Keeping your restaurant’s inventory at the right level is important for success. Too much inventory can lead to waste and stockpiling, while too little can lead to not having enough to meet customer demand.
Par levels are the minimum amount of inventory needed to meet customer demand and provide a cushion in case of unexpected demand.
To calculate par levels for your restaurant, you’ll need delivery schedules, customer demand, and average inventory information. You can use this information to estimate an item’s inventory turnover rate and understand how quickly you go through inventory.
A general formula for estimating par level is:
(Weekly inventory use + Safety stock) / Deliveries per week. A good rule of thumb for safety stock is 20-30% of weekly inventory use.
In some cases, such as events and holidays or delivery issues, you may need to hold inventory above your par level. However, regularly reviewing your sales reports and inventory turnover rate will help you better estimate and avoid waste or stockpiling.
