Many restaurant owners think expensive ingredients are their biggest food cost problem, but it's actually the perfectly good food rotting in their walk-in coolers. FIFO (First In, First Out) tackles this head-on by ensuring you use older inventory before newer deliveries. This simple rotation system can slash your waste by 30-50% and put thousands back in your pocket annually.
What exactly is FIFO?
FIFO stands for First In, First Out. You always grab ingredients that arrived first, placing fresh deliveries behind existing stock. It's like organizing a queue where the oldest items get served first.
? 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?
Every ingredient that hits the trash bin is money down the drain. FIFO creates a systematic barrier against spoilage that directly protects your bottom line.
- Eliminates spoilage: Older products get used before expiration
- Maintains quality: Fresher ingredients mean better-tasting dishes
- Improves visibility: You'll know exactly what inventory you're working with
- Reduces panic buying: No more costly emergency runs to suppliers
? 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
Kitchens without rotation systems bleed money through invisible waste. From analyzing actual purchasing data across different restaurant types, establishments lose 8-15% of their food budget to preventable spoilage.
⚠️ 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.
- Declining quality: Aging ingredients produce subpar dishes
- Customer complaints: Diners can taste the difference
- Kitchen chaos: Staff scrambling to find usable ingredients
- Premium pricing: Last-minute supplier runs cost 20-30% more
FIFO in practice
FIFO succeeds only with consistent team execution. You need clear protocols and regular monitoring to make it stick.
? 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 apps like KitchenNmbrs to track rotation schedules and train staff on proper inventory management.
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 walk-in cooler every Tuesday and Friday for items within 48 hours of expiration. Build these ingredients into your next day's specials or prep work to capture their full value before spoilage hits.
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
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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
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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