Regions across the world are in different phases of reopening their economy. Unfortunately, some locations are already shutting back down due to a new wave of COVID-19 cases.
Now more than ever, the hospitality industry needs to band together to protect its customers, staff and margins. So what does that even mean? Well, first and foremost, the safety of people is the most important priority. Therefore, the continued following of procedures, wearing masks and effective cleaning and sanitization is of the utmost importance at your restaurant or bar.
Regarding margins, food and beverage inventory control and management are crucial in order to keep operations running smoothly at a profit. Managing inventory control in your bar or restaurant is no easy feat - especially since stock items aren’t all packaged and ordered the same way.
In this article, we will cover a few common questions, including what inventory control is, when stock counts should be done to stay on top of inventory, and why controlling inventory management is vital in today’s economy. We will also recommend ways to help you regain visibility and control of your restaurant or bar’s inventory, to ensure your business is as profitable as possible.
Inventory control is a key management process for any bar and restaurant operation. Controlling stock gives owners visibility into a costly asset and fits the old adage, you can’t manage what you don’t measure.
Having control over your inventory means that you have a systematic process in place that tracks all stock items, when they are used, when the stock item is low and needs reordering and much more.
The inventory of your restaurant and bar stock should be completed at the same time each week. It is important that all staff responsible for inventory tasks follow the process. If the inventory of stock is not completed as a weekly routine, you could be faced with a situation where you are not able to provide a key drink or dish that is on your menu, until stock can be replenished.
Restaurants and bars that are open are operating at a reduced seating capacity, which means they are unlikely to turn a profit close to what they were able to before the pandemic hit.
Now is the time that keeping a tight inventory process is crucial - the last thing you want to do is throw out stock because you ordered too much and it’s gone bad, or not be able to serve a fan favorite because you forgot to order ingredients.
Also, with better inventory management, especially when using an inventory management system, you are able to recognize existing stock that is considered “dead stock”.
Dead stock consist of items in your inventory that have sat for a good amount of time and are not currently on your menu or are just in low demand. It’s an untapped asset waiting to be sold. It’s time to get creative and use dead stock in a new dish or speciality drink on the menu in order to convert inventory to cash. The special can be offered until you are out of the stock item, and then you can re-evaluate whether it should be in your future offerings.
To learn more about dead stock and how you can use those items to increase cash flow, take a look at our past blog, Your Guide to Reduce Dead Stock and Improve Cash Flow.
Poor inventory management in your bar or restaurant will cause challenges for you and your staff, especially when forecasting demand. Luckily, there are inventory technologies within the industry that can help you stay organized and in control of this vital asset.
Sculpture Hospitality offers three different options of inventory service - based on how hands-on you’d like to be with the inventory management process. We have consultants who can work with you (using our technology), to optimize your entire inventory and organize it according to hospitality best practices. We also have options where you can use our technology to run through your inventory on your own. Remember, our consultants and concierge service is available at any time, in case you have questions or need assistance. Our inventory management system doesn’t just count your stock, it also includes an ordering system, performance reports and analytics, giving you back control over your inventory.
To save money and increase your profit margin for your restaurant or bar, reach out to your local Sculpture Hospitality Consultant. We are here to help you during this difficult time and want to see you and your business succeed.