--- layout: default_v3 language: default permalink: menu-planning/restaurant-inventory-management.html i18n_link: 4161 updated: 2023-01-27 #--- article key-values ---# collection: default_topiccluster t_keyword: Restaurant Inventory Management tags: restaurant inventory management, restaurant waste, zip haccp, business management type: supporting page_id: 4161 hreflang_id: 4161 parent_id: date_published: 2021-08-05 date_modified: 2023-01-27 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: Great Tips for Restaurant Inventory Management t_meta_description: Restaurant inventory management is the process restaurant owners use to track inventory levels of products moving through the restaurant. Managing inventory keeps purchase orders controlled. t_meta_abstract: Restaurant inventory management is the process restaurant owners use to track inventory levels of products moving through the restaurant. Managing inventory keeps purchase orders controlled. i_meta_image: article_body: json-ld_article: v_date_published: 2021-08-05 v_date_modified: 2023-01-27 author: p_author_id: 153 t_author: Cynthia Vespia p_author_url: cynthia-vespia.html i_author: 153.png t_author_description: Cynthia Vespia Is A Content Marketing Writer And Creative Copywriter. She Has Over 10+ Years Of Experience Writing Marketing Copy Across Digital Platforms With A Solid Understanding Of SEO Principles To Drive Business. Excellent Editing And Proofreading Skills. Keen Ability To Tailor Writing Voice To Match The Message Of The Brand. Cynthia Is Also A Published Fantasy Author And Former Fitness Competitor. p_author_facebook: p_author_twitter: https://twitter.com/ p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: What is Restaurant Inventory Management ? t_description: Restaurant Inventory Management is a system that tracks food as it travels throughout a restaurant. content: heading: t_title: Great Tips for Restaurant Inventory Management t_description: Restaurant inventory management is the process restaurant owners use to track inventory levels of products moving through the restaurant. Managing inventory keeps purchase orders controlled. image: i_image: great-tips-for-restaurant-inventory-management-1627664877-1599.png t_image_description: inventory restaurant management system management software point sale v_image_attribution: //pixabay.com/illustrations/checklist-test-check-cross-correct-1402461/ v_image_license: Creative Commons Zero v_video: paragraphs: - t_headline: What Is Restaurant Inventory Management and What Are The Benefits? t_text: Restaurant food inventory is used to measure profitability and prevent losses within a restaurant. A small business in the restaurant industry should understand the value that tracking inventory has on lowering food costs.

Why is it important to track and manage restaurant inventory?
Restaurant operations can better understand total cost breakdown compared to earnings by having an inventory process in place. Without a way to manage inventory, the earnings potential could be skewed.

Inventory tracking means knowing-

Without knowing the exact inventory count it will be impossible to use inventory as a basis when planning and pricing menu items.

For example a restaurant bar will value inventory when offering up a round on the house. They'll need to count inventory losses that were result of-

Full service and quick service restaurants alike use inventory control to determine profits and loss. Not knowing which supplies are being wasted and which are the sitting inventory can complicate purchase orders with vendor management. p_headline_type: h2 image: i_image: what-is-restaurant-inventory-management-and-what-are-the-benefits-1627664877-6778.png t_description: //pixabay.com/photos/meat-embedded-burger-sausage-2081291/ v_attribution: //pixabay.com/photos/meat-embedded-burger-sausage-2081291/ v_license: Creative Commons Zero callout_text: - t_headline: What Are The Tips for Restaurant Inventory Management? t_text: Effective inventory management is essential to successful restaurant operations. Restaurant inventory is part of long-term goals and the bottom line for businesses in the restaurant industry.

Having an inventory system in place will provide better results. Managing inventory supply and food inventory can reduce food waste which ultimately saves money.

7 Restaurant Inventory Management Tips

1. Use a Restaurant POS System, and Take Inventory by Hand
A POS system has many advantages including automated inventory tracking. Most restaurants' POS systems have inventory software included that provides real-time data based on customer orders. However, the inventory system doesn't account for certain types of inventory loss like spoilage or spillage. Itemized inventory for those scenarios and customer complaint resolutions from incorrect food prep must be done by hand as the POS system won't document it. Taking inventory by hand along with the restaurant inventory management software ensures a more accurate report.

2. Have the Same Staff Member(s) Track Inventory
It's a good idea to have a designated team of staff members do the inventory tracking on the same day and time. This will make identifying inconsistencies in the inventory clearer. Because these dedicated few are taking inventory, they'll be able to discern patterns and discrepancies easier. Make sure the staff doing the inventory tracking is trained on any inventory management software being used. Besides using the inventory software, they should also know about the best practices for inventory management.

3. Maintain a Consistent Schedule to Manage Inventory
Along with a dedicated team, the inventory tracking should be done on a specific schedule. Keeping a schedule provides a more accurate measure of the standing inventory. For example, the inventory software can be set up to check perishables daily while other ingredients are done bi-weekly. Having an inventory management system makes it easier to adjust the schedule.

4. Follow the First In, First Out (FIFO) Method
First in, first-out (FIFO) is standard in the restaurant industry. It means that the items received first should be used first. According to FIF, any food storage area like a freezer or pantry should be set up according FIF) to reduce spoilage and food waste.

5. Create an Inventory Sheet for Food Waste
An inventory list will highlight ingredients and supply quantities. However, using a food waste inventory sheet will show the lost inventory that's not accounted for in sales. Having this information lets a restaurant owner come up with a plan to reduce losses.

A restaurant POS system may include a food waste sheet that provides a place for this information with the following columns-
6. Use Surplus Ingredients to Minimize Food Waste
Excess ingredients can be repurposed into existing dishes or used for specialty menu items. Rather than let the ingredients spoil, they can be used to increase sales.

7. Use Past Inventory Insights for Future Purchase Orders
Having all the methods above in place will provide insight for future purchase orders. Information from the POS system and hand inventory tracking will predict future trends for a more informed economic decision. p_headline_type: h2 image: i_image: what-are-the-tips-for-restaurant-inventory-management-1627664877-9934.png t_description: //pixabay.com/illustrations/checklist-test-check-cross-correct-1402462/ v_attribution: //pixabay.com/illustrations/checklist-test-check-cross-correct-1402462/ v_license: Creative Commons Zero callout_text: - t_title: Key Takeaways t_text: 7 best practices to ensure accurate inventory counts-

1. Utilize POS Systems, and Take Inventory by Hand
2. Have the Same Staff Member(s) Track Inventory
3. Have a Consistent Schedule to Manage Inventory
4. Follow the First In, First Out (FIFO) Method
5. Create a Sheet for Food Waste
6. Utilize Surplus Ingredients to Minimize Food Waste
7. Use Past Inventory Insights for Future Purchase Orders - t_headline: Conclusion to Restaurant Inventory Management t_text: p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: video: v_video: U1_djfLcLiQ v_video_language: default t_name: How to Do Inventory in a Restaurant to Lower Food Cost - Restaurant Business Tip #restaurantsystems t_description: If you have any questions or for membership inquiries, please contact Gregg Sourbeck at 1-877-457-6278 ext 106 or Gregg@RestaurantSystemsPro.net. To schedule a call or a free 20 minute software demo //calendly.com/gregg-3/free-software-demo//restaurantsystemspro.net/pricing/ Pricing page v_url: //youtu.be/U1_djfLcLiQ i_thumbnail: //i.ytimg.com/vi/U1_djfLcLiQ/default.jpg i_thumbnail_1x1: //i.ytimg.com/vi/U1_djfLcLiQ/default.jpg i_thumbnail_4x3: //i.ytimg.com/vi/U1_djfLcLiQ/mqdefault.jpg i_thumbnail_16x9: //i.ytimg.com/vi/U1_djfLcLiQ/sddefault.jpg v_upload_date: 3-13-2019 v_length_minutes: 8 v_length_seconds: 4 v_view_count: 19862 callout_text: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.hubworks.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.hubworks.com?site=altametrics faq: t_faq_title: Frequently Asked Questions faq_ask: - t_question: How do restaurants do inventory? t_answer: - t_question: What is food inventory management? t_answer: - t_question: What are the 3 major inventory management techniques? t_answer: - t_question: Why is food inventory management important? t_answer: ---