How Inventory Leakage Hurts Your Restaurant (And How to Stop It)
Food wastage and inventory theft can drain 20-30% of your profits. Learn proven strategies to plug inventory leaks in your restaurant using smart software.
How Inventory Leakage Hurts Your Restaurant
Inventory leakage is the silent destroyer of restaurant profitability. Most restaurant owners know it's happening — but don't know exactly where or how much.
What Is Inventory Leakage?
Inventory leakage refers to the difference between your theoretical inventory (what you should have based on purchases and sales) and your actual inventory (what's physically present).
Common causes:
The Financial Impact
In a restaurant doing ₹15 lakh/month in revenue, inventory leakage of just 15% represents ₹2.25 lakh/month in lost profit. That's ₹27 lakh per year.
How Covixo Stops Inventory Leakage
Covixo's inventory management system tracks stock at the ingredient level:
1. **Recipe-based deduction**: Every order sold automatically deducts the exact ingredients used
2. **Variance reports**: Daily comparison of theoretical vs actual stock
3. **Vendor reconciliation**: Match delivery notes against purchase orders
4. **Wastage logging**: Staff log wastage in real time with reasons
5. **Low-stock alerts**: Never run out of key ingredients during service