Inventory turnover shows how often your stock is sold and replaced per week. Slow turnover means you're tying up money in products that sit around for a long time. In this article you'll learn exactly how to calculate this and what healthy turnover looks like for your kitchen.
What is inventory turnover?
Inventory turnover (also called inventory velocity) shows how often your stock is sold in a certain period. With a weekly turnover of 2, this means you replace your entire inventory 2 times per week.
High turnover is good: your money isn't tied up in products sitting around. Low turnover can mean you're buying too much or certain products aren't selling well.
The formula for inventory turnover
The basic formula is:
Inventory turnover per week = Cost of goods purchased per week / Average inventory value
💡 Example:
Bistro with the following figures:
- Purchases per week: €3,500
- Inventory value start of week: €2,800
- Inventory value end of week: €3,200
Average inventory: (€2,800 + €3,200) / 2 = €3,000
Inventory turnover: €3,500 / €3,000 = 1.17 per week
Calculate inventory value correctly
Your inventory value consists of everything you have in house at cost price:
- Refrigeration: meat, fish, dairy, vegetables
- Freezer: frozen products
- Dry storage: pasta, rice, canned goods, spices
- Beverages: wine, beer, soft drinks
Count this at least 1x per week. Many business owners do this on the same day (for example every Monday before opening).
⚠️ Important:
Always calculate using cost prices, not selling prices. A bottle of wine you buy for €8 and sell for €28 counts as €8 in your inventory value.
What are healthy turnover figures?
This varies by kitchen type and product:
- Fresh products (meat, fish, vegetables): 3-5x per week
- Dairy and eggs: 2-3x per week
- Dry storage (pasta, rice): 1-2x per week
- Wine and beverages: 0.5-1x per week
- Total inventory: 1.5-2.5x per week
💡 Example by product category:
Restaurant with €5,000 weekly purchases:
- Fresh (€2,000 purchases, €600 inventory): 3.3x turnover ✅
- Dry (€1,500 purchases, €2,000 inventory): 0.75x turnover ⚠️
- Beverages (€1,500 purchases, €3,000 inventory): 0.5x turnover ✅
Signal: too much dry storage inventory
Signs of poor inventory turnover
Watch for these warning signals:
- Turnover below 1.0 per week: your inventory is growing faster than you're selling
- Many products past date: you're buying too much for your sales speed
- Full refrigeration but low sales: money is tied up in products
- Rising inventory value with same sales: you're buying more than you're selling
Improve inventory turnover
If your turnover is too low, you can take these steps:
- Order smaller quantities more often: 2x per week instead of 1x
- Identify slow movers: which products are sitting around?
- Adjust your menu: promote or replace dishes with slow-moving items
- Apply FIFO: first in, first out when using products
💡 Real-world example:
A pizzeria discovered their mozzarella turnover was 1x per week (too low for a fresh product). Solution:
- Changed from ordering 2x per week to 3x per week
- Smaller quantities per order
- Mozzarella specials on Tuesday (longest-sitting inventory)
Result: turnover increased to 2.8x per week, less waste
Track digitally
Manually counting inventory takes a lot of time. A system like KitchenNmbrs can help by:
- Tracking cost prices per supplier
- Automatically calculating inventory value
- Showing turnover figures by product category
- Identifying slow movers
This gives you weekly insights without spending hours counting and calculating.
How do you calculate inventory turnover? (step by step)
Count your inventory value at the beginning and end of the week
Go through your refrigeration, freezer and dry storage. Note everything at cost price. Calculate the average of beginning and ending value.
Gather your total purchase value for that week
Add up all supplier invoices. Note: only what was actually delivered, not what you ordered.
Divide purchase value by average inventory value
Use the formula: Weekly purchase value / Average inventory value = Turnover per week. A result above 1.5 is healthy for most kitchens.
✨ Pro tip
Check not just your total turnover, but also by product category. Fresh products should turn much faster than dry storage, and this gives you targeted insights where you can optimize.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I calculate my inventory turnover?
At least 1x per week, on the same day. Many business owners do this on Monday before opening, so they can adjust their purchasing plan for that week.
What if my turnover is lower than 1.0 per week?
Then your inventory is growing faster than you're selling. Check which products are sitting around and order smaller quantities more often. Focus first on fresh products.
Should I include beverages in my inventory turnover?
Yes, but calculate them separately. Beverages naturally have lower turnover (0.5-1x per week). If you add everything together, you'll get a skewed picture.
Can inventory turnover be too high?
Yes, with turnover above 4-5x per week you risk shortages. You might be ordering too little and can't deliver dishes during busy periods.
How do I improve slow dry storage turnover?
Check which products are sitting the longest. Adjust your menu to use these more often, or replace them with faster-moving alternatives. Also order smaller quantities.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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