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US Restaurant Inventory Management Guide (2026): A 90-Minute Routine to Cut Food Waste

A practical inventory management system for US restaurants in 2026: weekly cycle counts, waste tracking, and simple formulas that protect margin.

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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

  1. Portion standards on your top-10 sellers
  2. Prep batch size by daypart
  3. Receiving checks (weight, quality, and substitutions)
  4. Storage discipline (FIFO, date labeling, and line checks)
  5. 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

Sources (checked on 2026-02-14)

Frequently Asked Questions

What inventory routine works for a small restaurant without a full back-office team?

Use a weekly cycle-count routine: daily waste log, one focused count on high-cost categories, and one month-end full count.

Do I need full inventory every day?

No. Most small operators do better with targeted weekly counts on high-value items and a full month-end count.

What is a good inventory variance threshold?

Many operators investigate quickly when variance goes above about 2-3% in high-cost categories, then tighten portions, prep controls, or ordering.

How do I calculate food waste percentage quickly?

Use waste value divided by food purchases for the same period. Track it weekly so problems show up before month-end.

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