Buying directly from local producers seems cheaper, but logistics costs can eat into your profit. Many restaurant owners forget to factor in transport, time and storage. In this article you'll learn step-by-step how to calculate the real costs.
What are logistics costs when buying directly?
Logistics costs are all the extra costs you incur to get products from the farm to your kitchen. This goes beyond just the product price.
- 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 consist of fuel, wear and tear, and time. Most business owners only count fuel, but that's not enough.
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 costs money. Even if you drive yourself. Calculate your hourly rate as a business owner or what you'd pay an employee.
- 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 that time on other things.
Quality risk and waste
With direct purchasing you often have more waste due to:
- Longer storage (no daily fresh delivery)
- Less standardized quality
- Seasonal fluctuations
- Larger quantities you have to buy
Calculate 3-8% extra waste on top of your normal spoilage.
💡 Example waste:
Vegetable purchase: €200
Normal waste from wholesaler: 2%
Extra waste from farm: 5%
Extra costs: €200 × 5% = €10
When does direct purchasing pay off?
Direct purchasing pays off if the total costs (including logistics) are lower than wholesale. Or if the quality is so much better that you can charge a higher menu price.
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
Make direct purchasing more efficient by:
- Combining: multiple suppliers in one trip
- Larger quantities: fewer trips, lower costs per kilo
- Fixed pickup days: plan all pickup trips on one day
- Collaborating: share transport with other restaurants
A system like KitchenNmbrs helps you track the real cost price (including logistics) per ingredient, so you can compare whether direct purchasing is really more cost-effective.
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
Make one fixed day per week your 'farm day' and combine all pickup trips. This cuts your logistics costs in half and gives you more time for the kitchen.
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 also count my own time as labor costs?
Yes, absolutely. Your time has value, even if you drive yourself. Calculate at least €15 per hour, because you can't spend that time on other business activities.
How often should I update this calculation?
Check your logistics costs every 3-6 months. Fuel prices change and your efficiency can improve through better planning or different routes.
What if the quality is much better at the farm?
Then you can charge a higher menu price. Calculate how much extra you can charge and subtract the extra logistics costs from that. If you can charge €2 more for €1 extra cost, it's worth it.
Can I lower logistics costs through collaboration?
Yes, by sharing transport with other restaurants or combining multiple suppliers in one trip. This can significantly lower your costs per kilo.
How do I track these costs in my administration?
Pass logistics costs through to your ingredient price. Instead of €4/kg tomatoes, you calculate €5.20/kg including logistics. This way you see the real cost price of your dishes.
📚 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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