Inventory management is the control of a restaurant’s stock: knowing what you have, how much, where, and when to reorder. It covers ingredients, drinks and consumables, from the moment goods arrive to when they’re used.
It’s one of the most direct levers on margin, because it ties two critical lines: food cost (what ingredients cost) and food waste (how much you lose). Poorly managed stock means either stockouts (you run out of an ingredient mid-service) or overstock (goods expiring before they’re used).
How to do it well
The basics are regular counts, FIFO rotation (first in, first out: use what came in first), reorder thresholds and — increasingly — data-driven forecasts: crossing consumption history with expected covers to order the right amount. This is where digital systems and AI are contributing most in 2026.
Here’s how to cut waste with data and how to keep food cost in check.
Frequently asked questions
- What is inventory management in a restaurant?
- The control of stock: knowing what you have, how much, and when to reorder, from incoming goods to use. It directly affects food cost and food waste.
- What is the FIFO method?
- FIFO (first in, first out) means using the products that entered stock first, to reduce expiries and waste. It's the basic rule of good stock rotation.