In the global arena, restaurants are in a cost cutting mode. Covid-19 has affected their businesses badly, forcing them to focus more on restaurant inventory management. As per the latest survey by Square, in 2021, 74% of retailers plan on using real-time inventory technology.
What is restaurant inventory management?
In simple terms, restaurant inventory management is a system using which you keep a track of the ingredients coming in and out of your restaurant. The mains aspects include the quantity of raw materials or product ordered, the volume used in the kitchen and bar, and what is remaining as inventory.
As per the survey conducted by Apicbase, Food and beverage operators who do a weekly inventory turnover calculation add between 2 and 10% to their bottom line. They have been able to get insights on sales trends and cut down overstocking and under-stocking.
Tips to manage your inventory
Go for a robust SCM software – The digital Supply Chain Management software such as inresto SCM makes real-time inventory tracking a reality. Whenever it’s time to place fresh orders of inventory, it alerts you. Hence you can get rid of the problem of under-stocking and overstocking forever. The platform also helps minimise wastage and pilferage. It aids in optimum use of kitchen resources and cuts down overall grocery cost and requirement.
Conduct regular audits – Curbing wastage and theft is the main purpose behind conducting audits. It also helps identify areas where further streamlining is required. Based on the findings, take appropriate corrective measures.
Implement the FIFO approach – Spoilage of food materials is one of the nagging issues faced by restaurants. When you follow a FIFO (First In First Out) approach, you first use the food materials that first arrived in your inventory. As soon as the food materials arrive in your inventory, update the expiry date in your restaurant POS (Point of Sale System). The FIFO approach helps get rid of spoilage and also optimise the use and purchase of raw materials.
Impart proper training – Deliver proper training sessions for those employees who deal with inventory management. Implement standardised processes and make sure that employees follow the rules without fail.
In the post-Covid world, restaurants are struggling to deal with slump in business. Implementing robust restaurant inventory management practices is the way forward. It not only helps cut costs but also boost profits tremendously.