Inventory Control in a Restaurant Environment – food & beverage | negotiate prices | database management
Inventory Control in a Restaurant Environment
Proper food and beverage inventory control are critical for a successful business. Learn about inventory control and its components of negotiating prices and taking control of inventory, as well as the benefits of accurate database management.
Food & Beverage Industry
The food and beverage industry is one of the largest industries in the world! There are restaurants all over the world with all different menus. As a supervisor, you must make sure you are using inventory control to monitor your location’s numerous menu items. Inventory control is done by checking the actual stock and comparing it to what is sold. When ordering inventory, the first step is to negotiate prices.
Negotiate Prices
Before ordering any food and beverage products, it is essential for you to negotiate the prices of the products you are to receive. Could you imagine if you just took the prices from every distributor without trying to bargain? Generally, the vendors will have prices they will quote to you, but there is always room to negotiate so you can get a lower price. Don’t just settle on the prices; some prices may be harder to change than others, but most items will be able to be negotiated. The industry is competitive, and there are plenty of vendors out there, so you want to make sure you are getting a good deal before you place your order.
The local restaurant does not negotiate prices. The manager just takes the vendor’s word and is getting charged at the prices the vendors sets. The Bar & Grill across the street has a similar menu but is able to charge lower prices and make more profit because its managers negotiate. The Local Restaurant is losing customers to its competition because its managers do not negotiate vendor prices.
Control
The next step is essential – take control of the inventory that has been shipped. When running a bar, it is important for management to do inventory checks daily to see how much the bar has sold compared to the amount of alcohol that is gone. Doing this helps prevent bartenders from pouring drinks that are too strong or giving free drinks away without consent from management. These daily bar checks also help avoid running out of certain types of alcohol.
The food and preparation portion of a restaurant helps determine what the company is using and how much inventory is left. As a restaurant manager, you don’t want to run out of chicken or steak. Portion control of food should be established so management can accurately tell how much has actually been sold and what the restaurant has left. How would it look if you owned a steakhouse and ran out of steak? It would look bad for the restaurant, which is why it is also essential to use database management.
Database Management
A database management system is the easiest method to use to input information and produce essential reports for inventory control. A database management system allows a company to keep track of all reports, including sales and inventory. This is the easiest way to get accurate information and get reports generated. The food and beverage managers can determine what information they need and customize the system to suit their needs.
It is essential to make sure all inventory is put in the system, so the company has the most accurate information. Although database management keeps track of inventory, management must still check beverage and food quantities regularly to compare the actual count to the count in the computer. The only people that should be entering inventory into the system are managers. The more people inputting inventory, the more likely it is for there to be problems.
All shipments should come with a packing slip or invoice. It is essential for managers to keep all invoices, which are used to pay the vendors and to make sure the right quantity has been shipped. If the packing slip says there are 100 steaks, but the location only receives 50 steaks, the inventory will be a mess if someone has not compared the amount received, to the amount on the packing slip when the items arrive.
The Eatery managers have so much trust in their vendors that they receive shipments, but do not match up the amount on the invoice to the amount they get. The managers notice they are missing a lot of items but just assume it is because of theft. It is difficult for them to know because they did not get accurate numbers, so even if an employee is giving away food or alcohol, they can’t determine that.
Lesson Summary
Food & beverage inventory control compares the actual stock to what is sold. It is essential to negotiate prices and make deals with vendors to get the best possible prices and stay competitive. Taking control of the inventory entails doing regular checks on food and beverages, making sure there is portion control, and inputting information into a database management system. Using a database properly will help the restaurant generate reports and will help determine theft if it occurs.