Inventory Variance: The Silent Profit Killer

Operators don’t need more buzzwords—they need fewer surprises, clearer numbers, and smoother shifts.

What’s really going on

  • Variance is the gap between theoretical usage and what’s actually on hand.
  • It comes from portion drift, miscounts, spoilage, and process gaps.
  • Small variance in proteins becomes big money fast.

Common mistakes

  • Counting only monthly.
  • Not standardizing units and recipes.
  • Ignoring variance until it’s ‘really bad’.

What a better approach looks like

  1. Weekly counts on top categories.
  2. Recipe-level costing + portion tools.
  3. Variance alerts by ingredient and location.
  4. Simple manager action checklist.

Bottom line

The goal isn’t more software—it’s clearer visibility and fewer surprises.

Soft CTA: If you’re evaluating systems, prioritize visibility across POS + inventory + labor + reporting. The faster you can spot issues, the easier they are to fix.