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inventory control
Food is money, yet around 22 to 33 billion pounds of food waste is generated by U.S restaurants alone each year. The primary reasons behind these shocking figures are over-purchase and lack of adequate storage. Speaking statistically, food wastage is one of the main drivers of diminishing revenues and elevated food costs, which lead to restaurants eventually shutting down.
The added disposal and labor costs associated with food wastage are among the largest expenses for restaurants. However, they don’t have to be. With proper planning and efficient inventory management, you can reduce food wastage significantly.
Portion Control
It’s vital to keep a check on the portion size of the items you serve. This helps you reign in food costs and minimizes food wastage on the customer’s end. You can control size by using equipment such as ladles and scoops when preparing plates.
Another efficient way of keeping food costs in check is the standardization of recipes. A well-designed recipe management software can help you determine the precise ingredient amounts required for each dish.
Adequate Storage
Another major cause of food wastage in restaurants is inadequate storage. When raw materials aren’t stored properly, they go bad and have to be thrown out to prevent fresh food cross-contamination. Food items also need to be stored at the proper temperature.
Another factor that’s critical to efficient restaurant inventory management is keeping tabs on the shelf-life of perishables. Food items have a certain shelf life and shouldn’t be consumed after that. The FIFO (First-In-First-Out) approach, where raw materials that are purchased earlier are used first, can work great here.
Inventory Management Software
When it comes to minimizing food wastage, a robust food inventory management platform is a restaurant’s best friend. Integrated with a recipe management module, a well-designed inventory management software provides you advanced reports on when to purchase, what to purchase, and how much to purchase.
It can also be programmed to send you reminder alerts to purchase items when stocks reach a particular level. Not only does it prevent you from overstocking, but it also helps you avoid the embarrassment of certain menu items going out of stock.
SweetData Concepts offers custom inventory management software for food industry, labor scheduling platform, recipe structuring, and much more at reasonable rates! Contact us today for expert consulting services for your food and beverage business!
The restaurant industry is highly unpredictable and can be influenced by various factors outside the restaurant owner’s control. Poor economy, falling grocery prices, and health concerns can all lead to a decline in restaurant visits resulting in decreased profitability or, in some cases, a loss for the restaurant.
What Is Inventory Control?
One of the key factors that impact the profitability of any restaurant is inventory control or inventory management. An average restaurant spends around 25 to 35% of its operational budget on inventory every year.
Inventory control is the process of managing the available stock and ensuring the restaurant has enough quantities of food ingredients, such as seasoning, garnishes, drinks, meats, and vegetables, as well as other items required to prepare and present the food such as napkins, straw, disposable cutlery, and paper placemats.
Every restaurant must have a proper inventory management process to keep track of the items used each day, how much is being ordered, and how much food is wasted. The process can include everything, from the initial order for raw ingredients to the final order fulfillment of the customer. Inventory control also allows restaurants to maintain the right balance of stock by taking into account various internal and external factors that impact the supply and demand.
Importance of Effective Inventory Control for Restaurants
The more effective a restaurant’s inventory management system is, the smoother their food production and customer service processes will be. By keeping better track of the inventory through various policies and streamlining the process of ordering new items, restaurants can prepare more food, serve more customers, and replace used supplies quickly. Inventory control also helps maintain minimum inventory levels, which will help keep the costs down, improve the liquidity situation, maximize profits, and keep the customers satisfied by avoiding running out of key ingredients.
Better Inventory Control Through Inventory Management Software
With the recent advancements in modern technology and the introduction of innovative IT solutions for restaurant management, restaurant owners can incorporate inventory management software to ensure effective inventory control. The software allows them to keep track of the stock in real-time and forecasts demand to avoid running out of various items.
Inventory management software also prevents food wastage by ensuring there is no double ordering and keeping the staff aware of when certain items will expire. The software also helps cut labor expenses by reducing the number of hours spent manually updating the inventory database!
SweetData Concepts can help you boost your bottom line and manage your restaurant business successfully with our advanced food and beverage inventory management software. Reach out to our team today for more details about the features of our exclusive restaurant management platform and the latest restaurant industry trends.