Restaurant Inventory Platform

You think your food cost is 28%. It isn't.

The gap between what your recipes say you should be spending and what you’re actually spending is where margin disappears. Most operators find out weeks later — if at all.

50,000+ locations trust R365

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91%

of operators saw food costs rise in 2025 — more than they expected

$400M

in food waste identified and cut by R365 operators across the platform in 2024

1-5%

typical food cost reduction range across R365 inventory operators in their first year

38%

food cost inflation since 2019 — most recipe costs haven’t been updated to match

The Diagnosis

Actual vs. Theoretical. This is where margin dies.

A typical multi-unit operation runs across six or more disconnected platforms.

Most operators don’t know their AvT number. They only see food cost after the period closes. By then, weeks of variance have already compounded.

Theoretical

What recipes say you should spend

28.0%

Actual

What you really spent

31.4%

AvT Variance

Missing margin · This period

+3.4%

At $3M annual revenue

$102,000

/ year gone

Early Customer Proof

Operators who closed the gap

5 pts

“Restaurant365 is the greatest thing I’ve ever worked with. We went from 30% food cost to 25% — and we can see exactly where every dollar went.”

Nancy Cioll

Director of Finance · BRG Hospitality

5 pts

“We went from 28% down to 23% cost of goods. We set a target of 26% and surpassed it.”

Pike Howard

Director of Development & Finance

4 pts

“When you look at food costs, we’ve become more consistent. We went from 34% down to 30% across all locations.”

Snarf’s Sandwiches

50-store fast casual chain

You can't find the bleed on a clipboard

Manual counts tell you what’s on the shelf. They don’t tell you why your actual food cost is 3 points above theoretical, which category is driving it, or what happened between Monday and Friday to create the gap. That information requires a connected system — not a better spreadsheet.

Where the Margin Goes

The gap has six sources. Most operators are blind to all of them.

AvT variance isn’t one problem. It’s six. Without a connected system, none of them surface until long after the period closes.

Over-Portioning

A line cook who’s half an ounce heavy on protein 200 times per day. Invisible daily. Thousands of dollars quarterly.

0.5–1.5 pts food cost

Waste & Spoilage

Prep that didn’t move. Product that sat too long. Without waste tracking connected to inventory, it shows up as unexplained variance.

$400M identified in 2024

Receiving Errors

You ordered 40 pounds. You received 36. Without digital receiving tied to POs and invoices, the difference disappears into food cost.

0.3–0.8 pts per period

Vendor Price Creep

Vendors raise prices quietly. Without item-level tracking, operators absorb it unknowingly. HopMonk saved $1/lb on chicken after catching it.

Compounding & silent

Theft & Shrink

The category no one likes to talk about. With accurate inventory data, anomalies become visible and traceable.

4–8% industry average

Stale Recipe Costs

Your menu was costed 18 months ago. Ingredient prices moved 30%. You’re pricing dishes based on numbers that no longer exist.

38% inflation since 2019

The Solution

R365 Inventory.

Built to close the AvT gap.

R365 Inventory connects your POS sales data, your purchasing, your recipes, and your actual usage counts inside a single system. That connection is what makes AvT tracking possible — and actionable.

Your theoretical food cost is calculated automatically from your recipes and POS sales. Your actual cost comes from counts and purchases. The variance report shows exactly where the gap is — by item, by category, by location — while there’s still time to correct it.

When a vendor raises a price, you see it the moment an invoice lands — not three weeks later on the P&L. When a station runs 2 points over theoretical on protein, you see it mid-week, not mid-month. When a new tariff hits, you know which SKUs are affected and by how much before the period closes.

“With Restaurant365, we’ve driven down our cost of goods on food by 2% and liquor cost by 3%.”

David Selby · Brand Operations Manager

Opened 13 new stores. Accounting team: unchanged.

“We set a target of 26% food cost and surpassed it — by digging into menu items, recipes, and ingredients at a level we simply couldn’t before.”

Pike Howard · Felipe’s Mexican Taqueria

Surpassed target by 3 full points

Operators who closed the gap

Named operators. Real food cost reductions.

AvT variance isn’t one problem. It’s six. Without a connected system, none of them surface until long after the period closes.

“We’ve been in this business for 40 years. Restaurant365 is the greatest thing I’ve ever worked with. The visibility into actual vs. theoretical changed how we run our kitchens entirely.”

Nancy Cioll, Director of Finance · 9+ locations

5 pts

food cost reduction · 30% → 25%

Item-level

variance visibility by category and location

Vendor data

used to renegotiate supplier contracts post-tariff

$1.2M impact

Maru Hospitality · 7 Michigan locations

$900K in sales increase plus $300K food cost decrease. Used AvT tracking and menu item analysis to cut menu options 20%, driving 20%+ jumps in per-item sales and tighter food cost simultaneously.

Lorenzo Castillo & Aimee Byars · Maru Hospitality Group

4 pts

Snarf’s Sandwiches · 50 stores

“Our number one win — when you look at food costs, we’ve become more consistent.” 34% → 30% across all 50 locations. Accurate costing, precise inventory, and optimized AP working in one connected system.

Snarf’s Sandwiches

2.5 pts yr 1

Paxton Keiser · Taco John’s · 24 locations

“We could no longer succeed on assumptions. We needed hard data to make better decisions.” 2.5% saved year one, another 1.5% projected year two. Fourth largest franchisee in the Taco John’s system.

Tina Braam, COO & Anna Pool, Controller

21% food cost

RDMS Group · 75 restaurant clients · 125+ locations

Restaurant-focused accounting firm using R365 to help clients achieve a 21% food cost — well below industry benchmarks. What separates their clients: AvT visibility and connected recipe costing.

Tom Rutledge & Sean Olson · RDMS Group

$1/lb savings

HopMonk Tavern · 4 locations · $11–12M food sales

Used R365 purchase analysis to renegotiate vendor contracts after identifying price creep by item. Saved up to $1/lb on chicken breast alone. Now saves tens of thousands annually through data-backed procurement.

Javier Silva, VP · HopMonk Tavern

1% + visibility

California Fish Grill · 58 locations

Chose R365 specifically for AvT tracking after running two disconnected systems. Now uses real-time variance analysis and time-based labor studies across 58 locations. CFO’s first move when tariffs hit: open R365.

Paul Potvin, CFO · California Fish Grill

$400M

Food waste identified and cut by R365 operators in 2024.

That’s not a projection. That’s the aggregate of what R365 operators found when they finally had visibility into actual vs. theoretical at item level — and acted on it. Across 50,000+ locations, AvT tracking doesn’t just surface the gap. It tells you exactly what closing it is worth.

3–5%

average restaurant net margin — every point of food cost matters

28%

expect tariff impacts on their business

5 pts

food cost reduction achieved by BRG Hospitality

1–5%

typical improvement range with real inventory visibility

What's your actual vs. theoretical gap right now?

If you don’t know the number, you can’t close it. R365 connects your POS, recipes, purchasing, and inventory counts into a single system so AvT variance is visible immediately.