Best Practices
Keeping a Tight Rein – Hands-on Approaches to Effective Restaurant Inventory Management
Diligent restaurant inventory management is critical to keeping food costs in check. Inventory management systems are valuable tools in the hands of operators who apply diligent cost-control measures throughout the house.
For example, predictive PAR (periodic automatic replenishment) systems help operators forecast usage and reordering. These restaurant inventory management software systems help to avoid excessive inventory and reduce spoilage, but they require human assistance to make sure they are accurate.
No doubt, technology can help you streamline the entire inventory management process. Here are some pointers to improve the manual aspects of managing your system.
Use realistic PAR levels? Best practices in restaurant operations state that PAR levels need to be realistic about what is selling to avoid waste. Restaurant inventory management software can provide the data needed to adjust PARs based on demand, but operators also need to think about when and how frequently they are placing orders. No one wants to be stuck running low on a popular item during the week or overwhelmed with so much of it that a high-value item must be used up for a staff meal.
Inventories can be managed, but people must be led.
- Ross Perot
Stay on top of yield management. Yield management reflects portioning and waste. Have portion control built into the prep list, for example, by specifying the quantity of sauce or vegetables needed per shift. If something is off about yield management, do due diligence: Are cooks over-portioning? Is the recipe accurate and up to date? Is there a theft issue? Always remember that any number of minor issues can slip your notice with restaurant inventory management, and staying alert and aware of what goes in and out of your restaurant is the best strategy to prevent slip ups.
Manage key items weekly. "If you're managing your inventory more frequently, you're able to make minor adjustments and do smarter ordering," Restaurant Consultant Tripoli says. In the current environment, he says it is smarter to check weekly and make orders based on what is being used than to do restaurant inventory management every month when data arrives too late to be acted upon.
Buy in bulk for dry goods. Bulk orders often equate to better prices. While this still ties up cash flow, it can be a good solution for nonperishables that are difficult to reliably source.
Be disciplined and consistent. Having a consistent process that is done regularly is the best way to stay on top of inventory, whether you are doing it by hand or with a tablet or smartphone. Consistency will help you get actionable data that can save you a meaningful amount of money.
Keep an eye on inconsistencies. If there are inconsistencies between actual and theoretical yields, you might take an off-cycle inventory on a different weekday. Switching up the point person for restaurant inventory management is another way to investigate a shortage that could indicate internal trouble. Whenever there are inconsistencies, it is time to investigate the source, and the sooner, the better.
Has your restaurant been struggling to keep a consistent inventory system going? Review our online course Key Item Running Inventory and download the companion system Running Inventory Order Guide for all the insights you’ll need to get your restaurant back on track.
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Webinar/Podcast
Ordinary to Extraordinary
We’ve worked with over 80,000 independent restaurant owners over the past 30 years. Time and time again we’ve noticed that our most successful members, those whose restaurants have remained highly successful even AFTER COVID, are very competent in 3 key areas – Culture, Systems and Business.
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System
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One of the primary reasons for food and beverage losses is the lack of meaningful measurement of the use or loss of key products on a regular and frequent basis. This system provides an easy, yet effective way to alert management of theft, improper portioning and other shrinkage issues.
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Training Video
Shelf To Sheet: Know Exactly What Is In Your Inventory
In a restaurant, counting inventory is crucial to controlling your costs and having a profitable operation. Make your restaurant's product counts easier, more efficient, and more accurate, by using the shelf-to-sheet method. It will streamline the process, eliminate the guesswork, and make sure it is ...
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Article
Inventory Control Basics: A Systematic Guide for Controlling Inventory in Your Restaurant
One of the reasons the restaurant business is difficult is due to its approach to inventory control. Restaurants are both retailers and manufacturers, yet many of the principles for controlling inventory in retailing and manufacturing simply don't apply to restaurants.
