Restaurant Owner: Lower Food Cost with a Key Item Inventory Report

Published by Darron Toy on



hey everybody Ryan Groff and your author speaker chef restaurateur and founder of the restaurant boss comment today I'm going to show you one of my favorite tips that will help you save money in your restaurant so what this is is this is called a key item inventory report or just key item inventory for short and see I subscribe to the 80/20 rule I believe that 20% of your efforts should yield you eighty percent of the results or at least we should focus on what 20 percent will give us eighty percent of the results you know I'm a huge proponent of taking a date or I'm sorry a monthly inventory in your restaurant I push restaurant tours to take an inventory every other week I even push restaurant tours to take a weekly inventory it's not for everyone it depends on your volume and your labor accessibility and how many dollars you can spend on it and if it's really going to give you that impact that 8020 rule but this one report I have every single restaurant I work with no matter what their labor levels are they should be running a key item inventory report and what the key item inventory report does basically I suggest maybe six to fifteen items depending how big your restaurant is depending what's important your restaurant but what you're going to do and I'm going to bring this up on the screen for in a second here is you're going to count those most expensive items in your restaurant your shrimp your lobster your hamburgers your steaks your chicken breasts etc and that's it it's already portioned out it's easy to do but basically at the beginning of a shift or at the beginning of a day whichever you decide to do whether you want to do a daily key item inventory or a shift key item inventory you're going to go through and you're just going to count how many you have and then you're going to go back into the computer and you're going to run a plu report or a P mix report to see how many of those items sold the previous shift or the previous day and then you're going to calculate an ideal inventory and we're going to go into an example of this but really you'll be able to track a variance and see how many am I missing am i accurate if they're missing where did they go are they on the waist log that's great if they're on the waist log then we know hey the cook overcooked it well that's fine it's not ideal but then we can at least adjust we can train because we know that I'm short one stake it went into the trash because it got overcooked and I've got the comp for it but what this will also do is it will let you find out if your cooks are snacking on your steaks if they're stealing your steaks you're going to be able to know exactly where your most expensive products in your restaurant are and it will dramatically save you on your food costs so let's go inside my computer and check out what a sample key item inventory or key item report looks like okay so as you can see you've got the date and then running along the top you've got opening inventory purchased or slash prepared total available and then in a new kind of box or column or category we've got quantity sold or comped ideal ending ideal or I'm sorry actual ending and then the variance so basically like let's look at eight ounce hamburgers for example if you start your day or your shift with 34 hamburgers and you purchased or prepared 0 that day then you have 34 available for sale now at the end of the day or at the end of the shift when you go to your computer to your POS system and run a PLU or P mix report and you find out that you sold 22 hamburgers during that period that means you should have ideal ending inventory you should have 12 hamburgers on the line either at the end of the night or in the morning or before your shift starts but you actually have 11 which means you're missing one so now the first thing I do is I would run to my waste sheet and I would find out was there one put on the waste well if there wasn't one on the waste then somebody stole one or somebody ate one period end of story there's no questions about it you've got a hamburger missing and you need to find out where that is now let's look at something like shrimp for example if you notice I did that as orders so not per shrimp this makes it easier you should be portioning your shrimp into order so if you have five pieces of shrimp that go into a pasta dish they should be in portion bags with the five and then we're going to count how many orders so then if you have an opening inventory of 15 bags of shrimp and you prepared 15 more bags that means you have 30 available for sale then when you run to your computer you may be use soul 19 and 2 got comped I don't know but basically 21 are accounted for in your POS system which means you should have nine you only have five which means you're missing four again go to your waste sheet if it's not on your way sheet find out what's going on in your restaurant and in cioppino the only reason I gave that example I'm not going to go all the way through it is it's kind of the same idea shrimp we're like cioppino might have shrimp and scallops and fish and mussels and clams and things is instead of counting each one of those again they should be portioned into bags so you can just say that I have four bags of cioppino and alright and I prepped five so we have nine available and we sold six bags so you're not counting each individual just a little trick of mine to save you time but you can see here and I've actually I've made this available below the video you can download this key item inventory report and you can customize it for for your restaurant I've got instructions on the report as well but basically you can see the value of this now I spoke a lot about a waste sheet if you don't know what a way she it is I'm going to do some training next week on a waste sheet which really coincides with this I hope this was helpful for you please put this key item inventory report in to use in your restaurant immediately this is very simple it takes no more than five maybe ten minutes a day from start to finish you can also customize the PLU report or the P mix report in your POS to to print out only the items you're interested in you can make what's called a memorized report in your system so again this has been Ryan Graham Fionn the restaurant boss saying have a wonderful day good luck and go put that key item inventory report into action if you have any questions comment below this video and let me know ask me a question I'm constantly checking in here and I'd love to answer them for you and make this process as easy as possible I know you're going to see huge results and get a huge impact out of doing this on a daily basis Ryan Groff and saying have a great day


8 Comments

P.G Ngatho · May 15, 2019 at 5:01 pm

very helpful and educational too. Thanks.

Brian Doyle · May 15, 2019 at 5:01 pm

Thanks! Really great reminder of tracking. However, I can’t get over how you are pronouncing cioppino. The correct pronunciation is CHOP-PEEN-OH. Sorry dude, I just had to do it. LOL!

Eric Pan · May 15, 2019 at 5:01 pm

Hi Boss, where's your video regarding the waste sheet? Thanks a lot

YankeeSlayer69 · May 15, 2019 at 5:01 pm

how do you implement a waste log? what if you have a bigger operation, like 3 restaurants into a membership club?

Hasan Al Ahbabi · May 15, 2019 at 5:01 pm

Thank you for these helpful videos,, i have an important question and I really want your feedback about it.. First I'm running a café serving coffee, panini, and waffles.. So, I want to know how to price accurately every items in my menu to maximize my profit ?? Or in other word what is the price I should charge to maximize my profit ??

Thanks

soerjanto soenarko · May 15, 2019 at 5:01 pm

ur points r excellent…i have a problem with tracking my food inventories coz not documenting it well….thx it really inspires me

Qam Din · May 15, 2019 at 5:01 pm

I m a very young Restaurant Owner or a bistro , I would like to know how do I keep a check on the items used and items being thrown away in my KITCHEN  , How do I keep a check on whats going on in KITCHEN and everything , I mean I would like to keep a report of every single thing going on in KITCHEN I will be there most of my time in KITCHEN but I am more of a statistical guy and prefers to keep record of everything!

cherylharris22 · May 15, 2019 at 5:01 pm

Very helpful thank you

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