Posted by James Passafaro (Chef & Founder)
After 20 years working in every level of professional kitchens, I've seen inventory systems that work and plenty that don't. As a sous chef, I dreaded inventory days. As an exec chef, I watched food costs spiral because our system was broken. As a corporate chef, I saw the same mistakes repeated across multiple locations.
Here's what I learned: most inventory failures aren't about the counting - they're about the setup.
Start With Your Money Makers
Don't try to track everything from day one; focus on what impacts your bottom line most.
Track these first:
- Proteins (usually 30-40% of your food cost)
- High-theft items (alcohol, expensive cuts)
- High-waste items (produce with short shelf life)
- Your top 20% of ingredients by dollar volume
I remember one restaurant where we were meticulously counting every single spice while completely missing that our ribeye usage was 15% over theoretical. We were counting pennies and losing dollars.
Categories That Actually Work
Forget the textbook categories. Make ones that match how your restaurant is actually built. Do it by physical space walk-in, dry storage, bar inventory, freezer, reach-in.. etc.. Dish out the counting by responsibility.
- Sous chef items (proteins, expensive ingredients)
- Prep cook items (produce, dairy)
- Bar manager items (alcohol, mixers)
By nature the person who uses it counts it. Accountability will follow.
The 80/20 Rule in Action
Focus your detailed tracking on items that represent 80% of your costs. Everything else gets basic counts.
Detailed tracking (exact quantities, brands, costs):
- All proteins
- Alcohol
- Specialty/imported items
- Items over $X per unit (set your threshold)
Everything else gets second class treatment, or basic quick counting. The difference for detailed tracking and a basic count will be different for every operation so build and track what is most important for you. (on hand/need to order):
Set Goals and Measure.
Daily counting sounds good in theory. In practice, it kills compliance. Highest value items should be seen and touched everyday. It is where you are spending most of your money. That 20% count should be done weekly or bi-weekly.
I learned this the hard way when I mandated daily counts on everything. Within two weeks, my team was cutting corners and the data became worthless. Don’t make this a garbage in garbage out process.
Sustainable.
The best inventory system is the one your team will actually use consistently. Keeping things simple by defining the count units (weight is superior), using shelf to sheet counting and holding the team accountable in the mise en place. K.I.S.S (keep it simple stupid), your team wants to do this as much as you want to do this. Keeping it simple will keep them doing it, educate on the importance of this process and the team will invest in the operation.
Technology helps, but isn't magic: Good software makes counting faster and math easier. But if your setup is wrong, technology just makes you wrong faster.
The Real Goal
Don’t let the prefect keep you from the good. Creating a proper AVT or actual versus theoretical with the high dollar cost items will help you measure this success of the inventory process. Goal, get to 0% variance in this report. If it is a positive % then you're using more than expected (spoilage, theft, waste, etc.), and if it's a negative % you're using less (overcounting, over-reported sales, etc.).
Everything else is noise.
All the Mistakes (I Have Made Them)
Tracking too much too soon: Start small, build habits, conquer, then expand.
Inconsistent units: Pick pounds, cases, or each—and stick with it.
No ownership: If everyone counts everything, no one's accountable for accuracy. Accountability is key.
Perfect timing isn’t always perfect: We are planting a tree here, this will take time. Let it take time.
Getting Started This Week
- List your top 20 items by monthly spend
- Group them by who should count them
- Set a realistic counting schedule
- Get an iron grip on how to do this process before adding the team
- Track for two weeks before making changes
The goal isn't perfect data on day one. It's building a system that gets better with time and actually helps you control costs.
Your inventory system should work for your kitchen, not against it. Start with what matters most, keep it simple, and adjust as you go.
Getting your inventory system right is just the beginning. If you're ready to take your restaurant's cost control to the next level, let's talk about how opsi can help streamline your entire operation. Book a demo to see how we're helping operators like you get back control of their food costs.