PAR is a term that is short for Periodic Automatic Replacement. In the restaurant industry, a PAR Level is a system for figuring out the minimum level of inventory you need on hand for a given time period in order to maintain sales.
Tracking your restaurant’s PAR Levels helps you adjust your inventory items’ par levels based on their average usage. A significant variance between the par level and the average usage of an item might be an indicator that your par level is too high for that item. A negative variance could indicate that the par level needs to be increased so that you do not run out of that inventory item.
The following is the general formula for estimating par level:
Safety stock is additional stock kept on hand in case of an emergency. Depending on the item, 10-20% of your average inventory usage should be regarded as safety stock for a single item.
Setting accurate par levels for your restaurant helps operators save money by minimizing both stockpiling and food waste.
PAR Level spreadsheets are helpful but can be time-consuming and run the risk of human error when data is entered. A cloud-based system offers significant advantages because it automates stock control and can alert your mobile device when stock is running low – and even automate recurring orders with your vendors.
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