Nearly 73% of restaurant owners underestimate their true ingredient costs by ignoring delivery fees. This oversight makes your food cost appear artificially low. Here's how to correctly factor delivery costs into your ingredient pricing.
Why include delivery costs in your cost price?
You don't just pay for the ingredients themselves, but also for transport. Skip this step and you'll underestimate the real costs of your dishes.
💡 Example:
You order from your greengrocer:
- Ingredients: €180
- Delivery costs: €15
- Total: €195
Your actual ingredient price is therefore 8.3% higher than the catalog price.
Three ways to process delivery costs
There are different methods to pass on delivery costs. Pick the method that fits your operation.
Method 1: Percentage markup on all ingredients
The simplest method is calculating a fixed markup based on your average delivery costs.
💡 Calculation:
Monthly purchases: €4,500
Monthly delivery costs: €180
Markup percentage: (€180 / €4,500) × 100 = 4%
Add 4% to every ingredient price for delivery costs.
Method 2: Per delivery allocation
Divide the delivery costs across all products in one delivery based on their value share.
💡 Example delivery:
- Salmon: €120 (60% of total)
- Vegetables: €80 (40% of total)
- Delivery costs: €15
Salmon gets: €120 + (60% × €15) = €129
Vegetables get: €80 + (40% × €15) = €86
Method 3: Fixed markup per kilogram
For suppliers who deliver by weight, you can pass on delivery costs per kilogram.
⚠️ Note:
This method only works well if all products have roughly the same weight. For light but expensive products (like spices), the distribution won't be accurate.
Track delivery costs per supplier
Different suppliers charge different delivery costs. Track this per supplier for an accurate cost price.
- Free delivery from X euros: Only include delivery costs for smaller orders
- Fixed delivery costs: Use method 1 or 2
- Delivery by distance: Calculate average across multiple deliveries
- Express deliveries: Pass on higher costs to urgent ingredients
Digital vs manual tracking
Manually calculating delivery costs takes time and creates errors. Most kitchen managers discover too late that their spreadsheet calculations are missing these hidden costs. A food cost calculator can automatically apply markup percentages to ingredients from specific suppliers.
💡 Practical example:
Restaurant 'De Smaak' calculates per supplier:
- Greengrocer: +4% for delivery
- Meat supplier: free from €150
- Fish supplier: +€12 fixed cost per delivery
This way, each ingredient gets the correct actual cost price.
Impact on your food cost
Delivery costs seem small, but can increase your food cost by 3-8%. With an annual turnover of €500,000, this means a difference of €15,000-€40,000 in your calculations.
⚠️ Note:
If you don't include delivery costs, your food cost appears lower than it is. This can lead to setting menu prices too low and unknowingly running at a loss.
How do you include delivery costs in your cost price? (step by step)
Collect your delivery data from the past 3 months
Check your invoices to see how much you spend on delivery costs per month per supplier. Calculate the average to smooth out seasonal fluctuations.
Calculate your markup percentage per supplier
Divide your average monthly delivery costs by your average monthly purchases from that supplier. Multiply by 100 to get the percentage.
Adjust your ingredient prices with the markup
Add the markup percentage to all ingredient prices from that supplier. Update this monthly if your delivery costs change.
Check your new food cost percentages
Recalculate the food cost of your most popular dishes with the new prices. Check if your menu price is still profitable.
✨ Pro tip
Track delivery costs from your top 3 suppliers for 30 days, then calculate the markup impact. You'll often find 5-7% hidden costs that directly affect your bottom line.
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 need to pass on delivery costs if I pick up myself?
No, but do factor in your own time and fuel costs. An hour of picking up also costs you money in lost sales or staff time.
How often should I adjust my markup percentage?
Check this monthly. Delivery costs can increase due to fuel prices or changes in supplier conditions.
What if my supplier offers free delivery above a certain amount?
Only include delivery costs for orders below that threshold. Keep track of how often you order below that limit.
Can I use different percentages for different product groups?
Yes, if your supplier charges different rates. For example, higher costs for chilled products versus dry goods.
How do I handle express deliveries in my cost price?
Pass on the extra costs to the ingredients you needed urgently. This prevents you from running at a loss on last-minute orders.
Should I split delivery costs equally across all items in an order?
Not always. Value-based allocation is more accurate since expensive items should bear more delivery cost than cheap ones.
What about fuel surcharges that change weekly?
Calculate an average over 3-month periods rather than adjusting weekly. This gives you more stable cost pricing while staying reasonably accurate.
📚 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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