We know inventory is an essential part of any business—especially for managing a restaurant business where ingredients are crucial. Inventory is vital; there must be supplies for making food. In the restaurant, people keep coming and order food!
In restaurants, inventory management is not simple! It can build or split your business! We are saying that because in the restaurant business, you will need inventory (ingredient, vegetable, consumable) that is fresh, so it needs to be finished in time; otherwise, it will be wasted.
You also need to keep track of inventory so that you can refill stock before it is finished. Thus, a balance needs to be maintained; inventory should neither below nor too much! Both types of scenarios shall be avoided for effective inventory management.
However, this is not everyone’s cup of tea! It would help if you had proper inventory management software; it will do this job for you. Furthermore, inventory management allows you to identify dishes that are frequently selling and which are not. If you do not pay attention, you can lose a lot of potential business!
What is inventory management?
Inventory management is the process of managing inventory in the right place in the right quantity at the right price. It is a systematic approach to source and sells inventory. Inventory can be raw material (ingredient) or finished goods (prepared dish).
How does inventory management help in managing restaurant business?
Inventory management helps the restaurant business in many ways:
Add or move inventory from one location to another
There can be any reason for adding or drawing inventory from one place to another; for instance, in one of your restaurant’s chain, the demand is high. For the same reason, inventory is about to finish before its expected time. So, you can draw inventory from that place where demand is not high; in this way, you will not lose potential customers and business.
Set re-order level
This is one of the most critical inventory management software features as it allows users to set reorder levels. Whenever inventory goes below the defined level, it will notify the restaurant’s responsible person about the inventory. After which, the stock refilling process begins. The best part is you can do it for each particular item.
ALSO READ: 5 Tips To Improve Working Capital
Low stock alert
Stock is critical, mainly when you are in the restaurant business. The whole business depends on sales, and for selling, you need inventory & inventory should never run out of stock.
To avoid the out-of-stock situation, the restaurant inventory management system notifies you when inventory is low. That means managers do not have to keep track of inventory manually because this software does it for them.
You can also set an alert when a vendor makes any change in prices. This alert is sent to email, push notification, and SMS to mobile and computer system or laptop.
360-degree-view of inventory
The software provides deep visibility of inventory and other vital data such as which location has more list than required or which site needs inventory. Which product (inventory) is expiring soon! All the information related to the inventory can be found within this software.
In any business, data analysis is a crucial activity, especially when you want to take your business to the next level. With the reports and statistics, you can find out which dish is popular among which customers (Male, female, teenager), which is an all-time favorite dish, busy-hours.
These types of reports are helpful in planning and making business decisions accordingly. Moreover, these reports help find trends & allow you to decide on actual numbers and data.
How can sales performance be improved? The key to this question is hidden in this feature!
Why shall businesses not utilize spreadsheets in managing restaurant business?
The spreadsheet is not a tool that effectively helps in managing assets or inventories. On the contrary, it will not give you accurate information, and scenarios can occur to think that inventory is available according to the data. When you check physically, it is not available; in this case, the business will be interrupted.
The spreadsheet is prone to error. There is no proper tracking, such as who made the changes & when changes were made. The spreadsheet is neither reliable nor provides any reports that can help in business.
Conclusion – When you want to enhance your business inventory or asset management, the software comes in handy. It can keep track of inventory and assets as well.
When you are a part or run a large restaurant chain, it is essential to understand the inventory’s importance. For effective inventory management, you will need inventory management software. You will notice the difference in result once you invest in this software. It will be value for money.