Using inventory control effectively

The answers to these questions can significantly affect profitability.

Inventory is not only the food, but also food items used to cook or process the food (shortening for deep frying, seasonings, drinks, garnishes etc.) and the items used to prepare and present the food and to set the atmosphere (paper placemats, plastic flatware, straws, napkins, disposable cups etc.).

Being aware of what products you use in your day-to-day services, how many you use and the cost of each product (and how that cost translates into the cost of sale passed on to the customer) create the 'big picture' of inventory and what you need to have on hand in order to maintain the integrity of your service.

However, the most important thing that restaurant owners can do, however, is to find a way to organize their inventory, maximize their tracking of foods and supplies and streamline their re-ordering of needed items.

Tips for organisation

There are four main points that you need to address when considering the organisation of your inventory:

1. Accurate list of what you have available to use
   
2. Accurate assessment of how much you will use on a daily or weekly basis
   
3. Means to be able to track this usage for accuracy
   
4. Quick and effective method of re-ordering or restocking your inventory
   

While it is quite possible to list and track all of this information manually, it is far more efficient and effective if an electronic inventory management system is put into use.

Importance of IT

Information Technology (IT) has come a long way in a very short length of time. Some of the programs available today to help restaurant owners in assessing, organizing, prioritizing, tracking and reordering their inventory, make the old ways of inventory management look torturous by comparison. Modern inventory management software systems can ensure that a restaurant's inventory is managed as effectively as possible, resulting in significant financial savings.

The more efficient your overall inventory system is, the smoother your food production process will be. The more customers you will be able to serve in the same period of time and the quicker you will be able to replace the supplies used means that more food can be prepared and more customers served. The result is that by the most effective use of your restaurant's inventory management, the higher your restaurant profitability will be and, in this economy, that is definitely something to cheer about.