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Why Ordering too Much Hurts You

When you own a restaurant you never want to run out of food, but you also never want to have too much inventory. Having the right amount of stock on hand is crucial to maintaining your bottom line and driving profit. Keeping a large amount of inventory on hand can cost you more than just money. Let us show you why ordering too much hurts you instead of helps you.

Increased Costs

For starters, holding a large number of items in your inventory means you need more storage space to hold it. The more space you need, the more money it will cost you to either build the space, rent it or maintain the utilities.  Plus, it requires more staff to manage the inventory and perform your categorizing and counts, costing you more in labour.

More Waste

When it comes to perishable items, unless you have your inventory down to an art, you’re likely to have more waste if you’re ordering too much. Wasted food equals wasted money.

Prevents Ordering Anew

One of the biggest problems of having excess inventory is that it prevents you from offering new products to your customers. This can be an issue when the holidays come around, and you want to offer a special menu but you still have lots of stock on your shelves that you already need to move out the door. Too much inventory can restrict you from having better business opportunities.

Reduced Profit Margins

When you are ordering too much inventory the only way you can get it out the door is by offering it at a lower price, sometimes even lower than what you paid for them. This cuts deep into your profit margin and can really hurt your business.

Unhappy Customers

Nobody likes stale bread or week-old vegetables. If you’re holding too much inventory, it’s likely to drive your staff to use it up at the expense of your customers. Customer satisfaction is what drives your business, and offering people food that isn’t fresh will prevent them from coming back.

Inventory control can make or break your business. What you need is a perfect balance so you can keep customers happy and keep your restaurant prosperous. And it’s easier than you think! All you need is an inventory management system from Optimum Control. Our restaurant management software has everything you need to maximize profits for your business in one perfectly designed system. Contact us today to find out more!