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Restaurant Inventory Management: Ensuring Operational Efficiency and Profitability

Juice business
26 julio 2024

Mastering restaurant inventory management sets the foundation for smooth and profitable operations. Managing your inventory goes beyond placing weekly orders to forecasting and auditing your inventory. It’s key to keeping your finger on the pulse of your restaurant or juice bar. Let’s dive into the top strategies and best practices.

What is inventory management in a restaurant?

Inventory management is the process of optimizing your inventory. In the food and beverage industry, you must count and analyze your inventory on a weekly basis. By analyzing your weekly stock levels, you can track where your perishable goods, paper goods, and merchandise are going. They should be going toward saleable juice, food, and products.

Your inventory is also required to calculate your cost of goods sold. This requires you to count all produce, food items, menu ingredients, and paper products used to serve your menu items. Your completed count helps you identify if you’re spending the industry average of 28 to 35 percent of your revenue on food-related purchases.

Your weekly inventory count also tracks:

  • Spoilage and waste: Overordering or improper food rotation that leads to expired foods. Waste should be segmented to include resolving orders for disgruntled customers.
  • Vendor quality: Ensure the quality of the food you receive meets your agreed-upon standards and that the shelf-life of your produce is reasonable.
  • Accidents: Accidents happen, but you can strategize how to minimize spills and menu mistakes.
  • Employe meals: Employee meals are a perk of working in the food industry, but your employee meal spending must be monitored.
  • Shrink: Shrink is theft. A regular and accurate inventory count helps you identify theft before it goes on too long.
  • Discounts and promotions: Your marketing efforts attract and retain customers, but you must mindfully monitor your spending.
  • Rising food costs: Food costs are in constant flux. Your inventory count empowers you to pinpoint your spending beyond your invoice totals.

What are the 4 types of inventory management systems?

There are 4 primary inventory tracking systems to consider. Perpetual and manual systems are the standard for the restaurant industry.

  1. Periodic: This refers to counting inventory once per quarter. It’s more common for retailers with products that don’t expire.
  2. Perpetual: Perpetual inventory is conducted on a weekly basis. With the high risk for spoilage, it’s the industry standard for the food and beverage industry.
  3. Manual: Counting inventory by hand empowers you to check expiration dates, proper organization, FIFO rotation, and product quality.
  4. Automated: Automated systems utilize smart barcodes and smart sensors to track inventory. This method is more common in warehousing.

How many food deliveries should restaurants have per week?

Most restaurants have food delivered from their primary supplier at least 2 days per week. Secondary suppliers may only deliver once per week. Secondary suppliers might include local farmers and microgreens vendors.

The higher your food service volume, the more frequent your deliveries. If you’re just getting started, 1 order per week may be sufficient. Just be sure you negotiate with your supplier to determine the protocol and cost if you require delivery on an out-of-cycle delivery day.

How much inventory should a restaurant keep?

You never want to have to tell a customer that you can’t make the juice, snack, or menu item they’re craving. Proper inventory tracking helps you forecast your order volume. Most restaurants aim to stock at least 2 days of extra product beyond what they’re expected to sell before their next delivery date. How much extra stock you have on hand will vary depending on the standard shelf-life of products and your storage space.

For example, microgreens and leafy greens have a short shelf life, so proper forecasting is required to minimize waste. However, apples typically have a longer shelf life, so overordering may be of less concern.

Ask vendors about “ugly” produce

Juicing is one of many ways farms reduce their contribution to food waste. Produce that isn’t as vibrant in color or uniform in size is still nutrient-dense and delicious. You can often purchase “ugly” produce at a lower price point than grocery-store-ready produce. This helps you control your inventory spending, while minimizing crop waste—keeping food costs down for everyone. It’s also a way to support regional farmers.

What do restaurants use to keep track of inventory?

Most restaurants utilize point of sales (POS) software that includes inventory management tools. If your POS software doesn’t include inventory tools, ensure it integrates with your inventory software. This automates the process of calculating how much food you should be using per your weekly sales.

How to do an inventory list for restaurant?

Your POS or inventory management software will curate your inventory list for you. These lists are customizable.

Your inventory list includes

  • Ingredient name
  • Beginning inventory count
  • Unit of measurement; pounds, case, etc.

Once your inventory is input into your software, it will calculate:

  • Amount used
  • Cost per ingredient unit
  • Total cost
  • Daily consumption rate
  • Waste quantity
  • Waste cost
  • Par/forecast of stock
  • Ending inventory

What are the best practices for inventory management control?

The best practices below help you to streamline and optimize your inventory management. Remember delegation is part of every successful business. So, spread these responsibilities out between your shift managers and team members. Train at least 2 people to complete the tasks below.

  • Have the same team members receive inventory: Designating the same team members to put away your large weekly food orders is essential for product rotation. First in, first out (FIFO) is the process of placing food that expires first in the front, and food that expires last in the back.
  • Count on the same day every week: Counting your inventory on the same day and at approximately the same time (before opening or after closing) ensures an accurate weekly average.
  • Organize your food storage: Your food storage racks should be clearly labeled and your food and dry goods should have designated spots. This doesn’t just maximize space but minimizes spoilage. If the printed expiration date is difficult to read, write it on the front of the box or on a food-safe label that you place on the prepped food container.
  • Have the same person count weekly inventory: You may prefer to count your inventory yourself but be sure to train at least one other person. Like anything, you’ll get faster at counting with time. Also, we all count and measure things differently. So, with the same person, averages and estimates are always the same.
  • Have the same person place orders: Designate the same 2 or 3 people to place your weekly food orders. Even better if it’s one of the team members who counts your inventory and receives your inventory.
  • Double check par: Your inventory software will provide you with a par. This is a forecasting tool that helps you determine the minimum you should keep in stock. Don’t rely solely on this number, considering factors that could leave you slower or busier than usual.

Zumex appliances maximize profitability

One of the top reasons juice bars and food service establishments choose Zumex juicers, is because we increase their juicing yields. This empowers you to purchase up to 10% less produce for your freshly squeezed juice. Our high-tech appliances also minimize food prep, juicing, and cleaning times.

For additional insights on how Zumex can enhance your business, we encourage you to use our ROI calculator. See for yourself how adding a juicer can elevate your annual profits.

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