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Restaurant Inventory Management: Stock Counts, Waste and Expiry

Restaurant inventory management made practical: receiving, stock counts, food waste tracking, expiry dates and FIFO. A step-by-step guide with FAQ.

sipnik Teamsipnik Team4 min read
Restaurant Inventory Management: Stock Counts, Waste and Expiry

Restaurant inventory management means recording every movement of your ingredients and sellable products, from the moment they arrive until they are sold, wasted or returned. The goal is simple: know what you have, where it went, and what you need to order and when.

In food businesses, profit is often lost not at the till but in the storeroom: milk that spoils, a sauce past its expiry date, complimentary items nobody records. This guide shows you how to turn inventory management into a daily habit.

The 5 core movements of inventory management

MovementWhenEffect on stock
ReceivingWhen goods arrive from a supplierIncreases, cost is updated
TransferFrom warehouse to branch, or between branchesLeaves one location, added to another
WasteSpoilage, breakage, expiry, complimentary itemsDecreases, recorded with a reason
Stock countWeekly or monthlyCorrected once the variance is approved
ReturnDefective or surplus goodsDecreases, goes back to the supplier

There is only one rule: never type stock quantities in by hand; the balance is the sum of these movements. The moment you overwrite a number manually, you lose the chance to know what went missing and why.

How to do restaurant inventory, step by step

1. Build your item list

Put the products you sell and the ingredients you use into a single list. For each item, set the purchase unit (case, crate) and the stock unit (piece, litre, kilo), and enter how many units come in a case.

2. Define your locations

Central warehouse, branch storeroom, bar, kitchen. Goods are counted where they are kept; when locations are clear, losses become clear too.

3. Do an opening stock count

On the first day of the switch, count all your stock and enter it as your starting point in a single document. From then on, every change happens through a movement.

4. Record every delivery

Check incoming goods against the delivery note and enter the quantity and unit price. Scanning barcodes improves both speed and accuracy. For products with an expiry date, record the batch and the expiry date as well.

5. Log waste with a reason

Don't just write waste off as "loss": spoilage, expiry, breakage and complimentary items are separate reasons. When you look at the waste report at the end of the month, you'll see exactly what needs fixing.

6. Count regularly

Count fast-moving and expensive items weekly and everything else monthly. A blind count (where the person counting cannot see the expected quantity) gives more honest results.

7. First in, first out

The batch with the nearest date should be used first. FIFO stops old stock from piling up on the shelves and calculates your costs correctly.

Food waste tracking: a checklist to reduce waste

  • List products nearing their expiry date once a week and feature them on the menu.
  • Record complimentary items as waste; unrecorded freebies are the most expensive loss of all.
  • Separate best-sellers from slow-movers when setting order quantities.
  • If a count variance keeps showing up on the same item, examine the process, not the person.
  • Send defective goods back to the supplier with a return document.

Spreadsheet or inventory management software?

A single-location business with a short item list can start with a spreadsheet. But once branches, warehouses or expiry tracking come into play, a spreadsheet can't handle movement history, batch information and several people working at the same time. At that point, document-based inventory management software saves you time.

Inventory management with sipnik Field

In sipnik Field, every movement, from receiving and transfers to stock counts and waste, is recorded in the ledger with a document. When you scan a barcode or GS1 code, the batch and expiry date fill in automatically, and expired goods are pulled from sale. Costs are calculated with FIFO, and the waste report shows what was lost, where and why.

Frequently asked questions

How often should a restaurant do a stock count?

Expensive and fast-moving items (meat, cheese, coffee beans, drinks) should be counted weekly and the rest monthly. An extra count before busy periods is also worthwhile.

What should my waste rate be?

It depends on your segment and your menu. What matters more than the rate itself is the trend: if you log waste with a reason, you can see which items it is rising on and step in.

What is FIFO?

It stands for "first in, first out". The batch that entered the storeroom first is used first; this reduces spoilage and calculates the cost of your stock correctly.

What is a blind count?

It is a method where the person counting does so without seeing the expected quantity in the system. Because nobody tells them what "should" be there, the result is more realistic.

Where should I start with inventory management?

Start with your 20 most expensive items. They usually make up the bulk of your costs; once the habit sticks, expand the list.

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