Food & beverage inventory is cash on your shelves. It’s necessary throughout the month to convert your cash into inventory so that your cooks have what they need to create the menu item you are selling to your customers. But the ‘conversion rate’ (i.e. purchasing food) needs to be controlled tightly so as to minimize theft, waste, and spoilage that can occur from having too much food on the shelf. Also, you can’t pay your bills with food & beverage inventory, so you need to keep your assets in cash as much as you can. What is a simple method of controlling this? Use purchasing logs.
When your kitchen managers purchase food, they need to keep the spend during the week under an allotted amount (i.e. 33% of Net Sales). If they track this by day, they are likely to hit their weekly targets. If they keep it within budget for the week(s), they will be no surprises at period end.
Of course you won’t know your actual food usage until you count your inventory at period end but with purchasing logs, you give your managers a very effective way to control the ‘conversion rate’ of cash into food & beverage inventory. With Restaurant365, the managers simply enter their food invoices directly into the Restaurant365 system. By doing so, the system gives them a Purchasing Log as a % of their budget by day and week. It also saves the accounting team the step of having to enter in the invoices as the corporate level.
Restuarant365 is not only a time saver but a cash flow manager.
Morgan Harris | Co-founder | Restaurant365