Managing Your Restaurant Inventory Wisely

In every business there is the need of listing and inventory to record all the supplies and merchandise which involved in the specific business. A clear inventory management strategy could help the manager of a restaurant business to maintain a store of material and foodstuff.

However, this works only if the manager can predict the needs of his customers, such as a manual estimation is possible but it's very difficult to get an accurate result.

A clear inventory plan providing great services to the customers of any potential business is become essential in modern cuisine business. So that, manager should adopt cost controlling practices, establish weekly costing list and use “two steps” to calculate your inventory level in a right place.

Record a weekly food costing list can lower your supply cost:

“Establish a weekly food costing list could lower your cost; you’d better do it once a week to plan your purchases.” Said by Huang who is head chef of Ming Dynasty----largest Chinese restaurant in Preston.

Huang, the boss and also the famous head chef of Ming Dynasty which is the largest Chinese restaurant in Preston

As a Chinese restaurant manger, Mr Hunag also thought that marketers should pay attention for deals when they deciding to purchase. Try to remember that don't order too much of a martial as it will either spoil or end up sitting on the shelf for months. As well, operators have to determine how much they will be using each day, and then to determine what they will need to order.

Determine your inventory level in two steps: 

Jim Laube who is a specialist of restaurant operator

“Regardless of the type of restaurant you operate, adopting the two steps calculating will in all likelihood result in lower food cost and a more profitable restaurant.” Said by Jim Laube. Read more…

According to theory of Jim Laube, an easy way to get an instant gauge on whether you're carrying an appropriate amount of inventory is to calculate your "number of days of inventory on hand." It tells you how many days your existing inventory will last based on how much food you're using in an average day, which translates to your average daily food cost.  Calculating your "number of days of inventory" on hand is a two-step process:

Assuming you're carrying the right mix of products:

Number of days in the period = 30

Food cost for the period (from the profit and loss statement) = P30,000
Ending food inventory (on the balance sheet) = P10,000

The example tells us that having 10 days' worth of inventory would probably indicate that there's too much food on the shelves. If operationally feasible, lowering inventory levels to 6 or 7 days of sales would cause food cost to drop immediately, everything else being equal.

Efficiently arrangement of working time for your staff:
As well, make use of staff wisely could also effectively help managers to adapt cost controlling, such as reducing staff during your slow times and bringing in extra workers during your busy times.

In summary, operators should adopt cost controlling practices, establish weekly costing list and use “two steps” to calculate your inventory level in a right place; finally efficiently arrange the staffs’ work time to maximum making profit and low the cost to operate your business.