The problem: incomplete records and insufficient delivery checks
Staff meals and owners’ consumption were not consistently recorded in the POS system. Products left the kitchen and bar without every issue appearing in the records.
Products were also not weighed when deliveries arrived. There was therefore no confirmation that actual quantities matched supplier documents. If more stock was recorded than physically received, later reconciliation could show an overstated shortage.
These issues overlapped. Stock discrepancies could include both unrecorded internal consumption and differences arising when deliveries were received.
The change: recording every issue from the kitchen and bar
We introduced a requirement to record every dish and drink provided to employees and owners in the POS. Checks were closed to the appropriate internal accounts for these issues.
This allowed staff and owners’ consumption to be identified separately and taken into account when explaining product usage. The aim was a fuller picture of what actually left the stockroom, kitchen and bar.
Delivery checks start with the order
My recommendations also covered closer delivery checks. Matching goods to an invoice is not enough: deliveries must also be checked against the original order.
The receiver should check the product and prior approval of any substitute, the quantity or weight against the order and delivery document, and the agreed price, especially when a more expensive item is supplied.
It is also important to agree that suppliers notify the venue of shortages and substitutions before delivery. This gives the team time to source alternatives, adjust production or inform service staff about unavailable dishes.
Discrepancies should be recorded and resolved rather than automatically entering the quantities shown on the paperwork.
The main challenge: consistency in daily service
The greatest challenge was engaging staff, particularly the kitchen team, in establishing how many meals were issued to employees and owners and recording those issues consistently.
Setting up POS accounts was not enough. The rules also had to be followed during busy service. Omitting apparently minor items made reconciliation difficult again.
The team’s responsibilities
The kitchen and bar were to communicate all issues for employees and owners. POS users were responsible for recording the correct items and closing checks to the appropriate accounts.
For deliveries, I recommended assigning clear responsibility for checking products, quantities and prices and passing shortage information to the kitchen and the person placing orders.
How did we check the change?
Spot stocktakes carried out without prior notice supported the checks. They helped compare physical quantities with records and identify discrepancies requiring investigation.
The key change was bringing previously unrecorded issues into the records. This established a basis for separately accounting for internal consumption and analysing stock differences more accurately.
This case describes improvements to controls and records. I do not claim a percentage reduction in losses or a monetary saving without comparable before-and-after data.
What this means for a restaurant owner
Reliable stock reconciliation requires control of both what you receive and what you issue.
Not every stock discrepancy means product waste. First check deliveries, the completeness of records and how non-sales issues are accounted for. Only then can you assess losses reliably and choose appropriate action.