Managers have enough on their plates, and guessing how much food to order shouldn’t be one of them. Nobody wants to tell a customer, “We’re out.” At the same time, having too much inventory on hand ties up cash and leads to waste. But with intelligent inventory tools that predict demand, restaurants can know exactly how much food is needed to keep the kitchen stocked just right.
First, Crunchtime's AI Forecast predicts your sales, guest traffic and number of checks for the upcoming period. Next, the system analyzes your current on-hand quantities. That amount is then subtracted from either a static or dynamic par level, which stems from consumption patterns and the upcoming forecast. The resulting value is then compared against delivery dates to recommend the exact quantity you should order to ensure stock will be replenished before it runs out.
The system does the math, then gives your managers a ready-to-approve order that you can easily modify if desired. By ordering the exact quantities needed to meet demand, restaurants are successfully reducing on-hand inventory and boosting their cash flow for greater profitability. Following these recommendations helps restaurants ensure they have the optimal quantity of each item on hand at all times, while reducing waste.
While you don't want to run out of inventory, having too much on hand can be even more detrimental to your bottom line. Imagine ordering twice the quantity that you needed of a particular ingredient. If the ingredient has a short shelf-life, some of it will likely go to waste, which hurts your food costs. This happens frequently at restaurants, and it's often due to placing purchase orders without all of the pertinent data needed to inform order quantities.
Automating the ordering process can help eliminate potential hiccups in the back of the house. A system that not only recommends optimal order quantities but executes those orders automatically based on set parameters can serve as a built-in safety measure for busy operators. It's one thing to order the optimal quantity, but it's another to place those orders and have them delivered on time. A system designed to place orders when the operator forgets will ensure stock is replenished in a timely manner.
It is possible to mitigate the risk of carrying too much (or too little) inventory in all of your stores. Manager recommendations are a critical tool within your inventory management platform that can help you save costs and optimize stock levels.