How to Manage Restaurant Operations Tip #3
Spare / Extra Inventory Management
Keeping backup inventory is crucial to dealing with surges in customer demand. Accurate use of forecasting tools can also make your restaurant resilient to a sudden boost in interest from your customers.
What is spare inventory?
Spare inventory is excess inventory that you keep on top of your expected usage at your restaurant. For example you own a pizza restaurant and you expect to sell 100 pizzas on a given day. It is prudent to keep spare stock to deal with any unforeseen circumstances of crucial ingredients. For a pizza store this might be dough, cheese, meats etc.
How do I know what and how much to keep in spare?
Restaurant industry best practices dictate that safety / spare stock of around 20% of expected consumed quantity should be maintained for a couple of reasons:
- Staff maybe over using a handful of ingredients (as compared to the defined quantities in your recipes)
- There may be a sudden explosion in orders that day
Using historical data from your pos, a restauranteur can calculate the average consumed quantities of key ingredients for everyday of the week, 20% of the calculated amount is the amount of spare stock you should keep at the restaurant / outlet. You can do this calculation manually or use the forecasting features in Pegasus PoS / Merlin Inventory.