Restaurant inventory is one of the most important things when it comes to running a business. Apart from that, there is also a discussion about whether you should do inventory weekly or monthly.
When it comes to another form of business in the market, it is perfect for them to do inventory on a monthly basis. But we do not recommend the same for the Indian Restaurant In Sydney. And there are several reasons for that.
Let us read this blog to know more. Restaurants have short-term promotions.
Over a short period of time, the restaurant’s inventory, mainly good, is often replenished.
The Pros And Cons Of Weekly Inventory
There are a lot of benefits of weekly inventory. First of all, weekly inventory counts will make it easy for you to manage the costs of sold products and also calculate the food expenses weekly.
This will also help you to look more closely and spot the overages sooner. This process is beneficial for you to decrease food waste and also over-ordering. All this can significantly impact the overall growth and productivity of Indian restaurants.
However, there are still some downfalls to doing weekly inventory that you must consider before going with the plan.
Cons of weekly inventory
When you are comparing year-over-year sales by week, seasonality can move to a different week. This is why it makes it so much harder for you to track and uncover seasonal trends. And if you convert the weekly inventory data into the monthly data, it can result in misalignments between weeks and months.
We have also noticed that weekly inventory is more time taking than others. Measurement of performance can be more time-consuming, especially when you already have 52 periods to review.
How To Offset The Challenges From Weekly Inventory?
Now that we have established the problem or the cons of weekly inventory. We are going to solve that problem for you so that you will be able to perform a better inventory that will be beneficial for your restaurant business.
Here are some steps you can take to ease the adverse effects of weekly inventory.
If you want to make sure that you are gaining some actionable insights into the restaurant inventory while also avoiding the weekly changes in seasonality. It would help if you considered doing two inventories for weeks divided into two months.
The first inventory you will do will be at the end of the month, and the second one will be at the end of the week. Alternatively, you can also do some quick calculations.
You can take the ending inventory of the last week and then add it to your purchase until the last day of the month. You can also multiply the sales from the start of the week until the very end of the month by your target cost of products sold.