Par inventory is the pursuit of optimal performance. A kitchen operating under a par stock system is trying to hit a highly profitable sweet spot between having enough fresh ingredients to satisfy customer expectations during every service, but not so much that they go to waste.
The profits your kitchen generates depend on being able to consistently hit your par benchmarks across every service, every week of every year. That’s a complex task considering the variations between lunch and dinner crowds, between weekdays and weekends, and between holidays, major events, and the regular calendar.
The best way to profit from a par approach is to go digital. A modern point of sale system will give you the accuracy, efficiency, and time-saving automation to hit your par standards for every single service without adding a single entry to your salary commitment.
Par for every course
The term “par” has the same meaning in your restaurant, café, or quick service outlet as it does on the golf course. It means “to remain even”—or more accurately, “to meet expectations.” In a profitable kitchen, the par approach asks your team to purchase and prepare only the amount of fresh ingredients they need to complete the upcoming service. It’s a calculated way to reduce waste and increase the ROI on your purchase orders.
Obviously, that amount of accuracy requires forward planning and a detailed understanding of how your restaurant operates. A digital POS solution is perfect for solving these kinds of equations, and for saving you invaluable amounts of labor hours in the process.
The right POS system will boost your bottom line by:
- Introducing digital inventory
- Improving supplier relationships
- Streamlining communication around your business
- Better connecting your online and onsite menus
- Providing data analysis insights
These advanced business management features work perfectly within a par system because they are part of an all-in-one POS approach that connects every piece of a successful restaurant business.
Possessing the birds-eye-view of your business that a digital POS solution provides lets you harness the accuracy of a par system through a single, simple equation.
The math of par
There is a practical formula used across the hospitality industry for calculating a par level. It boils down the whole system to three key figures:
PAR level = (Inventory used each week + safety stock buffer) / number of deliveries
Here, the par level refers to your optimal stock profile, and the weekly inventory and deliveries refer to your practical supply and demand variables. The “safety stock buffer” is an industry standard measurement of around 20% above expected demand built in to cater for additional covers without impacting your ROI.
An all-encompassing POS system is your calculator for monitoring and predicting the variables of your par equation. The features below can give you complete control over your kitchen and allow you to hit your weekly pars.
1. Digital inventory
The leading POS solutions are able to resolve all your purchase orders, ingredients, and general inventory down to meaningful, measurable units. This advanced feature means you can accurately account for the real value of everything you buy, and everything you’re holding.
This detail fits perfectly into the par equation above and can mean the difference between “guesstimating” your needs and resources and efficiently spending money in order to make more money.
2. Improved supplier relationships
Digital POS solutions are all about bringing together all the key data of your business so you can make more informed decisions. This logically extends to maintaining and tracking your supplier partnerships over time. The costs, quantities, and deals you have in place with your food and beverage partners shouldn’t be revered as fixed quantities. Instead, you should be able to monitor supply and demand fluctuations across seasons, weekdays, and more and use this data to negotiate more par stock system-compatible arrangements.
Similarly, you can use your digital POS solution to automate purchase orders once you’ve reached an optimal partnership. And there’s perhaps no better way to reduce labor costs than by turning over simple duties to a computer.
3. Streamlined communication around your business
Waste is the enemy of a par approach. Unfortunately, kitchens and dining rooms are notorious for the amount of waste they can produce. Improving the flow of communication around your business is a good way to reduce waste by eliminating human error from the ordering process.
The leading POS systems feature easy-to-use, easy-to-read ordering systems that can send multi-point messages across an active service simultaneously. Advanced table and order management tools can make it easier for your staff to meet customer expectations the first time around, and not resort to discounts and write-offs to make an evening a success.
4. Connecting your online and onsite menus
Perhaps the most critical point of a par stock system is the menu. An efficient menu will make use of core ingredients across dishes to reduce spend and guide diners toward profitable combinations.
If you’re operating a takeaway or delivery service as an additional source of revenue, you need to align your external options with your internal priorities. A digital POS system is already housed online, so it’s simple enough to connect the two halves of your ordering public through a common menu.
You should be able to assess the trends of both sides of the ordering process and maximize the efforts and spend of your kitchen.
5. Data analysis insights
The active ingredient in turning all of these advanced POS features toward profiting from a par approach is sales and data analysis. By improving a multi-point cash register and accounts system into an all-in-one digital solution, you can combine information from each part of your business into a single par outcome.
Every customer transaction, purchase order, tax commitment, overhead, and staff input can be calculated to provide valuable information on how your restaurant generates income. The best POS examples will give the most popular dishes by time period, an assessment on increase in local produce costs, and an accurate understanding of marketing success at the tap of a few buttons.
At their core, these dynamic digital features provide the live count necessary to pursue an efficient par system. At their most detailed, they can teach you how to reduce waste, increase margins, and grow your business.
The power of a digital par stock system
All the best advances of the digital era claim to make life, especially working life, easier. A par stock system powered by a digital POS solution certainly fits that description. Through automation, accurate digital counts, and centralized data analysis your system can reduce not only the hours it takes to maintain a par system, but also the expertise needed to make it work.
In such a way, your POS system could be thought of as an additional employee, crunching the numbers and monitoring your stock and sales levels 24/7.
The POS solutions created by talech will allow you to benefit from the industry-standard business models, such as par. Our fully customizable systems can be accurately fitted to your business to make sure the way you work becomes more efficient and profitable. Reach out to us today to sign up for a demo and to learn more about how talech can be your valued POS partner.
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