €300-500, depending on your costs and target market.
Tools like KitchenNmbrs let you track these costs per job and spot which distances and event types actually make money.
How do you calculate travel costs and setup time? (step by step)
Calculate total travel distance
Measure the distance to your customer and back. Calculate with €0.40 per kilometer for fuel and wear and tear, plus your hourly rate for travel time.
Estimate setup time
Add up: unloading time, setup time, any service time, and cleanup time. Multiply by your hourly rate (for example €25/hour).
Add everything to your food cost
Food cost + travel costs + setup costs + desired margin = your total rate. Divide by number of people for price per person.
✨ Pro tip
Track your actual setup times for 10 events this month, then create a standard rate card. Most caterers underestimate by 30-45 minutes per job.
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
Do I always have to charge travel costs?
Yes, otherwise you lose money on every job. Travel costs are real business expenses, just like ingredients. Only with regular local customers can you sometimes be flexible.
What if customers think the travel costs are too high?
Explain that you spend time and money to come to them. Compare with other service providers who also charge travel costs. Transparency prevents disputes.
How do I calculate my hourly rate for setup time?
Take your desired hourly wage (for example €20) and add overhead like insurance and equipment depreciation. Standard for catering runs €25-35 per hour.
Can I combine setup time and travel costs into one amount?
Yes, you can. Some caterers charge a fixed "service fee" of €75-150 per job, depending on distance and complexity. This simplifies your quotes.
From what distance should I charge extra travel costs?
Many caterers don't charge extra travel costs within 10-15 km. Beyond that, they do, because the time and costs become significant for your profitability.
Should I charge differently for weekend versus weekday events?
Absolutely. Weekend events often require premium rates since you're giving up personal time. Many caterers add 15-25% to their weekend setup and travel charges.
📚 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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