Restaurant Inventory Turnover Calculator

OPERATOR TOOL

Restaurant inventory turnover

Measure how many times inventory is used and replaced during a period, then estimate days of inventory on hand.

Formula

Average inventory = (Beginning inventory + Ending inventory) ÷ 2

Inventory turnover = Cost of goods sold ÷ Average inventory

Days on hand = Days in period ÷ Inventory turnover

Worked example

Illustrative only. With $30,000 in cost of goods sold, $10,000 beginning inventory and $8,000 ending inventory, average inventory is $9,000. Turnover is 3.33 times over 30 days and estimated days on hand are about 9 days.

How to read the result

Higher turnover can indicate inventory is moving efficiently, but very high turnover can also create stock-out risk. Low turnover can point to overbuying, slow-moving stock or weaker sales. Compare like-for-like periods and categories instead of using one universal target.

Common mistakes

• Using purchases instead of cost of goods sold.
• Mixing inventory dates from a different period.
• Using selling value instead of inventory cost.
• Comparing unlike categories or concepts without context.

Questions operators ask

Is higher turnover always better?
No. Excessively high turnover can indicate inventory is too lean for reliable service.

Should food and beverage inventory be combined?
A combined figure can be useful, but category-level turnover is usually more actionable.

Restaurant Inventory Management Basics · Dead Stock & Slow-Moving Inventory · Weekly Inventory Count Sheet