Taking Inventory

One of the three primary reasons restaurants fail is poor inventory control. You need to know what you have in stock so that you can reorder effectively, have less waste, know your true food costs, control theft and know what your inventory is worth.

Set up your inventory system so that you can easily see what you have in each storage area. Use a spread sheet and label these areas, walk-in cooler, freezer, back room, etc.

Set up your columns:

1. Under the walk-in cooler section you would have seven columns, which could be labeled as follows:
1. Item (beef, cheese, lettuce, etc.) would go in column 1.
2. Measurement of the item (pounds, number of, jars, etc.) would go in column 2.
3. Opened amount in column 3.
4. Sealed amount in column 4.
5. Total in column 5 (add column 3 and column 4 together).
6. Price per unit or measurement (price per pound, jar, etc.) in column 6.
7. Total value in column 7 (multiply column 5 by column 6).

You will also need to keep a list of your wasted items and credits for items that were ordered but not delivered, broken, etc.

Take the inventory at the same time each week and always by the same unit of measurement. The ideal would be to have enough products to meet the demand, keeping excess down. This helps when you are limited on storage and gives you better cash flow.

Prices will fluctuate so you need to keep your price per unit or measurement up to date. Keep up to date on world events, such as flooding, natural disasters, etc. so that you know when you might have a shortage or significant price hike and adjust your menu or see if you need to substitute ingredients.