Stock counts and waste control for Australian kitchens and bars
In a restaurant, money leaks away a portion at a time. The gap between what should have been used, per the recipe cards, and what was used is called variance. This guide covers the formula, a worked example, the types of waste and how often to count.
How to keep stock under control (short answer)
- Record every delivery with quantity, price and batch, on the day it arrives.
- Keep a recipe card with weights for each dish, so you know what each sale uses.
- Log waste separately: write-offs, breakage, expiry, cancelled orders and staff meals.
- Count by area at different frequencies: bar weekly, perishables twice a week, dry store monthly.
- Each month, compare actual with theoretical use and look into any variance above 3%.
Theoretical versus actual use
Actual use is simple: opening stock + purchases − closing stock = actual use.
Theoretical use is each item sold, multiplied by the weight or pour on its recipe card. The gap between the two is variance, the loss nobody sees.
Example at the bar: you start with 12 bottles of whisky at 0.7 L (8.4 L), receive 6 bottles (4.2 L) and finish with 5 bottles plus 0.3 L (3.8 L). Actual use is 8.4 + 4.2 − 3.8 = 8.8 L.
Count the servings sold: 168 servings of 50 ml is 8.4 L of theoretical use. Variance is 0.4 L, or 8 servings. At $22 a serving that is $176 on one product (illustrative figures).
Table: types of waste and where to record them
Restaurant losses, with an example and the record to keep
| Type of loss | Concrete example | Where it is recorded |
|---|---|---|
| Technical loss | Cleaning vegetables, trimming meat | On the recipe card, as a yield measured in your kitchen |
| Expiry | Dairy unused past its use-by date | A write-off note, with batch and quantity |
| Breakage and damage | A bottle dropped at the bar | A write-off note, at purchase value |
| Cancelled or returned order | A dish sent back to the kitchen | The cancellation reason, noted in the venue's records |
| Staff meal | The team's lunch before opening | Internal use, kept apart from sales |
| Guest comps | A dessert offered after a complaint | Promotional use, approved by the manager |
Table: how often to count
Count frequency by area, in a venue with a kitchen and a bar
| Area | Frequency | Why |
|---|---|---|
| Bar (spirits, drinks) | Weekly | High value per unit and high variance |
| Perishables (meat, fish, dairy) | Twice a week | Risk of expiry and of over-ordering |
| Dry store (flour, pasta, tinned goods) | Monthly | Slow rotation, few losses |
| Full stocktake, valued | Monthly, and at year end for tax | The basis for the month's result; check the method with your accountant |
What the rules say
- Trading stock is generally valued at year end for tax purposes. Check the method with your accountant.
- Keep supplier and batch records so you can trace food one step back and one step forward.
- Keep temperature and use-by records if your food safety program requires them. The rules depend on your state or territory.
- Rotate stock first-expired, first-out (FEFO), so you stay within use-by dates.
- Ask your accountant which record-keeping rules for stock and purchases apply to your business.
Common mistakes
- Counting the bar once a month. By the time you spot a variance, the evidence is weeks old.
- Not logging staff meals, so they show up as unexplained loss.
- Counting open bottles as full or empty, instead of estimating what is left.
- Accepting deliveries without weighing or counting them, then finding a shortfall at stocktake.
- Comparing total stock value only, not use per product. An 8% variance on one item disappears in the average.
How 4restaurants.net helps
- Ingredient stock levels sit in the same application as the recipe cards and orders.
- Every dish has its recipe card, and the reports by dish show what was sold.
- Reports by day, by dish and by waiter show sales, so you can compare them with what left the stock.
- Stock levels per ingredient help you decide what still needs buying.
- Keep supplier, batch and use-by details with your goods-receipt records, so traceability is in one place.