When it comes to the success of your restaurant, ordering the right food and supplies is critical for smooth kitchen operations, healthy profit margins and keeping your food costs in check.
But the reality is that managing restaurant inventory for your kitchen (or bar) can be tricky. Every day brings new challenges - fluctuations in sales, unexpected weather changes, and surprise events - all of which can lead to food waste.
For kitchen managers, striking the right balance is key to profitability. Below are some valuable strategies for forecasting, inventory management, and prepping to minimize food loss and ensure everything in your kitchen is used efficiently.
1 - Forecasting: Your First Line of Defence Against Food Waste
It’s common for restaurants to experience sales shifts based on external events like holidays, weather changes, or big local events like fairs and sports games. These fluctuations can make predicting food needs a challenge, but - thankfully - there’s a solution: forecasting.
By estimating anticipated sales based on past patterns and upcoming events, you can make data-informed decisions that keep food orders on target and avoid food waste from overstocking.
Here’s how:
- Use Sales History: Use your restaurant’s point-of-sale (POS) data from the previous year to identify trends around similar events. Did sales spike during last year’s big game? Or drop on a particularly rainy day? Look at what was ordered and used in past events to get a more accurate forecast for the current week.
- Include Local and Seasonal Events: Major events like local fairs, festivals, or sports tournaments have significant impacts on customer volume and order types. Keep a calendar of these events and adjust your forecast accordingly, preparing for either a surge in orders or a slow day.
- Factor in Weather Patterns: If your restaurant relies on outdoor seating, weather plays a huge role. Rain or extreme cold can keep customers away, while sunny days draw them in. Use weather forecasts to help adjust ordering based on what’s expected each day.
2 - Customizing for Your Daily Needs With PAR and Prep Data
One of the biggest mistakes in restaurant inventory is using the same PAR and prep sheets day after day without considering sales forecasts. Not every day requires the same amount of food prep, and setting up customized sheets based on daily sales projections can reduce food spoilage significantly.
For more information on PAR levels, check out our blog - Restaurant Inventory Management: What is PAR Level?
The goal for any kitchen is to have enough supplies to meet demand without overstocking items that could spoil. Here’s how PAR and prep data can help maintain that perfect balance and reduce food waste:
- Daily Adjustments for Maximum Efficiency: PAR and prep data is more than just a checklist - it’s a guide to ensure that your kitchen has exactly what it needs, when it needs it. By using it to its fullest potential and adjusting daily based on sales data, you’re actively reducing waste and maintaining quality.
- Clear Communication: Make sure your whole team understands the purpose of PAR and prep calculations. When everyone knows what’s expected and why certain items are prioritized, it makes for smoother operations and significantly less waste.
- Regular Training: Ongoing staff training helps reinforce the importance of inventory management practices like first-in, first-out (FIFO) and accurate use of PAR and prep data. With everyone on board, it becomes much easier to keep food loss to a minimum and maintain consistent quality.
Ok, so with that in mind, here’s how you can use PAR and prep data to reduce your restaurant food waste:
- Adjust for Weekday vs. Weekend Traffic: In most cases, weekday traffic is lower than weekends, which makes customizing your PAR and prep data by day essential. For example, if Tuesday’s sales forecast is half of Friday’s, adjusting Tuesday’s PAR sheet to reflect this can avoid ordering and prepping unnecessary quantities that may end up wasted.
- Daily Prep Based on Sales Forecasts: Connect your sales forecast to PAR sheets. By evaluating your projected sales daily and setting up PAR and prep sheets that align, you’re far less likely to over-prep or find yourself short of essentials.
- Simplify with Inventory Management Software: Many inventory management solutions automatically adjust your PAR levels based on historical and real-time sales data. These tools can save time, ensure accuracy, and significantly reduce human error, making it easier for kitchen managers to keep control over their food stock.
3 - Implement FIFO (First In, First Out) with Labeled Inventory
One of the simplest yet most effective practices in food management is the “first-in, first-out” inventory rule. By using this system, older stock is used before newer inventory, minimizing the chance of food going bad. Here’s how to make FIFO work effectively:
- Label Everything With Dates: As soon as an item is received, label it with the date it arrived. This provides a clear visual indicator for kitchen staff, so they know exactly which products to use first. This practice significantly reduces waste from forgotten or overlooked items at the back of the fridge.
- Organize by Expiration Date: Arrange items on shelves so that the older items are at the front, making it easy for the staff to grab what needs to be used soon. This setup takes minutes and can lead to savings in food costs by keeping food fresh and used on time.
- Routine Checks: Incorporate a quick, routine check of stored inventory at the start and end of each day to ensure all items are in the correct FIFO order. This helps your team stay on track and maximizes the efficiency of your kitchen’s inventory management system.
The Power of Inventory Management Software for Reducing Restaurant Food Waste
Managing inventory is a constant balancing act, and even with the best practices, it’s easy to find yourself over or understocked. That’s where inventory management software comes in.
The right tool will streamline your inventory processes, improve the accuracy of your inventory data, and save valuable time, allowing your kitchen team to focus on what they do best: creating great meals.
With over 30 years of expertise in bar and restaurant inventory management, Sculpture Hospitality offers tailored inventory solutions that go beyond just software. Sculpture combines cutting-edge inventory technology with locally-based consulting expertise, helping restaurant owners and kitchen managers make sense of inventory data and implement it effectively to reduce waste and improve your bottom line.
Interested in learning more? Get in touch with Sculpture Hospitality today. Our team of inventory experts would love to help.
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