1. Home
  2. Create or Edit Branch/ Outlet
  3. Knowledge Hub
  4. Inventory Control Made Easy with Restaurant Management Tools

Inventory Control Made Easy with Restaurant Management Tools

Why Manage Your Restaurant Inventory?

Inventory management’s primary purpose is to assist businesses in determining how much goods to purchase and when to order it. You want to avoid taking up too much room while yet having enough to satisfy client demand. Restaurants also face the additional issue of selling perishable food products that must be consumed immediately to avoid spoilage. Food arriving from suppliers is monitored by restaurant inventory management as it is used, lost, or left over.

Spreadsheets and manual counting can be used to manage inventory. However, inventory management software makes the process simpler and improves product tracking and counting. It may also display significant financial and performance information and reorder goods when specified levels are reached.

The Benefits of Restaurant Inventory Management 

Inventory management is a crucial aspect of running a successful restaurant business. It involves keeping track of the food products that you buy, store, use, and sell. By doing so, you can enjoy many benefits that can improve your operations, customer satisfaction, and profitability.

According to a study, up to 10% of food purchased by restaurants is wasted before it even reaches the consumer. This is because restaurants often buy too much food at a time, resulting in spoilage, expiration, or theft. With restaurant management tools such as inventory management, you can monitor your food usage and adjust your purchasing accordingly, minimizing the amount of food that goes to waste. Food costs are one of the major expenses for a restaurant, typically ranging from 28% to 35% of total costs. When food is lost or spoiled, it increases your cost of goods sold (COGS), which reduces your profit margin. 

By using restaurant management tool such as inventory management, you can lower your COGS by avoiding overstocking, optimizing your menu pricing, and reducing waste. Ultimately, inventory management can help you increase your profits by improving your efficiency and effectiveness. By reducing waste, lowering COGS, managing vendors, automating supply, and satisfying customers, you can boost your sales and revenue while lowering your expenses and losses.

You can enhance earnings, decrease waste, and optimize restaurant operations with the use of restaurant management tools such as inventory management software. But how can you employ it wisely? To get the most out of your inventory management software, consider the following guidelines and best practices.

Select the right restaurant management tool – inventory management system

Restaurant management tool for inventory management differs from one another. Find one that fits the needs, size, and nature of your business. Real-time tracking, barcode scanning, recipe pricing, ordering and receiving, and reporting and analytics are a few capabilities to look for. Additionally, you want the programme to be user-friendly, dependable, and compatible with your current setup.

Set up your restaurant inventory management system

You must set up your inventory system after selecting your programme. Your inventory’s goods, categories, units, and locations must be entered in this process. For each item, you must additionally specify the periodic automated replacement (PAR) levels, reorder points, and safety stock. The minimum and maximum amounts that you should always keep on hand are as follows. You can prevent overstocking or stock outs by properly configuring your restaurant management tool such as restaurant inventory management.

Keep frequent track of your inventories.

Regular inventory tracking is essential for efficient inventory management. This entails updating your programme with the current counts and prices of the products in your inventory. This can be done manually or with the use of tools like barcode scanners or a restaurant management tool such as restaurant inventory management that automates the process. Additionally, you should perform routine physical counts to check the correctness of your inventory and find any errors or losses. You can keep track of your inventory turnover, shrinkage, and cost of products sold by tracking it on a regular basis or using a restaurant management tool such as restaurant inventory management that provides you with real-time reports and insights.

Use your software to decide wisely.

Your restaurant management tool such as inventory management software may give you insightful information and suggestions to enhance the performance of your restaurant. Your software may produce reports and analytics that display the quantities, trends, and problems in your inventory. Additionally, you can utilize your software to optimize your menu and pricing depending on your recipe costs and profitability. It can help automate your ordering and receiving procedures. Your software can assist you make wise decisions that will lower expenses and boost earnings.

Review your regulations and educate your personnel

Only the users of your inventory management software can truly judge its quality, which is why you should choose a restaurant management tool that suits your needs and preferences. Your employees have to be trained on how to utilise the programme regularly and correctly and a good restaurant management tool should provide you with easy-to-follow tutorials and support. 

Additionally, you should study and implement your restaurant’s inventory rules and procedures, which can be simplified and streamlined by using a restaurant management tool that allows you to set up custom rules and alerts. To prevent theft, waste, and improper use of your inventory products, you should have clearly defined roles and duties for managing your inventory as well as rules and controls, which can be enforced and monitored by using a restaurant management tool that tracks user activity and inventory changes. You can maintain the effectiveness and quality of your inventory by training your workers and evaluating your procedures, as well as using a restaurant management tool that provides you with feedback and analytics.

Updated on September 28, 2023

Related Articles