Welcome to the seventh installment of our 13-part blog series, a valuable resource for independent restaurant operators. This post explores How to Cut Costs through optimizing Ordering and Inventory Procedures—a critical system for controlling costs, preventing waste, and maximizing efficiency.
In our previous post, we discussed Staffing Strategy and aligning schedules to operational needs. This post dives into the systems that ensure your kitchen operates seamlessly. The next topic, Empowering FOH Staff to Drive Revenue with Menu Knowledge, will build on this by addressing the importance of maintaining optimal environments for food storage and preparation.
Why Ordering and Inventory Procedures Matter
Efficient ordering and inventory systems are the backbone of profitable restaurant operations. Without them, restaurants face:
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Waste and Spoilage: Over ordering leads to food waste, while under ordering disrupts service.
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Higher Costs: Poor vendor terms and disorganized purchasing drive up expenses.
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Lost Time: Searching for ingredients and managing shortages wastes staff productivity.
A strong inventory system ensures:
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Consistent food quality and availability.
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Improved vendor relationships through consolidated orders.
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Reduced food costs, maximizing profitability.
How to Assess Your Ordering and Inventory Procedures
Conduct a step-by-step review of your current practices:
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Evaluate Par Levels: Review if your par levels align with actual sales volume and reduce overstocking. Adjust based on seasonal changes or menu updates.
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Analyze Vendor Relationships: Assess pricing agreements, payment terms, and delivery schedules. Identify opportunities to consolidate vendors for better deals.
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Check Order Accuracy: Compare invoices to deliveries to ensure you’re getting what you paid for. Look for discrepancies in quality or quantity.
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Audit Storage Efficiency: Review storage practices to ensure proper rotation (FIFO) and prevent spoilage.
How to Cut Costs through Smarter Ordering and Inventory
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Negotiate Vendor Terms: Build strong relationships by consolidating orders and negotiating volume discounts. Request regular pricing reviews to stay competitive.
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Implement Inventory Software: Use tools like MarginEdge or MarketMan to track inventory in real-time. Automate reordering to align with par levels.
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Establish Weekly Audits: Set a weekly schedule to count inventory, track waste, and adjust ordering. Identify patterns in overuse or pilferage.
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Create Ordering Checklists: Standardize ordering procedures with a checklist to ensure consistency across managers. Include a “double-check” step to confirm accuracy before placing orders.
Actionable Steps for Implementation
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Audit Your Current Practices: Identify inefficiencies in vendor management and ordering processes.
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Train Your Team: Provide training on inventory software and ordering best practices.
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Track Food Costs: Monitor food costs as a percentage of sales and aim for industry benchmarks (e.g., 28-35%).
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Pilot a New System: Test your revamped ordering process for 30 days and refine based on results.
Free Resource: Ordering and Inventory Checklist
Start optimizing your inventory procedures today with our FREE Ordering and Inventory Checklist, designed to streamline your operations and cut costs.
This resource includes:
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A step-by-step guide to evaluating par levels and order accuracy.
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Tips for negotiating better vendor terms.
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A customizable template for weekly inventory audits.
Download the FREE Checklist Here
Chefxpertise specializes in streamlining ordering and inventory systems for independent restaurants. Whether you need help reducing waste, managing vendors, or improving efficiency, we’re here to guide you.
Schedule a Free 13-Point Assessment to discover how we can optimize your operations and boost your bottom line.
Missed the last post? Check out Is Your Team in the Right Place at the Right Time? Mastering Staffing Strategy for labor cost control tips. Stay tuned for our next post, Empowering FOH Staff to Drive Revenue with Menu Knowledge, to learn how to create a spotless and efficient kitchen environment.
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