How to Efficiently Manage Your Restaurant Inventory


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Inventory management is crucial for profitability of any restaurant as it helps you to track each ingredient used in the dish. A piece of cucumber, a slice of avocado, a loaf of bread doesn’t seem like much, but every month they add up exponentially to become a big pile of wasted money. The example is just one of the drawbacks of not having a proper inventory management system in place. It’s negative effects on the restaurant’s ROI cannot be neglected. “Hidden costs” such as wastage, spoilage, overstocking, and theft can easily eat up the profits of small mom-and-pop restaurants working on 5 to 10% profit margin. For larger restaurants the losses can easily be in thousands of dollars creating an unsustainable business environment. Inventory management systems integrated with the restaurant POS solutions allows you to manage every aspect of the inventory, and improve the restaurant’s efficiency, profits and customer service. As the volume of business grows in a restaurant, inventory management becomes a crucial part of restaurant operations. Inventory costs being restaurant’s prime costs can literally make or break the business.

Here are few tips essential for inventory management to simplify, optimize and revitalise your restaurant business:

  1. Assign Roles and Permissions to a Well Trained Team

Every restaurant should ideally have dedicated and well trained employees who are responsible for the entire inventory process. They are tasked with accepting all incoming inventory, organizing the products, ensuring the quality, quantity, and price of the receivables and storing the products according to safety standards. They also need to have analytical and social skills to deal with figures and suppliers. It is good practice to use the same staff to take inventory. They tend to get faster, accurate and more consistent with time. Using intuitive restaurant EPOS software should be preferred over outdated practice of manually capturing data or using spreadsheets which allows for a large margin of human error.

While assigning roles and permissions to employees with the help of Phomello EPOS software, it becomes easy for you to detect discrepancy in the stocked inventory and prevent malpractice and corruption in the restaurant. Phomello Android enables you to create specific roles for each task, and assign people who would be held responsible for that task. All the activities of the staff are logged, and different employees can be assigned different modules to maintain a check on the inventory. Ultimately, your food is your responsibility and inventory must be procured, stored and rotated in a certain way to ensure safety and profitability.

  1. Regularly Monitor the Inventory

The regular monitoring is important because you want to make sure that your stock is efficiently used and track every ingredient to understand long-standing stock that isn’t being used. This helps you to keep, discard or cross-utilize all those ingredients that are nearing expiration date, thereby keeping an effective check on restaurant inventory shelf life.

It is easy to organize your existing stock with Phomello Android inventory management software. You can easily get the available stock count at the beginning and closing at the end of the day. Phomello Android calculates the balance stock automatically, and tallies it with the available physical stock. You can therefore make an informed decision before ordering a fresh stock. Phomello POS system effectively forecast the supply needs preventing the risk of over-stocking and related wastage.

The acceptable level of variance (difference between stock according to recipe and order placed through POS) is between 2 to 5%, keeping in mind that some ingredients are bound to get wasted while preparing the dish. Variance is important factor to check in order to prevent theft, overuse and wastage.

Phomello Android let’s you set ‘Inventory Par Levels’. You can define and set minimum quantity of an ingredient you need to have in inventory. Phomello restaurant software notifies you about low supplies so that you can reorder in time. A reorder report is also generated automatically.

  1. Recipe Management and Pricing

Standardization of recipes makes the inventory management simpler and cost effective. By specifying the quantity of each ingredient required in the recipe, the inventory management software can easily calculate the next reorder date for the stock. You can enter your recipes in the Phomello Android restaurant management software to assess the usage of ingredients. Phomello Android also supports semi-finished items, modifiers and combo items used to produce the final items. For multi-chain restaurants, it helps to guarantee uniform taste of the dishes by maintaining uniform recipes across all the outlets. Phomello recipe management feature updates raw materials in stock and gives you the cost of final dishes. You can easily decide the selling price of the items in your menu by adding your preferred profit margin to the final cost of dishes.

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  1. Central Kitchen Management

For multi-chain establishments and quick service restaurants, it is ideal to have a central kitchen where the food is processed and dispatched to the other outlets.  For these restaurants a highly scalable and globalized version of restaurant POS system is required which can be integrated with the restaurant’s ERP. With, such restaurant POS software it becomes a cake walk to manage the overall circulation of the inventory and final food items based on the outlet requirements. Whenever an outlet is out of a certain supply, it can simply place purchase order at their restaurant POS. The request is received by the central kitchen management and the desired stock can be sent quickly to the outlet.

By supporting multiple company / brand / franchise outlets, multilingual and multi-currency payment modules Phomello Android has become a global Leader in restaurant and hospitality POS systems. It also enables the restaurants to serve customers faster with the Phomello Android multiple Kitchen print functionality.

  1. Reporting and Restaurant Analytics

Taking a completely new approach to restaurant Reporting and analytic via a well-integrated restaurant POS system is yet another important feature of inventory management. Sales report and the raw material usage data tremendously helps while forecasting growth and making future strategic plans for restaurant operations. Making informed decisions becomes easy, for example while finalizing the menu. Using the recipe costing report, item consumption report, reorder report, daily account activity report and customer credit-debit report generated by Phomello Android EPOS software it becomes easy to plan and set the restaurant’s future goals. Profit and loss reports are of special importance while tracking the stock sale and consumption. Phomello Z-report is specially designed to maintain and check the cash book balance at the end of every shift. It becomes very quick and hassle free for the manager to close the cash counter and re-open it for cashier in next shift.

Phomello Android report is the ultimate tool for organizing and analyzing inventory valuation and inventory trends. At the end of every week or month you can see the trend and identify the areas where your business needs to improve and plan the expansion of your business. Phomello Restaurant EPOS inventory management enables you to reduce wastage, same money and provide insights into customer behavior in terms of what and how they order. Phomello Android software will give you a bird’s eye view of everything at one place on a single touch of screen.

  1. Incorporate Automation and Technology

POS Technology has grown by leaps and bounds, now we have many sophisticated restaurant inventory management softwares that weren’t available a decade ago. They have empowered the restaurant business by providing clarity and organizational capabilities required to run the restaurant profitably with higher ROI.

Phomello Android is one such tool which comes with inbuilt POS software that works equally well for different F&B operations and is highly scalable. Phomello Android helps you to easily manage the weekend rush using the powerful table reservation system. The best part is Phomello POS can also be easily integrated with all known restaurant ERP like SAP, Oracle and Microsoft.

Providing customers with more choices, personalized service and real-time transactions makes customer retention easier. And of course providing the customers with a Phomello Android generated “loyalty card” that guarantees them more benefits (reward points and discounts) keep them coming back to your outlet. Phomello POS can also send receipt emails and SMS. Predefined customer discount or personalized promotions can also be linked with customer groups and chosen vendors.

The combination is prefect to grow a restaurant that can not only smartly deal with everyday inventory but is also an industry leader in providing it’s customers a great service, high quality meal and hospitable environment.

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