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A significant portion of a restaurant’s inventory comprises food. This poses a tough challenge for businesses in the Food and Beverage industry, especially since most items are perishables. Excess inventory (and food wastage) is all too common among American restaurants.
Despite the irresistible aroma of simmering sauces and freshly baked bread, there’s always an untouched pile of food destined for the trash. The economic and environmental impact of such wastage cannot be overstated.
According to Feeding America, a staggering 119 billion pounds of food ends up in landfills every year. To put things into perspective, nearly 40% of America’s food is discarded. What’s more alarming is that restaurants are responsible for one-third of food wastage.
Not all wasted food belongs to a poorly managed inventory. Diners may leave leftovers even though the food is edible. This is not under a restaurant’s control. However, a well-managed inventory is one plausible way to reduce food wastage.
In this article, we will discuss the subtleties of food waste reduction through solid inventory management.
Best Practices for Restaurant Inventory Management
A restaurant’s inventory consists of all physical items required to serve customers with satisfactory service. This predominantly includes a recipe’s ingredients but is not limited to them. Other items that make up a restaurant’s inventory include –
- Liquor and other beverages
- Cooking utensils and equipment that need electricity to run
- Linens in the form of tablecloths, chair covers, etc.
- Worker uniforms
Some business experts believe that tracking inventory becomes easier when you segregate items into categories like food, non-food, and beverages. Let’s look at other best practices that can help you reduce food wastage.
Invest in Robust Inventory Management Software
Like any other food joint, your restaurant also spends a good chunk of its resources on procuring food items. However, the complexity of daily operations may reduce inventory visibility. As a result, you get no clear idea of how much food you’re losing due to overstocking, expiration, etc.
This is why you need the help of technology. A robust inventory management platform will enhance inventory control through complete (centralized) visibility. This means you can have insightful data like inventory usage, sitting stock, food cost percentage, etc. at your fingertips.
With such information, it becomes easier to make strategic decisions that drive revenue and reduce wastage. According to CheddrSuite, inventory management software will automate stock in-out, help locate items that need restocking, and create a digital order history to eliminate all guesswork.
If you were to derive these results via manual tracking, the process would be time-consuming, costly, and inefficient. A clear picture of current stock levels keeps you from purchasing the same items again or missing out on potential sales.
Prevent Cross-Contamination of Food
Healthline states that undercooked and improperly washed foods can lead to cross-contamination. An example would be allowing raw meat juices to come in contact with other foods.
This not only leads to premature staling of food but also invites bacteria like salmonella and E. coli to grow. If customers consume contaminated food items, they may develop foodborne illnesses. From food wastage and health viewpoints, it’s important to prevent cross-contamination of food.
The top foods at risk of cross-contamination include leafy greens, leftovers, soft cheeses, unpasteurized milk, raw eggs, and deli meats. Ensure such food items are stored separately and used before expiration.
Always wash leafy greens thoroughly before adding to salads. Never leave leftovers in the refrigerators for extended periods. Other ways to prevent inventory cross-contamination for reduced wastage include –
- Cooking foods at appropriate temperatures
- Sanitizing kitchen countertops and other surfaces
- Using disposable gloves while handling meats
- Washing kitchen utensils after every use
- Keeping toxic chemicals away from food items
- Avoiding food storage on the floor level
- Keeping raw ingredients separate from cooked foods
- Storing cooked meat above raw meat in the refrigerator
Practice Stock Rotation
The FIFO (First In, First Out) method is designed to prevent the wastage of food items. According to this method, the food items that arrive in the inventory first must also be consumed first. For instance – Suppose you received a package of burger buns on Tuesday and again on Friday.
A FIFO-compliant inventory will involve utilizing the buns received on Tuesday first. Keep in mind that this method may increase the time taken to unload the inventory. However, pushing the older stock to the front after lining the new items behind will reduce wastage.
Just ensure that you stick to food safety laws and check the older stock for expiration.
Donate Food to Local Charities
The fact that most restaurants choose to discard leftover (edible) food instead of donating it is shocking. In case customers leave meals uneaten, the first line of action is to suggest taking home the leftovers.
However, if they decline the offer, the food can be donated to local charitable organizations. Keep in mind that leftovers do not include food from the diners’ plates (but the restaurant’s crockery and serving bowls).
A great initiative in this area is the FoodCloud platform. Launched by Iseult Ward and Aoibheann O’Brien, the platform’s Foodiverse technology connects retailers and restaurants (having surplus) with local communities.
Hunger and starvation are still as prevalent as ever. With food donations, local charities can not only feed needy people but also strays. Not to mention this will help reduce inventory responsibly and without any food wastage.
Be Mindful of Correct Labeling and Temperature Control
The FIFO method only works when food items are labeled correctly. This practice also maintains food hygiene, ensuring no cross-contamination takes place. For instance – If a batch of dough is kept for proofing, you can prevent others from uncovering it via a tamper-evident label.
Similarly, perishable food items must have a “Use me before” label so that they’re used before expiration. Even same-looking ingredients like powdered sugar and salt must be labeled to avoid cooking disasters. An inventory organized in this manner will see reduced food wastage.
Another factor to consider is the food items’ storage temperature. Let’s take the common example of summers, a season when food easily goes rancid due to heat. Cooked foods or leftovers (including cold cuts) must be stored in the refrigerator or freezer.
Also, do not cool hot foods immediately as the sudden drop in temperature will lead to harmful bacterial growth. Let the food naturally cool down before storing it inside a refrigerator.
Final Thoughts
Another sad statistic is that restaurants leave around $2 billion on the table in the form of lost profits (from food wastage). If this crisis is tackled well, at least 34 million Americans battling food insecurity will find some respite.
The above-mentioned inventory management strategies should help small and large eateries to maintain fresh stock and reduce wastage. Finally, if food is non-salvageable, it can be used as compost instead of being tossed in the trash. This practice reduces methane emissions significantly. It also produces higher yields of crops and lowers the need for chemical fertilizers.
