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Inventory management

Restaurant par levels: set stock targets that protect cash and service

Set replenishment targets from usage, delivery intervals, a measured buffer and shelf life. Order only the gap after stock and confirmed deliveries.

A par level is the stock target for the time until the next delivery. Use four weeks of daily usage to estimate demand, then allow for busy services and delivery delays. A par target is a planning number, not a measure of ingredient loss.

The working method

  • Cycle stock is average daily usage × days until the next delivery. Include the supplier's lead time when deciding when to place the order.
  • Safety stock covers demand variation or a late delivery. Set it from observed peaks and delays; a 15% buffer is an example, not a universal rule.
  • Usable stock excludes expired, damaged or reserved product. Count open packs in the same unit as the purchasing record.
  • Round orders to the supplier's pack size only after subtracting stock and confirmed deliveries. Check that the rounded quantity can be used before expiry.
  • A stock target is not theoretical consumption. Investigate an unexplained consumption variance separately instead of treating usage above par as loss.

A worked example

Chicken between deliveries

The kitchen uses 18 kg per day. Deliveries are two days apart, the buffer is 15%, and chicken comes in 7 kg cases.

Cycle stock18 × 2 = 36 kgDemand until the next delivery
Safety buffer36 × 15% = 5.4 kgTarget before rounding: 41.4 kg
Practical par6 × 7 = 42 kgCheck storage and shelf life
Order today42 − 14 − 7 = 21 kg14 kg usable stock, 7 kg confirmed incoming: order 3 cases

Recalculate after a demand or delivery change. Count the stock first; ordering six cases every time would duplicate the stock already available.

Keep the routine

  1. 1Measure usage. Record daily usage for four weeks. Mark holidays, events and shortages so unusual days do not silently set the target.
  2. 2Set the coverage period. Record the delivery interval and order lead time. Confirm the next delivery date before each order.
  3. 3Count and calculate. Count usable stock, check incoming orders, then calculate the gap. Keep units and pack conversions explicit.
  4. 4Review weekly. Compare shortages, leftovers and waste with the target. Adjust the buffer for evidence, not one noisy service.

Frequently asked questions

FAQ

Is par the same as a reorder point?
No. Par is the target after replenishment. A reorder point tells you when stock is low enough to place the order, allowing for lead time.
Should every item have a 15% buffer?
No. Use observed demand and delivery risk. Perishables may need a smaller buffer or more frequent deliveries.
How often should I count?
Check high-value and perishable items weekly and complete a full month-end stocktake. Count critical items before ordering.
Can I use a spreadsheet?
Yes. Keep item, unit, usage, coverage days, buffer, par, usable stock, incoming quantity and order quantity on one sheet.

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