Inventory control is where a lot of small-restaurant margin quietly disappears.
Not because owners are careless. Because the system is too heavy to run during real service weeks.
This guide gives you a lightweight routine that real teams can keep up with.
Quick Summary
- EPA estimates 30-40% of the US food supply is wasted.
- EPA also says food is the single most common material sent to landfill and incineration in the US.
- ReFED reports restaurants and foodservice generated 12.5 million tons of surplus food in 2024, with over 85% ending in landfill or incineration.
- In ReFED’s foodservice data, plate waste is the largest category at nearly 70% of wasted food.
For operators, this is not just sustainability news. It is cost control.
Why Small Restaurants Struggle With Inventory
Common owner pain points in community threads:
- “Full inventory takes too long, so we skip it until month-end.”
- “Spreadsheet counts are disconnected from prep and waste.”
- “By the time we see variance, the month is already gone.”
The fix is a tighter cadence, not more complicated software.
The 90-Minute Weekly Inventory Routine
Daily (5-10 minutes): waste log
Track only high-dollar waste events:
- overcooked proteins
- expired dairy
- spoiled produce
- prep overproduction
Record quantity, estimated value, and reason.
Weekly (45 minutes): cycle count top categories
Count the categories that move margin the most:
- proteins
- dairy
- oils
- produce with short shelf life
Do this on the same day and same time each week.
Mid-week (15-20 minutes): spot check volatile items
Recount your 5 highest-volatility SKUs and compare against expected usage.
Month-end (20-30 minutes prep + full count)
Run a complete inventory count for accounting and supplier reset decisions.
The Only Formulas You Need
Actual usage = Opening inventory + Purchases - Closing inventory
Waste % = Waste value / Food purchases x 100
Inventory variance % = (Actual usage - Expected usage) / Expected usage x 100
Expected usage can come from recipe standards x units sold.
Worked Example (One Week)
Assume:
- Opening inventory: $18,000
- Purchases: $6,500
- Closing inventory: $17,200
- Logged waste value: $620
Actual usage = 18,000 + 6,500 - 17,200 = $7,300
Waste % = 620 / 6,500 x 100 = 9.5%
If waste is consistently near this level, you have a process issue, not a one-off incident.
What to Fix First When Variance Spikes
- Portion standards on your top-10 sellers
- Prep batch size by daypart
- Receiving checks (weight, quality, and substitutions)
- Storage discipline (FIFO, date labeling, and line checks)
- Reorder points for high-volatility items
A Simple Trigger System
Use trigger rules so actions are automatic:
- Waste % above target for 2 weeks -> reduce prep batch size
- Variance above threshold in one category -> recount and retrain portioning
- Repeated supplier variance -> review vendor and contract terms
Related Guides
- Monthly Inventory Count Checklist for Restaurants (US)
- US Food Cost Calculator
- US Prep Yield Calculator Guide
- US Restaurant Menu Pricing Guide
- Food Cost Ratio Guide
Sources (checked on 2026-02-14)
- U.S. EPA - Why should we care about wasted food?
- U.S. EPA - Wasted Food Scale
- ReFED - Restaurants and Foodservice
- National Restaurant Association - 2026 industry release
- Reddit - r/restaurantowners: What inventory routine actually works for small operators?
- Reddit - r/restaurantowners: Spreadsheets are killing my margins