Why GTINs and SKUs Don't Mesh Well with the Restaurant Industry: A Further Insight

Doyo - DoYourOrder Why GTINs and SKUs Don't Mesh Well with the Restaurant Industry: A Further Insight

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In the bustling world of restaurants, where every second counts and inventory fluctuates with each order, the introduction of Global Trade Item Numbers (GTINs) and Stock Keeping Units (SKUs) might seem like a logical step towards modernization. However, the operational dynamics of restaurants present unique challenges that make the practicality of implementing GTINs and SKUs questionable.

The Nature of Restaurant Inventory

The inventory in restaurants is vastly different from retail stores. Ingredients are often perishable, come in bulk, and are used in varying quantities. This variability makes assigning a fixed SKU or GTIN impractical. For instance, assigning a SKU to a tomato when its usage is dependent on the dish being prepared introduces unnecessary complexity.

Moreover, the transformation of ingredients into dishes adds another layer of complexity. Should a final dish have its own SKU, and how do we account for variations in recipe execution? These questions highlight the impracticality of applying retail-focused inventory systems directly to restaurants.

The Complexity of Tracking

Implementing SKUs or GTINs in restaurants would require an extensive system to track each ingredient, a task that is both time-consuming and prone to error. The fast-paced environment of a restaurant, where inventory levels can change drastically within a single service period, makes maintaining such a system a logistical nightmare.

A Tailored Solution: Do Your Order's Restaurant-Focused Inventory System

Recognizing the limitations of traditional inventory systems in the restaurant industry, Do Your Order developed a revolutionary inventory management system specifically designed for restaurants. This system moves beyond the constraints of SKUs and GTINs by attaching Cost of Goods Sold (COGS) and ingredients directly to each product sold. This innovative approach allows restaurants to:

- Avoid Stock Outs: By closely monitoring ingredient usage and predicting future needs, restaurants can ensure they always have the necessary ingredients on hand, avoiding the operational disruptions caused by stock outs.

- Understand Product Margins: With COGS and ingredients tied to each dish, restaurants gain immediate insight into the profitability of each menu item. This information is crucial for menu planning and pricing strategies, ensuring that restaurants can maintain healthy margins while delivering value to their customers.

The Bottom Line

While the precision and efficiency of SKUs and GTINs are undeniable in the retail sector, their application in restaurants is not only impractical but could potentially add unnecessary complexity to an already challenging operation. The introduction of Do Your Order's restaurant-focused inventory system represents a significant advancement, offering a solution that is both practical and tailored to the unique needs of the restaurant industry.

In conclusion, the focus for restaurants should not be on adapting retail inventory systems but on embracing solutions like Do Your Order's, which enhance efficiency and flexibility, allowing them to continue delivering the high-quality service and culinary experiences their customers expect.

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