The Importance of Inventory

You serve the best food in town, you have•    Check that Waste - Assign kitchen
customers coming back to get more, and youstaff to make a record of all food waste. This will
have a restaurant fan base singing your praises inallow you to track how efficient your staff is, and
the local magazines and newspapers. Buthow well-followed your recipes are.
restaurant management is a business, and you•    Calculate your Food Cost - Food cost is
have to ask yourself the vital question: are youthe ratio between the cost of food sales and
earning?food sales. Most successful restaurants average
The best way to determine if you are earning20-30%, depending on their menu. The food cost
enough to offset your spending is to conduct anwill help you determine if you are earning enough
inventory of your restaurant business. Here are ato offset your investment. Comparing your food
few tips for that coming inventory.cost to other restaurants with offerings similar to
•    Start your Business Right - Check eachyours will also help you determine how well you
item against the invoice every time a productare doing compared with the competition.
comes in. More importantly, check the quality,•    Do it Constantly! - Conduct a weekly
shelf life, and damage (if any) of your menuinventory, as well as a monthly inventory to track
components, whether it's soda, wine, or rawyour progress. This will keep you from having
materials for your recipes. This may require moredifficulties when you have to do a yearly
hired help on your part, but if you start yourinventory for tax purposes. This will also allow you
inventory early, you will have fewer things to doto keep better records, so you can compare
at the end of your inventory period.your progress from week to week, or from year
•    Update the Menu - Make sure that eachto year.
offering on your menu has a recipe, so that youConducting an inventory is a time-consuming
can tally the cost of making each dish. Update andeffort that requires you to check and cross
reevaluate your menu at least once a year, socheck lists against each other - but it's a
you can see what dishes earn most, and whichrewarding endeavor that will give you a chance to
dishes should be removed. A menu inventory willsee how good you are doing, and how you can
allow you to know what your strengths are, andmake your restaurant business better.
how you can improve your food line-up.