Stock counting is crucial for food and drink businesses

If you’re running a small F&B (food and beverage) business, you already know how demanding it can be!

Between managing staff, keeping customers happy and juggling suppliers, there’s hardly time to breathe, let alone count stock. But if you want to understand your business’s financial health and take control of your margins, regular stock counting is non-negotiable. 

Here’s why it’s essential and how you can make it work even with a small team and a busy schedule.

Why Stock Counting Matters

1. Accurate margin analysis - without knowing what stock you have, you’re essentially working blind. Food costs are one of the biggest expenses for F&B businesses and margins are notoriously tight. Regular stock counts give you the data you need to calculate your actual cost of goods sold, which is vital for analysing your margins and identifying issues such as wastage or theft.
2. Better ordering decisions - over-ordering perishable goods leads to spoilage, while under-ordering can mean running out of key items mid-service. Stock counts help you track inventory trends and plan purchases more effectively, reducing waste and saving money.
3. Spotting problems early - regular stock checks can highlight inefficiencies or losses, such as theft, spoilage or incorrect portion sizes, before they spiral out of control.

Stock Counting FAQ

• “Do I need to count stock if most of my goods are perishable?” 

Yes, even perishables need tracking. Knowing what’s been used versus wasted can help you adjust portion sizes, review menu pricing, or negotiate better terms with suppliers.

• “How often should I do a stock count?” 

For F&B businesses, weekly counts are ideal. However, monthly counts may suffice for slower-moving or non-perishable items. Key takeaway: consistency is crucial.

• “I’m too busy – how can I manage this with a small team?” 

We get it; running an F&B business is hectic. Below are some tips to make stock counting manageable.

Tips for Streamlining Stock Counting

1. Schedule it regularly - pick a quiet time, such as after closing or early morning before service. Consistency ensures you build the habit and have reliable data to work with.
2. Use technology - invest in apps or software that integrate with your accounting system (like Xero ). Tools like Lightspeed or MarketMan are great for F&B businesses, automating stock tracking and linking it directly to your financials.
3. Delegate and train - train a couple of trusted team members to carry out stock counts. Delegating the task ensures you don’t shoulder the responsibility alone.
4. Focus on key items - if a full stock count isn’t feasible weekly, focus on high-cost or fast-moving items. These are the ones most likely to affect your margins.
5. Integrate with your bookkeeping - ensure your stock data flows directly into your accounting system for real-time margin analysis. If you’re using Xero, tools like your EPOS system or apps such as Unleashed can help.

Why It’s Worth the Effort

While stock counting may feel like a chore, it’s one of the most valuable habits you can develop for your F&B business. It’s the backbone of good financial management, helping you understand where your money is going, protect your margins and ultimately, boost profitability.

At ViFi, our virtual finance service offering, we specialise in working with F&B businesses just like yours. We understand the challenges you face and provide tailored financial solutions that help you manage stock, reduce costs, and improve margins. If you’re ready to take control of your numbers, get in touch for a free business health check today.

Takeaways for Success

• Make stock counting a habit
• Use technology to save time and improve accuracy
• Focus on key items if you’re short on time

Regular stock counts aren’t just about counting tins and trays – they’re about building a sustainable and profitable business. So, grab that clipboard (or better yet, your app) and start counting. Your bottom line will thank you.

If you’re ready to take control of your margins and improve your profitability, let’s chat! At ViFi, we specialise in helping F&B businesses streamline their finances and make informed decisions. Get in touch for a free business health check today and see how we can help your business thrive. Just email info@my-vifi.com