Restaurant par levels are a critical component of effective inventory management and cost control. Maintaining accurate and effective par levels is a balancing act. Operators must maintain adequate inventory levels to meet customer demand, including a little extra in case they get surprised with large orders, and yet keep supplies low enough that they’re not running up against expiration dates and must throw out food or tie up too much cash in unused inventory. Inventory management is one of the biggest challenges of restaurant management.
Why Inventory Par Levels Are Important
Accurate and regular inventory counts are key to maintaining effective restaurant par levels as this will ensure an operation always has the stock they need, when they need it. Determining appropriate par levels requires a little bit of work, but the payoff and benefits are worth it.
How to Calculate Restaurant Par Levels
Calculating restaurant par levels requires several pieces of data:
- Inventory turnover rates for each item.
- Delivery schedules for each item.
- Customer demand for each item.
- Average inventory on hand for each item.
Inventory Par Level Calculation
Wondering how to calculate par levels? Inventory par levels can be calculated using this formula:
Weekly Inventory Use + Safety Stock/Deliveries Per Week = Recommended Par Level
As an example:
- 15 cases of chicken are used each week.
- 3 cases (20%) are kept on hand as safety stock.
- You receive 2 deliveries each week.
Using the formula, 15+3 = 18. Divide 18 by 2 deliveries to arrive at 9. The restaurant par level for chicken is 9 cases.
Remember that your par level may change over time based on seasonal demand or other factors, which is why it is so important to be doing regular inventory counts and following your sales and turnover rates every week. Armed with regular inventory par level calculation data, you’ll be able to make adjustments as soon as you notice sales are deviating from the norm, ensuring your stock is aligned with demand.
SynergySuite’s Par Level Capabilities
Knowing how to calculate your restaurant par levels will help keep your operation running smoothly without too much or too little inventory in stock and without tying up funds you could use elsewhere. Using the inventory par level calculation formula can help you avoid stockpiling food, while also avoiding running out. If you can get your par levels dialed in, you can ensure you don’t exceed inventory needs, while finding places to reduce waste.
If the idea of manual counts and calculations is giving you a headache, it’s time to put technology to work for you. SynergySuite’s inventory management solution features a Par Lists tool. Par Lists allow users to:
- Set an optimal par level for each item
- Set a par minimum for each item, which triggers an auto-generated re-stocking reminder
- Segment par lists by seasons or days of the week such as days you receive specific deliveries or busy vs. less busy days
- Create par lists that are location-specific
- Duplicate par lists across locations
- Sort items by category or supplier
As part of the SynergySuite platform, Par Lists are fully integrated with our inventory management solution and work with the point-of-sale functions to maintain and manage restaurant par levels based on real-time sales data. The automated function eases the administrative burdens of inventory management to keep operations running smoothly so you can focus on providing great customer service.