Restaurant inventory management is the key ingredient in running any successful restaurant business. If you keep neglecting the importance of even small stock losses now, it will pile up to cost you a huge amount in the long run. That’s why it is important for you to keep a close check on your restaurant inventory. Earlier, it was managed manually, however, nowadays, we have much highly advanced integrated pos software that manages all your restaurant inventory from one end to the other.
Nowadays, some of the best pos software for restaurant industry has “restaurant inventory management” feature in it providing you a one-stop solution. Smart POS software on board will solve half of your problems.
Wondering how can POS software manage your restaurant inventory efficiently?
Ways To Manage your Restaurant Inventory pos software
Inventory loss does not impact you in short term time period rather it impacts you in the long run when things get piled up for long. Restaurateurs across the globe state that inventory management is one of the top challenges they face in managing a restaurant business. Here’s a quick guide to managing your kitchen stock smoothly and efficiently.
1. Checking Stock Regularly
Price of raw materials fluctuates every now and then which makes it important for you to keep a close eye on it. Of course, calculating stock on a daily basis is a tiresome job; hence, restaurant inventory management feature in your restaurant pos software comes handy. This feature in your pos software generates real-time and monthly reports of what you have in stock and what you need to order. It also shows you the variance of Standard stock consumption Vs actual stock consumption. Anything under 2-5% is acceptable due to natural wastage and anything above is a matter of concern.
2. A close eye on Raw Materials Movement
Managing inventory smartly helps you avoid wastage. When you are dealing with perishable items, do not order more than a requirement. Minimal stocking is the right approach to follow.
It is important to use available stock on a First in First out basis. This will reduce your kitchen wastage significantly without the items reaching their expiry date.
Including the seasonal items in your Menu helps you too as they are readily available at a cheaper price.
Your inventory management software alerts you via auto-generated email or an SMS for re-ordering.
3. Recipe Management
A standardized recipe plays an important role in managing your restaurant inventory and food costs. In such recipes, each ingredient’s quantity is mentioned for making any dish. This even includes the items used for garnishing or presentation. From the preparation of the process, along with ingredient quantity to help you maintain consistency.
Make sure your pos software has a recipe management feature. With this, you can easily your raw materials against the sales reducing theft and pilferage in your restaurant. Nowadays, restaurant software also has recipe costing feature and ideally, your food cost should be 30% of the selling price.
4. Base Kitchen Management
With brands having multiple outlets and where maintain consistency is the key, a central kitchen or a base kitchen is established. Take up an example of McDonald’s, Dominos which has established base kitchens for the regular supply of ingredients, bread, or any other operations. In such a base kitchen, the semi-processed food items are distributed to different outlets.
Whenever there’s a requirement for extra, this feature in your POS software sends indent request and stock transfers to the base kitchen. Then the base kitchen prepares the order and delivers it to the outlet. Having this stellar feature in your base kitchen and on your POS software will manage your restaurant inventory smoothly and efficiently.
A GRN (Good Received Note) is generated on receiving the goods by the outlet.
5. Shelf Life Management
One of the crucial areas in the restaurant industry is managing the shelf-life of the stock. The awareness for hygiene and high-quality raw materials has changed many restaurants. In order to maintain the high quality of stock items, monitoring your restaurant inventory with First-in-First Out can really help you with it.
Different items have different shelf lives like some may be preserved for more than a year, others need to be consumed within a week. Hence, managing the shelf life of such items is extremely important.
This intelligent feature in your restaurant POS software comes in-built helping you manage the shelf life of all products. Take up an example of Bread, their shelf-life expiry is very quick within a few days of manufacturing, hence it is important to use it as quickly based on FIFO methodology. If an item remains unused even after its expiry date, the POS software will send you alert notifications for immediate attention.
6. Roles and Permissions
All restaurants brood over their internal thefts in the restaurant inventory. Hence, it is imperative for you to tightly check your inventory section regularly from time to time. Here, having a robust inventory management software on board will help you control your theft significantly. With this, you can create specific roles for each task and for each individual who would be held responsible for that particular task. All activities are logged, and different users can be assigned different modules to maintain a check on the inventory.
7. Reporting and Analytics
The weekly and monthly report helps you analyze the restaurant inventory for the future course of action in your restaurant business. The analysis of sales v/s the raw material used helps you forecast the demand for future raw material. A regular Profit and loss reports are generated comparing all aspects of the stock sale, consumption, wastage, etc.
With such reports, you can analyze inventory trends making an informed decision, such as menu engineering.
Detailed reports of item consumption will help you evaluate popular ingredients which can be utilized more often in the recipes.
Learn how POS software can be your one-stop solution for all your operational needs.
Efficiently managing your restaurant inventory not only helps you reduce wastage but also saves a lot of money. The restaurant industry in general faces a lot of internal theft and pilferage. Your inventory has higher chances for such instances. Hence, a robust restaurant management software is highly recommended which has all the above features.