How managing Inventory will help in reducing cost thereby increasing profit.

Restaurant Inventory

Managing restaurant inventory is as complicated as it gets, but not if you know how to manage it with the right tools and tricks. Many restaurant owners admit to be doing a poor job at managing inventory, but its efficient management helps in cutting down many costs. So let us see how you can manage your inventory to instead gain profits!

Order wisely – The key to cut down on food and inventory costs is by planning to order wisely. This can be achieved by knowing what items to order and in what quantities. Restaurant owners must also choose their suppliers wisely. In order to get competitive in prices, restaurant owners must know every update in price fluctuations for different items of their inventory. Also to manage food costs, owners can opt to sign yearly contract directly with suppliers in order to get rid of the middle men.

Analyze your inventory – Restaurant owners come across irregularities when they fail to audit their inventories on a regular basis. One must decide whether they want to audit their inventory on a daily, weekly or monthly basis, depending on the preference of the owner and type of restaurant. The best way to go about it is to get started with ABC analysis or at least start reconciling the most valuable purchase items in your inventory. Many restaurateurs take inventory by the end of the day or at the beginning of the day for some items and then reconcile the entire inventory for all items on a weekly basis. The key to analyzing your inventory is to be consistent with any pattern that you choose.

Optimize your menu – Sometimes even the small things can make a big difference in managing your inventory. By analyzing your inventory on a daily basis, you get to know which items are being used more as compared to other items. Similarly when the prices of certain items is raised, you can urge food servers to push items that are low at price. This not only optimizes your menu, but also cuts down food costs.  Based on the same procurement of new items, this can also be done to avoid wastage of raw materials.

Use a software system – You can achieve the above tasks with the help of a software system. Torqus’ Inventory Management Software has been designed to take care of all your inventory requirements right from organizing all your inventory data to giving you pointers on how your inventory can be optimized, this Restaurant Inventory Management software helps you to check stocks at multiple levels and at every outlet. SCM also helps you to avoid wastage or spoilage of inventory and notifies you about the quantity of goods that are yet to be received from a particular vendor.

Thus consistency plays an important role in managing restaurant inventory. By using the same staff, taking inventory at the same time and counting the same items helps to improve your accuracy in inventory management.