The number one factor that impacts restaurant profit margins is food waste. Lots of restaurants go under each year because they struggle with exorbitantly high food costs. There are several reasons for this. Many owners fail to optimize their menu properly and prioritize the items that are profitable and popular. Other owners don't have a good system in place to accurately track inventory. Some owners struggle with food theft and loss, which further impacts food costs and the bottom line. The common denominator is that none are using the best inventory management system or set of best practices.
Using a restaurant business inventory system is critical to controlling costs in your restaurant. A computerized system automatically updates each time a new customer order is keyed in. This means that all inventory levels are accurate in real-time. Restaurant owners know exactly what is going in and out of the restaurant. Furthermore, owners can see exactly who keyed in what, which helps hold employees accountable. If there is food theft or waste, managers know who is responsible and can use disciplinary measures to mitigate it in the future. It eliminates the guesswork from the equation.
Another benefit of an inventory management system functionality is the reporting features. Managers can use these data insights to drill down into bottlenecks and make better reordering decisions. Other functionality will prompt the system to automatically reorder items when they get to a certain level. This removes a lot of time-consuming, meticulous work away from overwhelmed employees and managers. It allows them to focus on more critical aspects of the job, such as marketing, upselling, and offering great service.
Customers are happier because they have access to the menu items they want at all times. This is a win-win for restaurants because happier customers tend to purchase more items. They also tend to tell their friends and evolve into return customers. A good inventory management system gives restaurants the competitive edge and stellar reputation they need in this digital age.
So, now that we know what an inventory management system is, you can learn how to use it to your benefit. You can also incoprorate some tips to optimize the
Inventory Management process and eliminate errors. Read ahead to learn the top ways a computerized system and best practices can help you manage inventory more effectively.