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Overhaul Food Cost with Inventory Tracking at the Point of Sale

By Tricia Hoy

It’s that time of year—a new year and a clean start in the restaurant. This is an opportunity to take stock of what you have and what you’ll need to increase productivity, streamline operations, and lower food cost.

Used consistently, your POS system’s software should help you increase restaurant profits. At Nancy’s Pizza, for example, implementing inventory software and portion controls cut food cost by 5%.
Inventory software compares the sales information from your point of sale system with your recipes to calculate what you should have used. After taking stock, you can use your inventory reports to see where you may be losing money through waste, theft, or mishandling—or where your food costs are out of line with your pricing.

SpeedLine Inventory

SpeedLine Inventory for pizzerias, for example, includes reports to review stock levels, suppliers, purchase orders, receipts, and more. But the the most valuable information for managing food cost is in your Usage Variance, Negative Stock, and Product Margin reports.

Review your Usage Variance report to compare your ideal usage (what you should have used) with actual stock usage. This is your first clue to problems with over-portioning, waste, or theft.

Use the Negative Stock report to identify overuse, and troubleshoot the reasons for negative stock levels.

Regularly review your Product Margin report to keep tabs on margin for each of your menu items based on ingredient price and product cost. You’ll see clearly what impact supplier pricing changes are having on profitability—so you can re-evaluate your pricing or make changes to your menu to compensate.

VIDEO: See how restaurant inventory software works.

 


Posted on Thu, Jan 14, 2016 @ 08:01 AM.
Updated on April 24, 2019 @ 8:05 PM PST.

Posted by Tricia Hoy

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Tags: pizza POS, SpeedLine Inventory

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There’s a reason pizza and delivery chains are driving the biggest changes in restaurant technology. Pizza and delivery concept restaurants are different from other restaurants, and they have complex needs at the point of sale. In this guide, gain the knowledge you need to choose the right technology fit for your restaurant.


 

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