Thanks for this. 20 year vet and this is the FIRST time I've ever heard it explained this way and so clearly. Intuitively, I always understood that I buy only what I needed when I needed, have regularly scheduled orders, and so forth. I got stuck in a situation last year where a lot of the product the startup (not mine) needed was all special order or required bulk ordering but customer base wasn't there. I didn't set it up this way, but had to deal with the outcome, only to be blamed when the food cost was explosive. This would have been enormously handy to show the owners before they decided to start their restaurant.
Hi Kimberly, thank you for taking the time to comment, I am so glad my videos are helping. Have you seen my FREE series at restaurantprofitandperformance.com, it offers a different kind of insight into the industry than most my other stuff.
Hey, I stumbled upon this video. I do not run a restaurant (not in the food business) but still found this video great for inventory management. Thanks a lot for the great content.
I'm a business admin graduate and I was very hesitant to partner up with a friend, who is a chef, to open up a restaurant (I never worked or had any experience with the restaurant's business) but after reading a couple of books and watching your videos I'm confident to say that I now know what it takes to operate a restaurant. I know I'm just a rocky and there is a lot more to learn but your info has been of great value/help to me. Thanks.
Bik3rboy666, I am so glad that you are approaching this from a logical "business" standpoint and not emotional. Most restaurant investors, operate emotionally and get themselves in big trouble. Anyways, check you private message box, I want to help you with something special.
Hello, In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 6 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to: 1 Gain control over food inventor. Help you with your inventory management 2 Prevent food from being wasted at your restaurant and more. 3 Cut food waste and reduce your time spent. Please have a look at the following link: totalctrl.com/restaurants contact - pooja@totalctrl.no
According to the 80/20 you should focus on the 20% of most expensive items. Wasting very low cost items aren't a big deal compared to wasting much more expensive items. What you don't want to do is run out of the 20% of the items that give you 80% of your sales. Even more so you want to keep plenty of stock of 20% of the items that give you 80% of your profits.
Love to help you out Reginald! Did you grab our free resources? That's the best place to start. Free Toolkit: www.therestaurantboss.com/toolkit Free Book: www.therestaurantboss.com/books
I have learned a bunch from your videos they are great. But in some points you mentioned I disagree. It is important to watch inventory but u should always have enough that you won't need anything for at least 5days. I found in the past when I ran inventory to the T it wasted bunch times having to run to get stuff. Plus if you run out something there is nothing worst. But so far u have been great keep it up I will keep learning
I have never suggested keeping levels so tight you run out, but I see restaurants with enough canned tomatoes for 3 weeks and they get 2 delivers a week.
Hi Ryan. Thanks for this video. This might be a not so intelligent question but how do you monitor the end inventory for perishable goods. I mean, how can you compute for the end inventory usage amount? Thanks in advance
I'm happy to hear you've been finding everything so helpful! If you're looking for some additional help from Ryan, the best (and most economical!) way to do that is through our TRB Membership. Check out all the details here: www.therestaurantboss.com/membership Dawn - Team TRB
If I am taking inventory weekly, would they have same rules still apply? For my bar I am getting a .45. Would that indicate that I have a months worth of inventory on hand?
Hello Samantha, In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 3 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to: 1 Gain control over food inventor. Help you with your inventory management 2 Prevent food from being wasted at your restaurant and more. 3 Cut food waste and reduce your time spent. Please have a look at the following link: totalctrl.com/restaurants contact - pooja@totalctrl.no
Forgive me if you answered this, but you say to have low inventory, but what do you do in an unpredictable customer demand making me need products just incase we get hit with any given item on a weekend?
Great video Ryan. I opened my family restaurant/ bar just 8 months ago. It's been one hell of a ride to this point. I have had to learn as I go. My food inventory is finally under control. My bar/ liquor is not. Bar business is way down. But my manager seems to not have inventory under control. Do you have a video that will help me with bar inventory?
Check out these two blog posts and see if they help: therestaurantboss.com/lower-restaurant-and-bar-cost-bottled-beer/ and therestaurantboss.com/increase-restaurant-profits-draft-beer/
I don't like the term assistant manager for this reason. I prefer to set up restaurants with a GM, then a FOH manager and BOH manager, this assigns roles and responsibilities to people. The assistant manager seems to me like I don't have to be all that responsible because my manager will do it eventually. This is a very general and unfair statement, but I prefer to not create "assistant" positions.
Hi! I am not sure what you are asking? If you want to see how I have organized these items in the past, please check out this video: ua-cam.com/video/1FCpHNuM_Q8/v-deo.html
Hey Man, greta video, im wandering if i can get more info about some sheets or layouts that you suggest for keeping up to date with counts and existences. Peace! from México
Chef, I understand the demographic you're focused on, yet I've shifted from Private restaurants to corporate Business dining where the menu is more buffet style. sometimes there are stations and sometimes its a choice between two entrees etc. I like to order Tuesday for Friday -Monday and Friday for Tuesday through Thursday. We tend to run a 4 week menu rotation, and with that said, we may not have a lot of one item but I'm uncomfortable with the inventory list we do have and the desire to keep it fresh (different) proposes quite the challenge. Any Insights or suggestions?
Hi Carlos! I recommend watching this video that explains inventory more and also why I don't teach taking inventory: ua-cam.com/video/0jfwgUMu3so/v-deo.html
ok, ethics question. i know it's illegal to water down or pour bottom shelf booze into high end booze bottles and pass off as top shelf. but in a in a scenario like you describe where you have massive bottles of high end liquor, is there a law against adding patron into a low level tequila? it seems like a win-win. you get to off load unwanted inventory, customers get a superior product at a low price point while growing the restaurant's rep as a place of quality and value? of whatever point i'm missing, please let me know, all of us are here to learn after all.
I understand what you are saying, giving customer a better product, but NEVER serve something that is not labled properly or that the customer is not expecting. If you want to put patron in your well to get rid of it, then do that, but DON'T pour patron into a different bottle.
Hello, In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 3 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to: 1 Gain control over food inventor. Help you with your inventory management 2 Prevent food from being wasted at your restaurant and more. 3 Cut food waste and reduce your time spent. Please have a look at the following link: totalctrl.com/restaurants contact - pooja@totalctrl.no
Hi it really fantastic information about cost control , i want ask you about the percentage % should be it cleaning material & takeaway tools ( bag,spoon,.*/) Thanks a lot
I am a food & Beverages cost controller in a 5 star hotel. Please I want you to help me the easiest to prepare my monthly P & L report for my restaurant. Daniels Barrio Palace Hotel Arusha
Begining inventory at the start is your opening orders, then each month its counted and converted from quantities to $$$ value based on what you paid for each product.
Hey amazing video it was extremely helpful. I do have a question for you though. I recently started my new position at a non profit organization hospice, which had no food inventory. Do I come up with the cost of the current items with "research prices"?,I was not given receipts to find these previous costs.
Hi there! I have been watching all your videos as im very interested to know about how to operate a Restaurant. I'm a cooker with a back ground in the food industry. I have now the importunity to take over a Spanish Tapas Restaurant In Ireland and to be honest never had the chance to operate a Restaurant by myself so it is a new experience that need to be approached from a logical point of view and like you said not and emotional that can get me in big troubles. Any extra info you think I might consider before accepting the deal? thanks!
Lorena, I believe I got an email from you but it got jumbled in translation or something. Anyways, please contact me again at ryan@therestaurantboss.com so we can discuss this in more detail. I have some great tips I would love to share with you. You should also check out my newest FREE video training series at restaurantprofitandperformance.com
+Felix Adame Waste sheets...but because they are hard to complete during a busy service, I put a bin on each station for WASTE only (not trash) and then at the end of the shift, you can go through the bin and count whats in it. IF for some reason a manager eats a mistake that should be counted as waste (which is a no no) then they should be required to write that on the waste log before eating the meal.
Hello, In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 6 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to: 1 Gain control over food inventor. Help you with your inventory management 2 Prevent food from being wasted at your restaurant and more. 3 Cut food waste and reduce your time spent. Please have a look at the following link: totalctrl.com/restaurants contact - pooja@totalctrl.no
Yep we do. But that doesn't mean that Ryan won't help people learn how to do things without the use of his or any other software either. -Dawn, Team TRB
Thank you Boss 😊😊 More than perfect sir rayan. In your opinion which reports most important in restaurant yo help our GM Could you please drop your mail address 🙏 sir Thank you again and again
Hi Ryan. Thanks for this video. This might be a not so intelligent question but how do you monitor the end inventory for perishable goods. I mean, how can you compute for the end inventory usage amount? Thanks in advance
Jr Royol Ending inventory is just what is in your restaurant at the end of period. It has nothing to do with perishability or what happened throughout the period. Simply what is on the shelf and its value. I hope that helps!
+The Restaurant Boss Perishable or not...Ryan stats to think of your stock in terms of $ value that was if its perishable or not you have assigned a cost to it....at the end of the day if you bought and apple and you let it go bad...you still spent money on it.
Thanks for this. 20 year vet and this is the FIRST time I've ever heard it explained this way and so clearly. Intuitively, I always understood that I buy only what I needed when I needed, have regularly scheduled orders, and so forth. I got stuck in a situation last year where a lot of the product the startup (not mine) needed was all special order or required bulk ordering but customer base wasn't there. I didn't set it up this way, but had to deal with the outcome, only to be blamed when the food cost was explosive. This would have been enormously handy to show the owners before they decided to start their restaurant.
joshua fiddler Yeah it helps to have things in a black and white formula rather than opinion!
I've been in the restaurant business for about 15 years. Your videos have really opened my eyes to the business business side of this! Thanks.
Hi Kimberly, thank you for taking the time to comment, I am so glad my videos are helping. Have you seen my FREE series at restaurantprofitandperformance.com, it offers a different kind of insight into the industry than most my other stuff.
Hey, I stumbled upon this video.
I do not run a restaurant (not in the food business) but still found this video great for inventory management. Thanks a lot for the great content.
Helpful video I thought I was doing something wrong by being out inventory every week now I see I was doing something intelligent
I'm a business admin graduate and I was very hesitant to partner up with a friend, who is a chef, to open up a restaurant (I never worked or had any experience with the restaurant's business) but after reading a couple of books and watching your videos I'm confident to say that I now know what it takes to operate a restaurant. I know I'm just a rocky and there is a lot more to learn but your info has been of great value/help to me. Thanks.
Bik3rboy666, I am so glad that you are approaching this from a logical "business" standpoint and not emotional. Most restaurant investors, operate emotionally and get themselves in big trouble. Anyways, check you private message box, I want to help you with something special.
Thank you so much. I want to open a vegan restaurant on the south side of Chicago. This video was a tremendous help.
Nice! So glad I could help!
Hello,
In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 6 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to:
1 Gain control over food inventor. Help you with your inventory management
2 Prevent food from being wasted at your restaurant and more.
3 Cut food waste and reduce your time spent.
Please have a look at the following link:
totalctrl.com/restaurants
contact - pooja@totalctrl.no
thank you verymuch my teacher it's very Good specially begging food and beverage manager
Thank u for all your information, great presentation and easily understood and entertaining and real.
great video, THANKS
According to the 80/20 you should focus on the 20% of most expensive items. Wasting very low cost items aren't a big deal compared to wasting much more expensive items. What you don't want to do is run out of the 20% of the items that give you 80% of your sales. Even more so you want to keep plenty of stock of 20% of the items that give you 80% of your profits.
Thank you this helped a lot
Glad to hear!
I own a restaurant in Atlanta and would love to learn more.
Love to help you out Reginald! Did you grab our free resources? That's the best place to start.
Free Toolkit: www.therestaurantboss.com/toolkit
Free Book: www.therestaurantboss.com/books
low inventory is good!!! order as u go! fresher food for people, return bad products and seek great vendors!
Beautiful and very helpful videos 😊👏👏
Glad you think so!
all perfect. Thank you so much for sharing this knowledge.
Great thoughts. Thanks
Your welcome!
brilliant explanation!
Thank you, Kevin!
The best lesson I had.G.tarantino Grand Hotel Weber Ambassador Capri Italy
I have learned a bunch from your videos they are great. But in some points you mentioned I disagree. It is important to watch inventory but u should always have enough that you won't need anything for at least 5days.
I found in the past when I ran inventory to the T it wasted bunch times having to run to get stuff. Plus if you run out something there is nothing worst.
But so far u have been great keep it up I will keep learning
I have never suggested keeping levels so tight you run out, but I see restaurants with enough canned tomatoes for 3 weeks and they get 2 delivers a week.
Hi Ryan. Thanks for this video. This might be a not so intelligent question but how do you monitor the end inventory for perishable goods. I mean, how can you compute for the end inventory usage amount?
Thanks in advance
Another great video! Thanks for posting !
+KeithofRoss , SO glad you enjoyed! Cheers!
Thanks a lot....is there a way to connect with u personally..your videos are very informative.
I'm happy to hear you've been finding everything so helpful! If you're looking for some additional help from Ryan, the best (and most economical!) way to do that is through our TRB Membership. Check out all the details here: www.therestaurantboss.com/membership
Dawn - Team TRB
awesome video with great practical advice
Thanks Parker!
Great Video! Thanks!
Thank you..
Thanks a lot Ryan
simply superb
Maharaj Pj Thanks for taking the time to comment and glad you are enjoying them!
If I am taking inventory weekly, would they have same rules still apply? For my bar I am getting a .45. Would that indicate that I have a months worth of inventory on hand?
Hi Ryan. What POS software do you recommend for a medium sized restaurant? I need my inventory to be managed alot easier than it is now.
Hello Samantha,
In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 3 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to:
1 Gain control over food inventor. Help you with your inventory management
2 Prevent food from being wasted at your restaurant and more.
3 Cut food waste and reduce your time spent.
Please have a look at the following link:
totalctrl.com/restaurants
contact - pooja@totalctrl.no
Forgive me if you answered this, but you say to have low inventory, but what do you do in an unpredictable customer demand making me need products just incase we get hit with any given item on a weekend?
Great video Ryan. I opened my family restaurant/ bar just 8 months ago. It's been one hell of a ride to this point. I have had to learn as I go. My food inventory is finally under control. My bar/ liquor is not. Bar business is way down. But my manager seems to not have inventory under control. Do you have a video that will help me with bar inventory?
Check out these two blog posts and see if they help: therestaurantboss.com/lower-restaurant-and-bar-cost-bottled-beer/ and therestaurantboss.com/increase-restaurant-profits-draft-beer/
Thanks for this,what are the main different role between the Manager and Assistance manager,What really makes them different??
I don't like the term assistant manager for this reason. I prefer to set up restaurants with a GM, then a FOH manager and BOH manager, this assigns roles and responsibilities to people. The assistant manager seems to me like I don't have to be all that responsible because my manager will do it eventually. This is a very general and unfair statement, but I prefer to not create "assistant" positions.
@@Therestaurantboss well explained
thanks
can you please guide for storing of vegetables and non vegertarian
Hi! I am not sure what you are asking? If you want to see how I have organized these items in the past, please check out this video: ua-cam.com/video/1FCpHNuM_Q8/v-deo.html
Hey Man, greta video, im wandering if i can get more info about some sheets or layouts that you suggest for keeping up to date with counts and existences. Peace! from México
Hi Mariana! Check out my tool for doing this, clickBACON. We make build sheets simple. clickBACON.com - you can even try it for free!
what are documents should maintained in restaurant or catering??
Chef,
I understand the demographic you're focused on, yet I've shifted from Private restaurants to corporate Business dining where the menu is more buffet style. sometimes there are stations and sometimes its a choice between two entrees etc.
I like to order Tuesday for Friday -Monday and Friday for Tuesday through Thursday.
We tend to run a 4 week menu rotation, and with that said, we may not have a lot of one item but I'm uncomfortable with the inventory list we do have and the desire to keep it fresh (different) proposes quite the challenge. Any Insights or suggestions?
How do u get. The numbers for beginning and ending inventory?
Hi Carlos! I recommend watching this video that explains inventory more and also why I don't teach taking inventory: ua-cam.com/video/0jfwgUMu3so/v-deo.html
ok, ethics question. i know it's illegal to water down or pour bottom shelf booze into high end booze bottles and pass off as top shelf. but in a in a scenario like you describe where you have massive bottles of high end liquor, is there a law against adding patron into a low level tequila? it seems like a win-win. you get to off load unwanted inventory, customers get a superior product at a low price point while growing the restaurant's rep as a place of quality and value? of whatever point i'm missing, please let me know, all of us are here to learn after all.
I understand what you are saying, giving customer a better product, but NEVER serve something that is not labled properly or that the customer is not expecting. If you want to put patron in your well to get rid of it, then do that, but DON'T pour patron into a different bottle.
thank you Ryan, but i admit i was a little confused
Hello,
In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 3 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to:
1 Gain control over food inventor. Help you with your inventory management
2 Prevent food from being wasted at your restaurant and more.
3 Cut food waste and reduce your time spent.
Please have a look at the following link:
totalctrl.com/restaurants
contact - pooja@totalctrl.no
Hi it really fantastic information about cost control , i want ask you about the percentage % should be it cleaning material & takeaway tools ( bag,spoon,.*/)
Thanks a lot
My pleasure, so glad you enjoyed it!
I am a food & Beverages cost controller in a 5 star hotel. Please I want you to help me the easiest to prepare my monthly P & L report for my restaurant. Daniels Barrio Palace Hotel Arusha
barrik d We should find a time to connect and discuss this one-on-one in more detail, please email me at ryan@therestaurantboss.com
Hi Rayan. Thanks for the video but I'd like to ask you how can I calculate the Beg. Inv. specially that I've Started without counting it ?!
Begining inventory at the start is your opening orders, then each month its counted and converted from quantities to $$$ value based on what you paid for each product.
Hey amazing video it was extremely helpful. I do have a question for you though. I recently started my new position at a non profit organization hospice, which had no food inventory. Do I come up with the cost of the current items with "research prices"?,I was not given receipts to find these previous costs.
You don't have a choice, either find out the cost of the product or guess.
Ask where they do their shopping. Or look at the price sticker on flour items.
Hi there! I have been watching all your videos as im very interested to know about how to operate a Restaurant. I'm a cooker with a back ground in the food industry. I have now the importunity to take over a Spanish Tapas Restaurant In Ireland and to be honest never had the chance to operate a Restaurant by myself so it is a new experience that need to be approached from a logical point of view and like you said not and emotional that can get me in big troubles. Any extra info you think I might consider before accepting the deal? thanks!
Lorena, I believe I got an email from you but it got jumbled in translation or something. Anyways, please contact me again at ryan@therestaurantboss.com so we can discuss this in more detail. I have some great tips I would love to share with you. You should also check out my newest FREE video training series at restaurantprofitandperformance.com
i purchaseanywhere from 3,500-4000 a week can you help me figure this out?
How to measure(calculate) a half Bottle of Liqueur ?
I am not sure what you are asking, sorry?
Whats the best way to track waste??
+Felix Adame Waste sheets...but because they are hard to complete during a busy service, I put a bin on each station for WASTE only (not trash) and then at the end of the shift, you can go through the bin and count whats in it. IF for some reason a manager eats a mistake that should be counted as waste (which is a no no) then they should be required to write that on the waste log before eating the meal.
Hello,
In this corona crises, we are helping restaurants to generate more profit. you will get free access to our software for 6 months & apart from this, we have many more offers for you. We are the Norway based company, and our simple, free, and award-winning software can help you to:
1 Gain control over food inventor. Help you with your inventory management
2 Prevent food from being wasted at your restaurant and more.
3 Cut food waste and reduce your time spent.
Please have a look at the following link:
totalctrl.com/restaurants
contact - pooja@totalctrl.no
He now sells restaurant software......
Yep we do. But that doesn't mean that Ryan won't help people learn how to do things without the use of his or any other software either. -Dawn, Team TRB
👍👍👍
Thank you Boss 😊😊
More than perfect sir rayan.
In your opinion which reports most important in restaurant yo help our GM
Could you please drop your mail address 🙏 sir
Thank you again and again
Hi Ryan. Thanks for this video. This might be a not so intelligent question but how do you monitor the end inventory for perishable goods. I mean, how can you compute for the end inventory usage amount?
Thanks in advance
Jr Royol Ending inventory is just what is in your restaurant at the end of period. It has nothing to do with perishability or what happened throughout the period. Simply what is on the shelf and its value. I hope that helps!
+The Restaurant Boss Perishable or not...Ryan stats to think of your stock in terms of $ value that was if its perishable or not you have assigned a cost to it....at the end of the day if you bought and apple and you let it go bad...you still spent money on it.