Restaurant inventory management software enables detailed inventory tracking to the ingredient level and integrates data smoothly to recipe creation, food costing and purchasing, receiving and counting processes. These innovative technologies enable busy pubs and restaurants guarantee products are on hand to fulfill daily demand. They also assist decrease losses due to over-ordering, wastage and theft. Most include built-in point-of-sale (POS) functions or link with leading POS systems to expedite operations and give managers and owners rapid insight into every part of the business. Forbes Advisor studied the best restaurant inventory management software and evaluated many top selections based on total pricing, vital features, POS capabilities or integrations, and fit for varied business needs.
The Best Restaurant Inventory Management Systems of 2024
- xtraCHEF by Toast
- Lightspeed Restaurant
- TouchBistro
- CrunchTime
- Orca
- Revel Systems
- Craftable
- Restaurant365
- MarketMan
1-xtraCHEF by Toast
xtraCHEF is advanced restaurant inventory management software for the Toast restaurant POS system. It can be used as a freestanding product, but when connected with Toast, it’s a powerful all-in-one system. xtraCHEF features can be added à la carte to Toast, so you only pay for what you need. The free Toast POS starting kit doesn’t officially support xtraCHEF. However, customer care reps indicate you can request xtraCHEF capabilities with the free plan, but these might increase monthly expenses.
xtraCHEF extends Toast’s core inventory features with real-time ingredient-level inventory management, recipe and menu costing and sales-based order forecasting. It adds EDI connections to suppliers for automated cost updates and one-click purchase orders. The unique Buyers Edge service saves you money by finding vendor rebates and credits. It also handles automated invoice entry and inventory changes to remove that chore off your plate.
Toast offers 24/7/365 customer assistance via phone and online knowledge base with xtraCHEF tutorials.
Who should use it: Toast with xtraCHEF is an excellent bargain for small to midsized bar, restaurant and cafe enterprises who desire a user-friendly restaurant POS with comprehensive inventory features.
xtraCHEF Restaurant Inventory Management Pros and cons
Pros
- User-friendly system
- Only pay for the features you need
- Automated ordering via supplier links
Cons
- Pricing per quote only
- xtraCHEF inventory features not included on Toast’s free plan
2-Lightspeed Restaurant
Lightspeed Restaurant offers competitive sophisticated inventory features on all plans. The inventory module can be added to the $59 beginning plan for extra monthly expenses. Inventory is integrated into the $199 and $399 per month Pro and Pro Plus plans. Features include ingredient-level inventory management, recipe costing and one-click purchase orders with auto-email to vendors. It also gives useful color-coded status indicators for vendor order tracking.
Lightspeed Restaurant is a complete restaurant POS that gives an end-to-end sales, operations and inventory management solution for one monthly cost. This makes Lightspeed Restaurant a fair value compared to stand-alone inventory management software without built-in POS functions.
Lightspeed Restaurant provides 24/7/365 customer assistance by phone and in-app chat, plus an extensive online knowledge library.
Who should use it: Lightspeed Restaurant works well for small to midsized pubs, restaurants and cafés who seek a streamlined POS with extensive inventory features.
3-TouchBistro
TouchBistro is a top-rated restaurant POS system that offers restaurant inventory management software as a built-in feature. It tracks food inventory supplies and costs to the ingredient level and helps you construct recipes for convenient cost tracking per menu item. You can also establish reorder alerts and run inventory forecasts for easy reorders, and set 86’d item alerts to tell waitstaff when items are unavailable per ingredient levels.
TouchBistro’s inventory software is a fully integrated part of its all-in-one restaurant POS system. Along with strong inventory management features, you receive built-in credit card processing, table, staff and menu management and much more. However, it has one huge problem regarding inventory management. TouchBistro doesn’t produce purchase orders or scan invoices for rapid reorders and receiving. You can install MarketMan or other advanced inventory tools to acquire this feature, however that adds to your monthly expenditures.
TouchBistro features 24/7/365 live assistance via phone with an online knowledge library with a multitude of helpful restaurant planning and management tools, articles and system training.
Who should use it: Small restaurants, cafés and eateries who seek a user-friendly restaurant POS system with ingredient-level inventory and recipe cost tracking.
pros and cons TouchBistro Restaurant Inventory Management Systems
Pros
- Very user-friendly
- Low interchange-plus card rates
- 86’d item alerts per stock levels
- Geared towards a range of food service enterprises
Cons
- Purchase orders require an add-on
- Pricey to expand features
4-CrunchTime
CrunchTime is restaurant inventory management software developed to enable multiunit operations such as franchise groups, restaurant chains and fast-food brands. CrunchTime’s ingredient-level inventory tracking, automated ordering and receiving, and food and labor cost controls all meet or surpass any requirements set by the competition and the industry.
It also offers conveniences such as USDA nutritional data for recipes, optimized meal prep operations, actual versus theoretical food price and much more. However, system cost is per quotation, its fundamental operations are spread across seven unique apps, and you still need a POS system to drive the sales side. Simply simply, CrunchTime is overkill for startup and small restaurant operations.
CrunchTime provides phone, email and fax client assistance along with extensive training, onboarding and deployment guidance. Customer service hours are unpublished.
Who should use it: CrunchTime is best suited for enterprise-level operations or rising foodservice organizations aiming to manage 10 or more locations.
pros and cons CrunchTime Restaurant Inventory Management Systems
Pros
- Unique apps for unique purposes
- Almost universal POS, vendor and accounting integrations
- You’ll never outgrow it
Cons
- Pricing per quote
- Works via seven use-specific smartphone apps
5-Orca
Orca is another cloud-based advanced restaurant inventory management software solution that works with various POS systems but doesn’t offer built-in payment and operations management functions. It interacts with various top-rated POS systems to give a power-packed set of ingredient-level inventory tracking, automatic ordering and detailed forecasting tools.
A prominent feature of Orca is its recipe creation and costing tool that displays food costs as you develop your recipe. Orca’s Intelli-Order module gives superior order forecasting features that let you base reorders on budgeted levels and prior sales with filters for specific days of the week, holidays or custom date ranges. You also have the choice to order to par levels or use the sales-based forecasting method. Either way, you can send orders to one or several suppliers in one click utilizing Orca’s streamlined vendor connections.
Orca offers phone support from 9 a.m. to 5 p.m. Monday through Friday, PT, and limitless free training via Zoom. It interfaces with restaurant POS systems such Clover, TouchBistro, Toast, Square, Lightspeed, Lavu, Shopify POS and many more.
Who should use it: Large and multi-location restaurants or institutional foodservice businesses that order from several vendors daily or weekly.
pros and cons Orca Restaurant Inventory Management Systems
Pros
- Automated purchase orders
- Accurate reorders based on particular sales timelines
- Recipe costing based on current inventory costs
Cons
- $199 per vendor and POS system
- No built-in POS or payment processing
6-Revel Systems
Revel Systems is a POS powerhouse and its restaurant inventory management software capabilities don’t disappoint. Along with the ingredient-level inventory management, recipe costing and reorder alerts you’d expect, Revel enables you rapidly write purchase orders and instantly changes inventory counts upon purchase order receipt. It also tracks ingredients and other stock items by location in storage rooms for simple pulls and stock checks.
Revel adds remarkable features to assist reduce theft and shrinkage, too. Owners and managers can hide expected on-hand data on inventory count sheets or iOS inventory app screens. Since counters can’t see the predicted stock amounts, they can’t manipulate the numbers to cover theft. This is a terrific bonus for bar operators trying to avoid liquor shrinkage.
Revel POS delivers 24/7/365 live assistance via phone with an online knowledge base with system instructions and lessons.
Who should use it: Bars and larger restaurant enterprises that need granular-level inventory management with stock alerts, purchasing and receiving capabilities and excellent worker access restrictions.
pros and cons Revel Systems Restaurant Inventory Management Systems
Pros
- Advanced inventory tools
- Employee management
- Point of sale features
- Security and theft prevention features
- Customizable staff permissions
Cons
- Hefty $674 onboarding charge
- Requires a three-year contract
7-Craftable
Craftable is cloud-based, mobile app-driven restaurant inventory management software that works as a stand-alone system or links with restaurant POS for integrated reporting and forecasting. The base plan allows unlimited users, ingredient-level inventory and depletion tracking, purchase orders and recipe costing. Its Bevager module provides bar-specific benefits such as bottle sliders, pour calculators, keg credit tracking and more.
Craftable seamlessly links to thousands of foodservice providers for automated cost updates and integrated ordering via EDI, API and vendor-preferred methods. Higher plan levels offer automated invoice entry with inventory changes via scanned or uploaded invoices. Top plans also incorporate ordering compliance and contract controls for larger hospitality demands. POS and accounting software interfaces are only accessible on mid- and higher-tier contracts.
Craftable provides live phone, chat and email assistance from 7 a.m. to 7 p.m., Monday through Friday, CT, plus a simple in-app chat and knowledge base. It integrates over 40 restaurant POS systems including TouchBistro, Revel, CAKE, Clover, Toast, Square, Lightspeed and many more.
that should use it: Bar owners that wish to track every drop of inventory and prevent theft, and larger restaurants and hospitality companies require seamless automated ordering and receiving.
pros and cons Craftable Restaurant Inventory Management Systems
Pros
- Bar-specific inventory tracking
- Ingredient depletion reporting
- Automated invoice entry and receiving
- Menu costing tools
Cons
- Pricing per quote only
- POS integration on higher-tier plans only
8-Restaurant365
Restaurant365 is a cloud-based robust restaurant inventory management software suite. It includes all of the extensive restaurant inventory tracking and controls you’d expect, including ingredient-level tracking, recipe costing and supplier connectors for one-click ordering based on par or sales forecasting. It also manages receipts and payables, gives a complete set of reporting capabilities and interfaces to practically all top-rated restaurant POS systems.
Where Restaurant365 pulls ahead of the pack is built-in staff scheduling, labor cost tracking and optional HR add-ons for integrated payroll, hiring and onboarding. Tracking food and labor expenditures in one system is a big time-saver for large, multi-location and franchise businesses. That’s where Restaurant365 thrives and is worth the increased premium.
Restaurant365 offers phone and ticket assistance from 7 a.m. to 7 p.m., Monday through Friday, CT, plus features an online resource center with tutorials. It interfaces with restaurant POS systems such CAKE, Clover, Toast, Square, Lightspeed, Revel, Shopify POS and many more.
Who should use it: Large and multi-location enterprises that wish to consolidate restaurant inventory, costing, accounts payable and labor tracking inside one system.
pros and cons Restaurant365 Restaurant Inventory Management Systems
Pros
- Labor and food costing features
- Scheduling and payroll choices
- Track sales, inventory and staff across all locations
Cons
- Quarterly billing only
- Pricey versus the competition
9-MarketMan
Unlike many restaurant inventory software alternatives on this list, MarketMan isn’t an all-in-one restaurant POS system with built-in payment, sales and floor management functions. Instead, MarketMan is specifically intended for advanced restaurant inventory management and supplier logistics. It seamlessly interacts with numerous restaurant POS systems to add inventory controls or expand built-in functionality.
Beyond the ingredient-level tracking, recipe management and food costing capabilities that you’d anticipate, MarketMan includes various automations that mid- to large-scale companies require to flourish. It delivers automated cost updates per supplier and helps you establish price thresholds and order alerts. You can build and send purchase orders in just a few clicks via MarketMan’s EDI and API connections or other vendor-preferred ways. MarketMan even changes inventory levels upon receipt for you. Just submit a photo or upload a copy of your supplier invoice and it takes care of the rest.
MarketMan has phone support from 9 a.m. to 9 p.m. Eastern time, with support tickets and an online knowledge base. MarketMan offers comprehensive restaurant inventory management tools to several POS systems including Clover, TouchBistro, Square, Lightspeed, Revel, Toast and more.
Who should use it: Large-scale and multi-location operations that order and receive food supplies regularly. Smaller-scale eateries that require automatic food pricing updates, ordering and receiving can also find value in MarketMan.
pros and cons MarketMan Restaurant Inventory Management Systems
Pros
- Updates supplier costs automatically
- One-click purchase orders
- Build a digital cookbook from recipes
- Monthly and annually billing choices
Cons
- $500 setup cost
- No built-in POS, payment processing or labor cost tracking
Methodology
When selecting the best restaurant inventory management software of 2024, we first evaluated the inventory needs for foodservice organizations large and small. We then examined many top-rated systems in terms of features and pricing per plan tier, built-in capabilities like as POS systems, other integrations and general scalability.
For this review, we investigated a broad list of inventory management features that fit a full variety of foodservice organizations. Here are the factors utilized in our evaluation:
- Cost per plan tier
- Ease of use
- Mobile apps and systems demands
- POS functionality or stand-alone software
- Integrations with POS systems
- Ingredient-level inventory tracking
- Bar-specific inventory features
- Low-stock warnings
- Perishables tracking
- Recipe ingredient pricing
- Recipe and cookbook features
- Purchase orders
- Vendor EDI connections
- Sales-based forecasting reports
- Par-based reorder reports
- Automated purchase orders
- Real-time vendor price updates
- Automated invoice entry
- Automated stock updates
- Food cost controls
- Loss and theft controls
- Wastage tracking
- Labor cost tracking
- Staff time tracking and accounts
- Accounting integrations
- Free demos or free versions
- Customer service accessibility
- Free and unlimited training
How To Choose Restaurant Inventory Management Software?
Restaurant inventory management systems have several moving parts and, on the surface, offer almost identical features. It’s helpful to explore a few of the reasons you’re considering a switch before diving headlong into your search. This can help you narrow the list to the features that matter the most and spot the contenders that best fit your needs.
The first is your business’s inventory management needs and budget. Advanced inventory systems offer plenty of value to larger operations with the cash flow to cover the cost but can be overkill for small and startup operators. Starting with a free or low-cost restaurant POS system with basic inventory features may be the best value since you can add advanced inventory upgrades or integrations as growth demands.
The second consideration when upgrading your restaurant inventory management software is the system you currently use. If you use a restaurant POS system, upgrading to a higher-tier plan with advanced inventory is generally the least disruptive way to add these features. Adding a stand-alone inventory software via built-in integrations is a close second. Likewise, if you don’t have a POS system, moving your operation onto a POS-driven inventory system can dramatically increase efficiency.
Features such as ingredient-level inventory data, food and labor costs, and automated purchasing and forecasting are the third consideration. Examine the efficiency tools the top contenders offer to see which aligns best with your operating needs. For example, if you spend hours each week updating vendor pricing, checking stock and reviewing sales to create manual purchase orders, an automated inventory solution is a life changer. If you manage a large workforce, integrated payroll with labor cost tracking is essential for a profitable operation.
Finally, look at system ease of use, customer service, free training and user reviews when making your final pick. Some restaurant inventory management systems offer 24/7 phone support, while others are only available on business days. Free and unlimited training is another important factor. Providers that offer training take this time-consuming task off your plate.
Benefits of Restaurant Inventory Management Software
Inventory management directly affects your bottom line. When done poorly, you can lose money daily due to theft, untracked wastage, spoilage and over- or under-ordering. Not to mention the cost value of the hours spent manually tracking and updating counts to place orders, chasing down vendor costs, customer irritation for 86’d items and so on.
Inventory management done well is an entirely different matter. You can check ingredient levels in real time to know exactly how many of each menu item you can make daily. Theft is thwarted via tight inventory controls and oversight. New kitchen staff can see accurate ingredient lists for each menu item and know where to find them. Finally, ordering food and other supplies is an intelligent process based on actual sales, accurate forecasting and accurate supplier prices.
How do restaurants track their inventory?
In the dynamic world of restaurants, where demand fluctuates and margins are thin, inventory management plays a pivotal role in success. The ability to accurately trace ingredients, from fresh produce to dry, requires a combination of traditional methods and modern technologies.
Inventory management in restaurants
Let's dive into the key strategies and techniques that restaurants use to maintain precise control of their inventory, ensure operational efficiency, reduce waste, and increase profitability.
Manual inventory: the basics
Despite the advent of advanced technologies, manual counting is still a cornerstone of restaurant inventory management. This involves physically counting each item in inventory, usually on a regular basis, such as the beginning or end of each business day.
- Counting Sheets: The most traditional method involves using counting sheets to manually record the quantities of each item. Although simple, it is subject to human error and can be time-consuming, especially for restaurants with large inventory.
- Checklist Inventories: Checklist inventories provide a more organized way, as all inventory items are listed with designated spaces for recording quantities. It can be customized to fit different inventory categories in the restaurant.
Point of Sale (POS) Systems: Data Integration
Modern point of sale (POS) systems have evolved beyond simply processing transactions. They offer valuable inventory management features that help automate the tracking process.
- Real-time inventory update: 📌 With each sale, the POS system automatically updates inventory levels, providing instant visibility into available ingredients. This helps prevent stock-outs and facilitates the reordering process.
- Track historical data: 📌 POS systems keep records of sales and inventory usage over time. Analyzing this data allows restaurants to identify trends, forecast demand, and make informed decisions about purchasing inventory.
- Menus Management: 📌 POS systems can be linked to restaurant menus, allowing restaurants to track the cost of goods sold (COGS) for each dish. This information provides valuable insights into menu pricing and profitability.
One of the major advantages of POS systems is their ability to integrate with inventory management software, creating a more robust and comprehensive system.
Inventory management software: enhancing efficiency
For restaurants looking to streamline their inventory management processes, Tarjo inventory management software offers a wide range of features designed to improve efficiency and accuracy.
- Automated inventory tracking: The software automates the inventory tracking process, eliminating the need for manual counting and reducing the risk of human error.
- Low Stock Alerts: The software monitors stock levels and issues alerts when items reach the reorder minimum, ensuring restaurants never run out of essential ingredients.
- Supplier Management: The software allows restaurants to maintain a supplier database, track purchase prices, and automate the ordering process. This simplifies the purchasing process and ensures restaurants get the best prices possible.
- Inventory forecasting: By analyzing historical data, the software can help restaurants forecast future demand. This information helps restaurants improve their inventory levels and reduce waste due to expiration or spoilage.
- Analytics and Reports: The software provides valuable insights into inventory data, such as best-selling items, inventory turn times, and waste costs. This information helps restaurants make informed decisions about inventory management.
By integrating inventory management software, restaurants can improve their operations, reduce costs, and increase profitability.
Identifying food waste: reducing losses
Identifying and addressing food waste plays a vital role in restaurant inventory management. Here are key strategies to reduce food waste:
Track and identify waste: Regularly measure and track food waste to identify areas that can be improved. This can include tracking expired, damaged or unused items.
Proper Storage: Apply proper storage practices to increase the shelf life of ingredients. This includes using appropriate containers, maintaining correct temperatures, and applying the first-in-first-out (FIFO) method.
Portion control: Use precise ingredients and monitor portion sizes to reduce food waste during the preparation process. Train staff on proper preparation and serving techniques.
Strategically designed menus: Create menus that use multiple ingredients in different dishes, reducing the risk of unused items expiring. Consider offering different portion sizes to meet customer preferences.
Using Leftovers: Explore creative ways to use leftovers, such as incorporating them into new dishes or serving them as specials. Donate unused food to local food banks or shelters.
By addressing food waste, restaurants can reduce costs and improve their environmental sustainability.
Additional strategies for inventory management
In addition to the above methods, restaurants can apply additional strategies to improve inventory management:
- Optimize inventory levels: Determine the optimal amount of inventory to keep on hand, taking into account demand, delivery times, and shelf life. This helps reduce storage costs and prevents stockouts or overstocks.
- Conduct regular audits: Conduct regular inventory audits to verify the accuracy of inventory records and identify any discrepancies. This can help identify issues with theft, damage, or tracking errors.
- Employee Training: Train employees on proper inventory management practices, including counting, storage, and reporting procedures. Employees' understanding of the importance of inventory management promotes accountability and accuracy.
- Building strong relationshipsWith Suppliers: Develop strong relationships with suppliers to ensure reliable and timely deliveries. This can help prevent inventory disruptions and negotiate better terms.
- Leverage Technology: Explore advanced inventory management technologies, such as barcodes or RFID, to automate inventory tracking and improve accuracy. These techniques can save time and reduce errors.
By implementing these strategies, restaurants can create an effective inventory management system that improves efficiency, reduces costs, and supports overall success.
Conclusion: Inventory management is a vital aspect of successful restaurant operations. By combining traditional methods like manual inventory with modern technologies like point-of-sale systems and inventory management software, restaurants can maintain precise control of their inventory, reduce waste, and improve profitability. By identifying food waste and implementing additional strategies such as improving inventory levels and employee training, restaurants can enhance their inventory management efficiency and contribute to their long-term success.
Frequently Asked Questions (FAQs)
What is the best inventory system for restaurants?
The best inventory management systems for restaurants tie ingredient-level stock tracking to recipe costing, kitchen production, sales and ordering within one streamlined system. There are many top-rated restaurant inventory software systems on the market and the best one for your business depends on your operation’s inventory management needs and budget.
How do restaurants keep track of inventory?
Most restaurants use an advanced inventory management system that tracks stock to the ingredient level and ties real-time inventory data to sales, ordering and receiving. Most restaurant inventory management software is cloud-based and runs on mobile apps and desktop computers to make data accessible anywhere. Staff can use mobile apps to count and update inventory and managers check levels and place orders at or away from the restaurant.
What is an inventory management system for restaurants?
An inventory management system for restaurants tracks ingredient amounts as units and ties ingredients to recipes to track usage and stock levels in real time. Most include or integrate with POS systems to connect sales with inventory for sales-based order forecasting, which increases efficiencies and cuts losses from overordering, spoilage and wastage.
Are inventory management systems secure?
Similar to these types of platforms and software, the best inventory management systems offer many levels of security. When choosing this type of system, you want to look for security features that includes documentation that shows frequent security updates and patches, intrusion detection, two-factor authentication (2FA) or multifactor authentication (MFA), the monitoring of user activities, data encryption and privacy protection.
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