Restaurant owners often underestimate the hidden costs of sourcing directly from local farms. You see that €4/kg price tag and think you're saving money compared to your wholesaler's €5.50/kg. But transport, labor time, and extra waste can flip those savings into losses.
What are logistics costs when buying directly?
Logistics costs include every expense beyond the farm gate price. They're the hidden costs that turn your "cheap" direct purchases into expensive mistakes.
- Transport costs: fuel, vehicle wear and tear, driving time
- Labor costs: time spent picking up, loading, unloading
- Storage costs: extra cooling, space, packaging
- Quality risk: more inspection needed, higher waste
? Example:
You pick up organic vegetables from a farm 30 km away:
- Product price: €150
- Transport (60 km): €18
- Labor (3 hours at €15): €45
- Extra waste (5%): €7.50
Real costs: €220.50 instead of €150
Calculate transport costs
Transport costs hit harder than most kitchen managers discover too late. Fuel's just the start - you've got wear, tear, insurance, and opportunity costs piling up.
Formula for transport costs per km:
€0.30 per km (fuel + wear and tear + insurance)
? Example calculation:
Distance to supplier: 25 km one way
- Total distance driven: 50 km (round trip)
- Cost per km: €0.30
- Transport costs: 50 × €0.30 = €15
Include labor costs
Your time isn't free. Even if you're behind the wheel yourself, that's billable time you can't spend prepping, managing staff, or planning menus.
- Driving time: round trip + waiting time at supplier
- Loading/unloading time: usually 15-30 minutes extra
- Inspection and storage: checking products and putting them away
⚠️ Note:
Calculate at least €15 per hour in labor costs, even for yourself. Your time has value and you can't spend those hours on revenue-generating activities.
Quality risk and waste
Direct purchasing comes with higher spoilage rates. No sugar-coating it.
- Longer storage periods (no daily fresh delivery)
- Less standardized quality control
- Seasonal fluctuations in product consistency
- Larger minimum quantities forcing bulk purchases
Budget for 3-8% additional waste beyond your normal spoilage rates.
? Example waste:
Vegetable purchase: €200
Normal waste from wholesaler: 2%
Extra waste from farm: 5%
Extra costs: €200 × 5% = €10
Does direct purchasing actually pay off?
Run the numbers before you fall in love with the farm-to-table story. Direct purchasing works if total costs beat wholesale prices OR if superior quality lets you charge premium menu prices.
Break-even formula:
(Product price + Logistics costs) < Wholesale price
? Example comparison:
Organic tomatoes from farm vs. wholesaler:
- Farm: €4/kg + €1.20 logistics = €5.20/kg
- Wholesaler: €5.50/kg
Farm advantage: €0.30/kg
Optimize logistics costs
Smart planning can slash your logistics expenses:
- Combining routes: multiple suppliers in one trip
- Larger quantities: fewer trips, lower per-kilo costs
- Fixed pickup schedules: batch all farm runs on designated days
- Shared transport: collaborate with nearby restaurants
Food cost tracking tools help you monitor true ingredient costs including logistics, so you can compare whether direct sourcing actually saves money.
Related articles
How do you calculate logistics costs? (step by step)
Calculate transport costs
Measure the distance to your supplier and multiply by 2 (round trip). Calculate €0.30 per km for fuel, wear and tear and insurance.
Calculate labor costs
Add up driving time, waiting time, loading/unloading time and inspection. Multiply by €15 per hour (or your own hourly rate as a business owner).
Add quality risk
Calculate 3-8% extra waste on top of your normal spoilage. This compensates for your increased risk of spoilage and quality differences.
Compare with wholesale price
Add up product price + all logistics costs. Compare this total with your wholesaler's price to see if direct purchasing is more cost-effective.
✨ Pro tip
Schedule all farm pickups within a 4-hour window every Tuesday morning. This cuts logistics costs by 60% compared to scattered weekly trips and frees up your other days for kitchen operations.
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 count my own driving time as labor costs?
How often should I recalculate these logistics costs?
What if farm quality is significantly better than wholesale?
How do I handle seasonal availability from local producers?
Can shared transport with other restaurants work?
Should I include vehicle depreciation in transport costs?
How do I track these costs in my food cost system?
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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