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How to Set Up Par Levels and Reorder Alerts with Suppliers

How to Set Up Par Levels and Reorder Alerts with Suppliers

Picture of Denise Prichard
Denise Prichard

Every operator knows the pain of running out of a core ingredient at the worst possible moment. Par levels take the guesswork out of ordering and let your team focus on what they do best: serving great food. In this post, we’ll break down how to set par levels that make sense for your business and how to use reorder alerts to keep your kitchen moving.

Overview

Why par levels matter

If “running out of something at the worst possible time” feels like the story of your life, you’re not alone. That’s exactly why par levels exist.

Par levels give your team a clear benchmark for how much of each ingredient should always be in the building — enough to make it through your busiest shifts without drowning in excess inventory. They take the emotion, guesswork, and “I think we usually order…” out of ordering.

When par levels are set correctly, your team can:

  • Avoid last-minute vendor calls

  • Reduce waste from over-ordering

  • Keep cash flow stable

  • Maintain consistency across all locations

  • Make ordering simpler for every manager

 

And when those par levels connect directly with your inventory counts and vendor pricing? The process becomes almost effortless.

Par levels that work. Orders that stay on track.

See how R365 can help.

What to look for when setting par levels

Strong par levels are built on more than a gut feeling. Operators should consider:

  • Sales patterns (peak days, busy seasons, lulls)

  • Recipe usage (what each item actually goes into)

  • Vendor lead times (three days? same-day?)

  • Delivery schedules (how often they can top you up)

  • Storage capacity (especially for perishables)

  • Real usage trends (actual vs. theoretical)

 

With Restaurant365, operators can pull this data instantly — no spreadsheets, no guesswork — and set pars based on what’s truly happening in their restaurants.

If you’re looking to tighten up inventory counts and bring more consistency to your ordering, this webinar is for you. From Trash to Cash: How to Boost Profits by Reducing Food Waste covers how connected systems like R365 help operators set par levels, track ingredients in real time, and build more reliable, cost-efficient purchasing routines.

How to set up par levels and reorder alerts with suppliers

Here’s what a smooth, modern par-level workflow looks like:

1. Start with accurate usage data

Your par levels are only as good as the data behind them. Use your POS and inventory history to understand exactly how much product you use during a normal week.

2. Layer in vendor schedule + lead times

If your supplier only delivers twice a week, your par should cover the gap plus a safety cushion.

3. Set your pars inside your inventory system

R365 lets you assign par levels to each item by location — so busy stores can have higher pars than slower ones.

4. Turn on automated reorder alerts

As inventory depletes and hits that minimum level, the system sends alerts or automatically builds suggested POs.

5. Review vendor pricing before sending any order

With integrated vendor pricing, operators can see cost changes in real time and adjust orders accordingly.

6. Approve, send, and track

Orders sync directly to vendors and accounting, giving operators complete visibility from purchase to plate.

This is the difference between “hope we ordered enough” and “we always have exactly what we need.”

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Restaurant Inventory Management Best Practices

Case study: Felipe's Taqueria

Felipe’s Mexican Taqueria began in 2006 with a mission to serve fresh, authentic Mexican food in a vibrant atmosphere. But as the brand expanded across New Orleans and Florida, tracking inventory and controlling food costs became increasingly difficult. With vast ingredient combinations and high volume, even small inefficiencies added up quickly.

When Felipe’s turned to Restaurant365, they connected purchasing, inventory, and accounting into one system. By bringing POS data, recipe costing, and vendor pricing together, the team gained the clarity they needed to control usage and order more accurately. The restaurant used this visibility to standardize inventory practices, establish more precise par levels, and identify cost variances faster than ever.

The results:

  • Lowered their CoGS by 5% — from 28% down to 23%

  • Improved cost consistency across all locations

  • Gained real-time access to sales and budget data

  • Eliminated manual errors and sped up purchasing workflows

 

By unifying inventory and purchasing, Felipe’s turned par levels into a profit lever — not a chore.

Felipe’s Mexican Taqueria cut food costs by 5% by tightening inventory practices and standardizing purchasing with R365. Ready to see how better data and stronger systems can help your restaurant do the same? Explore Restaurant365 today.

Comparing your options

Restaurant365

✅  Dynamically updates par levels based on actual usage

✅  Automated reorder alerts tied directly to vendor pricing

✅  Full inventory + recipe + purchasing integration

✅  Ideal for multi-location operators that need consistency and control

MarginEdge

✅  Quick to set up

❌  Limited financial and accounting integration

❌  Doesn’t offer full system-wide par-level intelligence

❌  Requires more manual oversight for multi-unit operators

Manual spreadsheets

✅  No software fees

❌  High risk of errors and outdated counts

❌  No automation or alerts

❌  Nearly impossible to scale

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What are PAR Levels in a Restaurant?

Par levels FAQs

  • What are par levels in a restaurant?

    • Par levels represent the minimum amount of an ingredient or supply your restaurant should always have on hand to operate smoothly.

  • How do I know when to reorder inventory?

    • Reorder alerts trigger when stock hits your par level — especially when your system is connected to daily inventory counts.

  • How often should I update my par levels?

    • Review them seasonally or anytime menu changes, sales patterns shift, or vendor schedules change.

  • Can par levels help reduce food cost?

    • Absolutely. Better ordering reduces waste, avoids overstocking, and keeps purchasing consistent — all of which protect your margins.

  • Does Restaurant365 automate reordering?

    • Yes — R365 can generate suggested purchase orders and send alerts as soon as items hit their par levels.

Smarter par levels. Stronger margins.

See how R365 makes it happen.

Real-world results

Beyond features, the true measure of a system is the impact it has on your business. By using Restaurant 365’s real-time inventory and back-office tools, operators have achieved measurable results:

  • Proven savings: Felipe’s Mexican Taqueria reduced its Cost of Goods by 5% — from 28% down to 23% — by standardizing inventory practices and improving purchasing accuracy.
  • Faster reporting: “It’s great having one system for accounting, inventory, and reporting. It saves so much time and reduces errors.”
  • Smarter inventory tracking: “The ability to track inventory, schedule, and sales all in one is great.”
  • Real savings: “We have saved money by using the software … it has been a great management tool.”
  • Operational clarity: “With having operations and accounting under one system … we can get the weekly inventory posted to the P&L … so it is basically instant access to CoGS.”
  • Comprehensive operations: “Finally, it includes accounting, payroll, inventory, and reporting — all in one place.”

The shift from manual counts and fragmented systems to connected, real-time tracking doesn’t just save time — it builds stronger teams, sharper insights, and healthier margins.

Conclusion

Par levels and reorder alerts are more than an ordering tool — they’re the foundation of consistent, predictable, profitable restaurant operations. When your team always knows what to order, when to order it, and what it should cost, everything becomes easier.

Get out of the guessing game. Build stronger ordering habits. Run tighter inventory and protect your margins with Restaurant365. Get a free demo today.

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