For hospitality businesses, managing stock efficiently is one of the most important aspects of running a profitable operation. Whether you run a pub, restaurant, hotel, or bar, knowing exactly what stock you have on-site and how quickly it moves can make a huge difference to your bottom line. But why is stocktaking so important, and how often should it be done?
Why Stocktaking Matters
Stocktaking isn’t just about counting what you have in storage. It’s a crucial process that helps businesses:
- Reduce Waste and Losses – Without regular stock checks, hospitality businesses risk over-ordering perishable items, leading to unnecessary waste. Additionally, untracked stock is more vulnerable to theft, mismanagement, and discrepancies.
- Improve Profitability – Keeping an accurate record of stock helps businesses understand usage patterns and avoid unnecessary purchases, ensuring they maximise margins.
- Enhance Compliance and Accuracy – Many businesses are required to provide regular financial reporting, and incorrect stock levels can impact profit calculations. Ensuring stock figures are correct supports compliance with accounting and regulatory requirements.
- Prevent Stock Shortages – Running out of key ingredients or beverages at peak times can frustrate customers and impact revenue. Regular stocktakes ensure stock levels remain consistent and aligned with demand.
- Streamline Ordering and Supplier Management – Understanding stock movements allows businesses to place orders more efficiently, negotiate better supplier terms, and prevent overstocking or understocking of key items.
How Often Should Hospitality Businesses Do a Stocktake?
There is no one-size-fits-all answer, as the frequency of stocktakes depends on the size and type of the business, as well as the volume of stock turnover. However, general guidelines include:
- Weekly or Bi-Weekly Stocktakes – Ideal for high-turnover products such as fresh food and popular beverages, helping prevent wastage and maintain accurate order levels.
- Monthly Stocktakes – Useful for monitoring general stock levels, tracking trends, and identifying discrepancies before they become significant issues.
- Quarterly or Annual Stocktakes – A full business-wide audit should be done at least once a year to ensure financial reporting is accurate and to identify long-term trends.
- Ad-Hoc Spot Checks – Random audits on specific high-value or high-risk items (such as premium spirits) help detect theft or stock mismanagement.
Why Consider an External (Independent) Stock Auditor?
While many businesses attempt to manage stock internally, bringing in an independent stock auditor can provide significant advantages:
Unbiased Views – An independent auditor provides an objective assessment of stock levels, free from internal bias or oversight errors.
Cost and Time Savings – Stocktaking is a time-consuming task. Outsourcing it frees up staff to focus on customer service and operations rather than administrative duties.
Professional Insight – Specialist auditors bring years of industry experience and best practices, ensuring stock control is as efficient and accurate as possible.
More Analytical Data – External auditors provide detailed reports with actionable insights, helping businesses make informed decisions about ordering, pricing, and waste reduction.
Additional Services – Many independent stock auditors offer complementary services such as health and safety reviews, mystery guest reviews, auditing, and operational consultancy, helping businesses improve in multiple areas beyond just stock control.
“Using an independent stock auditor isn’t just about checking numbers, it’s about gaining expert insight that can enhance profitability and reduce risk,” says Marcus Jones, MD at Capcon. “With rising operational costs, having a clear and accurate understanding of stock levels is more important than ever.”
Best Practices for an Effective Stocktake
To get the most out of a stocktake, hospitality businesses should follow these best practices:
- Use Stock Management Software – Digital tracking tools improve accuracy, speed up the stocktaking process, and reduce human error.
- Train Staff Properly – Ensuring staff understand the importance of stock control leads to more precise counts and better reporting.
- Set a Schedule and Stick to It – Regular stocktakes help create a culture of accountability and reduce the risk of stock inconsistencies.
- Count Before Deliveries – Always conduct stocktakes before new stock arrives to get an accurate figure of what is being used.
- Monitor High-Risk Items – Keep a close eye on expensive, high-turnover, or theft-prone items like alcohol and premium ingredients.
- Compare Results Against Sales Data – Checking stocktake results against sales reports can highlight discrepancies and pinpoint potential losses.
How Capcon Can Help
At Capcon, we specialise in helping hospitality businesses take control of their stock through professional stock control audits, stock taking services, inventory management solutions, mystery guest reviews and staff and management training. Our expert team ensures that businesses maintain optimal stock levels, reduce waste, and increase profitability.
If you need support in streamlining your stock management processes or conducting professional stocktakes, contact us.
