Restaurant Profitability Blog

How to Calculate Your Restaurant Inventory Par Levels

Your restaurant’s inventory par levels and food costs go hand in hand.

It’s one of the hardest things to juggle… Having enough inventory to meet demand each week, but also keeping it low, as to avoid stockpiling or food waste.

We mentioned this in our last article, but keeping track of inventory (and your par levels) is essential to the success of your restaurant.

Lower inventory levels help:

Ben BaggettHow to Calculate Your Restaurant Inventory Par Levels
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What is Food Cost Variance and How Do You Control it?

How often do you check the prices of your ingredients?

Every delivery? Once a week? Once a month? You’re expecting your food cost to be around a very specific number. Your supplier didn’t mention any major changes in price, so why should you have to worry? You’re getting a good deal after all, right?

But prices are seasonal, and will often change. Small increments here and there. Sometimes they may go unnoticed. Sometimes you may catch them.

In an ideal world, your food cost would be exactly what you expect every single time. But unfortunately, that’s not how the supplier industry works.

So what is food cost variance and how can you keep it under control? Below we’ve outlined what food cost variance (as called cost variance) is and a few ways you can keep it under control.

Ben BaggettWhat is Food Cost Variance and How Do You Control it?
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How to Calculate Your Inventory Turnover Rate (And Why it’s Important)

Do you know if you’re using your inventory efficiently?

Or how many days you’re holding inventory?

Managing your restaurant’s inventory sometimes get pushed to the backburner.

Invoices stack up. Servers call in. Managers show up late. And payroll has to get done.

You have a million things to think about every day and inventory management isn’t always a top priority.

But understanding your inventory is vital to the success of your restaurant.

You should have a thorough understanding of your inventory turnover rate, how many days its held on average, and how that compares to others in your market.

Ben BaggettHow to Calculate Your Inventory Turnover Rate (And Why it’s Important)
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Restaurant Food Waste: The Silent Killer

You’re busy.

Well, ever since you opened your restaurant, you’re never not busy.

You’re being pulled in a million different directions at all times. You’re covering for a waiter who skipped his shift. A customer is causing a scene. A fight just broke out in the kitchen.

With all that going on, you just haven’t had the time – or energy – to focus on reducing your restaurant’s food waste.

You’re not keeping track of your orders. Instead, you’re just placing the same ones over and over. Who has time to analyze all that stuff?

Well, when you don’t analyze that “stuff”, you’re throwing out hundreds of dollars a week in wasted food.

And you have nothing in place to help with your restaurant food waste management.

But, you can reduce food waste in your restaurant in a ton of ways, including inventory management, smarter ordering decisions, and more.

Stop letting restaurant food waste kill your profits.

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Danny BarryRestaurant Food Waste: The Silent Killer
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Infographic: 5 Processes to Shred Your Food Costs

According to the National Restaurant Association, the restaurant industry netted almost $800 billion in sales in 2017.

So.. why are you still struggling to turn a profit?

It’s probably because you’re not taking care of your food costs.

Make a change and save your restaurant.

Here are a few places to start:

Danny BarryInfographic: 5 Processes to Shred Your Food Costs
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Restaurant Inventory Master Class Webinar Recap

Recently, we hosted the Restaurant Inventory Master Class Webinar.

This first-of-its-kind course covered a variety of topics, including:

  • The importance of getting accurate inventory numbers
  • How to find your Cost of Goods Sold
  • How all these numbers help lower your food costs
  • A way to get better numbers in a fraction of the time (and without counting inventory)
Danny BarryRestaurant Inventory Master Class Webinar Recap
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The Case for Price Transparency: A Note from our CEO

Orderly is here to help restaurant owners run a smarter business. And we can’t do that if we’re just giving you our perspective.

So each month our CEO, Bill Jones, takes a deep dive into a topic of his choosing. He’s got thoughts, tips, and things to watch out for – all designed to help you out.

And we have them right here, for you.

Danny BarryThe Case for Price Transparency: A Note from our CEO
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