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Aug 01, 2017

Top Tips for Improving Restaurant Inventory Controls

Featuring Jeramie DiBona

According to the National Restaurant Association, restaurants lose roughly 35% of inventory from employees helping themselves to what they have in stock, yet the one thing restaurateurs commonly overlook is inventory controls. You may be surprised how much money it costs to not have any procedures in place to oversee a restaurant’s inventory. After labor, inventory is typically a restaurateurs’ second largest operational expense. Implementing a few simple changes may help to improve a restaurant’s cash flow and bottom line. The following are a few updates that restaurant owners and managers should consider:
  • A nightly inventory count.
  • Having one person responsible for the ordering and a different person responsible for receiving/reviewing the supplies that come in.
  • Investing in a liquor control system for the bar.
  • Investing in software that tracks what inventory is on-hand - this also helps identify when it is time to reorder.
  • Track how much of the prepared food is being thrown out each day.
These best practices will not only help manage inventory, they will also protect from employee theft – while it may not be considered intentional stealing, employees helping themselves to anything that is intended to run the restaurant is taking away from doing just that.
 
Running a restaurant business efficiently is a delicate balance. Implementing one or more of these procedures could dramatically improve cash flow and increase the bottom line. Speak to your financial and legal advisors to decide what changes make the most sense for your establishment.

As seen in Cape and Plymouth Business Magazine