Your food costs and restaurant's inventory Par Levels are directly dependent on each other.
As a restaurant owner, it is a challenge trying to control everything that goes on in your establishment
You need to make sure that you have enough inventory items on-hand to meet consumer demand every week, while also avoiding over-ordering, as you do not want to lose out on wastage or stockpiling.
Monitoring your inventory and its Par Levels is the key to a successful and profitable restaurant.
Lower levels have the following advantages for your restaurant
1. Reduces Food Spoilage
Every item in your inventory has a fixed shelf-life. When this period goes by, they start to get rotten or they get expired. If your inventory levels are low, you are bound to go through all the items without food getting spoiled or expired.
2. Reduces Food Wastage
When the inventory levels are low, all ingredients in your inventory are utilized fully and that ensures that no food gets wasted during the week.
3. Keeps Your Inventory Turnover Rate Under Control
A healthy inventory turnover rate is what keeps your inventory stable and in check. Having lower inventory levels helps you maintain a steady inventory turnover rate which means that your restaurant is doing good and you are not wasting any money on unnecessary food items or ingredients.
So, what does par mean for a restaurant?
You have probably heard about pars in golf but maybe not so much in terms of restaurant inventory levels.
Both concepts are similar. A restaurant's inventory Par Level is the minimum amount of any ingredient you expect to be present in your inventory at any given time.
It is also the minimum amount of ingredients that meet the demand in your restaurant while also having a little extra stock in case an unexpected demand occurs (also known as safety stock).
You should always set realistic Par Levels for your restaurant's inventory in order to save money and avoid food wastage. Whenever your inventory falls below these levels, you should place an order to restock that particular item. Par Levels help you keep your inventory in order and assists you in running your restaurant smoothly.
In order to calculate your Par Levels for every ingredient in your inventory, you will need to find a few things about your restaurant first, such as