Posted by Jim McGinty
on Thursday, September 8th, 2016
How do you know if you are properly managing your inventory? Do you have employees stealing? Do you have product that is going bad before you can use it? Studies show that restaurant managers do not reconcile inventory as often as they should, in some cases never. Mismanagement of inventory can be a costly mistake. Here are some tips to consider:
Your cost of goods sold, or COGS, is the single largest expense for your restaurant.
Your inventory is money on the shelf. You must control how much product you have on hand. The more product you have could lead to waste and theft.
Proper inventory management allows your customers to receive the freshest product which will ensure your customers return again and again.
What is the key to good inventory management? As a Manager, you must find the balance between having enough product and too much product on the shelves. It’s this balance that can be the difference between a successful or failing restaurant business. How do you know if you have inventory issues? Below are trends that should alert you that something just isn’t right:
The same person takes inventory every week or month.
Inventory is increasing month to month while your COGS are declining.
Your days of inventory is higher than 7 days for most products.
You have drastic decreases in your inventory while your COGS are increasing.
You consistently run out of product.
Keeping a closer eye on inventory and implementing inventory management process and tools will allow you to control your inventory loss.
Want to learn how to better manage your restaurant inventory? Check out the PeachWorks Inventory App to take all the guesswork out of inventory.
Already using our Inventory App? Start adding items and get a better hold on your inventory today!