5 Ways to improve inventory and manage food costs
Any business running in the world concentrates on the fact of taking maximum profit with minimum input. Everyone want to cut their operating costs and to save any last penny they can. But, every business has different story and different operating and hidden costs that needs to be cut down.
In this article we will see how to manage and improve the cost of all time flourished business that is, food business in the name of restaurants. This article is dedicated to improving inventory management which will lead to manage food costs.
· Inventory an important aspect for restaurant business –
First of all we need to know that why inventory is important aspect for any restaurant. Restaurants are having working span of almost 12 hrs per day. Where the high requirement of each day might be different. You can’t predict the exact requirement for the day. Hence, you really can’t put high value investment in its inventory which is not very long living. the items like milk can get spoiled in couple of days if not persevered in proper refrigeration.
Hence, you have to maintain the inventory which will be required in refilling span. You have to look after that it won’t get spoiled and one should do this both things as in given tight budget.
This work if much uncertain because you have to predict about the flow of customers in coming days or the coming week. And unfortunately if you are wronged in your this prediction you can suffer higher losses and disappointment as you were expecting certain highs which were not achieved.
Inventory directly affects on the cost of food. Because inventory of raw food is the main raw material for your restaurant. Higher is the cost of inventoery higher will be the cost of you menu and the higher will be the overall cost for your restaurants. Having the image of high cost restaurant for no valid reason is not at all helpful for the business nor for its growth and survival in this huge competitive world.
So better you get some knowledge on supply chain and inventory management start applying it in your restaurants.
So, one must consider following ways for better inventory control in restaurents.
· 5 ways for better inventory control:-
1. Build your menu wisely :-
· This is first and top most way of controlling your inventory. Have some research before deciding any menu for your restaurant.
· This single factor overshadows your inventoery upto 80%.
· One should design the menu in such a fashion that it will require minimum raw material for maximum dishes you are offering.
· Built the menu such a that it will require raw material which is easily available, cost friendly and durable.
· Offering vast majority in menu will give you more trouble. So stick to decided standard menu or make few specialties of your restaurants which will be always in demand.
2. know your market :-
· knowing the market is always beneficial for you.
· You must know what to buy, from where to buy and when to buy it.
· Try to predict the market, which will dirctly affect the prices of your raw material.
· Buying direct from manufacturers and farmers will give you much advantage over the buying from merchands.
3. Keep well maintain records for analysis :-
· This is some boring and hectic work which must be done.
· Past histories are always considered as well given path in business.
· Off course you have to record daily consumption ,weekly consumption ,monthly consumption and like that..for every year. This will give you idea about everything you need to plan for further inventory.
4. Maintain timings :-
· Maintain timing for everything involving inventory.
· Count your inventory at specific time on decided specific day, don’t miss it or you won’t get the perfect readings and your calculation will always fluctuate.
· Maintain timing for the purchase as well, your little ignorance can cause you hefty amount of increased price or even worse not getting the item you want, which means practically means no inventory.
5. Use your senses wisely (sorry don’t take it personally) :-
· Whatever planning you do and how ever full proof it seems, you really can’t predict the accurate future. So be prepared.
· Business is all about taking the new challenge every day and tackling them . so, be prepared for blunders that might occur, at least mentally.
· Use your common sense. (Yes. You heard it right.) it will mostly help you in everything and make you a practical person,
· Develop your sixth sense w.r.t your intellectual and business as well.
Hope this is helpful for your next inventory.