The total cost price of ingredients is more than just the purchase price. Delivery costs, surcharges and VAT can increase your actual costs by 15-25%. Without factoring in these costs, your food cost calculation won't add up and you'll lose money on every dish.
What are hidden costs in purchasing?
Many hospitality entrepreneurs only calculate with the price on the invoice. But there are often extra costs that increase your total cost price:
- Delivery costs: €15-50 per delivery
- Minimum order surcharges: €5-25 for small orders
- Refrigerated transport: €10-30 extra for fresh products
- Fuel surcharge: 2-5% of order value
- Administrative costs: €2-10 per invoice
⚠️ Note:
These costs are often listed at the bottom of the invoice and are easily overlooked. They can increase your actual purchase price by 10-25%.
Calculate your actual cost price per kilo
Your actual cost price consists of three parts: product price, surcharges and VAT. Here's how to calculate it correctly:
💡 Example calculation:
Order from vegetable supplier:
- Tomatoes: 10 kg × €3.50 = €35.00
- Delivery costs: €20.00
- Fuel surcharge: €1.75 (5%)
- Subtotal: €56.75
- VAT (9%): €5.11
Total incl. VAT: €61.86
Actual price per kg tomatoes: €61.86 ÷ 10 kg = €6.19/kg
Instead of €3.50/kg you're actually paying €6.19/kg!
Distribute surcharges across your order
Surcharges like delivery costs are divided across all products in your order. The more you order, the lower the surcharges per kilo:
💡 Example distribution:
Order €200 product value + €25 delivery costs:
- Total surcharges: 12.5% of product value
- Steak €40: surcharge €5.00 → total €45.00
- Vegetables €30: surcharge €3.75 → total €33.75
- Fish €50: surcharge €6.25 → total €56.25
Process VAT correctly
Food products have 9% VAT in the Netherlands. This VAT is included in your purchase price and you can reclaim it if you're VAT-liable:
- Invoice price incl. VAT: what you pay to the supplier
- Invoice price excl. VAT: what you use for cost price calculation
- Formula: Price excl. VAT = Price incl. VAT ÷ 1.09
💡 VAT example:
Salmon: €25.00 incl. 9% VAT
- Price excl. VAT: €25.00 ÷ 1.09 = €22.94
- VAT amount: €25.00 - €22.94 = €2.06
For cost price calculation you use €22.94, not €25.00.
Optimize your orders
By ordering more strategically, you reduce the impact of surcharges on your cost price:
- Combine deliveries: Order multiple product groups at the same time
- Reach minimum order value: Avoid surcharges for small orders
- Plan ahead: Fewer rush deliveries means lower costs
- Compare total costs: Not just product prices, but also surcharges
⚠️ Note:
A supplier with lower product prices can turn out more expensive due to high delivery costs. Always calculate the total costs.
Track all costs in one system
For accurate cost price calculation you need to record all purchasing costs. Many restaurants use a system like KitchenNmbrs to automatically calculate the actual cost price per ingredient, including all surcharges and VAT.
How do you calculate the total cost price? (step by step)
Gather all invoice details
Note the product price, all surcharges (delivery, fuel, administration) and the VAT amount from your invoice. Don't miss any surcharge, no matter how small.
Add product price and surcharges
Sum the product price and all surcharges for the subtotal excl. VAT. This is your actual purchase price before you add VAT.
Distribute surcharges across products
Allocate the surcharges proportionally to each product. If surcharges are 10% of the product value, increase each product price by 10%.
Calculate price per unit
Divide the total costs (including surcharges) by the number of kilos or pieces. This is your actual cost price that you use for your food cost calculation.
✨ Pro tip
Create an Excel sheet with your 20 most important ingredients and update all surcharges monthly. Or use a system like KitchenNmbrs that automatically calculates your actual cost price including all surcharges.
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 VAT in my cost price?
No, if you're VAT-liable use the price excl. VAT for your cost price calculation. You can reclaim the VAT on purchases, so it doesn't count as a real cost.
How do I distribute delivery costs across different products?
Distribute delivery costs proportionally based on product value. If product A is 40% of your order, it gets 40% of the delivery costs assigned.
When are surcharges highest?
With small orders below the minimum order value and rush deliveries. Plan your purchasing ahead and combine orders to minimize surcharges.
What if my supplier doesn't list surcharges separately?
Ask for an itemized invoice. Surcharges are often hidden in the product price, which prevents you from making a fair comparison with other suppliers.
How often should I update my cost prices?
Check at least monthly whether suppliers have adjusted their prices or surcharges. Energy surcharges can even change weekly with some suppliers.
📚 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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