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Sitting Inventory and What It Really Costs

Hello EdgeReaders!

As a restaurant/bar owner or manager, the key is to manage inventory 24/7. Cost of Good represents 20-40% of your left cost. While you need to have a certain amount of inventory on hand to make sure that you can serve customers their favorite drink (mine is piña colada!) or their favorite dish there is no point in having all of your ingredients up in inventory and being there on your shelves for over a month! All those dusty bottles, mayo, flour, wines -you pick- represent money that you could be investing back into your establishment. 

So… what should your turnover rate be?

Let’s have a scenario. Covid19. Yup, you read that right. Let me get you back to March 2020, everything was normal as you planned to be. You were about to go to pick up your children from school/kindergarten, or you were going to finish watching your favourite series on Netflix, (I was at the beach with some friends celebrating a birthday) … Out of nowhere, they let us know that there is a new virus from China. We didn’t care at that point because we thought “oh it’s far away”, but then, it enters our country. The news started to say it can kill people and you didn’t know how you could get it, so you have to quarantine (while I am writing this, it just gives me the chills). Anyways, the first thing we bought (I still don’t know why) was toilet paper.

So, days went by and we had to take care of the toilet paper (because it doesn’t last forever), literally piece by piece, or square by square. Everything is closed, you start running out of toilet paper. What would you do if you didn’t buy for 3 months and only for 1 month? It just does not sound good at all when you come to that end. So, this is basically what happens with food! The longer managers can put off taking inventory, the better because simply, it isn’t fun. Just remember always the toilet paper situation.

Less Inventory = Less Lost Inventory

That is right! When it comes to inventory costs, you can often start losing money due to generous waiters or bartenders, or, if they know that there are plenty of more bottles under the bar and or plenty of shrimps in the freezer, they are more likely to hand about freebies and heavy pours with abandon. Excess inventory also makes you more prone to accidents, like broken bottles or recipients.

It is important to think of your inventory as real money. You wouldn’t leave a bunch of cash just sitting around for weeks, right? Well, the same rule applies to your inventory.

But I Hate Taking Inventory…

I am sorry to tell you this but even if you are the master of counting and recording, taking inventory simply isn’t fun and it ties up your time when you could be managing other aspects of your business. 

Just think: If you speed up your turnover, you could take inventory weekly or bi-weekly, but there would be less to count. While you might be doing it more often, it will actually go faster and you can get back to enjoying the fun parts of your job or simply catching up on sleep (that sounds amazing). 

It is Time to Invest in Technology

The single best thing you can do to bring down inventory costs is invest in inventory technology. DiningEdge allows you to scan products and place orders online. You can even generate charts that track how you are doing, where you are seeing losses and how certain brands are performing. These tools take all the guesswork out of the equation and streamline the entire process. 

Figuring out the best way to handle purchasing for your business, bar, restaurant does come down to staying organized and not procrastinating. Using DiningEdge. Get a free demo can help make the entire process a lot less painful, which means that you are more likely to stick to a weekly or bi-weekly schedule and enjoy the benefits of having extra cash in hand and not tied up in your inventory. 

So, start to work smarter, a little bit harder, while also saving time and reducing risk of loss!

See you in another EdgeBlog! 

Is Online Ordering Really Important?

Today’s blog is important, especially now with all of the post-pandemic scenarios all over the world.

By now you may have an idea that the biggest weapon you have in your restaurant’s -apart from great food- is your website.

Online ordering is now a highly sought after by customers, and becoming more of a standard requirement for most customers than ever before.

It’s all about having options, because sometimes customers will want to walk through your doors and have a couple of hours to relax (if your state has admitted that option), but sometimes they don’t, or cannot (so it exists the pick-up option).

Having an online ordering option is a major priority when looking to increase sales. 

Pick-up vs home delivery? This can be a tricky one. Online ordering has many conveniences to it, but offering delivery as well as pick-up can certainly entice more orders. Its acts as a further incentive for people to patron your establishment rather than your competition, who may not offer such accessibility.

And free delivery? A further bonus.

To app or not to app? Having an App is really important? It definitely depends really on what you’re trying to do. For example, if you aim to have more of a majority -say 90%- online ordering, or if you are a large restaurant chain then yes, it is probably worth seriously undertaking an expert to create an App. For those who can do without it, the main way to stay best friends with technology and all its users, is to maintain your site and ensure it is smartphone and tablet friendly.

But no is my answer…, okay well let me tell you that someone else is stroking a white cat and twirling their moustache willing and waiting in the wings to get your business. It’s that simple, sorry.

The main thing to keep in mind, in the beginning and through your marketing plan, is to have a great initial launch and then keep talking about what you offer. Making your potential clients aware of your online ordering capabilities is where your involvement with social media can come into its own. 

Updating and maintenance is so important and it makes perfect sense, because if you want to increase sales, it needs to be current, clear and continuously updated. This is especially true when it comes to the food service industry. Can you imagine a customer after taking the time and effort to order, only to receive a phone call advising ‘sorry, that item is no longer offered’. I can hear the doors slamming now.

Payment options… Again, options are really important (I told you!).

If you only accept cash for orders you may be excluding a number of not only hungry customers, but those who don’t carry cash on a regular basis -that’s me! Especially now with all of this covid19 situation-.

Orders online can come from anywhere. You just need to be ready.

Ease of use is essential for your potential and continued patronage. The more you can facilitate convenience and ease, the more your competition will fade from your immediate view.

Sure, it takes some thought and planning but as a restaurant owner you would be used to that.

It’s all worth it in the long run!

Here’s the link to get a free demo with DiningEdge. Let us help you get the best of your business in one app.