FIFO (First In, First Out) is an inventory system where you use the oldest products first. This prevents ingredients from spoiling and having to be thrown away. By consistently applying FIFO, you can reduce food waste by 30-50%, which directly lowers your food cost.
What exactly is FIFO?
FIFO stands for First In, First Out. It means you always use the ingredients that arrived first. You place new deliveries at the back, old stock at the front. This way you use everything before it spoils.
💡 Example:
You receive 5 kg of tomatoes on Monday. On Wednesday you get 3 kg more.
- FIFO: Use the Monday tomatoes first
- Place Wednesday tomatoes at the back
- This way all tomatoes stay fresh
Why does FIFO lower your food cost?
Food waste costs money. Every euro that goes into the trash increases your food cost. FIFO prevents ingredients from spoiling through a systematic approach to your inventory.
- Less spoilage: Old products are used before they go bad
- Better quality: Fresh ingredients deliver better dishes
- Overview: You know exactly what you have in stock
- Fewer emergency orders: No expensive last-minute purchases
💡 Calculation example:
Restaurant with €8,000 in purchases per month:
- Without FIFO: 12% waste = €960/month
- With FIFO: 5% waste = €400/month
- Savings: €560 per month = €6,720 per year
The hidden costs of no FIFO
Many kitchens have no system. Result: ingredients disappear into the trash without you noticing. This waste adds directly to your food cost.
⚠️ Watch out:
Waste of 10% means your food cost is 10% higher than necessary. At 30% food cost, this becomes 33%. That makes a big difference in your margin.
- Poor quality: Old ingredients make dishes less tasty
- Complaints: Guests notice the difference
- Stress: Constantly searching for fresh ingredients
- Emergency orders: Expensive last-minute purchases
FIFO in practice
FIFO only works if your team applies it consistently. That's why you need clear agreements and monitoring.
💡 Practical tip:
Use stickers with dates:
- Stick the receipt date on every package
- Use different colors for each day
- Train your team: always oldest color first
Many restaurants use an app like KitchenNmbrs to track FIFO rotations and train their team in good inventory practices.
How do you apply FIFO? (step by step)
Label everything with receipt date
Stick a label with the date on every delivery right away. Use different colors for each day of the week. This way you can see at a glance what's oldest.
Organize your refrigeration systematically
Always place new deliveries at the back. Oldest products go at the front. Make this a fixed routine with every incoming delivery.
Train your team in FIFO discipline
Explain why FIFO is important. Make clear agreements: always grab from the front, never from the back. Check regularly that everyone is following it.
✨ Pro tip
Check your refrigeration every morning for products nearing their expiration date. Process these first in your daily menu or mise-en-place. This way you prevent waste and keep your food cost low.
Calculate this yourself?
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Frequently asked questions
How much can FIFO lower my food cost?
FIFO can reduce food waste by 30-50%. With typical waste of 10%, this becomes 5-7%, which can lower your food cost by 3-5 percentage points.
Does FIFO also work with frozen products?
Yes, FIFO is also important for frozen items. Frozen products don't spoil quickly, but quality does decline. Use oldest stock first for best flavor.
What if my team doesn't apply FIFO consistently?
Make FIFO part of your daily routine. Check weekly that old products are at the front. Explain that waste affects everyone's salary.
How do I keep track of what arrives when?
Use a simple system: stickers with dates or a digital logbook. Many kitchens work with color codes for each day of the week for quick recognition.
Can I combine FIFO with other inventory methods?
Yes, FIFO works well together with minimum-maximum inventory and ABC analysis. It's the foundation for any good inventory system in hospitality.
📚 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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