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Does your company need a new inventory management system? Common signs that suggest it’s time to make a change include the following:

1) Running Out of Inventory


If you are frequently running out of stock, you need a better way to track your inventory.  Under-ordering, a major contributor to this problem, stems from inventory systems that do not provide accurate data.  These inaccurate systems result in products being ordered inaccurately, causing shortages and surpluses.  Continuously running out of stock is an issue that should not be taken lightly.  It will lead to many missed opportunities to sell to your customers.  The right inventory management software will quickly show you an accurate representation of the type of products you have in inventory as well as how many of those products, keeping your stress level under control, purchasing orders carefully placed, and your customers happy.

 
2) Overstock Issues 

There are just as many costs and margin ramifications of having overstock situations as there are in running out of inventory.  A balanced approach to acquiring stock is crucial for a successful business and to ensure you are not overspending on filling your warehouse.  If those in charge of your purchasing do not have a proper inventory management system to rely on they will not purchase appropriate quantities of products.  Being overstocked may force you to sell products at a loss in order to clear your warehouse in preparation for new product arrival.  A good inventory management system will empower your business with the tools it needs to forecast the right levels of stock and utilize comprehensive sales forecasts.  It will pay your business dividends in the future.

 

3) Manual Counting is a Frequent Occurrence

Manually checking the accuracy of your inventory and auditing for potential discrepancies can be a useful exercise that should be done periodically but should certainly not be a frequent undertaking.  If you are solely relying on manual counts to gain an understanding of your inventory, it can become a very tiresome and time-consuming task.  You and your team are only human – mistakes are bound to happen.  The proper inventory management software will keep your manual inventory counts to a minimum and encourage a much more efficient and accurate tracking of your products.

4) Ongoing Questions About Quantities or Values


Not knowing the details of your company’s inventory is a sure sign of needing a new inventory management system.  If you have frequent questions about your quantities or values it means you do not have access to the level of reporting that you need.  With the appropriate inventory management software, you will have access to the right reports to enable you to make strategic decisions that impact your supply chain.  You should be able to quickly and easily see reports to show what you have now, what you have used, what you did with it, etc.

 

5) You Are Buried in Work

A good inventory management system gives you the ability to control and stay on top of all things inventory.  The benefits of having everything under one system are immense.  This means ease of access, less clutter, and more structure in your operations. It also means that almost every change in your inventory will be recorded and stored, drastically reducing any margin of error.

 

In conclusion, a good inventory management system takes care of your front end, back end, and everything in between.  It can introduce speed and energy into your business and increase current revenue and profit margins while providing new growth opportunities.

 

Fytics inventory management system will help you solve all the above problems!

Manual counting will be almost completely eliminated and inventory time reduced by up to 60%.  Average inventory accuracy levels are 98%, ensuring you always know what products you have in stock and how much of each.  By implementing Fytics’ system and having access to this essential information, you will be able to save up to 30% in food costs.


Sources:

https://www.calszone.com/2015/10/5-signs-you-need-better-inventory-management-software/
http://indianonlineseller.com/2016/01/5-signs-you-need-an-inventory-management-system/
https://www.jestais.com/11-signs-time-to-retire-inventory-management-software/
https://www.advantage.co.uk/blog/the-frontline/5-signs-your-business-needs-an-inventory-management-system/

 

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History

The history of the world-famous hamburger is certainly not transparent. Different stories are told from different areas around the world, all claiming to have formulated the world’s first burger.

In the 1880s, a man named Fletcher Davis is said to be the first to create the hamburger in Athens, Texas. The story describes Davis bringing his invention to the World’s Fair in St. Louis in 1904, where the invention took off and became an American icon.

In New Haven, Connecticut, Louis Lassen is said to have invented the hamburger in 1900. The Lassen family swears the invention of the hamburger is part of their family heritage. The Library of Congress agrees that Lassen invented the burger when he put scraps of ground between slices of bread for fast and easy eating.

The town of Seymour, Wisconsin, also claims to be the original home of the hamburger; their story seeming just as reasonable as the others.

In addition to these various invention theories, another issue is that large – scale spread of the burger occurred due to small vendors quickly coming and going at the World’s Fair. It is very possible that many different people developed the idea at overlapping times in different locations.

Although many claim to be the creator of the hamburger, there is little historical documentation, causing its creation destined to remain a historic debate.

Industry Demand

Despite not knowing who invented the hamburger, its popularity is high, and its sales are growing faster than the US economy. Revenues were an impressive $200 billion in 2015 – a considerable amount of growth since the 1970 revenue of $6 billion. The industry is expected to continue this forward motion, having an annual growth of over 2% for the next several years.

For the first time in five quarters, McDonald’s, Burger King, and Wendy’s recorded same-store sales increases of greater than 3 percent. The US GDP hasn’t produced an annual increase of 3 percent or greater in the last 10 years.

Globally, fast food generates revenue of over $570 billion – an amount greater than the economic value of most countries. There are over 200,000 fast food restaurants in the United States and nearly 50 million Americans are estimated to eat at one of them every single day. The market continues to be dominated by hamburger – based restaurants, accounting for over 30% of industry sales. These statistics provide great promise for the industry, now and in the future.

 

The Healthy Trend

Increased demand for organic and grass-fed beef, especially by millennials, has created a premium segment where restaurants are reaching out to those willing to pay more for better-tasting, healthier burgers. One expert reported that revenues for this “better burger” market could double to $10 billion by 2021, outpacing growth in regular burgers. Current sales at companies offering gourmet burgers, which typically use fresh meat and often include exotic ingredients, jumped 15% over 2014 to $5 billion. Even McDonald’s is considering fresh beef instead of frozen paddies for its burgers, testing its success in 14 of their Dallas restaurants.

This market segment offers ample room for growth. The most prominent gourmet burger stores such as Five Guys and Smashburger total fewer than 2,500 globally, compared with more than 50,000 outlets collectively operated by McDonald’s and Burger King.

 

The opportunities are available and thriving, the only obstacle to your burger success is yourself!  

 

Sources:

http://abcnews.go.com/WNT/story?id=2856336

https://www.franchisehelp.com/industry-reports/fast-food-industry-report/

http://www.businessinsider.com/burger-sales-are-slowing-2016-6

http://www.reuters.com/article/us-usa-beef-burgers/taste-for-gourmet-burgers-seen-heating-up-u-s-beef-demand-idUSKCN0YN5VJ

http://nypost.com/2017/08/09/fast-food-sales-are-growing-faster-than-us-economy/

https://www.cnbc.com/2017/07/05/beef-sales-heat-up-as-burgers-gain-popularity-and-prices-fall.html

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Fast food or quick service restaurants have been around for quite some time, probably even longer than you would expect! We all have our favourites, our go to’s on a ‘cheat day’, that one you just crave when you are hungover or too lazy to cook. Now this isn’t another blog post telling you about the benefits of going gluten free or what to or not to eat. Today we’re aiding in your procrastination bringing you some fun facts about QSRs or fast food restaurants and the industry.

1) The ever so popular White Castle (made even more popular by the film Harold and Kumar Go to White Castle) was founded all the way back in 1923 and is widely considered the first fast food restaurant.

2) KFC created a successful marketing campaign over 40 years ago, that resulted in the restaurant becoming a popular destination for Christmas dinner in Japan.

3) Approximately nine out of 10 American children visit a McDonald’s restaurant every month.

4) Today, Coca-Cola and PepsiCo products are sold in every country in the world, except North Korea.

5) Quick service restaurants in the United States waste an average of 85,063,390 pounds of food every single day. Canadians waste a staggering $31 billion in food every year.

6) McDonald’s is one of the largest owners of real estate in the world and it earns the majority of its profits from collecting rent, not from selling food.

7) In 1965, Fred De Luca and family friend Dr. Peter Buck started a restaurant called Pete’s Super Submarines. It later underwent a name change. Today, with just under 45,000 restaurants, Subway is considered the largest quick service restaurant chain in the world.

8) Television greatly expanded advertisers reach to reach children as a common goal of theirs is to develop brand loyalty early in life. Today the average American child sees more than 10,000 food advertisements each year on television alone.

9) McDonald’s is the largest employer in Brazil.

10) Harland Sanders who later became the famous Colonel Sanders once discovered a business rival, Matt Stewart, painting over one of his signs. Stewart pulled a gun and shot Saunders’ business associate killing him. Saunders shot Stewart but didn’t kill him. In the end only Stewart ended with a murder conviction. The history of quick service restaurants development throughout the world is truly incredible. Today thousands exist, when a century ago the industry was non existent. Take a look at our timeline that highlights the history of quick service restaurants throughout the last century.

To see our full scale infographic click HERE.
If you have any questions or would like to use our infographic, contact us through the email below! info@fytics.com

Sources:
https://www.factretriever.com/fast-food-facts
http://www.oola.com/restaurants/5402/17-interesting-facts-about-fastfood-chains-that-you-probably-didnt-know/ https://www.buzzfeed.com/awesomer/facts-food?utm_term=.nt045QVwok#.vyE5GmkRlo http://www.historyoffastfood.com/fast-food-facts/interesting-facts-about-fast-food/
http://www.biomasspackaging.com/facts-on-fast-food-waste/ http://globalnews.ca/news/2075857/food-waste-at-record-levels-as-other-canadians-go-hungry/
https://www.statista.com/statistics/469379/number-of-subway-restaurants-worldwide/
http://gizmodo.com/no-colonel-sanders-never-killed-a-man-in-a-shootout-1651797965
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Fast food employees have one of the highest turnover rates of any other job in America. While it’s not incredibly surprising, many quick service restaurant managers may be unaware of the great cost of employee turnover.


If you’re still hand counting your inventory, human error is inevitable. Add the factor of new employees responsible for following loose inventory guidelines and you could be in deep trouble.


Properly managing your inventory, from end to end, can save your restaurant money, increase efficiency and reduce your bottom line. “A properly managed and maintained kitchen feels fluid all around. The flow of forecasting, ordering, quality control, and inventory directly relates to the quality and consistency of dishes produced as well as customer satisfaction. If proper practices are not followed, it can be detrimental to the clientele, profits, and the reputation of the restaurant.” – Benjamin Ringer, Sous Chef, The Boathouse on the Bay, Long Beach, California.


According to the State of Small Business Report, 43% of small business owners still manage their inventory with pen and paper, a spreadsheet or don’t take the time to manage inventory at all. This can lead to a number of problems like running out of inventory in a rush, spoilage and waste from over ordering and a lack of knowledge and control over the restaurant as a whole. This can translate to lost sales, angry customers and a whole lot of wasted time and money.


While a specialized inventory management system isn’t necessary for all restaurants, an easy-to-use system like Fytics, reduces employee inventory tracking time by 90% while giving business owners real time access to inventory and automatic re-order right from their smartphone or desktop.


Whether you choose to stick with manual inventory management or upgrade to an automated system, following a set of best practices can help you maintain control and costs.


Here Are Our 10 Best Practices for Restaurant Inventory Management:

  1. Categorize and Organize. Knowing where things are and being able to access them quickly increases sales and keeps your workforce on task. You might consider adhering labels to your shelves to identify what’s stored there, drawing out a map of the stockroom or creating a spreadsheet. Try chunking your inventory into groups (dry goods, freezer, refrigerator, paper supplies, office supplies, uniforms, etc.) to make it easier to locate what’s needed quickly.
  2. Maintain a Low Stock Inventory. With proper planning and foresight, a restaurant can keep a minimum inventory of just what’s needed until the next shipment. Effective inventory management will help you reduce your up front inventory investment, prevent spoilage and waste associated with over ordering and reduce space required for inventory storage. By storing less excess inventory, you may find extra space for a new dishwasher to increase efficiency or an extra table to increase your capacity.
  3. Monitor Sell Through. Like maintaining a lower inventory supply, monitoring sell through takes practice, but can be extremely beneficial during peak times/seasons. Proper planning and management will allow you to predict when things will run out and always have back up ready. Don’t lose sales to poor planning.
  4. Track All Inventory. Regardless of whether you have a specialized inventory management system or run on a paper spreadsheet, be sure you are tracking everything that comes in and out, every time. This is where an automated system shines. With the Fytics system, receiving new inventory is easy. Simply scan each item and fill out the name, number and quantity to add it to the system. Once the item has been added, the system will remember and automatically add it to the inventory on the next scan.
  5. First In, First Out (FIFO). To avoid spoilage, expiration or obsolete product, always use product that arrived first. This is easy to manage by taking the extra time to organize inventory when it arrives. Scoot old inventory up on the shelves and place the new inventory behind the old so that your employees automatically reach for the older stuff first.
  6. Do a Yearly Inventory Count. Yes, it can be painful, but doing a full count at least once a year solves a lot of problems. Plan your inventory count during a slow time for your restaurant, when all employees can be fully available to help. Make a plan for your inventory count ahead of time to avoid mistakes, and don’t forget to make it fun for your employees. Below are a few suggestions for your inventory count day:
    1. Set proper expectations of your employees ahead of time.
    2. Be prepared with all the necessary supplies: paper, pens, clipboards, barcode readers, snacks, drinks, etc.
    3. Organize the stockroom ahead of time so all inventory can be accessed and counted quickly. That may require moving things around or bringing boxes out of storage closets. You may find it helpful to make a map of the stockroom to avoid confusion.
    4. Divide employees into small groups as too many people can complicate counting. Assign each person a task – first counter, second counter, data recorder, etc.
  7. Quality Control. Hold your employees accountable for checking inventory before signing for it. A checklist can help employees remember to check for all aspects of food and equipment orders that are important to you. Taking time to check the inventory right when it arrives minimizes downtime later.
  8. Repeat Orders. Most restaurants reorder the same things on a regular basis, but waste time in finding that product and ordering it like the first time each time. Develop and follow a system for tracking tags and details to place easy repeat order rather than sourcing inventory each time. An automated system, like Fytics, makes it easy to set automatic re-order points and track food usage levels.
  9. End-to-End Plan. Smart business owners look at the whole picture. Always know where you’ve been and where you’re going rather than making it up as you go. Read about and/or ask other business owners for their best practices in inventory planning or invest in a system to streamline and simplify the process. Having a plan and always knowing where you are in the process, will ease the stress of managing a busy restaurant.
  10. Forecast Demand. Proper business planning and insight will allow you to predict your busy times and what will fly off the shelves quicker. Be prepared and adjust your inventory ordering for your busy times accordingly to avoid lost sales from low inventory or waste from excess inventory.


The Fytics system has been intuitively designed to let restaurant owners know and work with their food inventory every single day, while decreasing the time required for doing so. Beyond knowing and accessing inventory in real time, Fytics empowers owners to track ingredients and increase profitability like never before. The system is extremely easy to set up and allows employees to be trained in less than 4 minutes, completely eliminating the nightmare of high turnover.


So what are you waiting for? Save money, increase efficiency and reduce your bottom line with an automated inventory management system.

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