Inventory management determines whether you make or lose money on purchasing. Many restaurant owners buy too much, let products spoil, or have no idea what's in their cooler. A good system prevents waste and gives you control over your purchasing costs.
Why inventory management is crucial
Poor inventory control costs you money directly. Buying too much means products that spoil. Buying too little means disappointed guests and missed revenue. Most restaurants have 15-25% of their revenue tied up in inventory.
⚠️ Watch out:
If your inventory value increases every week, you're structurally buying too much. Check this weekly by adding up your cooler and dry storage.
The 5 pillars of good inventory management
1. Overview of what you have
You need to always know what's in your cooler, freezer, and dry storage. Without an overview, you'll order duplicates or let products spoil.
- Central list of all products
- Current quantities per product
- Expiration dates in the system
- Location where products are stored (which cooler, which shelf)
2. Automatic alerts
The system should warn you before you run out of products or before they spoil.
💡 Example:
You use an average of 5 kg of salmon per week. The system alerts you when you drop below 2 kg, so you can order in time.
Result: Never run out of popular dishes again.
3. Simple check-ins and check-outs
Every delivery should be logged quickly. Every day you should be able to record what you've used. This shouldn't take more than 5 minutes per day.
- Quick barcode scan or search function
- Pre-set suppliers and products
- Mobile app for the kitchen
- Daily consumption tracking in one click
4. Cost monitoring per product
The system should show what each product costs and how prices change over time. Suppliers regularly raise prices without you noticing.
💡 Example:
Your supplier raises beef from €18/kg to €22/kg. The system shows this immediately, so you can decide:
- Raise menu price
- Find another supplier
- Temporarily remove dish from menu
5. Reporting and analysis
Weekly you should be able to see: what did you purchase, what did you use, what did you throw away? These numbers help you plan better.
What a good system should NOT do
Many systems are too complex for small restaurants. Avoid systems that:
- Require barcode scanning - takes too much time per product
- Have complex reporting - you don't have time for 20 different charts
- Require supplier integration - limits your freedom
- Need expensive hardware - scales and scanners costing thousands of euros
⚠️ Watch out:
A system that takes more than 15 minutes per day, you ultimately won't use. Choose simplicity over perfection.
Digital vs. paper vs. Excel
Paper lists:
- ✅ Simple to start
- ❌ Get lost, not current, no alerts
- ❌ No historical data to see patterns
Excel:
- ✅ Flexible, everyone knows it
- ❌ Not mobile, no automatic alerts
- ❌ Formula errors, no backup
Digital system:
- ✅ Always current, automatic alerts
- ✅ Mobile to use, cloud backup
- ❌ Monthly costs, learning curve
💡 Example cost-benefit:
Restaurant with €40,000 revenue per month:
- Inventory value: €8,000 (20% of revenue)
- Waste without system: 8% = €640/month
- Waste with system: 3% = €240/month
- Savings: €400/month
- Cost of good system: €50/month
Net benefit: €350/month
Implementation in 3 phases
Phase 1: Set up basics (week 1)
Start with your 20 most important products. Enter current inventory and set minimum levels. Nothing more needed yet.
Phase 2: Build routine (week 2-4)
Enter every delivery, update consumption daily. This becomes routine if you stick with it for 3 weeks.
Phase 3: Optimize (month 2)
Analyze patterns, adjust order quantities, add more products to the system.
KitchenNmbrs for inventory management
KitchenNmbrs helps with the basics of inventory management: overview of your ingredients and their prices. You can link suppliers to ingredients and track price changes. This gives you control over your purchasing costs without complex inventory counts.
For comprehensive inventory management with real-time stock levels, you'll need a specialized inventory system. KitchenNmbrs focuses on cost calculation and recipe management.
How do you choose the right inventory management system? (step by step)
Determine your current waste
Track for 1 week what you throw away. Convert this to euros and percentage of your purchases. This is your baseline to measure improvement.
Make a list of your 20 most important products
Focus first on products you use most or that are most expensive. These 20 products probably represent 80% of your purchasing value.
Test the system free for 2 weeks
Try the system with just those 20 products. Check if it really saves time and reduces waste before you fully switch over.
✨ Pro tip
Start with only your top 5 best-selling dishes. Track which ingredients you need for them and what they cost. These 15-20 ingredients are your 80/20 rule for inventory management.
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 time does good inventory management take per day?
Maximum 10-15 minutes per day. 5 minutes to enter deliveries, 5 minutes to update consumption. More than that becomes too time-consuming for daily practice.
Do I need to track everything to the gram?
No, focus on your 20 most important and most expensive products. These represent 80% of your purchasing value. Small ingredients like spices you can estimate.
What if my staff doesn't use the system?
Choose a system that's so simple everyone can use it. Train your team in small steps and explain why it helps. Without staff participation, no system works.
How much should an inventory management system cost?
For a restaurant with €30,000+ revenue per month, €50-100/month is reasonable, as long as you save at least €200/month on waste. Always calculate the return on investment.
Can I combine inventory management with cost calculation?
Yes, that's ideal. If your system tracks both inventory and recipe costs, you immediately see the impact of price changes on your menu. KitchenNmbrs combines this, for example.
📚 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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