Food waste is a significant challenge in U.S. restaurants. The industry discards approximately 11.4 million tons of food annually, costing over $25 billion. Given that food costs typically account for 28% to 35% of a restaurant's sales, effectively managing and reducing food waste is essential for enhancing profitability. By implementing the right software solutions for inventory, labor, and budget management, restaurants can minimize waste and enhance profits.​

Understanding Food Waste in Your Restaurant

In an environment of rising costs and shrinking profit margins, it's crucial for restaurant operators to not only understand the cost of doing business but also how to determine optimal costs by identifying opportunities to more effectively manage expenses. Beyond tracking inventory, optimizing food preparation and ordering processes helps ensure you can meet customer demand without exposing your business to product theft or food spoilage. This approach not only reduces waste but also enhances customer satisfaction by consistently delivering fresh products with correct portion sizes.​

Inventory Management

First, it’s vital to develop a comprehensive understanding of food waste within your establishment. You can pinpoint areas of waste by comparing what your restaurant actually uses with what it should theoretically use based on sales of your various recipes. The difference between these two amounts is known as variance.

• Actual usage is the amount of product used during a specific period. It’s calculated by adding the amount of inventory at the beginning of this period to purchases made during the period and then subtracting ending inventory amounts.

Beginning inventory + purchases – ending inventory = actual usage

• Theoretical usage is the amount of product that should have been used in the same period, based on sales of each specific recipe.​

Theoretical usage – actual usage = variance

Variance, whether it represents over- or under-usage, highlights discrepancies that need attention. For these numbers to have practical use, however, accuracy is paramount. From there, specialized reporting can highlight the most impactful inventory variance items, so you can focus on areas that can provide the highest return on your investment.​ Additionally, advanced sales forecasting tools can utilize historical data from comparable time periods to predict future demand, allowing you to maintain appropriate inventory levels even when you experience seasonal variations in demand.

By diligently tracking waste throughout the inventory period and understanding the reasons behind it, you can identify opportunities to eliminate or minimize waste. Notably, a 2018 report estimates that restaurants could realize an additional $620 million in profit annually by adopting prevention solutions such as waste tracking and analytics. ​Adjusted for inflation, that’s more than $798 million in 2025!

Labor Management

Every team member plays a role in minimizing waste. Engaging employees in waste reduction programs not only helps in reducing waste but also provides an added sense of purpose, boosting engagement, retention, and overall job satisfaction. Implementing customizable digital checklists and audit reports promotes accountability and helps ensure that tasks are regularly completed as required. With the right reporting and analytics tools, you can identify your strongest performing employees and then leverage them to improve the system as a whole, reinforcing adherence to standards and best practices.

How Rosnet Helps

Reducing food waste is good for profits, your restaurant’s reputation, and the planet. Modern technology like Rosnet’s restaurant solutions makes this easier than ever by simplifying management of your inventory, employees, and budget. Rosnet’s advanced system helps you identify opportunities to manage costs and understand the most impactful areas in which to take action.

• Rosnet’s software assists new and experienced managers alike in understanding opportunities for waste reduction and determining what steps to take.
• Rosnet’s soft inventory tool lets you track actual vs. theoretical product usage by shift, daypart, or even 15-minute increments, allowing you to fine-tune your interventions.
• Rosnet has a dedicated team that builds and maintains theoretical recipe databases. This helps ensure accuracy and consistency while reducing the burden on restaurant operators. We handle the data so you can focus on day-to-day operations.
• Rosnet’s software provides prep lists and ordering recommendations to maximize productivity and prevent waste.

Learn more about Rosnet’s suite of tools for managing inventory, workers, and budgets.