Restaurant POS System

Do you know exactly what the restaurant inventory is?

You are puzzled, right?

Why such question is asked? But, have a look at the answer. A lot of things get unveiled before you.

Restaurant inventory

This is an accurate instance of the restaurant inventory where the number of items purchased, used and then sold is kept a record of, to better manage the stocks, raw material, recipes and shelf life.

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What actually the inventory is meant for the restaurants?

The inventory management plays a crucial role in the restaurant business success. Even, for some restaurants, the inefficient inventory management has become the reason to struggle or fail. Why is it so?

Due to the imbalance, food get spoiled in the shelves, stock gets lasted before time, no information about pilferage and a lot more. All this is reducing the profit margin of the restaurants that’s already very less.

It’s true, it implies the inventory management stays at the heart of restaurants’ smooth functioning.

But, traditionally managing the inventory (Taking the notes on the paper and updating the information in the ledger and then at the end of the day computing everything) is time-consuming, less efficient and make the purchase decision difficult because getting the data from the inventory in real-time is impossible.

It makes the restaurateurs mind-numb. What’s next?

Embracing POS system is the best solution with which the restaurants can gain the complete control over inventory and can manage it in a few clicks.

Really? Wow!

Let’s see how a POS system enables the restaurateurs can better control and manage the inventory:

 

1) Provide the precise requirements

No understocking or overstocking would remain. Restaurants can keep track of what foods are selling fast and the ingredients of the recipe are available in the sufficient quantity or not. This gives the insights about what foods or ingredients, restaurants should purchase in advance to not put off their customers by saying- “Sorry, presently, we cannot accept the orders for the menu item.”

 

2) Variance in the stock

During the food preparation, wastage of 2-5% of the ingredients is acceptable. But, sometimes, a large variation in the stock is found that remain after the ingredients used for the recipe. This wide difference directly indicates the theft or food spoilage. The unnecessary shrinkage of the stock is not healthy for the restaurants’ growth.

Implementing a POS system, it’s very easy to know what’s missing and where the stock is used up.

For instance: The restaurant is giving Coca-Cola as a freebie to all the customers, then with the POS system, restaurant can track how many customers get the freebie and how many Coca-Cola are available in the stock. When a huge variation is found in the Coca-Cola’s availability in the stock, it squarely report the case of theft.

 

3) Analyze purchase

The POS system daily generate the comprehensive reports that determine the waste history, production history, operation costs and forecast the food requirements. This analysis assists the restaurateurs in assessing which food on the menu list is in demand and which ones are less liked by the customers.

Getting value out of the stock consumption data, restaurants can make the smart decisions such as which food should be promoted more, the food to be removed from the menu list, what type of foods need to be included or the seasonal food trends and sales.

 

4) Alleviate the dependency

With conventional inventory management, different staff members would have the responsibility to keep the inventory up-to- date. Restaurants depend on them to count the number of ingredients available in the stock, check whether the food is spoiled or not and update the same to the owner.

With POS system, the stocks updated in the inventory accurately and can be managed efficiently as no reliance upon the staff members or chefs would persist to update the inventory.

As, automatically POS system triggers the message when the item in the stock is low or about to dry up, and add up the amount of food purchased in the inventory.

 

5) Increase customer retention

Certainly, inventory keeps record of everything and with POS system, it becomes easy to track which customers would eat what type of food more. Gathering the data and sending the promotional messages to the customers for the food they like to dine more in the restaurant would undoubtedly grab the customers’ attention.

The personalized messages make the customers feel like the restaurant care about the customers’ eating preferences, which in turn make them to step inside the restaurant again. Consequently, customers’ loyalty gets uplifted.

 

6) Improve the profit margin

The overall tracking enables the restaurants to manage menu items, analyze sales trends and take data driven decisions that certainly uplift revenue and profit margins.

The reason is restaurant will promote and upsell the food items with high margin or make changes in the recipe to convert the menu item with low margin to high margin.

 

Conclusion

The inventory that’s often considered as less important is actually the most valuable part of the restaurant business. The POS system integration provides the complete control of the restaurant in the hands of restaurateurs by providing the info about food items precise requirements, stock variance and customers’ eating habits, and analyzing which the actionable decisions can be taken.

The POS system enables the restaurateurs to devise and strategize to step in with the market trends and customers.

It’s amazing!

Are you enthralled to get build a restaurant POS system that would let you go head-to- head in the competitive market? If so, get teamed up with a leading POS solution provider that can help you in the integration of POS system for restaurants to ensure profitability and winning outcomes.

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