How do I take stock in the food service industry?

Why inventories are important

Stocktaking - the word alone probably makes every restaurateur grumble and groan. Counting bottles, boxes and food after a long working day is certainly not one of your favorite tasks in a bar, restaurant or hotel. Nevertheless, you can't avoid stocktaking in the catering industry - and for good reason. Careful stocktaking provides the basis for your success: you maintain an overview of your inventory, recognize shrinkage or shortages early on and can calculate costs and the use of goods properly. In short, an up-to-date, accurate inventory is the basis for making informed decisions: from purchasing to pricing food and beverages. You also show your team that stock levels are being monitored with regular stocktaking. This professional approach has a disciplining and appreciative effect: if everyone knows that stock is counted regularly, products are automatically handled more carefully. Stocktaking may be a nuisance, but it is the backbone of a successful catering business.

When and how often should an inventory be taken?

Many companies traditionally carry out their inventory at the end of the year because it is important for the annual financial statements and accounting. In such key date inventories, the complete stock of goods is recorded on a key date (usually December 31), which can be decisive for tax and profit. However, counting only once a year is not ideal if you want to stay in control. The more regular, the better: in practice, it has proven to be a good idea to take a monthly inventory. This provides you with up-to-date figures on your stock levels and allows you to quickly identify losses or deviations and counteract them in the worst-case scenario. Monthly stocktaking is particularly useful in the beverage sector or for perishable foods in order to detect theft, shrinkage or overstocking immediately. Of course, the frequency depends on your business - a small café may get by with a quarterly inventory, while a large restaurant with extensive stock and high throughput should even count weekly. Modern digital solutions make frequent stocktaking much easier: with the right app, even monthly stocktaking in the catering industry becomes a routine that takes hardly any time at all. The most important thing is that you bring consistency into it - whether weekly, monthly or every 3 months, schedule fixed inventory dates so that nothing falls by the wayside.

Preparation of the inventory

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

• Set a date and period: Choose a time when your business is closed or not very busy - e.g. after work or on a day off. Allow enough time and make sure that no new goods arrive or large transfers take place during the inventory. This will help you avoid interruptions and errors.
• Organize the warehouse structure: Go through your warehouses, cold stores and counters beforehand. Tidiness makes stocktaking much easier. Sort similar products together, tidy up and dispose of spoiled items. Make sure that every product has a clear place and labeling. A clean warehouse structure prevents you from losing track when counting or duplicating/not recording something at all.
• Provide tools: Decide in advance which method you want to use to carry out the inventory - the traditional method with pen and paper, with an Excel spreadsheet or digitally with an app (such as BarBrain). Depending on the method, you will need different tools. Prepare printed inventory lists and writing materials if you are counting on paper. For Excel, prepare a laptop or tablet with the corresponding spreadsheet (with charger if necessary). If you use an inventory app, install it on all necessary smartphones/tablets and make sure the devices are charged. Also think about tools such as scales or measuring cups for open containers so that you can accurately determine filling quantities.
• Organize a team: Stocktaking doesn't have to be a one-man show - on the contrary,it goes fasterwith helpers.So plan early on which employees willsupport you. Teams of two are ideal: one person counts, the other takes notes or enters the data. Divide the teams into different areas (e.g. bar, kitchen, storage room) so that they can work in parallel without getting in each other's way. Assign each group a clearly defined area and a list so that nothing is counted twice or overlooked.
• Prepare item overview: Create a list of all items that need to be counted. This can be a printed stock list from your inventory management system or a simple table with all relevant products. Make sure you cover every product group - from spirits, beer, wine and juices to food in the kitchen and non-food items such as cleaning products or consumables. If you work with an app like BarBrain, you can create your product catalog there in advance (many standard products are already available in BarBrain). A complete item overview ensures that no item is forgotten on the inventory day.

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Taking inventory: paper, Excel or BarBrain?

Now it's time to count - you basically have three options for how to proceed. Each method has its advantages and disadvantages:

Inventory with pen and paper:

The traditional version: Many restaurateurs still use a clipboard, piece of paper and pen. You go through your stock and write down the quantity of each item. You often use prepared lists to tick off or you make notes as you see fit. This procedure is simple, but requires maximum concentration. Mistakes can easily happen - you make a mistake, overlook something in the heat of the moment or can't decipher your own handwriting later. Also, counting on paper usually takes the longest. After everything has been written down, you still have to add up the figures and transfer them to a system (e.g. the cash register system or Excel) to determine the total value. The double work - first writing it down, then typing it up - costs time and nerves. In short: stocktaking with pen and paper is possible and uncomplicated without technology, but very time-consuming and error-prone.

Restaurateurs often reach their limits here, especially when it comes to open bottles or many variants of the same spirit. It is then easy to lose track of whether it was a 0.5 l, 0.7 l or 1 l bottle of Aperol. If you only estimate by eye, you risk inaccurate results.

Weighing is a possible alternative: A scale and the empty weight can be used to calculate the exact contents of an opened bottle. This is more precise than estimating, but takes time and is prone to errors if empty weights are not available correctly.

In addition, counting on paper usually takes the longest. After everything has been written down, you still have to add up the figures and transfer them to a system (e.g. the POS system or Excel) to determine the total value. The double work - first writing it down, then typing it up - costs time and nerves. In short: stocktaking with pen and paper 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:

Inventory can be organized in a more structured way with Excel: You create your items in a table in advance, add columns for quantities and values and can store formulas that do the math for you. This saves you having to use a calculator and minimizes classic addition errors.

In practice, however, it quickly becomes apparent that Excel has its limitations in the catering industry. Particularly with spirits in several container sizes - such as 0.5 l, 0.7 l or 1 l - it is often not immediately clear which variant is being counted. Opened bottles are similarly tricky: without an aid, the contents can only be roughly estimated, which reduces accuracy. Although you can work with a scale here, this means additional steps and a lot of extra work each time. In practice, such estimates often lead to strange deviations: Suddenly the log shows that there is more liquid in an opened bottle of expensive scotch than there was the month before - an obvious error due to incorrect estimates.

Another point: Excel is not made for working "between shelves and fridge". Whether on a laptop or tablet - handling is cumbersome and input is often impractical, especially in cramped warehouses. Despite the digital spreadsheet, a lot of manual work remains, and it's easy to lose track of larger inventories.

Digital inventory with BarBrain:

The most convenient way to take stock is to use a specialized inventory app. BarBrain is an example of a digital solution that was developed specifically for the catering industry. Instead of using paper or Excel, you simply use your smartphone or tablet. Your entire product range is clearly laid out in the BarBrain app - sorted by category and storage location. You can select the item directly from the shelf or fridge and enter the quantity. This is done intuitively with a tap or swipe on the touchscreen. An opened bottle of wine? No problem: you can use a slider to precisely determine the fill level (e.g. 0.3 of 0.75 liters) instead of just making a rough estimate. Every entry is immediately recorded digitally and synchronized with the other devices in real time. This means that several people can count in different areas at the same time without anything being recorded twice - teamwork made easy! So while you are counting, BarBrain is already adding everything up in the background. Transcription errors are eliminated because there is no more manual typing. Once the count is complete, you have a complete inventory report at the touch of a button: all stocks, totals, differences and the total value are available immediately. Digital stocktaking with BarBrain is therefore faster, more accurate and less stressful than the old methods. Many people who have made the switch say: stocktaking without the chaos of paperwork and Excel is actually possible - and you never want to go back!

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Evaluation and follow-up

After counting, the equally important part begins: evaluating the results of the inventory and taking appropriate action. With a digital solution like BarBrain, much of this is automatic - but whether analog or digital, take care of the following points:

1. Document inventory results: Make sure that all counted quantities are properly recorded. If you have counted on paper, transfer all the figures neatly to your Excel list or merchandise management system. Check for plausibility right away: Are there extremely high or low values that suggest an error? It is better to recount once more than to transfer incorrect data.
2. Carry out a target/actual comparison: Compare the counted actual stock with the target stock (i.e. what should be available according to the bookkeeping or last inventory count). In the event of discrepancies - so-called inventory differences - note the size of the difference for each item. BarBrain automatically displays such differences in the report.
3. Find causes for deviations: Critically analyze large discrepancies. Could the shortages be due to theft or shrinkage (e.g. spillage, evaporation)? Were recipes perhaps not followed exactly or were there errors in the last delivery? Talk openly with your team about the inventory results. It is often possible to clarify the causes - for example, that inaccurate entries were made during hectic operations - and initiate appropriate countermeasures.
4. Document losses and breakages: Everything that is spoiled, spilled or broken should be recorded separately. You can now write these quantities off the stock. This ensures correct stock levels and prevents you from "paying" for perishable goods that are no longer there, for example. Proper documentation of losses is also relevant for business management and tax purposes. With BarBrain, you can record such losses directly during stocktaking so that nothing is forgotten.
5. Update and recalculate stocks: Then update your stock lists and, if necessary, the inventory management system with the new actual figures. Now you know exactly what and how much of each item is in stock. Calculate the total value of your stock (if not done automatically) - this value is included in the annual financial statements, for example. Thanks to the inventory, you can now also determine your cost of goods (consumption) for the previous period by taking into account the opening and closing stock levels and receipts.
6. Use findings: Stocktaking is not just a numbers game, it provides you with valuable insights for the future. Take a look at which products had above-average shrinkage or where stocks are surprisingly high. This information will help you to adjust purchasing and stock management - for example, to order less of an item that has turned out to be a slow seller or to critically examine why an expensive item is missing. Share the results with your team: praise for minor deviations motivates them, and if there are problems, you can find solutions together (better training, stricter controls, optimized recipes, etc.). The aim is to learn from every inventory in order to continuously improve the operational process and cost structure.

Advantages of digital stocktaking with BarBrain

Why should you switch from paperwork or Excel to a digital inventory - especially BarBrain? Here is an overview of the biggest advantages:

• Enormous time savings: BarBrain users report that they can complete their inventory in half the time they needed before. By counting in parallel as a team and eliminating rework (no typing, no manual totaling), you save hours of overtime. Inventory turns from a daily project into a quickly completed routine.
• Greater accuracy: Digital recording eliminates sources of error. Transposed numbers when typing or illegible notes are a thing of the past. BarBrain guides you systematically through all items so that nothing is forgotten. You can enter the exact quantities used - no more guessing how much is in the opened bottle. All in all, you get reliable stock data that you can really rely on.
• Easy to use: The inventory app is intuitive to use, even for technology beginners. Instead of juggling complicated Excel formulas, you type in a user-friendly interface. No time-consuming scanning or special equipment is required - your smartphone or tablet is all you need. This makes stocktaking as easy for you and your team as using a smartphone app.
• Teamwork and real-time sync: BarBrain is designed for several people to count at the same time. Whether bar, kitchen or warehouse - everyone can work on their own device in the same inventory cycle. All data converges in real time. This means that the entire inventory is completed much faster and no one has to twiddle their thumbs or take turns keeping lists. This collaboration not only increases efficiency, but also motivation within the team - stocktaking becomes a joint "project" instead of a lonely battle at the end of the day.
• Automatic evaluation & reports: As soon as you have finished counting, BarBrain creates an inventory report at the touch of a button. This immediately shows you the total value of your stock, all quantities per item and any differences compared to the last time. Losses due to breakage/shrinkage are also shown separately if you have recorded them. You can use these reports for your bookkeeping or tax consultant without having to edit anything. The complete documentation has been created almost incidentally.
• Up-to-date data and better control: Because digital stocktaking is so time-saving, you can carry it out more frequently - monthly, for example. This gives you constantly up-to-date stock data. Inventory surprises are a thing of the past: You can recognize in good time if a product is running low or if there is an unexpected shortage. This allows you to take immediate countermeasures, plan repeat orders more precisely and minimize waste. Overall, BarBrain gives you a whole new level of transparency about your stocks, which makes operational management much easier.

Conclusion

Stocktaking in the food service industry doesn't have to be a scary subject. With good planning, the right team and, above all, the right method, the tedious stocktaking can become a manageable process - perhaps even a bit routine. Whether you want to go digital for the first time or already have experience, it's worth taking the step away from clipboards and Excel. Digital stocktaking with a solution like BarBrain saves time, nerves and ultimately money. Imagine completing your next stocktake in minutes instead of hours of night work - and the results are correct and available straight away. So why bother with paper chaos and Excel when there's an easier way?

BarBrain is ready to modernize your inventory - simply, digitally and with real added value. See for yourself and take the next step: arrange a free demo and test BarBrain in your business for 30 days free of charge. You'll see how much easier stocktaking suddenly becomes. Once you've taken a digital inventory, you'll never want to go back to the old method! Now is the perfect time to switch to the modern inventory solution and give yourself more time for the essentials - your guests and your core business. Try it out and save yourself the stress of stocktaking - BarBrain will help you!