Part of the business support the Malcolm Scott Consultants team provides is offering guidance on restaurant and retail management, and this month we have focusing on the importance of restaurant stocktaking to ensure smooth operations.
By Andrew Burton
Inventory or stocktaking is a process of calculating the amount of stock you have, be it food, drink and sundries such as napkins or takeaway cups, and creating a report to record the quantity of stock and its value, and to provide a comparison against previous inventories, and enable you to evaluate your anticipated stock using accounts purchase information and epos data.
Many businesses only need to do a stock take once or twice a year, perhaps because the level of stock they have does not change much, or maybe because operators think the job takes too long. But failing to stocktake at all can slow reaction times to controlling gross profit losses, and prevent businesses from improving control of allowances by identifying what is actually in stock to avoid excessive re-ordering, thereby reducing waste and providing instant results.
The major factor with stocktaking is that it provides absolute clarity on what a business has in stock and information to work with – enabling it to keep an accurate track of physical stock, what has been sold, and what has not. It is all about comparing the physical stock to what the report charts, and identifying any discrepancies.
This in turn allows a business to calculate wastage and allowances and provides a complete picture of what has gone through the till, what has been wasted, and what has been given to customers free of charge as a complimentary perk.
Stocktaking also highlights any significant discrepancies between what a business thinks it has, and what it actually has, and can bring attention to problems including theft and shrinkage issues.
For many businesses, inputting stock on the restaurant epos data isn’t cost effective. The time it takes to do this in the same format as retail stock just doesn’t add up. However, through manual stocktakes it still can give you the data you need. Cost prices and retail prices should all be used on epos systems, however calculating stock value is essential at key times. Often corporates work to weekly stocktakes in restaurants, however when we consider other catering outlets I personally feel that stocktaking monthly, or at the very least quarterly, is something restaurants and cafes need to do.
For those who don’t invest the time, here are 12 reasons why it’s important to carry out a regular stock take:
If you want to discuss stocktaking processes, or any other operational processes please contact Andrew on T: 07741017494 or E: email@example.com