What is Considered Inventory for a Restaurant?

When it comes to operating a restaurant, managing inventory is like keeping track of every ingredient in a recipe - essential, but sometimes a little overwhelming. 

Between food items, beverages, and the essential non-food items that make your restaurant tick, understanding exactly what your expenses are is critical to the success of your business. Not only that, but insights into your inventory allow you to prevent waste, improve profit margins and better meet your customer expectations. 

A well-organized, streamlined inventory process will help your business grow. But to achieve this, it’s crucial to know exactly what counts as “inventory”.

Let’s break down what’s considered inventory for a restaurant, why each type of inventory matters, as well as some tips for keeping it all in order so you can spend more time focusing on your customers.

Why Good Inventory Management Matters 

Good inventory management might feel like a lot of work upfront, but it pays off in a big way. By understanding what’s considered inventory in a restaurant and keeping each category well-organized, you’ll see benefits like:

• Reduced Waste: Streamlined inventory processes mean less spoilage, fewer expired items, and more money saved.
• Improved Cash Flow: Knowing exactly what you have on hand lets you buy only what’s necessary, which keeps cash flowing and inventory levels balanced.
• Better Decision-Making: A clear view of what’s in stock helps you make data-driven decisions that can improve service, reduce waste, and optimize profits.

When it comes to restaurant inventory, every item counts. By keeping tabs on food, beverages, and non-food supplies with the help of an inventory management system, you’re setting up your restaurant for smoother operations, happy customers, and, most importantly, a healthier bottom line.

What is Inventory in Your Restaurant?

In a restaurant, inventory includes all the physical items you need to operate smoothly and serve your customers. This spans everything from raw ingredients to glassware and equipment, all of which have one thing in common: they play a role in the day-to-day operations and overall customer experience. 

A well-managed inventory enables you to maintain consistency, control costs, and ensure every dish that leaves the kitchen meets your standards.

In restaurants, inventory generally falls into three main categories:

1. Food and Ingredients
2. Beverages
3. Non-Food Items

1 - Food and Ingredients 

Food is perhaps the most obvious part of a restaurant's inventory, but it’s more complex than just “what’s in the fridge.” Food inventory includes everything from the fresh vegetables and proteins you order regularly to pantry staples and frozen goods. Breaking this down further can make managing it a lot easier:

• Perishable Items: Fresh produce, meats, dairy, and other items that have a short shelf life. Since these are high-risk for spoilage, careful tracking and rotation are essential.
• Non-Perishable Items: These include ingredients with a longer shelf life, such as dried pasta, grains, canned goods, and spices. Though they’re less urgent to use, it’s still important to keep an eye on expiration dates.
• Prepared and Prepped Foods: Any sauces, marinades, or pre-made ingredients that require daily or weekly prep. Tracking these helps ensure you aren’t over-preparing and thus wasting food.

Food waste is a major expense in any restaurant, so a strategic inventory process that accounts for all these items can help you reduce spoilage and keep food costs in check.

Why it Matters

• Cost Control: Knowing exactly what’s in stock helps with ordering, which in turn keeps food costs manageable and minimizes waste.
• Consistency: Managing food inventory well means you always have the right ingredients on hand, which ensures every dish meets quality standards.
• Reduced Waste: Inventory tracking lets you order just what you need, reducing the risk of spoilage or waste.

Understanding what items go into each category can help create a streamlined inventory process that keeps costs down and operations efficient.

2 - Beverage Inventory

For restaurants with a bar, beverages are another key component of inventory. This includes both alcoholic and non-alcoholic drinks. Beverage inventory generally includes:

• Liquor, Beer, and Wine: Tracking each of these is important, especially as alcoholic beverages can have a high-profit margin. Knowing what’s popular, what’s slow to sell, and what needs restocking can keep profits steady.
• Non-Alcoholic Beverages: Soft drinks, juices, mixers, coffee, and tea all fall into this category. Even though they’re typically less costly than alcohol, their steady use means they still need regular tracking.

Managing beverage inventory can get tricky, as it requires tracking both by bottle and by pour, especially in establishments with a full bar. Having an efficient tracking method allows you to keep pour costs low and profits high.

You can learn more about effective bar inventory in our blog, How to Take Bar Inventory: Bar Inventory Basics.

Why it Matters

• Profit Margins: Beverages often have higher profit margins, so closely monitoring stock can maximize your earnings.
• Avoiding Stockouts: Your customers don’t want to be told their favourite cocktail or wine isn’t available. Beverage inventory management ensures you never run out.
• Efficient Ordering: Tracking what sells best helps with ordering, so you’re never stuck with unpopular items taking up shelf space.

3 - Non-Food Items 

Beyond the obvious food and beverage stocks, restaurants also need to keep track of a range of non-food items that are essential to service and operations. This category includes:

• Kitchen Supplies: Cooking oils, condiments, cleaning supplies, and disposables (like gloves or parchment paper) are vital to keep things running smoothly.
• Tableware and Glassware: Plates, bowls, utensils, glasses, and even take-out containers fall into this group. Any losses or damage need to be tracked to maintain stock levels.
• Napkins and Packaging Materials: Items like napkins, to-go boxes, bags, and utensils are essential for both dine-in and takeout service. Knowing what you have on hand means you’re prepared for every shift.

Non-food inventory might seem less crucial, but running low on these essentials can affect service and even put a dent in revenue. Plus, tracking usage patterns can highlight areas where you might be overspending.

Why it Matters

• Smooth Operations: Consistent access to supplies helps avoid last-minute trips to replenish essential items.
• Cost Savings: Monitoring non-food inventory can highlight areas where costs could be reduced, such as overuse of disposables.
• Customer Satisfaction: Small details like sturdy to-go packaging or clean, chip-free plates go a long way in creating a positive experience for customers.

4 Tips to Manage Your Inventory Efficiently 

Knowing what’s considered inventory is one thing, but managing it effectively is where the magic happens. Here are a few tips to help you stay on top of your restaurant’s inventory:

1. Implement Inventory Software

Using inventory management software specifically designed for the restaurant industry is one of the most effective ways to monitor stock, reduce waste, and save money. With features like PAR levels, predictive ordering, cost reporting, and POS integration, these tools can make your job not only easier - but also more accurate and profitable.

2. Conduct Regular Inventory Checks

Schedule regular inventory counts, whether that’s weekly for perishables or monthly for non-perishables and supplies. By staying consistent, you can catch discrepancies early, monitor for shrinkage, and ensure everything is on track.

3. Standardize Ordering and Stocking Procedures

Establishing standard procedures for ordering and stocking can save time and help prevent mistakes. Using a standard order sheet, tracking purchases, and setting reorder points ensures you’re always prepared.

4. Monitor Usage and Waste

One of the best ways to control inventory costs is to monitor usage closely. Track what’s being used, what’s going to waste, and adjust ordering as needed to prevent overstock or shortages.

Need help optimizing your restaurant inventory processes and improving your profit margins? Get in touch with a Sculpture Hospitality inventory expert today. We’d love to help show you how we can make your restaurant more efficient and profitable.