One of the major problems for new restaurant owners is stock management, but many people don’t realize that this is an important problem that needs to be solved urgently, such as ordering a shortage of ingredients, and when the order comes in, they are not ready to receive it, losing sales opportunities or having to waste time and spend more money on sending employees to buy more during the day because they may have to pay higher prices than they usually do, or ordering too many ingredients, which becomes a sunk cost. If the ingredients are not stored properly, there is a chance that they will rot, which would be a shame to lose money in that area.
These are problems that arise from incorrect planning of raw material stock management or not knowing the right way to plan stock management. Therefore, in this article, we will understand the appropriate way to plan stock management to prevent problems of stock shortages and excess stock. Let's follow along.
Formula for planning to order enough raw materials to meet sales
In running a restaurant business, if there is good planning, it will help entrepreneurs reduce costs and create more profits easily. Planning to order enough raw materials to meet sales is one of the first important things that entrepreneurs need to know. To give you a picture of the thinking process, let's take the example of a hypothetical restaurant.
Shop type: Thai restaurant and cafe
Food type: Thai fusion food, tea, coffee
Number of menu items: 40-50 items
Number of drinks: 20-25 items
Number of seats: 50 seats
Opening hours: 11:00-21:00
Number of employees: 8 people
Desired sales per month: 500,000 baht
Let's see how to plan to order enough ingredients for sales for this shop. What is the thinking process? Which entrepreneurs can adjust to suit their own shops. The key to planning to order ingredients is the sales data, which must be entered into the raw ingredients ordering planning table. Entrepreneurs can download the table to enter information in the shop section along with the example in this article ( click to download the table)
The benefit of entering data in this table is so that entrepreneurs can know the sales of each menu per day so that we can manage the ordering of ingredients to be sufficient for sales. It may seem complicated, but if you understand it, it will become easy immediately!
From the example in the table, you can see that the menu is divided into categories to make it easier to fill in the information. However, it is important that the entrepreneur must list all the food items in the shop. The table is divided into different boxes.
Channel 1 is the menu channel.
The second column is the sales column, which is the number of dishes sold in that month.
The third column is the average daily sales.
The formula is to take the number of dishes sold in that month and divide it by the number of thirty days, which will give you the average daily sales for each menu item.
We should find the average of at least 3 months because the sales volume will be different each month. If we use the best-selling month, it will be inaccurate. To calculate the past 3 months, divide the sales volume of each menu by 90 days to get the average sales volume per day of each menu.
Column 4 is a column for recording the use of each ingredient in each menu, such as the weight of meat used per dish, the total amount of meat used each day, which has the following calculation formula:
For example, the fried chicken wings menu, which sells 3 plates per day, uses 150 grams of chicken wings per plate, meaning that this restaurant uses an average of 450 grams of chicken wings per day.
Another example: This restaurant sells 60 plates of fried chicken laab per month. The average daily sales are 2 plates. The weight of chicken used per plate is 120 grams. Each day, this restaurant uses an average of 240 grams of chicken.
Enter the amount of meat used per serving for every menu in full. This will give you the amount of ingredients required for each menu per day. If there are any ingredients that are repeated, add the amount used for each item together to get the total amount of ingredients required per day. However, entrepreneurs should prepare about 20-30% more ingredients than calculated because the sales volume may not be the same each day.
See? Planning to order ingredients to meet sales targets is not difficult. Entrepreneurs just need to change their behavior from estimating the quantity of items to using average sales to determine purchases. This will help our stores have enough ingredients to meet sales targets each day.
This is only one part of managing raw material stock. You will see that stock is related to costs and sales. It can be said that if a restaurant manages its stock well, it will see profit. Entrepreneurs can learn more about stock management in a free course from MHA, taught by Ajarn Bow Mathura Wongpradu, Director of PRCM Thailand, a consulting business and restaurant system set up.
Click here to read more articles.
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