Inventory turnover rate measures how efficiently you’re using your inventory. High turnover means fresh ingredients and minimal waste. Learn the formula and industry benchmarks.
Inventory Turnover Formula
Cost of Goods Sold / Average Inventory Value = Inventory Turnover Ratio
What’s a Good Turnover Rate?
Most restaurants aim for 60-90 day inventory turnover (turning inventory 4-6 times per year)
Perishables: 20-30 day turnover
Dry goods: 90+ day turnover
Why High Turnover Matters
1. Fresher ingredients
2. Less waste
3. Lower storage costs
4. Reduced spoilage
5. Better cash flow
How to Improve Inventory Turnover
1. Better forecasting
2. Smaller, more frequent orders
3. Track expiration dates
4. Menu engineering
5. Reduce portion sizes
6. Work with suppliers on delivery schedule
Technology Solutions
Use inventory management software integrated with POS to track turnover in real time and identify slow-moving items.