Online Companion: Successful Restaurant Management, From Vision to ExecutionInventory ValuationControlling inventory is important to both quality control and the profitability of the restaurant. Too much inventory ties up working capital, increases the chances of improperly rotating stock and could contribute to theft of product. Too little inventory causes stress among staff and customers become upset because they can't order what they wanted. The three tabs used are:
The first tab, "Inventory Usage in Units," is a simple count sheet that takes into consideration the physical count of the inventory. These counts are used by the other tabs of the worksheet. To use this sheet enter the units for a specific item (pound, each, bag) in the column marked "Beginning". Under the Purchases column, enter the number of units purchased during the count period. At the end of the count period enter the number of units on hand. Enter the cost of the unit in the Unit Price column. The tab titled "Theoretic Inventory Valuation" places a dollar value on the actual beginning inventory, adds the dollar value of all purchases to the beginning inventory, and calculates a dollar value for the physical ending inventory. The sales, in dollars, according to the sales report is entered in the Sales column. The theoretic cost is then calculated. This is what the food cost should be without consideration to improper rotation, improperly cooked food, waste, theft, or orders improperly entered by wait or bar staff. The "Actual Inventory Valuation" tab differs from the Theoretic Inventory Valuation in that it simply uses the physical counts to calculate food cost. The difference in cost between Theoretic Inventory Valuation and Actual Inventory Valuation can focus management on problem areas. The Missing column displays the number of an item missing from sales data. |
