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Food & Beverage Inventory Control

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  • 0:00 Food & Beverage Industry
  • 0:29 Negotiate Prices
  • 1:29 Control
  • 2:25 Database Management
  • 4:04 Lesson Summary
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Lesson Transcript
Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Inventory control is an essential part of the food and beverage business. In this lesson, we will discuss how to negotiate prices for inventory, how to control inventory, and the importance of database management.

Food & Beverage Industry

The food and beverage industry is one of the largest industries in the world! There are restaurants all over the world with all different menus. As a supervisor, you must make sure you are using inventory control to monitor your location's numerous menu items. Inventory control is done by checking the actual stock and comparing it to what is sold. When ordering inventory, the first step is to negotiate prices.

Negotiate Prices

Before ordering any food and beverage products, it is essential for you to negotiate the prices of the products you are to receive. Could you imagine if you just took the prices from every distributor without trying to bargain? Generally, the vendors will have prices they will quote to you, but there is always room to negotiate so you can get a lower price. Don't just settle on the prices; some prices may be harder to change than others, but most items will be able to be negotiated. The industry is competitive, and there are plenty of vendors out there, so you want to make sure you are getting a good deal before you place your order.

The Local Eatery does not negotiate prices. The manager just takes the vendor's word and is getting charged at the prices the vendors sets. The Bar & Grill across the street has a similar menu but is able to charge lower prices and make more profit because its managers negotiate. The Local Eatery is losing customers to its competition because its managers do not negotiate vendor prices.

Control

The next step is essential - take control of the inventory that has been shipped. When running a bar, it is important for management to do inventory checks daily to see how much the bar has sold compared to the amount of alcohol that is gone. Doing this helps prevent bartenders from pouring drinks that are too strong or giving free drinks away without consent from management. These daily bar checks also help avoid running out of certain types of alcohol.

The food and preparation portion of a restaurant helps determine what the company is using and how much inventory is left. As a restaurant manager, you don't want to run out of chicken or steak. Portion control of food should be established so management can accurately tell how much has actually been sold and what the restaurant has left. How would it look if you owned a steakhouse and ran out of steak? It would look bad for the restaurant, which is why it is also essential to use database management.

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