Inventory discrepancies cost restaurants an average of 3-8% of their turnover per year. The difference between what you think you have and what's actually there comes from small leaks that add up. In this article you'll discover the 7 most common causes and how to solve them.
The 7 main causes of inventory discrepancies
Inventory discrepancies rarely happen because of one big mistake. They're small, daily leaks that pile up into hundreds of euros per month.
💡 Example:
Restaurant with €40,000 monthly turnover:
- Theoretical inventory: €8,000
- Actual inventory: €7,200
- Difference: €800 (10% of inventory value)
This costs you €9,600 per year in 'disappeared' inventory.
1. No systematic portion control
Your chef gives 250 grams of steak while you calculate for 200 grams. Per portion, €2.40 of meat disappears without you noticing. At 50 portions per week you lose €6,240 per year.
- Inconsistent portion sizes from different cooks
- No scale at the pass
- Recipes not clearly documented
- Busy evenings: larger portions out of habit
2. Unregistered staff consumption
Staff eat, but it's not tracked. A sandwich here, a drink there. Seems small, but adds up quickly.
💡 Example:
5 staff members, each €4 consumption per day:
- Per day: 5 × €4 = €20
- Per month (26 working days): €520
- Per year: €6,240
Solution: register staff consumption as a cost item.
3. Wrong delivery registration
Supplier brings 10 kg, you note 12 kg. Or the other way around: you note 8 kg while 10 kg arrived. These errors pile up into big discrepancies.
- Rushing during deliveries
- Multiple people receiving deliveries
- No standard check of delivery notes
- Confusion between gross and net weight
4. Unregistered waste
Products that expire, burn or fall are thrown away but not noted. Your inventory system thinks you still have them.
⚠️ Watch out:
Waste of 5% seems small, but with €8,000 inventory you're losing €400 per month in unregistered waste.
5. Theft (internal and external)
Unfortunately it happens. Employees taking products or external theft during deliveries. Often small amounts that go unnoticed.
- Expensive products (meat, alcohol, truffles)
- Easy to carry items (canned goods, spices)
- No control over who accesses inventory and when
- Suppliers who 'forget' to deliver something
6. Incorrect counts during inventory
Human errors when counting inventory. Especially during busy periods or with unclear storage, counting goes wrong.
💡 Example of common counting errors:
- Double counting products (fridge and storage)
- Not including opened packages
- Different units mixed up (kg vs. pieces)
- Products overlooked in busy fridge
7. No FIFO system (First In, First Out)
Old products stay in the back and expire. New products are used while old ones spoil.
- No date labels on products
- New deliveries placed at the front
- No systematic check of expiration dates
- Chaotic storage with no overview
The hidden costs of inventory discrepancies
Inventory discrepancies cost more than just the missing products. They disrupt your entire cost calculation.
⚠️ Watch out:
If your food cost calculation looks right on paper but your inventory doesn't match, you're earning less than you think on every dish.
- Wrong cost prices: You calculate with ingredients that aren't there
- Cashflow problems: You buy again what you should have already had
- Stress and confusion: Nobody knows what's actually in stock
- Bad purchasing decisions: Ordering too much or too little
How to prevent inventory discrepancies?
The solution lies in systems, not perfection. Start with the biggest leaks and build routine.
Daily checks
- Weigh portions for popular dishes
- Note all waste immediately
- Check deliveries against delivery note
- Register staff consumption
Weekly inventory
Don't count everything, but do count your most expensive 20 products. These often represent 80% of your inventory value.
💡 Top 20 method:
Focus on products over €50 per week in purchases:
- Meat and fish
- Alcoholic beverages
- Premium ingredients
- High volume products
This takes 30 minutes per week but prevents 80% of leaks.
Digital registration
Paper lists get lost and forgotten. A digital system like KitchenNmbrs helps you systematically track deliveries, waste and consumption without extra admin work.
How do you track inventory discrepancies? (step by step)
Take a baseline measurement
Count your complete inventory and note everything. This is your starting point. Do this during a quiet moment, not during service. Count systematically per area: fridge, freezer, dry storage.
Register everything that comes in
Note every delivery immediately: what, how much, from which supplier. Check the delivery note and weigh if needed. Make sure everyone who receives deliveries does this, not just the owner.
Note everything that goes out
Register sales, waste, staff consumption and tastings. Everything that leaves your inventory must be noted. Use a simple form or app to track this during service.
Compare theory with practice weekly
Calculate what you should have (starting inventory + purchases - sales - waste) and count what you actually have. The difference shows you where the leaks are.
Analyze the biggest deviations
Focus on products with the biggest difference in euros, not percentages. A €50 difference in meat is more important than a 20% difference in spices worth €5. Fix the big leaks first.
✨ Pro tip
Always count your inventory at the same time each week, for example Sunday evening after closing. That way your numbers are comparable and you can spot trends. Start with just your 10 most expensive products - this gives you 70% insight for 20% of the time.
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 much inventory discrepancy is normal?
An inventory discrepancy of 2-5% is considered acceptable. Above 8% there's clearly a problem that needs to be addressed. Restaurants with good controls often keep it under 3%.
How often should I count my inventory?
Count your complete inventory at least once per month. Your most expensive 20 products you can count weekly - this takes 30 minutes but prevents most leaks. Daily counting isn't necessary, it takes too much time.
What if my staff forgets to note things?
Make it as easy as possible: a simple form or app where they can quickly fill things in. Explain why it's important and regularly check if it's being done. Reward good registration instead of punishing forgotten entries.
Can I completely prevent inventory discrepancies?
No, a small discrepancy will always exist due to human error and natural loss. The goal is to stop big leaks, not to be perfect. Focus on the 20% of products that represent 80% of your value.
How do I calculate the cost of inventory discrepancies?
Take your monthly inventory discrepancy in euros and multiply by 12 for annual costs. At €500 discrepancy per month you lose €6,000 per year. This comes directly off your profit.
Which products should I track most carefully?
Focus on expensive products (meat, fish, alcohol) and products you use a lot. A 10% discrepancy in truffles costs more than 50% discrepancy in salt. Start with your top 10 most expensive ingredients.
📚 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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