How can you simplify your inventories so that they are FINALLY done regularly? Our tips for getting into a new routine and identifying your margin losses quickly.
For restaurant owners, managers... inventory often rhymes with hardship.
And yet, setting up regular inventories is essential to better manage your supplier orders, identify markdowns and therefore improve your margins. So how do you take inventory in a restaurant? From implementation to operation, here are our tips to save time and establish a new routine for regular inventories.
This is the first key to saving time and efficiency: define storage areas where to store items and identify them. Here are some examples of zones: fresh, frozen, dry, hygiene, etc.
Then segment each of these areas into sub-areas, for example for fresh:
On the organizational side, think practical:
Once the storage areas have been defined, they must now be easily identifiable for both the service and the inventories.
Once the organization of the stock is completed, it is time to control it.
The recurrence and regularity of inventories is an essential element in the management of your restaurant: it is only by having a clear vision of your stocks that you will be able to improve your material cost.
Case study of a burger restaurant:
Finally, define a time of day when inventories are taken: this can be before the start of the service or at the end of it. Choose a time when the inventory will not be interrupted in order to limit the risk of error.
Now that you know when you're going to do your inventory, decide how you're going to track it.
The digitization of your data is essential for the follow-up and optimization of your goods flows. It will allow you to keep track of your data and analyze it to adapt your orders.
Remember to detail your inventories with the most relevant information:
Finally, get a scale to make it easier to report the products you order by weight.
Organization and rigor will be the central elements of the success of your inventories. These same inventories will give you a clear vision of your stocks and you will then be able to place the most accurate orders.
Excel spreadsheets are difficult to fill out and create errors when reporting inventory. By simplifying your inventories with a tool like InpulseBy simplifying inventory with a tool like Inpulse, managers can save time, inventory is no longer a headache, and it is finally possible to set up regular inventory reports.
Discover the multi-unit inventory functionality available in the Inpulse application. Request an appointment with an expert.
Now that your inventory is done, it is important to go further into the analysis of your inventory. Here are some questions to ask yourself:
You have to take into account the stock variation in quantity (+15 Steak for example). This variation is to be weighted with the quantity ordered between the 2 inventories. Otherwise, the stock value evolves according to the quantity (logical), but also to the price evolution of the product.
Example: I have 22 steaks (+15) in my stock compared to the previous week, and the price of my steak has increased from 1€ to 1,10€. So I go from a valuation of my steak stock of 7€ to 27,50€ (instead of 25€ if the value of the product had not increased).
Analysis track: The stock of steaks increases both in quantity and in value. I should adjust my orders so that the stock does not increase again and avoid losses.
The idea is also to see the quantity and value of your losses and to follow the evolution from one inventory to another.
Example: I threw away 2 kg of salad at S-1 and 1 kg this week. The price remained the same, 2€/kg.
Analysis track: I adjusted the ordered quantities and limited the losses.
The last element of valuation is key and allows to refine the analysis of the first two. First of all, it is necessary to define your theoretical consumption which is relative to your technical data sheets.
Example for a cheeseburger:
If I sell 10 cheeseburgers, my theoretical consumption is as follows:
My Stock at S-1 was 7 Steaks. I ordered 30, that is to say a Stock for my week of 37. My theoretical consumption is 10 Steaks, that is to say a theoretical stock of 27, but I have 22 left (real consumption).
So I have a differential of 5 to analyze with my teams (lost, burned, fallen steak...). The price of the steak being 1€20, there is also a differential of 11€ in value.
While inventory valuation may seem complicated, Inpulse Inpulse makes it easy to access your inventory data and interpret these analyses in minutes. You can analyze by store: current inventory status, projected inventory, variance of theoretical and actual inventory, inventory transfer, finished goods shrinkage analysis to identify margin losses and take steps to reduce them.
We hope that this article will help you to understand your inventories in all serenity. We recently organized a webinar with Pitaya to share concrete advice on how to improve inventory management. Speakers will deliver their best practices for regular inventories.
Here is an excerpt from the webinar, to see the replay in its entirety, it is here.
You had foreseen a theoretical material cost of 30% and finally it is 32%, why? Because the difference between actual and theoretical consumption is such that it impacts your material cost. So, what are the potential causes of this consumption gap and how can you reduce it?
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