How to Do Inventory in Hospitality

Why inventories matter

Inventory – the word alone probably makes every hospitality operator groan. After a long working day, counting bottles, crates and food items is certainly not a favourite task in any bar, restaurant or hotel. Yet you cannot avoid inventory in hospitality – and for good reason. A thorough stock count provides the foundation for your success: you maintain an overview of your stock levels, spot shrinkage or shortages early and can properly calculate costs and cost of goods. In short: an up-to-date, accurate stock level is the basis for informed decisions – from purchasing through to pricing your food and drinks. Regular inventories also show your team that stock is being monitored. This professional approach has a disciplining and appreciative effect: when everyone knows that counts are carried out regularly, they automatically handle products more carefully. Inventory may be tedious, but it is the backbone of a successful hospitality business.

When and how often should you carry out inventory?

Many businesses traditionally carry out their inventory at the year-end, because it is important for the annual accounts and bookkeeping. In such fixed-date inventories the entire stock is recorded on a key date (usually 31 December), which can be decisive for tax and profit calculations. However, counting only once a year is not ideal if you want to stay in control at all times. The more regularly, the better: in practice it has proved effective to carry out inventory monthly. This gives you continuously up-to-date figures on your stock levels and allows you to identify losses or discrepancies quickly and, in the worst case, take countermeasures. Particularly in the drinks area or with perishable food, a monthly stock count makes sense to spot theft, shrinkage or over-ageing immediately. Of course, the frequency depends on your operation – a small café may get by with a quarterly inventory, whilst a large restaurant with extensive stock and high turnover should count even weekly. Modern digital solutions make frequent inventories considerably easier: with the right app, even a monthly inventory in hospitality becomes a routine that takes very little time. Above all, it is important to establish consistency – whether weekly, monthly or every three months, schedule fixed inventory dates so that nothing falls through the cracks.

Preparing for inventory

Good preparation is half the battle. Before you start counting, work through the following steps:

• Set a date and time window: Choose a time when your business is closed or quiet – e.g. after closing or on a rest day. Allow enough time and ensure that no new deliveries arrive or major stock transfers take place during the inventory. This avoids interruptions and errors.
• Organise your storage layout: Walk through your stores, cold rooms and counters beforehand. Order makes inventory considerably easier. Sort similar products together, tidy up and dispose of anything spoiled. Make sure every item has a clear place and a label. A clean storage layout prevents you from losing track during counting or recording something twice – or not at all.
• Prepare your tools: Decide in advance which method you want to use for the inventory – traditional pen and paper, an Excel spreadsheet or digitally with an app (such as BarBrain). Depending on the method, you will need different equipment. Prepare printed inventory lists and writing materials if you are counting on paper. For Excel, have a laptop or tablet ready with the corresponding spreadsheet (plus charger if needed). If you are using an inventory app, install it on all necessary smartphones/tablets and make sure the devices are charged. Also think of aids such as scales or measuring jugs for open containers, so you can determine fill levels accurately.
• Assign your team: Inventory does not have to be a one-person show – on the contrary, it goes faster with helpers. Plan early which staff will support you. Teams of two are ideal: one person counts, the other records or enters the data. Assign teams by area (e.g. bar, kitchen, storeroom) so they can work in parallel without getting in each other’s way. Give each group a clearly defined area and a list so nothing is counted twice or overlooked.
• Prepare an item overview: Create a list of all items that need to be counted. This could be a printed stock list from your inventory management system or a simple table with all relevant products. Make sure every product category is covered – from spirits, beer, wine and juices through to food in the kitchen and non-food items such as cleaning supplies or consumables. If you are working with an app like BarBrain, you can set up your product catalogue in advance (many standard products are already included in BarBrain). A complete item overview ensures nothing is forgotten on inventory day.

​

Carrying out the inventory: paper, Excel or BarBrain?

Now it is time to count – and you essentially have three options. Each method has its pros and cons:

Inventory with pen and paper:

The traditional approach: many operators still reach for a clipboard, paper and pen. You walk through your stores and write down the quantity of each item. Often pre-prepared lists are used for ticking off, or you note items freely as you see them. This approach is simple but requires the utmost concentration. Errors happen easily – you make a slip, overlook something in the heat of the moment or cannot decipher your own handwriting later. Counting on paper also usually takes the longest. Once everything is written down, you still need to add up the figures and transfer them into a system (e.g. your POS or Excel) to determine the total value. The double work – first writing, then typing – costs time and nerves. In short: pen-and-paper inventory is possible and straightforward without technology, but very time-consuming and error-prone.

Operators often hit their limits here, particularly with open bottles or many variants of the same spirit. It is easy to lose track of whether a bottle of Aperol was 0.5 l, 0.7 l or 1 l. Anyone estimating by eye risks inaccurate results.

A possible alternative is weighing: with a scale and the known empty weight, you can calculate the exact contents of an opened bottle. This is more precise than estimating but costs time and is error-prone if empty weights are not accurately recorded.

On top of that, counting on paper usually takes the longest. After writing everything down, you still need to total up and transfer the figures into a system (e.g. your POS or Excel) to determine the overall value. The double work – first writing, then typing – costs time and nerves. In short: pen-and-paper inventory is possible and uncomplicated without technology, but very time-consuming and error-prone – especially with open containers and items with many variants.

Inventory with Excel:

Excel allows you to structure the inventory more methodically: you set up your items in a spreadsheet beforehand, add columns for quantities and values, and can include formulae that do the maths for you. This saves the calculator and minimises classic addition errors.

In practice, however, Excel quickly shows its limits in hospitality. Particularly with spirits in multiple container sizes – say 0.5 l, 0.7 l or 1 l – it is often not immediately clear which variant is being counted. Equally tricky are opened bottles: without aids, the contents can only be roughly estimated, reducing accuracy. You can use a scale, but that means extra steps every time and a significant additional effort. In practice, such estimates not infrequently lead to odd discrepancies: suddenly the record shows that an opened bottle of expensive Scotch contains more liquid than the previous month – an obvious error caused by misjudgement.

Another point: Excel is not designed for working “between shelves and the fridge”. Whether on a laptop or tablet, handling is cumbersome, and data entry is often impractical in cramped stores. So despite using a digital spreadsheet, plenty of manual work remains, and with larger inventories you easily lose the overview.

Digital inventory with BarBrain:

The most convenient option is to use a specialist inventory app. BarBrain is an example of a digital solution developed specifically for the hospitality industry. Instead of paper or Excel, you simply pick up your smartphone or tablet. In the BarBrain app your entire range is clearly laid out – sorted by categories and storage locations. You can select items and enter quantities directly at the shelf or fridge. This is done by tapping or swiping on the touchscreen, completely intuitively. An opened wine bottle? No problem: with a slider you determine the fill level precisely (e.g. 0.3 of 0.75 litres), rather than just roughly guessing. Every entry is captured digitally in real time and synchronised with other devices immediately. This means multiple people can count simultaneously in different areas without anything being recorded twice – teamwork made easy! While you count, BarBrain is already totalling everything in the background. Transcription errors are eliminated because there is no more manual typing. Once counting is complete, you have a full inventory report at the touch of a button: all stock levels, totals, discrepancies and the overall value are available immediately. Digital inventory with BarBrain is therefore faster, more accurate and less stressful than the old methods. Many who have made the switch say: inventory without paper chaos and Excel really is possible – and you never want to go back!

​

Analysis and follow-up

After counting, the equally important part begins: evaluating the inventory results and taking appropriate action. With a digital solution like BarBrain much of this happens automatically – but whether analogue or digital, attend to the following points:

1. Document inventory results: Ensure all counted quantities are properly recorded. If you counted on paper, now transfer all figures neatly into your Excel spreadsheet or inventory management system. Check for plausibility at the same time: are there any extremely high or low values that suggest an error? It is better to recount once than to accept incorrect data.
2. Carry out an actual-vs-target comparison: Compare the counted actual stock with the target stock (i.e. what should be present according to your records or the last inventory). For discrepancies – known as inventory variances – note the size of the difference for each item. With BarBrain, such variances are displayed automatically in the report.
3. Identify causes for discrepancies: Analyse large variances critically. Could the shortfalls be attributable to theft or shrinkage (e.g. spillage, evaporation)? Were recipes perhaps not followed precisely, or was there an error in the last delivery? Discuss inventory results openly with your team. Often causes can be clarified – for example, that bookings were inaccurate during busy service – and corresponding countermeasures introduced.
4. Document losses and breakage: Everything that has spoiled, been spilt or broken should be recorded separately. You can now write these quantities off from stock. This ensures correct stock levels and prevents you from having “paid for” perishable goods that no longer exist. Clean documentation of losses is also relevant for business management and tax purposes. With BarBrain you can capture such losses directly during the inventory so nothing is forgotten.
5. Update stock levels and recalculate: Subsequently update your stock lists and, where applicable, your inventory management system with the new actual figures. You now know exactly what and how much of each item is in stock. Calculate the total value of your stock (if not done automatically) – this figure feeds into the annual accounts, for example. Thanks to the inventory, you can now also determine your cost of goods (consumption) for the preceding period by taking into account opening stock, closing stock and deliveries received.
6. Apply the insights: The inventory is not just a numbers exercise – it delivers valuable insights for the future. Look at which products had above-average shrinkage or where surprisingly high stock levels remain. This information helps you adjust purchasing and stockholding – e.g. ordering less of an item that has turned out to be a slow mover, or critically examining why an expensive line is missing. Share the results with your team too: praise for low variances motivates, and where problems exist you can find solutions together (better training, stricter controls, optimised recipes, etc.). The goal is to learn from every inventory in order to continuously improve your operations and cost structure.

Advantages of digital inventory with BarBrain

Why should you switch from paperwork or Excel to a digital inventory – specifically to BarBrain? Here are the biggest advantages at a glance:

• Enormous time savings: BarBrain users report completing their inventory in half the time it previously took. Through parallel counting as a team and the elimination of follow-up work (no typing up, no manual totalling), you save hours of overtime. Inventory goes from an all-day project to a quickly completed routine.
• Greater accuracy: Digital capture eliminates sources of error. Transposed numbers from typing or illegible notes are a thing of the past. BarBrain systematically guides you through every item so that nothing is forgotten. You can specify partial quantities precisely – no more guessing how much is in an opened bottle. Overall, you receive reliable stock data you can truly depend on.
• Easy to use: The inventory app is intuitive, even for those new to technology. Instead of juggling complicated Excel formulae, you tap away in a user-friendly interface. No elaborate scanning or specialist equipment is needed – your smartphone or tablet is entirely sufficient. Inventory becomes as simple as using any other smartphone app for you and your team.
• Teamwork and real-time sync: BarBrain is designed for multiple people to count simultaneously. Whether bar, kitchen or storeroom – everyone can work on their own device within the same inventory session. All data comes together in real time. This means the entire inventory is completed much faster and nobody has to twiddle their thumbs or take turns with lists. This collaboration not only increases efficiency but also team motivation – inventory becomes a joint project rather than a lonely battle at the end of the night.
• Automatic analysis & reports: As soon as you finish counting, BarBrain generates an inventory report at the touch of a button. In it you can immediately see the total value of your stock, all quantities per item and any variances from the last count. Losses from breakage or shrinkage are also shown separately if you have recorded them. You can use these reports for your bookkeeping or tax adviser without any further processing. Seamless documentation is created as a by-product.
• Up-to-date data and better control: Because digital inventory is so time-efficient, you can carry it out more frequently – for example, monthly. This gives you constantly current stock data. Stock surprises are a thing of the past: you spot in good time when a product is running low or when unexpectedly large amounts are missing. You can take immediate countermeasures, plan reorders more precisely and minimise waste. Overall, BarBrain gives you an entirely new level of transparency over your stock, which makes managing your business considerably easier.

Conclusion

Inventory in hospitality need not be a dreaded topic. With good planning, the right team and, above all, the right method, the tedious stock count becomes a manageable process – perhaps even a bit of routine. Whether you are going digital for the first time or already have some experience: it is worth taking the step away from clipboard and Excel. Digital inventory with a solution like BarBrain saves time, stress and ultimately money. Imagine completing your next inventory in minutes instead of hours of late-night work – and the results are correct and available straight away. Why struggle with paper chaos and Excel when there is an easier way?

BarBrain is ready to modernise your inventory too – simple, digital and with real added value. See for yourself and take the next step: book a free demo and try BarBrain free for 30 days in your business. You will see how much easier inventory suddenly becomes. Once you have counted digitally, you will never want to go back to the old method! Now is the perfect time to switch to a modern inventory solution and free up more time for what matters most – your guests and your core business. Give it a try and spare yourself the inventory stress – BarBrain is here to help!