One of the causes of congested city centers is the increase in traffic movements for catering supply. According to a study by Topsector Logistiek, the more than 52,000 food and beverage establishments in the Netherlands receive an average of up to twelve weekly deliveries. Governments are implementing zero-emission zones and delivery time windows to reduce the pressure on city centers. The FoodService Institute Netherlands (FSIN) conducted research for Topsector Logistiek on how the food service market experiences this issue.
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The logistical challenges in city centers, including those in the food service market, were previously mapped out in the Outlook Horecalogistiek 2020. This report outlined increased traffic movements toward 2030 and its impact on CO2 emissions. Solutions such as more efficient delivery processes and a transition to electric vehicles were proposed to stabilize emissions despite the delivery growth. While these conclusions seem favorable for climate goals, the livability of cities remains a problem. Electric vehicles have lower load capacity, requiring more trips and failing to reduce traffic pressure.
Challenges and Solutions
The food service sector faces complex challenges, including the transition to electric driving, rising transport costs, traffic safety, and new regulations such as CSRD. The Food Research Company and FSIN conducted research involving more than twenty companies and analyzed literature to identify key challenges and potential solutions. The goal was to develop a research agenda for the logistical future of the food service sector in urban areas.
The research revealed a lack of a broadly supported vision in the market to solve the logistical problems of city centers. However, shared challenges were identified that could contribute to more sustainable operations and the preservation of livable city centers. It is becoming increasingly essential for hospitality entrepreneurs to take logistics costs seriously, as these are expected to rise significantly, further pressuring their strained profit models.
Lack of Awareness
Hospitality entrepreneurs have paid little attention to the costs and processes surrounding food service logistics. Many entrepreneurs do not realize that they ultimately bear the increasing logistical costs in the supply chain. However, there are opportunities to reduce these costs, for example, by reducing the number of deliveries or organizing joint purchasing. This requires a shift in mindset, better planning, and organization.
Suppliers, wholesalers, and logistics service providers also face significant challenges. The transition to electric vehicles requires substantial investments and sufficient charging capacity. Moreover, the varying policies of municipalities regarding zero-emission zones and delivery time windows create uncertainty in the sector. According to various parties, the government is not a reliable partner in this transition.
Cutting Costs
A new approach is necessary to reduce logistics costs. Hospitality entrepreneurs must professionalize their operations and examine their ordering and delivery patterns. Fewer deliveries require better planning but offer opportunities to reduce costs. Wholesalers play a role by providing daily deliveries as a standard service.
Rising logistics costs and competition from food retail players force hospitality entrepreneurs to act. “Less frequent deliveries require better preparation and organization and a different approach for many hospitality businesses. Moreover, wholesalers offer daily delivery to their customers as a service because the market competition is so fierce. Until recently, hospitality entrepreneurs felt no incentive to act. But rising logistics costs, which are naturally passed on in sales prices, are changing that. The emergence of food retail players delivering to food service businesses also contributes. Hospitality entrepreneurs are robbing themselves if they fail to address this,” says Anique Veldhuis-Grievink, Deputy Director of FSIN, in an interview with Logistiek.nl.
In a food service market where margins are slim, and challenges are significant, support is needed to address central issues like food service logistics and drive change jointly. This does not happen automatically in a sector with many players with different interests. The report points to solutions such as joint purchasing and reducing the number of deliveries per week. Greater supply chain collaboration among hospitality entrepreneurs, wholesalers, and logistics service providers is essential.
Collaboration with Topsector Logistiek
A shared vision is lacking, as is awareness among individual players of the need to take action. Topsector Logistiek is a connecting link that gives all stakeholders a concrete shape for this issue. It can also help convince governments to adopt a supportive and stimulating role rather than being an obstacle.
The problem of congested city centers cannot be solved overnight. However, if the sector collaborates, it can positively impact the number of city transport movements. This requires effort from all parties and a deeper understanding of the issues. An active Topsector Logistiek can play a key role alongside the food service sector, known for its flexibility, innovation, and entrepreneurial spirit that continues to pay off.
The full report Foodservicelogistiek in dichtslibbende binnensteden is available to FSIN members and the Topsector Logistiek.