Mastering Food & Beverage Operations: Essential Management and Purchasing Tips
Efficiency is everything in the hospitality industry, whether you're in charge of a high-end restaurant or a cozy cafe. Success hinges on mastering the essentials of food and beverage management, including streamlining purchasing processes, optimizing operations, and handling inventory effectively. By excelling in these areas, you could enhance profitability as well as maintain a well-organized business — and we’re here to support you through this journey.
Our guide can arm you with the knowledge and tools you need to take control of the key principles of food and beverage administration, helping you ensure smooth and sustainable operations.
First things first: managing your inventory
Inventory management is a systematic approach to sourcing, storing, and selling inventory — both raw materials and finished goods. When it comes to food and beverage administration, this mainly involves planning food purchases as well as tracking stock levels, deliveries, and turnover.
Effective inventory management makes sure that you have the right ingredients in the right quantities to meet guest demand. Too far on either end of the scale can result in excessive supplies or missed transactions due to stockouts. Maintaining the right balance keeps your business more efficient and financially healthy while minimizing waste. This is where improving your purchasing skills comes in.
3 tips to streamline your food and beverage purchasing process
A well-structured food and beverage purchasing procedure is crucial for controlling costs and maintaining quality. This entails being mindful of every step, from selecting suppliers and negotiating prices to handling orders. So, how to go about it? We’ve got some recommendations to help you optimize this process:
1. Build strong supplier relationships
Building solid partnerships with reliable suppliers and supply chain providers is essential in the foodservice sector. Working with vendors who understand and meet your quality standards ensures that you receive fresh, top-tier ingredients consistently, helping you maintain food safety, taste, and customer satisfaction.
Beyond quality, reliable suppliers can also help with cost management and inventory efficiency. A good relationship with them may lead to better pricing, priority deliveries during high-demand seasons, or even access to exclusive products that set your menu apart. Regular communication and collaboration — such as forecasting and voicing your needs in advance — can prevent shortages, reduce food waste, and keep your business running smoothly.
2. Negotiate wisely
Understanding market trends is essential to get the best value out of your contracts without compromising on quality. So, it’s a good idea to find out the going rates for the products you need, researching current market prices and tendencies. If you need a helping hand with this, you can collaborate with finance experts to analyze your cost structures and identify potential areas for savings before you start negotiating.
And remember, successful negotiation is not necessarily just about driving down costs but about establishing terms that are beneficial for both parties. This enables strong relationships that can lead to consistent product quality and supply reliability for your business.
3. Review performance regularly
Conducting assessments of your purchasing process can help you identify areas for improvement. That makes it worth scheduling regular supplier performance reviews that focus on metrics such as delivery accuracy, timeliness, and product quality. Letting them know where you’re satisfied with the service can reinforce the strengths of your providers, while pointing out underperforming areas gives them a chance to adjust and improve. In both cases, giving feedback to your suppliers creates a chance to strengthen and enhance your business relationship.
Just try not to lose sight of the fact there may be areas of improvement in your own internal processes too. So, establish metrics for your own employees and keep track of them with regular reviews. These feedback sessions are equally important to understand and boost your team’s work satisfaction.
6 tips for effective inventory management
Once all raw materials make it to your facility, what’s perhaps the most complex part of the food and beverage operations process starts: supply management. That’s because overstocking essentially locks up your money and can increase waste, while understocking can halt operations. So how to strike the ideal balance?
Here are our top suggestions to help you manage your inventory effectively:
1. Implement a first-in, first-out (FIFO) system:
As its name implies it, this method aims to ensure that items which came into your inventory first get used before newer ones, reducing spoilage. By systematically organizing your storage areas and training your employees to follow FIFO procedures, you can maintain the freshness of your ingredients and minimize food waste. It may seem simple, yet it requires alignment and discipline. To effectively implement a FIFO system, try following these steps:
- Make it standard practice to label all inventory items with the date of arrival and expiration when they come into your establishment, so that your kitchen staff can quickly identify which ones to use first.
- Have storage areas arranged so that older stock is visibly positioned at the front, making it easier for your employees to prioritize using it before newer materials.
- Train your staff on the importance and correct execution of the FIFO method, providing demonstrations and feedback as needed. This approach can be challenging to get used to at first, but remember that repetition is the key to learning!
2. Invest in high-capacity, efficient dispenser and refill systems
Inventory and operations management in foodservice goes beyond the ingredients that make your dishes possible — they include the hygiene and cleaning products that keep your business going. Choosing dispensers with a high capacity reduces maintenance time, enhancing your efficiency and even cutting costs over time. Additionally, using the right refills can help your facility reduce consumption as well as free up storage space.
- For front of house: Toilet paper availability and quality is key to a good restroom experience for your guests. Tork high-capacity toilet paper dispensers help ensure that bathroom tissue is always at hand, promoting customer satisfaction while reducing the frequency of refills. And don’t forget about handwashing! The right-hand soap and paper hand towel solutions make a big difference, safeguarding your guests’ health and maintaining overall hygiene at your establishment.
- For back of house: Our blue roll dispensers provide easy access to cleaning at workstations while minimizing employee downtime. On the other hand, high-capacity soap dispensers paired with odor-control hand soap and paper hand towels are just as vital in the kitchen as in front of house, promoting in all areas. Additionally, keep in mind that and sanitizer dispensers are a useful add-on in fast-paced environments. environments.
3. Conduct regular audits
Frequent inventory checks are key to helping maintain accuracy and catching any discrepancies before they become bigger issues. Regular verification lets you compare your actual stock with your inventory records, making sure everything lines up the way it should. This not only helps you stay in control of your business but also gives you valuable insights into trends.
For example, if you notice certain ingredients running out faster than expected, it might be time to adjust your ordering to keep up with demand. On the other hand, if certain items are consistently overstocked, you can cut back to reduce waste and save money.
4. Portion control charts
According to the Journal of the Academy of Nutrition and Dietetics, up to 40% of food served in restaurants is never actually consumed. [1] This translates into a loss of resources used to purchase, store, and cook ingredients that end up as waste. But it doesn’t have to be this way. You can drive change by using portion control charts to minimize over-serving. Not only that, but standardizing the serving sizes of your dishes ensures that every plate served to your guests meets your quality and quantity standards.
5. Leverage digital solutions
While keeping paper records of your inventory can be pragmatic, they are prone to human error and misplacement. Implementing modern solutions like inventory management software allows for better accuracy and efficiency. These digital tools are specialized in providing insights into your stock levels and usage patterns, helping forecast demand too. They can automate many aspects of your supply management, such as reordering processes, as well as provide real-time data to inform your purchasing decisions. These systems may take some getting used to at first, but the benefits are worth that learning curve.
Similarly, utilizing real-time data and people counters, Tork Vision Cleaning helps ensure your cleaning and hygiene products remain stocked. By shifting from static schedules to targeted cleaning based on actual usage, our facilities management software enhances efficiency and helps maintain high hygiene standards at your facility. Not to mention saving valuable time for your staff.
6. Train your employees
Make sure that your team understands your supply management processes and the importance of keeping accurate records. Be mindful to tailor training to your facility, including how to use inventory management software, as well as best practices for handling stock and the impact sticking to them has on your business. Well-trained employees are key to maintaining the efficiency and effectiveness of your inventory administration.
What are the benefits of efficient inventory management?
Smart inventory management is a game-changer for any foodservice establishment looking to boost efficiency and profitability. By being intentional and organized, you can optimize your stock levels, reduce waste, and make informed decisions that directly impact the success of your business.
Implementing supply administration best practices and sticking to them in your facility, can help you with:
Cost reduction
Simply put, every food and beverage item in your inventory that goes unused means lost money. Perhaps much more than you might imagine. According to ReFED, the waste accumulated by restaurants costs the industry around $25 billion per year. [2]
By accurately tracking your facility’s supplies, you can minimize over-ordering and reduce waste, helping you ensure that every dollar spent on inventory contributes to profits. Another way to think about it is that managing inventory efficiently frees up budget that would otherwise be tied up in excess stock. This enables you to invest in other business needs, like marketing or equipment upgrades. [3]
Having enough stock to keep your guests satisfied without increasing spoilage and waste can be a delicate balance — effectively managing inventory levels can keep your business in top shape.
Data-driven decision-making
Detailed and rigorous inventory administration can arm you with valuable data on trends, which could be used to adjust your menu based on actual guest demand. By tracking which ingredients are used most frequently and which dishes and beverages sell the best (or worst), you can make smarter decisions about what stays on your menu and what needs adjusting.
Improved service quality
Managing your inventory effectively has a positive impact on your guest experience. Just think about how reducing the possibility of stockouts minimizes the chances of customers not getting what they hoped for or even having to walk away to your competitors instead.
Additionally, when there’s no need for your employees to scramble to find out-of-stock items, they can stay focused on delivering great service as well as maintaining high hygiene and food safety standards in your establishment.
Boosted sustainability
Purposeful food and beverage management can promote sustainability in often overlooked ways. When you think about it, the knock-on effects of minimizing food waste include preventing additional greenhouse gas emissions, conserving natural resources, reducing pollution, and even supporting biodiversity. In other words, having only what you truly need in stock benefits both your business and our planet.
Food handling best practices
Once you’ve mastered the purchasing and stocking parts of food and beverage management, the next step is to make sure that the products you serve are up to safety regulation standards and your guests’ expectations. So, here are some food-handling best practices:
Stay informed and compliant
Food safety is arguably the most crucial part of running a successful foodservice operation, impacting every aspect — from your guests and employees to the overall success of your business.
According to the U.S. Food and Drug Administration (FDA), compliance with food safety regulations is crucial for preventing foodborne illnesses and ensuring public health. [4] Plus, observing protocols helps ensure that you pass important inspections. Not only that, but excellent hygiene also strengthens your business’s reputation for reliability and quality — this can grow into a competitive edge, as guests are more likely to trust (and return to) a restaurant that prioritizes food safety. In fact, a survey conducted by food safety management company Checkit found that 66% of respondents wouldn’t return to a restaurant with bad food hygiene. [5]
To keep yourself and your team informed about the latest legal requirements, it’s a good idea to regularly visit government websites such as the FDA's food guidance and regulations page.
Ensure proper hygiene and cleaning practices
Maintaining rigorous cleaning routines for all areas and equipment in your facility as well as proper personal hygiene is essential when dealing with food. The easier and more accessible you make this for your employees, the more likely they’ll consistently meet high standards. That makes it worth choosing reliable, high-quality, and food-safe products like Tork cleaning cloths, hand sanitizer, and hand soaps, which can help you reduce the risk of contamination. the risk of contamination.
Having the right products available to your employees is one thing, making sure they know how to use them correctly is another. Providing training sessions is a helpful way to achieve this, including correct hand hygiene procedures and guidelines on which products belong in which specific zones. Keep in mind that it’s often better to overexplain rather than assume you’re all on the same page.
Keep an eye on temperatures
It’s a good idea to regularly remind your kitchen staff to monitor and maintain appropriate temperatures for both hot and cold food items. This practice goes a long way in maintaining food hygiene and safety standards while extending the shelf life of your inventory, minimizing waste, and improving cost efficiency.
Key temperature procedures
- Ensure your kitchen staff is aware of the correct internal temperature of all types of food served in your establishment.
- Instruct your team on know how to use food probe thermometers correctly to get an accurate internal temperature reading from each food item.
- Remind them that, when using a microwave, they should select enough time for the food to reach its correct internal temperature and allow it to sit for a few minutes so that the heat can be distributed evenly.
Getting your team on board: strategies for success in foodservice
Getting your employees to adhere to any process consistently can be challenging, especially when the pressure goes up during peak seasons or times. But with a few effective strategies you can make this easier to accomplish for everyone.
Create clear standard operating procedures (SOP's)
SOP’s are detailed written instructions that outline how to perform specific tasks, helping you ensure consistency, safety, and quality in your facility’s operations. Basically, documentation makes it easier to train new employees with standard knowledge and protocols while helping more experienced team members with a go-to point of reference in case of doubts. This allows everyone to work consistently across the board, as well as streamline processes and reduce confusion or miscommunication.
Provide regular feedback
We can all get caught up in the hustle and bustle of everyday business operations, especially in the fast-paced environment of foodservice. But taking a pause to reflect on your team’s performance and making the time to discuss it can help them do a better job. Conducting regular meetings to discuss progress and areas of opportunity is essential for ongoing improvement, fostering open communication, and creating a work environment that helps your employees and your business thrive.
Use incentives
Rewarding employees who consistently follow protocols and contribute to overall efficiency in your establishment is a great way to reinforce that behavior. Recognizing their efforts can boost morale, promote teamwork, and increase productivity in the long run, ultimately setting your business up for success. In fact, a study by Gallup found that organizations with high employee engagement, report 23% higher profitability and 18% higher productivity compared to those with low engagement levels. [6] Additionally, according to the Harvard Business Review, employees whose managers are great at recognizing their work are over 40% more engaged than those whose managers are not. [7]
Incentives work not just at an individual level. Organizing regular staff activities and outings, for example, can not only help your employees feel appreciated, but is also a great way to encourage team bonding and boost social well-being.
The general mental health of your employees can have a big impact on their performance. If you’re looking for more ways to promote it, we’ve gathered 10 well-being initiatives that could make all the difference.
Leading the way: sustainable practices for your food and beverage business
Service industry. [8] The good news is, incorporating sustainable practices isn’t just better for the planet — it can also help cut costs and attract eco-conscious guests to your business.
Lowering our environmental impact can feel like an overwhelming order, but every single contribution counts, no matter how small it may seem. While monitoring stock levels to reduce spoilage is a great place to start, there are a few other actions you can take to lead your establishment in the right direction.
Choose sustainable products
Nowadays it’s easier to find suppliers who offer high-quality and eco-friendly options, not only when it comes to products themselves but also the packaging they come in. For instance, at Tork, we innovate with the planet and its people in mind. From our Xpressnap napkin dispensers (designed to reduce overuse by at least 25%) to hand soaps formulated with natural and biodegradable ingredients, we’ve got you covered with sustainable choices. We also continuously work to develop better packaging options, which is why 90% of Tork product packaging today is made from renewable resources like paper or cardboard.
Try composting
Transforming any inevitable organic waste from your establishment into nutrient-rich soil not only reduces the amount of trash sent to landfills but also gives you a byproduct that can nurture gardens in your facility or employees’ homes, and even your community.
Just remember that composting is not simply a matter of letting spoiled food and leftovers decompose. To get the desired results, you need to be mindful of getting the right mix of materials. Here's a basic composting guideline to get you started:
- 25-50% green waste – meaning food scraps and other organic kitchen waste.
- 50-75% brown waste – dry wood waste including plant trimmings and paper, like out-of-date menus (except for colored or glossy paper) or cardboard from food deliveries, for example.
Reduce water consumption
Water is one of the most precious resources we have, and it plays a big role everywhere in the food and beverage production chain — from making crops grow to washing hands before meal preparation. This means you can make an impact by encouraging mindful water usage at your facility.
So, think about installing water-saving fixtures, having your maintenance staff regularly check for leaks, and even opting for low-flow faucets and toilets, which can reduce water consumption without affecting functionality. According to the Environmental Protection Agency (EPA), installing these kinds of fixtures can save you as much as 700 gallons of water per year. [9] Also, consider that water-efficient dishwashers and washing machines are designed to use less water per cycle, making them more sustainable and effective.
Managing food and beverage operations is no simple job, but constantly assessing and improving is essential to run a successful business. By honing in on your skills and knowledge, you can achieve cost efficiency, meet and exceed guest expectations, and even boost employee satisfaction.
Taking our suggestions into account, you’ll be well on your way to stepping up your establishment’s performance. Remember that foodservice facility management is a living process you can constantly learn from and optimize with the right tools and partners. Ultimately, the right solutions will depend on the unique requirements of your restaurant. Just be certain that every effort will be worth it, as rethinking your ways of working can not only benefit your business, but even our planet and the people living in it.
To continue learning, discover Tork Workflow™ for Restaurants, an expert consultation designed to improve your guest and employee experiences, maximize operational efficiency, and ensure a hygienic and sustainable facility. And if you’re looking for more useful tips, explore our guide on computerized maintenance management systems and our deep dive on how to improve sustainability in the workplace.
References:
[1] The State of America’s Wasted Food and Opportunities to Make a Difference Vogliano, Chris et al. Journal of the Academy of Nutrition and Dietetics, Volume 116, Issue 7, 1199 - 1207