Last night of the month, after service
The owner and the head chef stay after close. One counts, the other writes: the walk-in, the reach-in fridges, the freezer, the dry store, then the cellar and the bar. The clipboard sheets are in a different order to the shelves, some items are missing from the list, and nobody is sure whether to count the half-used tub of crème fraîche.
A few days later, someone types the counts into a spreadsheet and adds prices. Some prices are from an old list, some are guesses. The resulting food cost percentage is out by a margin nobody can estimate, and next month's count is done a different way.
The count is manual, the pricing is worse
Counting is tedious but straightforward. Most of the inaccuracy comes from what happens after: count sheets that do not match the storage layout, units that differ from how items are bought, and prices that are out of date. A stock value built on old prices is not much better than a guess.
- Count sheets are in a different order from the shelves.
- New items are missing from the list.
- Counting units (kilos, bottles, tubs) differ from invoice units.
- Prices are taken from old lists rather than recent invoices.
A worked example: the dry store sheet lists flour in kilos, but it is bought in sacks and part-used sacks are counted by eye. Olive oil is counted in bottles but bought in five-litre tins. The spreadsheet multiplies each by a price per unit that does not match either. The closing stock is off, and so is the cost of sales.
Why an unreliable stocktake is expensive
Food and drink cost is one of the numbers owners watch most closely. If the stocktake is unreliable, the number moves around for reasons that have nothing to do with the business, and real problems, such as waste or theft at the bar, hide in the noise. The count itself takes hours from senior staff at the end of a long night.
Your accountant also depends on the closing stock figure, and if it is late or inconsistent, so are your management accounts.
The bar is often the weakest area. Part bottles of spirits are estimated in tenths by whoever is counting, wine in the cellar is counted by bin without checking vintages, and the result can move the drink cost more than any real change in trade.
How we build a phone stocktake
- The count list is laid out by storage area and shelf, in the order you walk them, and can be changed when the layout changes.
- Each item has a counting unit that makes sense on the shelf, with a conversion to the unit you buy in, such as bottles to cases or part tins to litres.
- Two people can count different areas at once on their phones; counts are saved as they go.
- Items found that are not on the list can be added on the spot and priced later.
- Prices come from your most recent supplier invoices, so the stock value reflects what you actually paid.
- At the end, the closing stock value and food and drink cost for the period are calculated, using purchases from your invoices and sales from your till.
| Part of the stocktake | Clipboard | Phone count |
|---|---|---|
| Order of items | Alphabetical or random | Follows the shelves |
| Units | Mixed, confusing | Counted as stored, converted |
| Prices | Old list or guesses | Latest invoice prices |
| Result | Days later | When the count finishes |
How often you count, and what counts as stock for your accounts, are decisions for you and your accountant.
Month end without the long night
The count is quicker because the list follows the shelves and two people can count at once. The value is right because prices are current and units are converted properly. Food and drink cost is ready the same night, and it is comparable from month to month.
Some restaurants move to weekly counts of key items, such as meat, fish and spirits, once counting is quick enough.
Signs your stocktake needs this
- Stocktake is done on clipboards and typed up later.
- Count sheets do not follow your storage layout.
- Stock is priced from old lists.
- Food cost percentage jumps around month to month.
- Your accountant waits for the closing stock figure.