What Is a Good Inventory Turnover Rate?
Most restaurant operators target 4–6 turns per month. A turnover of 4x means you are going through your entire inventory every 7–8 days. Below 3x suggests over-ordering or slow-moving items tying up cash. Above 7x may indicate under-ordering and risk of running out of key items mid-shift.
Right-Size Your Orders and Your Prices
Tighter inventory ordering starts with knowing your par levels — and paying the right price for every item. FrillPick compares distributor prices so you are not overpaying while also over-ordering.
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Frequently Asked Questions
How do you calculate inventory turnover for a restaurant?
Inventory Turnover = COGS ÷ Average Inventory Value. Average inventory = (Opening Inventory + Closing Inventory) ÷ 2. For example: monthly COGS of $18,000 ÷ average inventory of $4,500 = 4.0 turns per month.
What does days of inventory mean?
Days of inventory = number of days in period ÷ inventory turns. If you turn 4x in a 30-day month, you hold 7.5 days of inventory on average. Lower is generally better for perishables — fresh produce and proteins should ideally turn in 3–5 days.