Restaurant Inventory Management Software Statistics 2024

In the fast-paced and competitive world of the restaurant industry, staying ahead of operational demands is a constant challenge. Inventory management is a critical component of a restaurant’s success, directly impacting profitability and customer satisfaction. As we enter 2024, understanding the nuances and trends in restaurant inventory management software is more essential than ever. These statistics provide an indispensable snapshot of the current business landscape and reveal how technology is reshaping the sector.

Key stakeholders such as restaurant owners, managers, and supply chain professionals will find this data invaluable. For owners and managers, leveraging effective inventory management software can mean the difference between thriving and merely surviving. Suppliers and vendors can also benefit from understanding these trends, as it helps in aligning their offerings with the specific needs of restaurants. The ripple effect of efficient inventory management through software not only optimizes operations internally but also enhances customer experience by ensuring menu availability and reducing wait times.

The insights provided by these statistics are not just numbers; they are a beacon guiding strategic decisions in a rapidly evolving industry. Whether you are looking to implement new software solutions or optimize existing ones, this data will inform your strategy and help you remain competitive. As we delve deeper into the specifics, the importance of staying informed and agile in inventory management becomes increasingly clear, ensuring your restaurant’s continued success in 2024 and beyond.

Check our review: Best LLC Service, LegalZoom LLC Reviews, ZenBusiness Reviews, NorthWest Registered Agent Reviews

Top Restaurant Inventory Management Software Statistics 2024

☰ Use “CTRL+F” to quickly find Restaurant Inventory Management Software facts. There are total 78 Restaurant Inventory Management Software Statistics on this page 🙂

Common Errors And Solutions

• Manual systems introduce errors when taking inventory and make kitchen management and customer service more challenging. ^[?]
• Up to 10% of food restaurants buy is thrown out before it ever reaches the consumer. ^[6]
• Many restaurants struggle to make a profit due to challenges in inventory and food cost management. [5] ^[6]
• According to the National Restaurant Association, 75% of restaurants struggle to make a profit due to inventory and food cost management challenges. ^[5]
• So much so that the average human error rate for inventory management in restaurants is at 5%, meaning one single restaurant can be losing hundreds and even thousands a month on human error alone. ^[5]
• This translates to an average of 10% of food restaurants purchase never even making it on a plate, a loss that restaurants will never get back. ^[5]
• According to data from the National Restaurant Association, 75% of restaurants struggle to make a profit due to challenges of inventory and food cost management. ^[5]
• 95% of restaurant owners admit that tech helps overall efficiency and many have opted to use some type of inventory management software. ^[5]
• 100% of surveyed establishments increasing their urgency to adopt transformational technologies. ^[6]
• Up to 10% of food restaurants buy is thrown out before it ever reaches the consumer. ^[6]
• These situations are likely and deserve attention, considering that foodborne diseases cause 48 million illnesses a year, according to CDC estimates. ^[6]
• As much as 75% of restaurants struggle financially due to food costs. ^[6]

Benefits Of Inventory Management Software

• Automated inventory management systems can provide automated revenue analysis and cost of goods sold (COGS) reports. ^[1]
• Inventory management gives managers a full view of the supply chain, allowing them to synchronize delivery lead times with production schedules. ^[7]
• Restaurants that use analytics have seen a 5-10% revenue boost, a 15% dip in operating costs, and up to 20% improved EBITDA. ^[12]
• Strong inventory software helps restaurant owners make more informed and data-driven strategic decisions by allowing them to better predict sales and consumer demand patterns. ^[7]
• Technology makes ordering an automatic process, allowing managers to maintain a record of the inventory, while conserving effort and time and removing concerns about stocks running out or spoiling. ^[7]
• Food safety can be addressed with the use of inventory management and supply chain management systems. ^[7]
• A business owner is notified instantly if an inventory count is incorrect or if another inventory-related problem emerges, allowing immediate action. ^[7]
• With the aid of inventory management software, a restaurant can significantly increase profits by reducing food waste and expenses. ^[7]
• Improved inventory management with MarketMan reduces food costs by an average of 4%. ^[16]
• MarketMan customers report an average of 2-5% in lower overall food costs. ^[16]
• Using a dedicated restaurant inventory management software can help reduce inventory mistakes and overstocking by 17%. ^[20]

Check our llc formation guides: Florida LLC, California LLC, Texas LLC, New York LLC, New Jersey LLC, Georgia LLC

Key Statistics And Trends

• According to a survey by Toast, over 50% of restaurant operators use some form of inventory management software to track and manage their inventory. ^[18]
• Inventory accuracy in U.S. retail operations is 63%. ^[19]
• By implementing digital transformation initiatives, it is projected that between 10% to 12% of emissions from logistics activities could be reduced by 2025. ^[19]
• Proper inventory management can help reduce food waste, which is a major problem in the restaurant industry, with an estimated 30-40% of the food supply ending up in the trash. ^[18]
• A study by the National Restaurant Association found that restaurants that effectively manage their inventory have a food cost that is 3-5% lower than those that do not. ^[18]
• According to the Food Waste Reduction Alliance, up to 10% of food inventory in restaurants is wasted, meaning that 10% of their food cost will not generate revenue. ^[18]
• 43%, a considerable number, of small businesses need to actively monitor their inventory. ^[19]
• Approximately 73% of warehouses have plans to implement mobile inventory management solutions. ^[19]
• The global inventory management software market size was valued at USD 2.13 billion in 2023 and is projected to grow to USD 4.84 billion by 2032, with a CAGR of 9.7% during the forecast period. ^[8]
• SaaS dominates the global market with a market share of 84.4%. ^[14]

Implementation And Adoption

• 100% of surveyed establishments increasing their urgency to adopt transformational technologies. ^[6]
• Restaurants already recognize the need for tech adoption, with 100% of surveyed establishments increasing their urgency to adopt transformational technologies. ^[6]
• The restaurant inventory management software market is growing at a CAGR of 13.1% from 2024 to 2034. ^[14]
• The enterprise software market was valued at $370B+ in late 2024. ^[9]
• According to Gartner, 57% of retail enterprises will increase investments in software in 2024. ^[15]
• Digital transformation can result in productivity gains of 14 to 15% and cost reductions of 4 to 6%. ^[21]

Challenges And Solutions

• Manual systems introduce errors when taking inventory and make kitchen management and customer service more challenging. ^[1]
• Inventory misjudgments kept 50% of US retail decision makers from more full-price sales. ^[3]
• According to the National Restaurant Association, 75% of restaurants struggle to make a profit due to inventory and food cost management challenges. ^[5]
• Inventory management solutions can bridge the remaining 10% gap by giving customers the opportunity to select alternative items or substitutes as they shop. ^[2]
• A McKinsey report states that the recommendation algorithm accounts for 35% of the online retailer’s sales. ^[3]
• Consumers return roughly 20-30% of the goods they buy online while they only return 8.89% of goods bought at brick-and-mortar stores. ^[3]

Future Outlook And Market Projections

• The market for inventory management software is expected to reach USD 7,516.8 million by 2034. ^[14]
• The global inventory management software industry is expected to grow at a CAGR of 13.1% during the forecast period. ^[14]
• The market is projected to reach USD 4.84 billion by 2032. ^[8]
• The market is projected to record a CAGR of 9.7% during the forecast period. ^[8]
• The global inventory management software market is expected to be worth USD 2,191.2 million by 2024. ^[14]

Adoption And Impact

• Restaurants that use analytics have seen a 5-10% revenue boost, a 15% dip in operating costs, and up to 20% improved EBITDA. ^[12]
• The adoption of AI and IoT technologies has enabled businesses to improve logistics costs by 15%, inventory levels by 35%, and service levels by 65% compared to slower-moving competitors. ^[19]
• According to Gartner, 57% of retail enterprises will increase investments in software in 2024. ^[15]
• AI-enabled supply chain management has enabled businesses to improve logistics costs by 15%, inventory levels by 35%, and service levels by 65%, compared to slower-moving competitors. ^[22]

Inventory Management Software Features And Integrations

• Toast is also a cloud-based software that allows users to manage their inventory, sales, and supply chain on the go via the mobile app. ^[1]
• The Core plan supports inventory management for an additional charge of $99 per month. ^[7]
• Inventory, accounts receivable, and accounts payable account for $1.1 trillion in assets. ^[17]
• Warehouse space in the United States costs about $5.08 per square foot. ^[17]
• American retailers carry about $1.43 in inventory for every $1 of sales. ^[17]

Financial Impact And Cost Management

• Proper inventory management can help reduce food waste, which is a major problem in the restaurant industry, with an estimated 30-40% of the food supply ending up in the trash. ^[18]
• The average food cost percentage for a fine dining restaurant is 35%, while the average food cost percentage for a casual restaurant is 25%. ^[4]
• The typical range for food costs in a restaurant is between 28% and 35% of revenue, but there is no universal food cost percentage that guarantees profitability for a restaurant. ^[11]
• So much so that the average human error rate for inventory management in restaurants is at 5%, meaning one single restaurant can be losing hundreds and even thousands a month on human error alone. ^[5]
• According to the National Restaurant Association, 75% of restaurants struggle to make a profit due to inventory and food cost management challenges. ^[5]

Future Trends And Innovations

• As we venture into 2024, IoT sensors hold the potential to reshape supply chains, elevate customer experiences, and set new benchmarks for operational excellence. ^[13]
• In 2024, blockchains immutable nature will reshape inventory management by ensuring unprecedented traceability and authenticity. ^[13]
• As 2024 unfolds, predictive analytics stands as a lighthouse guiding businesses through the ever-shifting currents of supply and demand, fostering operational efficiency and elevating customer satisfaction. ^[13]
• In the landscape of 2024, cloud-based inventory systems are a cornerstone of modern, agile, and data-driven inventory management strategies. ^[13]
• In the evolving landscape of 2024, advanced simulation models pave the way for strategic inventory management, ensuring efficiency, cost savings, and customer satisfaction. ^[13]

Adoption Challenges And Solutions

• Lack of trained staff is the most significant challenge for implementing digital inventory technologies. ^[10]
• According to Gartner, 57% of retail enterprises will increase investments in software in 2024. ^[15]
• The market for inventory management software is expected to reach USD 7,516.8 million by 2034. ^[14]
• The inventory management software market generated an estimated revenue of USD 1,165.0 million in 2019. ^[14]

Operational Efficiency And Cost Savings

• An international study found that for every $1 restaurants invested into programs to reduce kitchen food waste, they saved $7 in operating costs, on average. ^[11]
• Another study found that commercial kitchens typically waste 4% to 10% of the food they purchase before it ever reaches the customer’s plate. ^[11]
• Proper inventory management can help reduce food waste, which is a major problem in the restaurant industry, with an estimated 30-40% of the food supply ending up in the trash. ^[18]
• According to the Food Waste Reduction Alliance, up to 10% of food inventory in restaurants is wasted, meaning that 10% of their food cost will not generate revenue. ^[18]
• The market for inventory management software is expected to reach USD 7,516.8 million by 2034. ^[14]

Also Read