When managing a restaurant, many factors influence the outcome, but if there’s one that directly makes a difference, it’s inventory turnover. This often-overlooked metric determines not only how efficiently we manage our stock but also our profitability and service quality.

Throughout our journey, we’ve learned that paying attention to this number allows us to make smarter purchasing decisions, avoid waste, and always keep fresh products in the kitchen. Inventory turnover is not a luxury—it’s a necessity if we want to stay competitive.

What Is Inventory Turnover and Why Does It Matter?

Inventory turnover measures how many times we renew our stock within a specific time period. In other words, it reflects the speed at which we use and replenish products. A high turnover means items are moving quickly; a low rate means products are stagnating.

We know for certain: inventory turnover is a key factor in a restaurant’s efficiency and profitability. By understanding and improving turnover, we’ve been able to reduce costs, improve product quality, and optimize stock management.

How to Calculate Inventory Turnover

We use a simple formula:

Turnover = Cost of Goods Sold (COGS) / Average Inventory

This figure can be calculated monthly, quarterly, or annually. The most important thing is not just to get the number, but to track its evolution, comparing periods, categories, or even locations if managing multiple sites.

Good turnover depends on the type of restaurant, but generally speaking, if a product is sitting too long in storage, it’s time to review purchasing, demand, or potential shrinkage.

What Benefits Have We Gained by Improving Turnover?

Since we started treating this metric as part of our routine, we’ve seen clear improvements:

• Less waste from perishable goods.
• Lower storage costs.
• Better purchasing planning.
• Consistent dish quality, thanks to fresher ingredients.
• Optimized cash flow, as we don’t have money tied up in slow-moving stock.

These results come directly from implementing specific actions, such as a tighter purchasing policy and more rigorous inventory tracking.

Strategies We Use to Improve Inventory Turnover

For us, improving inventory turnover is not just theory—it’s routine. Here are some practices we follow:

1. Applying the FIFO Method

The First In, First Out principle is essential to maintain freshness and avoid spoilage. We apply it in our kitchen, fridges, and storerooms.

2. Digital Inventory Management

With the Controliza Orders and Delivery App, we track product flow from the moment goods are received to the moment they’re consumed. This lets us know our real inventory at all times and quickly spot low-turnover items.

3. Reports and Alerts

We rely on hospitality stock control tools that trigger alerts when a product remains in inventory too long. This allows us to act early and prevent losses.

4. Recipe Costing Adjustments

We periodically review our kitchen recipe costing. If a product isn’t moving, we assess whether we can better incorporate it into existing dishes or create new recipes.

How to Spot Inventory Turnover Problems

Certain symptoms alert us to poor turnover:

• Repeated product expirations.
• High unexplained waste rates.
• Excess low-demand items.
• Difficulty aligning recipe costs with purchases.

When we see any of these, our first move is to review purchase history and adjust orders. We also transfer stock between locations using Controliza’s inventory transfer tools, helping us balance stock across our entire network.

A common mistake is applying the same turnover criteria to every product. We group inventory into:

• Fast perishables: high-turnover items like vegetables, meat, and fish.
• Semi-perishables: dairy, cured meats, or prepped items with moderate shelf lives.
• Non-perishables: canned goods, spices, cleaning supplies.

Each category needs its own purchase and replenishment strategy. Segmenting inventory has been one of our smartest decisions.

The Cost of Poor Turnover

Idle stock costs us money. We learned this the hard way: we used to accumulate ingredients that expired or were never used. Poor turnover also usually means less fresh food, which directly affects the customer experience.

Once again, inventory turnover is a key factor in a restaurant’s efficiency and profitability. We repeat it because we’ve lived it. Since we began tracking and actively managing this metric, we’ve seen a major improvement in our day-to-day operations.

Conclusion

If your restaurant still isn’t monitoring inventory turnover, you’re missing out on a powerful tool to boost performance. We’ve integrated this indicator into our dashboards and review it weekly.

As a result, we’ve cut costs, improved service, and made smarter purchasing decisions. And it all started with one metric: inventory turnover.