How to Manage Restaurant Operations Tip #2

Automating Inventory

Managing inventory smartly helps in the reduction of operating costs, reduces wastage and helps to maintain quality.

How to manage my inventory at outlets/stores?

Inventory is a collections of items or ingredients which are used in the process of cooking / preparing food at a restaurant. We can separate them into two major classes:

  • Non Consumable Inventory: Items which are not consumed in daily operations & processes like an oven, rolling pins or forks and knives.
  • Consumable Inventory: Items which are consumed in the preparation & cooking of your food items.

For both types of inventory different SOPs are used.

Non Consumable Inventory:

For non consumable inventory we recommend:

  • Items that should be counted and recorded: Cutlery, machinery, temperature gauges, washing supplies etc.
  • Generally these type of items are recorded when they are purchased. An end of month check should be conducted to ensure that that sufficient quantity of items are available and that the records reflect the reality on the ground. This conducted using Material End Counts and Material Adjustments.

Consumable Inventory:

For consumable inventory a slightly different methodology is recommended:

  • Items that should be counted and recorded: Vegetables, meats, oil, disposable forks, disposable napkins etc
  • These items have pre defined supply chain flows and it depends on your supply chain model.

    Single Store / Warehouse Model:
    In this model the outlet also doubles up as the only storage location. Hence in your inventory system a purchase should be recorded every time a consumable item is purchased (via a Material Receipt Note). After a Material Receipt Note records incoming stock at a store, those items become available for consumption at the specified store.

    At day's end a Material End Count should be conducted. This is the process whereby restaurant staff will weigh out each and every single item in the store and record it in the system (We will examine how this data is used in a later post). As you can imagine a store has 100s of items and counting all of them would be an extremely time intensive task, to tackle this Pegasus Point of Sales has been coupled with Merlin Inventory which has some key features like Quick Material End Count which can make operations much smoother

    Multiple Stores / Warehouses Model:
    This model is applicable for chains / owners of multiple restaurants as there are multiple storage locations which could include a centralized distribution warehouse. Much like the single store model, item purchases are recorded by Material Receipt Notes. To record movement of stock from one location to the other Material Transfer Out (recorded at the location where items are leaving from) or Material Transfer In (recorded at the location where items are being received. Receipt should be acknowledge against a Material Transfer Out)'s are utilized.

    As in the single store model daily Quick Material End Counts should be conducted. For the warehouse model Merlin Inventory & Pegasus Point of Sales provide various other advanced features for semi finished products.

Review the image above to understand these documents and how they fit in to your inventory operations.

Customer Story

Hallmarks of robust inventory platforms are the ability to self track inventory using real time updates, automatically re order stock from warehouses and recommend stock levels for automatic reordering. Burger King is one such organization in Pakistan which is utilizing the strengths of our enterprise inventory solutions to automate their supply chains to their restaurants while keeping a close eye on inventory levels.

Many more such features are available in Pegasus Point of Sale & Merlin Inventory as well.

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