How to implement a stock control and inventory system

Why bother with stock control?

When you're running a busy food business, keeping track of every bag of flour and bottle of milk can feel like a chore. But getting it right is one of the most powerful things you can do to boost your profits. A good stock control system stops you from wasting money on ingredients that spoil, prevents that sinking feeling when you run out of a key item mid-service, and gives you a crystal-clear picture of your costs.

Think of it as the backbone of a healthy business. It helps you make smarter decisions, reduce waste, and keep your customers happy. Here’s how to get a simple but effective system in place.

Step 1: Choose your method

You don’t need complex software from day one. The best system is one you’ll actually use, so pick what works for your scale and budget.

• Pen and Paper: The simplest starting point. A dedicated notebook with pages for each ingredient. It’s cheap and easy, perfect for a very small operation with a limited menu.
• Spreadsheets: The next step up. Using a program like Microsoft Excel or Google Sheets lets you create templates, use formulas to calculate costs, and easily see your stock levels at a glance.
• Specialist Software: There are many apps and software packages designed for hospitality. They often link directly to your till (POS) system, automatically updating stock levels as you sell items. This is a great goal to aim for as you grow.

Step 2: Create your master stock list

Before you can count anything, you need to know what you’re counting. Create a master list of every single item you buy to run your business. Be specific!

Your list should include:

• All food ingredients (e.g., plain flour, caster sugar, semi-skimmed milk)
• All drinks (e.g., coffee beans, tea bags, cans of San Pellegrino)
• All packaging and disposables (e.g., takeaway coffee cups, lids, paper bags, napkins)

For each item, note down the unit you buy it in (e.g., kg, litre, box of 100) and the cost per unit. This list is the foundation of your entire system.

Step 3: Do your first full stocktake

A stocktake is a physical count of everything on your master list. This first count is your baseline – it’s your starting point.

1. Schedule a time: Pick a quiet time when you won’t be interrupted, like before you open or after you close.
2. Be systematic: Work your way through your storage areas in a logical order (e.g., top shelf to bottom shelf, left to right). Don’t jump around.
3. Use your master list: Go through your master list and record the quantity of each item you have on hand.
4. Double up: If possible, have a second person double-check your counts to avoid mistakes.

Step 4: Set your 'par levels'

A 'par level' is simply the minimum amount of an item you need to have on hand at all times. When your stock drops to this level, it’s the trigger to place a new order. This stops you from running out unexpectedly.

To work out a par level, think about:
1. How much of the item you use each day.
2. How long it takes for a new delivery to arrive.

For example, if you use 5kg of coffee beans a week and it takes your supplier 3 days to deliver, you’d want to re-order when you still have at least 3kg left. Your par level could be 4kg, just to be safe.

Step 5: Track stock day-to-day

Your full stocktake gives you a snapshot in time. Now you need a simple way to track what happens between counts.

• First-In, First-Out (FIFO): This is a golden rule for food businesses. It means you always use the oldest stock first. When a new delivery arrives, move the old stock to the front and put the new stock behind it. This drastically reduces spoilage.
• Record deliveries: When an order arrives, check it carefully against the invoice and add the new items to your stock count.
• Track wastage: Keep a simple sheet in the kitchen to note down any items that are spoiled, dropped, or wasted. It might feel painful, but this data is vital for spotting problems and controlling costs.

Step 6: Schedule regular counts

Consistency is everything. To keep your system accurate, you need to do a full stocktake regularly.

• Weekly: For key, perishable, or high-value items (e.g., fresh meat, dairy, vegetables).
• Monthly: For non-perishable items (e.g., flour, sugar, tinned goods, cleaning supplies).

By comparing your count to what you should have (based on sales and wastage), you can quickly see where you are losing money and make changes.