INVENTORY SHRINKAGE AND WASTE MANAGEMENT ON RESTAURANT OPERATIONS: ANALYSIS ON BEST PRACTICES

Abstract

Controlling inventory shrinkage and waste is vital for improving profitability and operational efficiency in the restaurant industry. Shrinkage from theft, spoilage, and errors, along with waste due to food disposal and regulatory issues, poses significant challenges. Embracing modern technology, sustainable practices, and data-driven strategies is essential to tackle these problems. Inventory shrinkage results in considerable financial losses, while inefficient operations negatively impact market share and customer satisfaction. Key solutions include just-in-time inventory, real-time tracking, and thorough staff training. Innovations in service, process, and organizational management enable tailored waste management approaches suited to diverse restaurant operations. This study underscores the need to reduce losses, optimize operations, enhance customer experience, and support environmental sustainability. This study utilized a descriptive quantitative research design to examine inventory shrinkage and waste management practices in restaurants. A total of 45 participants took part, including 40 staff members and 5 managers, with 28 females and 17 males represented. The data indicate a predominantly young and female workforce in the restaurant industry, emphasizing key demographic and operational factors. Most respondents are between 22 and 25 years old, highlighting the need for youth-centered support. Females represent the majority, revealing a gender imbalance. The workforce is primarily service-based, with waiters making up 60%, and a noticeable scarcity of managerial roles. High turnover and short tenure suggest staffing challenges. Educational attainment is mostly at the secondary and college levels, indicating limited opportunities for those with less formal education. The restaurant industry struggles with inventory shrinkage and waste management, which contribute to financial losses and lower customer satisfaction. Key solutions involve just-in-time inventory, real-time tracking, and thorough staff training. Advancements in service, processes, and organizational strategies allow waste management to be customized to meet specific needs, fostering profitability, enhanced customer experience, and environmental sustainability.