Inventory for more liquidity & better purchasing management

Stock full and still short of cash? Many restaurateurs are familiar with this problem. It is often due to dead capital in the form of unused stock lying dormant in the warehouse. Money that is tied up in surplus bottles, food and ingredients is then missing at the till - liquidity that your restaurant loses for more important expenses. At the same time, unclear stock levels lead to incorrect purchasing management: you order too much of the wrong things or forget to buy more important things. The solution is obvious: regular stocktaking provides an overview and helps you make informed purchasing decisions. However, traditional stocktaking is time-consuming and is therefore often shied away from. Fortunately, it's easier today - digital stocktaking with tools such as BarBrain saves time and provides accurate data.

In this article, you will learn in a practical way why regular stocktaking is so important, how you can gain more liquidity in the restaurant business and optimize your purchasing management in the restaurant, and how BarBrain supports you as a smart solution.

Dead capital in the warehouse - the hidden costs for your restaurant

A full warehouse may seem reassuring at first glance, but it can become a cost trap. Every crate of beer, every bottle of wine and every bulk pack sitting unused in the cellar ties up cash. This tied-up money is called dead capital - it's stuck in storage instead of working for your business. The trick is to have enough in stock to be able to offer all dishes and drinks, but not so much that the surplus sits on the shelf as dead capital or, in the worst case, spoils. Every product that collects dust in the warehouse is ultimately lost profit.

Example: Imagine you buy ten cases of a certain wine due to a volume discount, which you actually only sell slowly. You have now spent capital on ten cases, but perhaps only sell two per month. The remaining eight crates sit unused for months - that's money tied up that you don't have elsewhere. You also run the risk of the wine losing quality in the meantime. If you had only ordered according to actual demand instead, you would have more money available in your account(more liquidity for your business).

In addition to excess stock, spoilage and shrinkage also cause costs: expired food has to be disposed of, which means a double loss - purchasing costs and lost sales. Likewise, unrecognized theft or errors in stock lead to financial losses. All of this quickly adds up to considerable sums. It is estimated that catering businesses spend around 35% of their budget on food - and 20% of these costs could be saved through proper stocktaking. In other words, a fifth of the cost of goods is often dead capital or avoidable loss because people don't take a close look. You could free up this money through better stock control and use it elsewhere, for example for investments or urgent expenses. You can achieve greater liquidity in the food service industry above all by managing your stock efficiently and not leaving money on the shelves.

Regular inventories - how to gain liquidity and avoid losses

Frequency makes all the difference: a one-off annual inventory is good for the tax accounts, but in everyday life it is far too little to uncover weak points. Only if you take stock regularly - ideally monthly or even weekly - will you have a continuous overview. This allows you to react more quickly before too much capital is tied up or wasted. However, many restaurateurs carry out inventories far too infrequently. In a survey, over 41% of businesses stated that they take stock at most once a year. It's no wonder that it often takes a long time to realize how much money is in stock. On the other hand, those who consistently plan monthly inventories, for example, have a huge advantage: problems such as creeping overstocks or increasing stock levels become visible at an early stage.

Regular inventories contribute directly to more liquidity because they reveal potential savings. Here are a few financial benefits of frequent stocktaking:

• Less tied-up capital: You recognize excess stock immediately and can reduce it. The previously tied-up money is freed up and increases your company's liquidity.
  
  
• Reduced use of goods: Inventory control reduces the use of goods because less is thrown away and unnecessary purchases are avoided. Just 1% less goods used can save thousands of euros over the year - regular stocktaking helps you to make up these percentage points.
  
  
• Early warning system: You notice in good time when certain products are barely turning over (slow-moving items). This allows you to react, e.g. through sales promotions or by reducing the order quantity. Dead stock is turned into cash instead of disappearing into the warehouse.
  
  
• Prevention of theft and shrinkage: Inventory discrepancies are immediately apparent if you count often. Cases of shrinkage or theft can thus be narrowed down and stopped before they cause major financial damage. Regular stocktaking and spot checks reveal when and where unexplained shrinkage occurs - and you can take countermeasures.
  
  

Last but not least, a regular inventory also improves your standing with banks or investors, as a lean warehouse and clear figures signal financial stability. More liquidity also means more buffer for unexpected expenses and less stress in the event of bottlenecks. In short: frequent stocktaking is like a fitness program for your restaurant's finances - a little strenuous at first, but with a clear pay-off. Studies show that businesses that carry out weekly stocktaking and carefully calculate their inventory can increase their profits by 2-10%. So it's worth sticking with it!

Better purchasing management thanks to up-to-date inventory data

Efficient purchasing management starts with reliable inventory data. Only if you know exactly what and how much is in your warehouse can you buy according to demand - neither too much nor too little. Regular inventories provide this data and enable you to optimize your purchasing.

Without an inventory, purchasing goods quickly becomes a guessing game: you order "at random" or rely on gut feeling and experience. This leads to incorrect purchases - for example, you order something that was actually still available in sufficient quantities, or important ingredients are suddenly missing because you underestimated their consumption. Both cost money: either you have too much stock (dead capital) or, in the worst case, you have to buy more because you unexpectedly run out of something.

You can counteract this with up-to-date stock figures. You can recognize consumption patterns and adjust your product range and ordering rhythms accordingly. For example, by comparing inventories over several weeks, you can see which items are slow-moving and which are top sellers. Your purchasing management becomes data-based and therefore much more accurate. Here are some practical approaches for optimizing purchasing in restaurants:

• Order according to demand: Check the current stock levels and sales figures before each order. Only reorder the quantities that you expect to need before the next delivery. This will help you avoid overstocking. Tip: Make a note of minimum stock levels (par levels) for important ingredients. When the stock in the warehouse reaches this threshold, it's time to order - but only then. Automatic reordering of this kind has long been standard in retail; you can also benefit from set thresholds in the food service industry.
  
  
• Compare suppliers and prices: Good purchasing management is not just about how much you buy, but also where you buy it. Purchasing optimization also means regularly checking the prices and conditions of suppliers. You can reduce costs through clever orders (e.g. larger quantities when they are really needed or collective orders with other companies) and tough negotiations. However, the best price is useless if half of the delivery remains unused - which is why purchasing and stocktaking go hand in hand.
  
  
• Consider the season and menu: Plan purchases according to the season and your current menu. Inventory data will show you which ingredients have not been used much recently - perhaps because a dish is not selling so well. Such findings will help you to adjust your menu or reduce these items the next time you go shopping. In this way, you can prevent your storage space from being blocked by slow sellers.
  
  
• Create transparency in the team: Share the inventory results with your chefs and bar staff. If everyone knows which products are in abundance or will soon be in short supply, the team can act accordingly (e.g. offer specials to reduce surpluses or use scarce ingredients sparingly). Better purchasing management is a team task - together you can avoid stock shortages much more effectively.
  
  

If you take these points to heart, you will soon notice: Your shopping will be easier to plan, less stressful and more economical. You'll order less "on spec", you won't run the risk of forgetting something so easily and you won't have to reach for the phone so often in a panic because you've run out of an ingredient. Instead, you have a system for shopping optimization in the restaurant that saves you time, money and nerves. Modern digital solutions can provide you with additional support by linking stock management and purchasing - more on this in the next section.

Digital stocktaking with BarBrain - efficiency boost for warehouse and purchasing

Be honest: the main reason why stocktaking is neglected in many catering businesses is the amount of manual work involved. Counting bottles for hours, lugging boxes around, typing figures into Excel - no wonder it's done as rarely as possible. This is where digital stocktaking comes into play. Special apps and tools such as BarBrain make the stocktaking process faster, easier and more precise. This turns stocktaking from an annoying time waster into a data source at the touch of a button.

How does digital stocktaking work with BarBrain? Instead of a clipboard and pen, you use a smartphone or tablet. The app guides you through the stock, many items are already predefined. You can scan bottles and containers by barcodeor select them from a product list, and even record opened units with a tap. No more awkwardly estimating how much is in the open wine bottle - BarBrain allows you to enter precise partial quantities. The data is recorded digitally in real time and stored centrally.

The advantages are obvious: you save an enormous amount of time and avoid mistakes. Restaurateurs report time savings of over 50% thanks to digital stocktaking with BarBrain . If it used to take you 4 hours to take stock, for example, you can now do it in 2 hours - perhaps even faster if you count in parallel with your team. BarBrain allows teamwork: Several employees can count in different storage areas at the same time, which further speeds up the process. This turns the often dreaded stocktake into a plannable, short deadline.

In addition to saving time, BarBrain provides you with reliable figures. Human errors such as transposed figures or illegible notes are completely eliminated. The app summarizes all entries into a clean inventory list - without estimates and without manual transcription errors. This eliminates uncertainties ("Do we have 8 or 18 bottles of gin? I can't read the handwriting...") are a thing of the past. You receive an automatic inventory report immediately after completion - completed with all stocks and totals. You can share this data directly with the management or tax consultant, which in turn saves time and ensures complete transparency.

Digital recording also creates the basis for further evaluations. In BarBrain, you can compare inventory results over different periods of time and identify trends. Perhaps you notice that a certain product is decreasing from month to month - a sign that things are going well and you need to make sure you reorder in good time. Or you may notice that an expensive item is always missing despite regular replenishment - which could indicate shrinkage. You can only gain such insights if the data is accurate and easily available. BarBrain provides you with this basis at the touch of a button.

Another plus point: integration into your processes. BarBrain is not only suitable for individual businesses, but also for chain stores - you can keep track of all locations at the same time. The digital inventory can be connected to existing merchandise management systems via open interfaces. This allows you to link inventory data, shopping lists and sales figures, which further automates your purchasing management. For example, in the medium term, you could use BarBrain to automatically generate an order list if your stock falls below a minimum level. The app already makes purchasing much easier for you: after taking stock, you know exactly what is missing and can place targeted orders based on the current stock level.

Not forgetting the motivational factor for the team: a digital solution like BarBrain makes stocktaking almost playful. Your employees would rather quickly scan items with their cell phones than poring over lists late at night. This increases the willingness to carry out inventories more frequently. And the more frequently (e.g. monthly instead of annually) you carry out stocktaking, the less effort is required - it's a self-reinforcing effect.

Practical example: One of our BarBrain customers, a restaurant manager from Munich, reports that he used to take stock every two months because it was so laborious. Since he has been using BarBrain, he takes stock every month and has reduced his stock levels by around 15% as a result - that equates to several thousand euros less tied-up capital. At the same time, he has never had to improvise due to a lack of ingredients; he can now see early on what is running low and reorders in good time. This example shows how digital stocktaking and purchasing optimization go hand in hand.

In summary, BarBrain offers you the following advantages for stocktaking and purchasing management:

• Save time: Save more than half of the inventory time and use staff hours elsewhere.
  
  
• Avoid errors: No more counting errors, transposed figures or estimates - 100% correct inventory data .
  
  
• Increase transparency: Automatic reports and evaluations give you the overview you need to make decisions at all times.
  
  
• Team efficiency: Use several devices at the same time to count in parallel - stocktaking as a team effort instead of a solitary drudgery.
  
  
• Optimize purchasing: Order in a targeted manner thanks to accurate stock figures and avoid unnecessary items. The latest stock data is always to hand when you create order lists.
  
  
• Easy to use: Intuitive app operation, integrated product catalog with over 20,000 items - you can count everything from wine to cleaning products.
  
  

No wonder over 1,000 establishments are already digitizing their F&B inventory with BarBrain. In today's hospitality industry, which is struggling with tight margins and staff shortages, such efficiency gains can be crucial. BarBrain is not only suitable for large hotels or chains, but also for the individual business around the corner - true to the motto: "If digital, then right and simple."

Conclusion: More liquidity and less stress thanks to smart stocktaking

Regular stocktaking is the key to avoiding dead capital in your restaurant business , increasing liquidity and establishing better purchasing management. What used to be a tedious chore can now be done quickly and accurately thanks to digital stocktaking tools such as BarBrain. You can feel the benefits directly in your wallet: a lean warehouse means less money tied up and fewer losses due to spoilage or shrinkage. At the same time, accurate inventory data enables optimized purchasing, which prevents over-ordering and ensures that the right items are always available at the right time.

For you as a restaurateur, this means less financial pressure because your money is no longer sitting unproductively in storage, and more profit because you reduce costs. In addition, the organizational effort is reduced - you have more time again to take care of the really important things, be it the guest experience, marketing or simply an evening off.

It is important to take action now. Analyze your warehouse: How much capital is in it? How often do you take stock? If you see potential here, try a new approach. Digital stocktaking with BarBrain can give you the impetus to firmly integrate this routine into your business. You'll be surprised how much fun it can almost be when you see how the figures improve - less depreciation, a lower cost of sales ratio, more liquidity.

At the end of the day, it's about you being in control of your stock rather than being controlled by it. A modern, digital inventory is your tool to gain this control. With BarBrain by your side, you're well equipped: You can see what you have, what you need and what you can save at a glance. This allows you to get the most out of your business without losing money.

So, what are you waiting for? Banish dead capital from your warehouse and welcome a new era of efficiency. Get started right away - your next stocktake could be your first with BarBrain and show you how much dormant potential there is in your warehouse. More liquidity, less stress: it's in your hands!