Running a restaurant is a hands-on job. Between serving customers, managing staff, and keeping the kitchen running, it's easy to lose track of what's happening with your ingredients and supplies. But knowing what you have in stock - and what you're running low on - is a big part of keeping your business profitable.

If you don't keep a close eye on your inventory, you could end up ordering too much, letting food go to waste, or running out of key ingredients during a busy shift. These problems can quickly eat into your profits and make it harder to stay on top of things.

That's where periodic inventory comes in. It's a simple way to check your inventory by counting it at set times - like once a week or once a month - so you always know what you have on hand. You don't need fancy software or real-time tracking. Just a clear process and a little consistency.

Periodic inventory is a way of keeping track of your restaurant's stock by counting everything at regular times. Instead of checking your supplies every day or after every order, you stop and do a full count at set intervals - usually weekly, bi-weekly, or monthly.

Here's how it works - at the end of a set period (like the end of the week), you count all the items in your storage, fridges, and freezers - meat, vegetables, dry goods, drinks, and anything else you use in your kitchen. You write down the quantities, compare them to what you had before, and figure out how much was used during that time.

This method gives you a clear picture of how much food and supplies you're actually going through. It also helps you calculate your Cost of Goods Sold (COGS), which is the amount of money you've spent on ingredients during a specific period. This number is key to understanding how much profit you're really making from each dish.

Periodic inventory is different from perpetual inventory, which tracks every single item in real time using software or point-of-sale systems. While that method can be helpful for larger restaurants, it often requires expensive tools and constant updates.

For many restaurant owners - especially small or independently run places - periodic inventory is a more realistic and manageable option. It doesn't take up too much time, and it doesn't require a lot of technical knowledge. With some planning and routine, it can help you stay in control of your stock, cut down on waste, and avoid running short on important items.

Periodic inventory may sound complicated at first, but it's actually a straightforward process. It just requires consistency and a bit of planning. Here's how it typically works in a restaurant setting -

1. Choose a Time to Count
Pick a regular time that works for your restaurant. Many owners do it at the end of the week or month, often after closing hours or before opening. The key is to be consistent - do it at the same time each period so you can compare results.

2. Prepare for the Count
Before you start counting, tidy up your storage areas. Group similar items together, label shelves if needed, and make sure everything is easy to see and access. This will save time and reduce mistakes.

3. Use a Simple Inventory Sheet
You don't need fancy tools - a printed spreadsheet, clipboard, or tablet with a checklist will do. Write down the name of each item, its unit of measure (pounds, liters, cases, etc.), and leave space to record the quantity.

4. Count Everything You Have
Go through your fridge, freezer, dry storage, and bar (if you have one), and write down how much of each item you have left. Don't guess - do a physical count. If you're unsure how to measure something (like a half-used bag of flour), make your best estimate and stay consistent.

5. Compare with Previous Counts
After each inventory, compare it with your last count. Subtract what's left from what you had before, and you'll know how much was used. This helps you understand your usage patterns.

6. Use the Data
Use this information to adjust orders, avoid overstocking, and control food costs. It also helps you spot issues - like missing items that might be getting wasted or taken.

Doing this regularly doesn't just keep your stock in check - it gives you better control over your kitchen and your budget.

Periodic inventory isn't just about counting cans and boxes - it's about understanding how your restaurant is using its ingredients and where money might be slipping through the cracks. One of the biggest benefits of doing regular inventory counts is that it gives you the data you need to make smarter decisions.

When you count your stock at the end of each week or month, you can calculate a key number- your Cost of Goods Sold (COGS). This tells you how much money you've spent on food and supplies over a certain period. By subtracting your ending inventory from your beginning inventory (plus any new purchases), you can clearly see what was used.

Let's say you started the week with $5,000 worth of inventory, bought another $2,000 during the week, and ended with $3,000. That means you used $4,000 worth of ingredients. If your sales for the week were $10,000, your food cost percentage is 40% - a number many restaurant owners aim to control carefully.

This kind of tracking is important because it reveals patterns. Are certain ingredients being used up too quickly? Are you buying too much and seeing it go bad? Are you dealing with food waste due to over-ordering or poor portion control?

With regular inventory data, you can answer those questions with facts, not guesses. It becomes easier to reduce waste, order smarter, and spot problems early - like if staff are over-portioning or if theft might be happening.

You don't need to be a math expert to use this data. With simple records and regular reviews, you can understand what's working in your kitchen and what's costing you money. That insight is what turns inventory from a chore into a powerful tool for better control and profitability.

Running a kitchen means juggling a lot - ingredients, timing, staff, and costs. Periodic inventory helps bring more order and control to the chaos by offering a clear picture of what's actually happening with your stock. Even though it takes a little time and effort, the benefits are worth it.

One major benefit is better control over food costs. When you know how much you're using and how often you're ordering, you can plan better and avoid buying more than you need. This keeps your storage lean and reduces the chance of food going bad before it's used. Less waste means more money stays in your pocket.

Periodic inventory also improves order accuracy. Instead of guessing what to restock, you have real numbers to base your decisions on. This means fewer last-minute runs to suppliers and fewer mistakes like over-ordering items you already have plenty of - or under-ordering and running out during peak hours.

Another big plus is being able to spot problems early. If something doesn't add up - like missing items or higher usage than expected - it could be a sign of portioning issues, spoilage, or even theft. Regular counts make it easier to catch these red flags before they become big losses.

It also helps with menu planning. When you know what's being used most (and what isn't), you can adjust your offerings to match what sells and what fits your budget. This leads to smarter purchasing and less money tied up in slow-moving items.

Finally, periodic inventory helps keep your team more organized and accountable. When your staff knows inventory is being tracked regularly, they're more likely to handle stock properly and reduce careless mistakes.

While periodic inventory is a helpful system, it's not without its challenges - especially in a busy restaurant environment. Many owners struggle to stick to a schedule or get accurate counts, and that's completely understandable. The good news is, most of these problems can be fixed with some simple adjustments and good habits.

One common challenge is finding the time to do inventory. After a long day, the last thing anyone wants to do is count boxes of dry goods or weigh meat. But skipping inventory can lead to bigger issues like food waste, over-ordering, and lost money. The best solution is to schedule your counts during slower times - before opening or after closing on a set day each week or month. Treat it like any other task on your calendar.

Another issue is inaccuracy. Inventory counts are only useful if they're correct. Mistakes happen when items are counted too quickly, skipped entirely, or measured differently each time. To avoid this, make sure the same person or team handles inventory regularly. Use clear labels, clean storage areas, and standardized forms to reduce confusion. If possible, train staff on how to estimate items consistently (like half-used containers or partial cases).

Lack of staff cooperation can also be a problem. Some team members might see inventory as an extra task or not take it seriously. To fix this, explain why it matters - how it helps the restaurant run better, reduces waste, and even protects jobs by keeping the business profitable. Involve key kitchen staff in the process so they feel more responsible and informed.

Lastly, don't let a bad week throw you off. Missing a count or having messy numbers is normal now and then. What matters most is staying consistent and committed over time. The more you do it, the easier and more useful it becomes.

Doing periodic inventory isn't just about counting - it's about building a routine that's consistent, accurate, and useful. The more organized your process is, the more valuable the results will be. Here are some best practices to help you get the most out of your inventory counts.

1. Be Consistent with Timing
Choose a regular schedule that fits your restaurant's workflow - weekly, bi-weekly, or monthly - and stick to it. Do your inventory at the same time of day each period, preferably when the kitchen is closed and no new deliveries have arrived. This creates more accurate and comparable data over time.

2. Clean and Organize Your Storage
Before counting, take a few minutes to organize your shelves, fridges, and freezers. Group similar items together, label sections if needed, and make sure everything is visible and accessible. A messy storage area leads to missed items, duplicate entries, and confusion.

3. Use a Standard Inventory Sheet
Use the same sheet or spreadsheet every time you count. List all inventory items by category (meat, dairy, dry goods, produce, beverages, etc.) and include columns for units of measure and quantity. Having a standard format saves time and prevents mistakes.

4. Count in Pairs if Possible
If you have staff available, do the count with two people - one to read and count, the other to record. This not only speeds things up but also helps catch mistakes and makes the process feel less overwhelming.

5. Estimate Wisely and Stay Consistent
For partial items (like a half-used bag of rice or an open box of chicken), make your best estimate and be consistent with how you record these quantities each time. Over time, you'll get better at it.

6. Double-Check Your Work
Once the count is done, take a few minutes to review everything. Look for missing entries, duplicate items, or numbers that seem too high or too low.

With a little effort and routine, periodic inventory can become a smooth, reliable system that gives you better control over your kitchen and your costs.

Periodic inventory might seem like just another task on a long to-do list, but it's actually one of the smartest ways to stay in control of your restaurant's costs and operations. By taking the time to count your stock regularly, you're giving yourself a clear picture of what's happening behind the scenes - information that can save you money, reduce waste, and help your business run more smoothly.

The key is to start simple and stay consistent. Don't worry about doing it perfectly right away. It's normal to make mistakes or feel overwhelmed at first. What matters most is building the habit of regular counting and learning from the data you gather. Over time, this will become a natural part of your routine.

Remember, periodic inventory isn't about tracking every single item in real time. It's about taking a step back at set times to see where your restaurant stands. This approach keeps inventory management manageable, even when your days are packed.

As you begin, set realistic goals. Maybe start with a monthly inventory and gradually move to bi-weekly if it feels doable. Use simple tools like checklists or spreadsheets, and involve your trusted staff. Their support can make the process faster and more accurate.

By using periodic inventory, you're not just counting ingredients - you're gaining insight into your kitchen's health. You'll spot patterns in your usage, identify areas where you can cut costs, and improve ordering decisions. This means less food waste, fewer surprises, and more confidence in running your business.

So take a moment today to look at your current inventory process. Could you add a regular count? Could you organize your storage to make counting easier? Small steps like these can lead to big improvements.