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Why Does Stock Borrowed Between Our Restaurants Never Show Up in Anyone's Figures?

Restaurant groups move stock between sites with a phone call and no record, so both sites' GP is wrong. We build a transfer log that costs and posts each move.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Sites in a restaurant group lend each other stock all the time: a case of lemons, a keg, a tray of brisket. The move is agreed on the phone and rarely recorded, so one site's GP looks too good and the other's too bad. We build a transfer log on a phone, with sending and receiving confirmation, costed at the group's price, that feeds both sites' stock and P&L.

A case of avocados that never existed

Friday, 5pm. The kitchen at one site has run out of avocados and the supplier cannot deliver until Monday. The head chef rings the sister site across town, and a runner drives over and brings back a case. Later that evening the bar at the same site borrows two kegs from a third site. Nobody writes anything down. It all evens out, everyone says.

At month end it does not even out. The site that lent the stock shows high food cost and a stock count short of what the till says it sold. The site that borrowed looks unusually efficient. The area manager spends a meeting trying to explain two GP figures that are both wrong.

Why transfers go unrecorded

Transfers happen in a hurry, usually when a site is about to run out during service. Recording them is nobody's priority at that moment, and in most groups there is no easy way to do it.

  • The stock system, if there is one, makes transfers a back office task few site staff know how to do.
  • Paper transfer notes get lost in the van or the office tray.
  • Nobody agrees the value, so finance cannot post it even when it is recorded.
  • The receiving site has no reason to record something that makes its figures worse.
  • Central production and commissary kitchens add more transfers every day.

What the missing records cost

Wrong GP at two sites is the obvious cost. The bigger one is that transfers hide real problems. A site that borrows every week has an ordering or par level problem that never gets fixed, because the shortage is covered by a sister site. Kegs and high-value items that move without a record are also where genuine loss can hide, and without a trail there is no way to tell the difference between a borrowed case and a missing one.

How we make transfers easy to record

  1. We build a transfer screen that runs on any phone, with the group's product list, units and cost prices already loaded.
  2. The sending site picks the receiving site and the items, and takes a photo if it wants to. It takes less time than a phone call.
  3. The receiving site confirms receipt, or notes a difference, from its own phone.
  4. Each transfer is costed at the group's current cost price, so there is no argument about value.
  5. Confirmed transfers are posted to both sites' stock records, and a weekly journal is prepared for finance to move cost between sites.
  6. Unconfirmed transfers, or transfers with differences, go to the area manager to resolve.
  7. A monthly report shows which sites borrow most, which items, and from whom.
What gets recordedWhy it matters
Sending and receiving siteCost lands at the right site
Items, quantities and costNo debate about value
Time and person on each sideA clear trail for high-value items
Reason, such as ran out or central prepShows ordering problems

If you already have a stock system with transfers, we can post into it rather than replacing it. The phone screen is the part that gets people to record the move.

Month end with the transfers in

Both sites' GP reflects what they really used. The site that keeps borrowing lemons gets a conversation about its par levels. Kegs moving between bars have a trail from one cellar to the other. Finance receives a single transfer journal rather than a pile of notes and messages. Area managers spend their visits on what the numbers show rather than on explaining them.

Is stock moving around your group unseen?

  • Sites borrow from each other during service every week.
  • Transfers are agreed by phone or message and not written down.
  • GP at neighbouring sites moves in opposite directions.
  • Nobody can say which site borrows most.
  • Your central kitchen sends food to sites without a costed record.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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We already have a stock system. Do we need this?

Possibly not. If transfers are easy to record in it and sites do record them, it is working. We build this where the existing route is not used.

How are transfers valued?

At the cost price your group sets, usually the latest supplier price, so both sites use the same figure.

What if the receiving site does not confirm?

The transfer stays open and is flagged to the area manager after the time you choose.

What drives the cost?

The size of the product list, whether we post into an existing stock or accounts system and how many sites use it.

What do you need from us?

Your product list with units and cost prices, your site list and how finance wants transfers journalled.

Keep reading

More on Problems We Solve

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