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7 Things About Inventory Management All Restaurant Managers Must Know

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inventory management for restaurant

Effective inventory management can increase the restaurant’s profit by 2% to 10%

Restaurants without an effective inventory management system are at a high risk of losing money and going out of business. 

It is because they will not be able to track their food and supplies, leading to overspending and waste. 

Additionally, without knowing what inventory they have on hand, restaurants will be unable to properly plan for future needs, causing them to run out of necessary items or order too many others. 

In either case, this can lead to unhappy customers and lost sales. This is why inventory management for restaurant is essential for every food service provider.

Are you thinking about ways of effective inventory management for restaurant? In this blog post, we will share 7 tips every manager should know about inventory management for restaurant. 

So, let’s get started with tips for managing restaurant inventory effectively.

What is inventory management for restaurant?

What is inventory management for restaurant?

Restaurant inventory management is the process of keeping track of all the food, drink, and other supplies that a restaurant uses. 

Management inventory involves knowing what each item is, how much of it is on hand, and when it needs to be replenished.

Inventory management is critical for any restaurant business. It helps to ensure that you have the right ingredients on hand to make the dishes your customers want while avoiding waste and spoilage.

Inventory Management Methods For Restaurants

There are several inventory management methods that restaurants can use to help ensure they have the right level of stock on hand. 

The main methods are Just in Time (JIT), Economic Order Quantity (EOQ), and ABC Analysis.

1- Just-In-Time

Just-in-time is a system where inventory is only ordered and received as needed, so there is no excess stock on hand. 

It can help to save on storage costs and reduce the risk of inventory becoming obsolete.

2- Economic Order Quantity

It is a system that determines the optimal order quantity for each item based on factors such as lead time, demand, and setup cost. 

This system can help to minimize the total cost of inventory while still ensuring that enough stock is on hand to meet customer demand.

3- ABC Analysis 

It is one of the most famous methods for managing inventory that is known for categorizing inventory based on importance. 

  • Items that are considered a high priority (“A” items) are those that are essential to the business or have a high turnover rate. 

These items are closely monitored and managed so that there is never an issue with being out of stock

  • Lower priority items (“B” and “C” items) are not monitored as closely but still need to be tracked so that businesses know what levels they should maintain.

All of these inventory management methods have different benefits and can be tailored to the specific needs of each business. 

By carefully managing their inventory, businesses can ensure they always have the right level of stock on hand without tying up too much capital in inventory.

7 Essential Things About Inventory Management For Restaurant 

7 Essential Things About Inventory Management For Restaurant 

As a restaurant owner or manager, you know that inventory management for restaurant is essential to your business. 

After all, if you don’t have the right ingredients on hand, you can’t make the food your customers want to eat.

But what are the “right” ingredients? And how can you be sure you always have them on hand?

Here are seven things you need to know about inventory management for restaurants:

1- Know Your Menu Inside and Out

The first step to an effective inventory management is knowing your menu inside and out. After all, if you don’t know what dishes you need to make, you can’t order the right ingredients.

Take the time to sit down and review your menu with your staff. Make sure everyone knows every dish and understands what ingredients are required. 

Recipe management includes all recipes, ingredients, and portion sizes. This information is crucial for maintaining accurate stock levels and avoiding over-ordering or under-ordering.

Categorization of recipes based on the menu optimizes inventory and ensures that the right ingredients are on hand.

It will help avoid ordering mistakes and ensure that everyone is on the same page when it comes to inventory.

With jalebi’s restaurant operating system, you can have a single menu that’s accessible from any location. This means that no matter where your customers are, they’ll always be able to see what you have to offer. 

Having a universal menu also makes it easier for you to manage your inventory and keep track of what’s selling well at each location.

Save at least 5% on every order you serve with:

  • Intuitive Inventory Managment
  • Simpler Kitchen Operations
  • Dynamic Customer Orders
  • Integrated Supplier Managment
...& MORE.

2- Plan for Popularity And Slow Days

No matter how popular your restaurant is, there will always be slow days. And while it’s tempting to cut back on ordering during these times, it’s not always necessary – or wise. 

Instead, plan for popularity by ordering extra popular items and keeping an eye on your slower-moving items. This way, you’ll always have what you need – without tying up too much cash in inventory.

3- Use Technology To Your Advantage

You need to establish an efficient system for tracking and managing your inventory. This can be done with software or manually, but it is important to have a plan in place so that everything runs smoothly.

There are many great software programs and inventory management applications available that can help with inventory management.

If you’re looking for a restaurant operating system that comes with an inventory tracking feature, then you should check out jalebi

With jalebi, you’ll be able to keep track of your inventory in real time, which will help you avoid any potential issues with running out of stock. 

Not to mention, jalebi is extremely user-friendly and affordable, so it’s worth considering for your business.

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4- Track Your Budget

If you’re like most small business owners, you probably don’t have a lot of money to spare when it comes to inventory. That’s why it’s important to create a budget for your inventory needs. 

By doing this, you’ll be able to better control your spending and ensure that you have the necessary items on hand when you need them.

  • To start, sit down and list all of the items that you need to keep in stock. Be sure to include both essential and non-essential items. 
  • Next, research the average cost of each item and create a budget based on those costs.
  • If possible, try to find ways to save money on your inventory costs, such as by buying in bulk or negotiating with suppliers.

Once you have a budget in place, stick to it as closely as possible. This means monitoring your inventory levels and only ordering new items when absolutely necessary. You can leverage an inventory management application to do the job for you and save time in the long run.

5- Schedule Employee Training

Conducting employee training on inventory management is crucial for ensuring that your staff is properly equipped to handle your company’s inventory. 

By taking the time to educate your employees on the proper way to manage inventory, you can help avoid costly mistakes and improve your overall efficiency.

6- Follow The FIFO Method

If you’re looking for a way to streamline your restaurant’s inventory management, look no further than the First In First Out (FIFO) method. 

With FIFO, you simply keep track of the order in which items are received and make sure that the first items received are also the first ones used.

The FIFO method is especially useful for perishable goods, where it’s important to rotate stock to ensure that nothing goes to waste. 

Keep your preparation time in mind when using the FIFO method as this system works best when you have a consistent stream of inventory coming in and going out. 

Even if you’re not dealing with perishables, FIFO can still help you stay organized and keep your costs down. 

After all, there’s no sense in using up your more expensive items if cheaper alternatives are available. 

So next time you’re stocking up your restaurant, be sure to follow the First In First Out principle!

7- Incorporate Yield Management

Make sure you leverage yield management to optimize your inventory. It is a technique that helps you optimize your inventory levels by taking into account both the cost of holding inventory and the revenue that can be generated from selling it. 

By understanding the relationship between these two factors, you can make decisions that will maximize your profits and streamline your front-of-house and back-of-house operations.

Now that you are familiar with these tips for inventory management for restaurant, you can ensure that your restaurant always has the supplies it needs to run smoothly.

Manage Your Inventory With jalebi

Manage Your Inventory With jalebi

96% of restaurants faced a delay or shortage of food supply in 2021. 

If you operate a restaurant, then you know how important it is to keep track of your inventory. After all, if you run out of food, you can’t serve your customers! 

jalebi’s restaurant operating system can help streamline your inventory management, so you can focus on running your business.

  • User-Friendly Interface

jalebi’s system is designed to be user-friendly and easy to use. It can track all of your inventory in one place, so you always know what you have on hand. 

  • Menu And Inventory Integration 

With jalebi, you can track your inventory based on consumption. This means that you can see what items are being used the most, and adjust your ordering accordingly. 

It can help you save money and keep your kitchen running smoothly.

  • Sales Data Visualization

jalebi’s restaurant operating system is designed to help restaurants effectively manage their inventory and sales data. 

The system provides restaurants with a visual representation of their sales data, which makes it easy for them to identify trends and make necessary adjustments to the inventory.

Inventory management is vital for any restaurant business – so why not partner with jalebi to make things easier? 

Contact us today to learn more about our system and how we can help you streamline your operations.

Save at least 5% on every order you serve with:

  • Intuitive Inventory Managment
  • Simpler Kitchen Operations
  • Dynamic Customer Orders
  • Integrated Supplier Managment
...& MORE.

Final Thoughts

As a restaurant manager, it’s important to have a good handle on inventory management. Now that you are familiar with the essentials of inventory management, implement these tips into your everyday operations.

A good inventory management system will help you keep track of all of the above information so that you can focus on running your restaurant rather than worrying about whether or not you have enough ketchup in stock!

Frequently Asked Questions

  1. What are the practices of restaurant inventory management?

Inventory management can include several different practices, but keeping track of what ingredients you have on hand, forecasting future needs, and managing your food costs are some of the most important. 

  1. How do you calculate stock days?

The most common method is to take the average inventory for the period and divide it by the sales for the period. 

It will give you the number of days that your inventory will last, on average.

  1. What is a good inventory turnover formula?

Cost of goods sold (COGS) / average inventory value

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