In most food services operations, directors and managers are responsible for an operating budget. Even if the purpose of the on-site employee cafe or coffee bar is to serve as a benefit to employees, the measuring of profitability in operations is still present, and the finance department wants to know if the operation is in the red, at break even, or profitable. All this is possible with our Inventory Management POS System
As part of our Inventory Management POS System, food and beverage item tracking abilities are present in a POS inventory system file or database, making it possible to monitor purchasing expenditures and improve purchasing decisions. Whether ordering inventory by purchase order or non-purchase order, it is vital to enter receiving items into inventory accurately to maintain the integrity of the on-hand inventory count and cost. To ensure that items arrive exactly to the order, verify the quantity and cost of all items in receiving against the invoice.
How Our Inventory Management POS Works
Most cafeterias and coffee bars have many inventory items, such as cans of soda, bags of chips, and bottles of water, which are always in stock, and re-order them when inventory counts reach a certain level. When receiving these items that already exist in inventory, compare the current cost to the previous cost. If the actual cost of the item is different from the cost of a previous order, then enter the new cost into the inventory system pos system. If there are cost increases, you have a decision to make: either absorb the price increase by continuing to sell the item at the current price, and thus accept a reduction in profit margins on the item, or maintain your current profit margin, and offset the cost increase with a price increase.
For example, if bottles of water in receiving at a unit cost of $1.00 and is selling at a price of $1.35, then the profit margin is 25.93%. Should the unit cost increase to $1.10, you may decide to continue selling each bottle of water at the $1.35 price at a lower margin of 18.52%, or increase the price to $1.48 offset the cost increase.
Either way, you have made a decision weighing profitability against what you believe customers are willing to pay for a particulate item.
More Information
Daily, monthly, and year-to-date receiving reports will show you all the items in receiving on a certain day or month or during a date range. Use additional reports, such as end-of-day, stock status, inventory analysis, and sales history reports, to view sales and profitability performance by item, meal service, vendor, department, or user sort. These views give you the ability to manage profitability by the department and offset low-margin items with other higher-margin items within the same department or category.
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