Dropping below your par indicates you should place an order to re-stock back up to, or above, your par…
In our most recent edition of 2-Minute Tuesdays, Sr. Manager of Customer Education Trevor Bernatchez, talks about setting ordering pars at your restaurant to keep the right products on the shelves, and how to keep spending in check. Read on to learn more, or watch the whole video (~2 mins) above.
Ok, so what are pars and how can they help you run a more efficient restaurant? Well some of you might already work with pars, but a par represents how much you always need to have in house. Dropping below that par indicates you should place an order to re-stock back up to, or above, your par…
So, how do you know what your pars should be?
Well first off, don’t guess! Blindly guessing how much of a certain product you need to have in house without backing it up with data can be a slippery slope. You could end up with cases and cases of a product that your guests don’t want, and could potentially tie up thousands of dollars of the restaurant’s cash flow.
When starting out with creating pars, we always recommend getting 3-4 weekly inventories in before setting your pars. Now I’m sure some of you monthly counters out there are groaning, but if you use our tips for faster inventory counts that we talked about in previous 2-Minute Tuesdays, moving to a weekly inventory cycle will give you much more visibility into your restaurant’s performance.
Once you calculate your average weekly usage over the last month, this is what you should be basing your pars on at your restaurant. Your usage is the most accurate representation of how much product you are going through on a regular basis.
You should aim to make your par slightly larger than your average weekly usage...
It’s always better to have SLIGHTLY too much than not enough. For a lean inventory, make your pars 2-3x what your average usage is. This will make sure you have enough to get through a busier week than normal without 86ing items, or worse, sitting on too much product that isn’t moving off the shelves.
Finally, make sure to reassess your pars every month, or every quarter. Since your usage is going to be a rolling, ever evolving number throughout the year, your ordering pars should reflect those changes too. You most likely won’t be going through as much of certain products in the winter as much as you will in the summer, and vice versa.
Having the ability to calculate and update your ordering pars throughout the year will make sure you are spending your money in the right places to help drive the restaurant to even greater success.
Want to learn more about BevSpot or the topics discussed in this post?
Click the Schedule a Chat button at the top of this page to schedule a chat with our team today, or you can also choose to Start a Free Trial to get a more hands-on look at how BevSpot is going to help you run a better business.