Crunchtime Blog

5 Ways Restaurants Can Measure the Value of Managing Inventory and Food Costs

Written by Crunchtime Team | Jan 23, 2024 1:27:15 PM
It's no secret that carrying inventory is costly, and often full of sneaky profit leaks for many multi-unit restaurants. Food costs are 35% of revenue on average for multi-unit restaurants

As food costs continue to rise, improving inventory management processes can effectively free up working capital and provide tangible returns. 74% of operators indicated that reducing food costs is a strategic priority in the next 12+ months.

Measuring What Matters in Restaurant Operations, is a new guide that illustrates the ROI you can drive back into your business by tracking food costs and investing in inventory management.As outlined in the guide, restaurants can measure the value of investing in inventory management by tracking a variety of tangible metrics in these 5 key focus areas: 

  • Food Costs
    • Actual vs. theoretical (AvT) variance

  • Inventory Counts 
    • Knowing stock on hand, from ordering to depletion

  • Waste Tracking
    • Finding and addressing sources of waste

  • Purchasing
    • Ordering the exact amount of product needed

  • Reconciling Invoices
    • Ensuring accuracy before remitting payment 


To dive into all the metrics and outcomes across these 5 key focus areas, download the guide here.

The guide also includes a downloadable worksheet that you can use to jot down your own notes and benchmarks, and also share it with anyone responsible for the success of your stores. You’ll also see real ROI outcomes from real brands like P.F. Chang’s and Five Guys.

Armed with the information outlined in the guide, you can confidently build a holistic business case that demonstrates how you can save money, reallocate employee time, increase inventory optimization, and achieve operational excellence. For restaurants with multiple locations, automation at scale quickly compounds the ROI. 

Though there are some challenges faced by restaurants in measuring the ROI of inventory software, we're here to help guide you. Download Measuring What Matters in Restaurant Operations today.