Inventory consists of the available raw materials used for producing goods and the available goods for sale. It helps know how much goods or stock to order as well as when to order them. Inventory management in restaurants involves tracking the food they get from suppliers and checking if it’s used, leftover, or lost. This can be done by using spreadsheets and counting manually.
There is also an easier and more accurate process and that is through using inventory management software. It will be more accurate in tracking and counting your goods. It will also show the financial and performance data that you need as well as the re-order stock when it reaches a certain level. If you’re a restaurant owner, tax services in Manila recommend imbibing the best inventory management practices to avoid food spoilage and loss of profits.
There are many restaurant inventory management practices, and if you are looking for the best ones, this article will help you. Some of the ways and practices that will help you in effectively managing your inventory include organizing your stocks, setting automatic reorder points, creating safeguards against mistakes in your inventory, and forecasting demand using technology. Check out the most common practices that could help guide you in managing your restaurant for better financial control and less waste.
Categorizing and Organizing Inventory
It is good to add labels and stick them on your shelves so your staff will be able to quickly find the item they’re looking for. The items that are mostly used should be placed in the same area and it should be in a spot where it is easily accessible.
Keeping Stock Levels Low
As much as possible, keep your stock levels low. Accounting services in the Philippines recommend using a system that will help in keeping just enough stock for your customer’s satisfaction. Do not keep an excessive amount of stock as fresh food is readily perishable while other items could have expiration dates. Besides, keeping too much stuff means you’re unnecessarily using up space. That space can be used for more equipment and more tables for your customers.
Monitoring the Sell-through Rate
Monitoring the sell-through rate is a method of tracking how much you sell a certain item during a given period. As an example, if you get 100 drumsticks in a week and sell 50, you will have a sell-through rate of 50%. Items like bread, meat, and beer cans or bottles are some of the items you can track and monitor. In contrast, mass items like flour or rice grains may be harder to monitor.
Tracking All Inventory
Track the raw materials, objects, and materials your restaurant uses. Tax and audit services in the Philippines say that this must include even small items like napkins, vegetables, meat, staff uniforms, and many more. There are items you can track weekly, monthly, or yearly. The frequency will vary depending on the type of item being monitored.
Safeguard Raw Materials
It’s crucial to safeguard against any potential mistakes, including human error. Putting two employees and asking them to check the work of each other is something you might want to consider for accountability. An inventory sheet that states and shows where items are stored onsite will make counting and revenues easier to monitor.
Properly Training Employees
Again, employee accountability is important. You must train your employees in tracking the food and beverage that goes out as well as tracking the cash that comes in and out. It is important to include and help them become part of the solution. Let them understand the process to avoid errors. If you are using a POS system, give your managers permission for inventory reports and checking employee activity.
There are inventory management systems that can allow you to set automatic reordering when your stock reaches a certain level. This assures you don’t run out of raw materials and avoid potential lost income.
Forecasting Demand Using Technology
You can use inventory management software or POS to forecast demands based on factors like previous trends, conditions, seasonality, and many more.
Why Inventory Management is Important
Some of the benefits you can get when you have an effective inventory management system include the following:
· Minimize food loss – when restaurants buy too much food at a certain time, some end up getting spoiled
· Lower Cost of Goods – the total cost ranges from 28% to 35% and it increases when food loss and food spoilage occur
· Automatic Inventory Supply – the system has an automatic process that replenishes the supplies and makes sure it’s not too much and not too little to help avoid waste
· More Profit – it decreases waste and lowers the cost of goods
You will more likely achieve long-term success if you know how to effectively manage your inventory. Inventory management will help make sure you are keeping just the right amount of ingredients and food enough to serve all your customers and at the same time avoid loss and spoilage. If you need help with this aspect, call our team for accounting services in Pasig for assistance.