In the food service industry, FIFO (First In, First Out) is the most commonly used inventory management system. But what is FIFO, and why is it so important?

FIFO, or first in, first out, is a term most commonly used in the restaurant industry. It’s a food safety method that helps to ensure that the oldest food is used before the newer food. This system is important because it helps to prevent waste and keep food fresh. 

In this article, we will explore the FIFO system and how it works. We will also discuss the benefits and challenges of using this system.

What is fifo in food

What Is FIFO?

FIFO stands for first in, first out, and it’s a fundamental inventory management principle. In a nutshell, FIFO says that the oldest items in your inventory should be the first ones to be sold.

It’s important to implement FIFO in your restaurant because it helps ensure that you’re always selling the oldest items in your inventory. This is crucial for two reasons. First, it prevents food from going bad. And secondly, it ensures that you’re making a profit on the items you’re selling.

If you’re not using FIFO in your restaurant, it’s important to start. It’s a simple principle that can greatly impact your bottom line.

Why is FIFO Important?

Following the FIFO system in your restaurant can help to ensure that food is fresh and that waste is minimized. It’s important to train all staff on the system and to have a plan in place for dealing with expired items.

When it comes to using FIFO in your restaurant, there are a few things you can do to make sure things run smoothly. Here are some tips:

  1. Keep track of all your inventory. This includes keeping detailed records of what you have on hand, as well as what has been used and needs to be replenished. This readily available information will help you stay on top of things and ensure that you’re using FIFO correctly.
  2. Make sure your staff is trained on how to use FIFO. This includes both front-of-house and back-of-house staff. Everyone needs to be on the same page so that there is no confusion when it comes time to restock or serving items.
  3. Use storage methods that allow for easy access to older items. This could mean utilizing shelves or bins labeled with dates, so you can quickly grab what you need without searching through everything.
  4. Have a plan in place for dealing with expired items. This way, you can avoid throwing away perfectly good food because it wasn’t used in time. Maybe consider donating expired items to a local food bank or soup kitchen instead of throwing them away.

By following these tips, you can ensure that FIFO is used correctly in your restaurant.

FIFO Procedure

The FIFO (first-in, first-out) procedure is the most widely used and accepted method. This system can be used in both small and large restaurants but is most commonly used in larger establishments where there is a greater volume of customers and more dishes being prepared. 

In these cases, it is important to have a system in place so that all customers receive their meals quickly and efficiently.

When it comes to FIFO, you need to apply it in your day-to-day operations. Here’s how:

  1. Make sure you clearly understand what FIFO is and what it means for your restaurant.
  2. Create a system for tracking your inventory.
  3. Implement the system and stick to it.
  4. Train your staff on how to use the system and what it means for them.
  5. Periodically review your system and make changes as needed.

How to Apply FIFO Practice in Restaurants?

Using the FIFO system is important because it helps you keep track of your stock and makes sure that you’re not overstocking any items. It also enables you to plan for future orders because you can see which items are being used the most and need to be replenished.

There are a few ways to apply the FIFO system in your restaurant. One way is to use physical inventory tags, which you can use to track items as they come in and go out. 

You can also use a software system like KNOW, which will help you digitize all your processes with automated forms, checklists, and workflows to ensure you’re always saving time and money.

Pros of FIFO

There are pros and cons, but for the most part, FIFO is considered more fair and accurate. It’s also the default method for most inventory management software programs.

There are many benefits of using the FIFO inventory management system in restaurants. Here are just a few:

  • It helps you regulate your stock and avoid overstocking.
  • It prevents food wastage and saves you money.
  • It ensures food safety and hygiene standards are met.
  • It helps with budgeting and forecasting.
  • It makes stocktaking and stock management easier.

Overall, FIFO provides a number of advantages that can help your restaurant run more smoothly and efficiently.

Cons of FIFO

When it comes to the cons of FIFO, you need to be aware that it can be a little bit complicated to get started. And if you’re not careful, you can easily lose track of what’s been used and what hasn’t.

Another downside is that if you’re unable to use up the old items soon enough, sometimes newer items can go bad before they’re used.

But with a little organization and planning, you can make FIFO work for your restaurant. And the benefits outweigh the cons.

How can you make sure your employees are using FIFO correctly?

In any business, but particularly in the restaurant industry, it is important to use the First In, First Out (FIFO) method to ensure that food is being used before it goes bad. The FIFO method means that the first food item to arrive should be the first one used. This prevents waste and helps to keep food costs down.

There are a few ways to ensure your employees are using FIFO correctly. 

  • First, train them on the importance of this method and why it should be followed. 
  • Next, put procedures in place so there is a system for tracking when food items come in and when they are used. This could include using date-coded labels on all containers of food items. 
  • Finally, regularly check in with employees to ensure they follow the system and address any issues that arise.

By taking these steps, you can help to ensure that your employees are using FIFO correctly and preventing food waste in your restaurant.

Final Thoughts

To have a successful restaurant, you need an organized and efficient restaurant management system. 

With KNOW, you can manage and track multi-location restaurant operations anytime, anywhere, right from your mobile phone. You can even digitize work rosters, staff attendance, checklists, audits, paperwork, and much more!  

To know more about KNOW and how it can help you streamline your restaurant operations, book a free demo today.

Categories: Uncategorized