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What does PAR level mean and how it will make inventory management easier?

Monika Kamińska

Monika Kamińska - marketing and communication enthusiast, psychologist by education. For almost 20 years he has been working in areas related to marketing activities, customer path and decision making. Experience has taught her that the most important thing is efficiency. She boldly sets goals and implements them by choosing online and offline tools. Her passion is the analysis of customer behavior and content marketing.

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PAR levels are the minimum and maximum amounts of a given item that a restaurant should have on hand at any given time. PAR levels are determined by a variety of factors, including the amount of customer demand, the frequency of deliveries, and the number of items on the menu that use the ingredient.

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PAR Levels in Restaurants: The Basics

While PAR levels may seem like a no-brainer for restaurants to maintain, in reality, it can be quite difficult to keep track of everything and stay within the desired range. This is where a PAR level system comes in handy.

A PAR level system is a way for restaurants to keep track of their inventory and ensure that they always have the right amount on hand. This system uses a variety of methods to track inventory, including barcodes, generated dynamic QR codes, and RFID tags.

The benefits of using a PAR level system are numerous. Perhaps the most obvious benefit is that it helps to reduce food waste. When restaurants know exactly how much of an ingredient they need, they are less likely to over order or let items go to waste.

Another benefit of using a PAR level system is that it can help to improve customer satisfaction. When restaurants have the right amount of an ingredient on hand, they can avoid running out of popular items and having to disappoint customers.

Finally, a PAR level system can help to improve the bottom line for restaurants. By reducing food waste and improving customer satisfaction, restaurants can save money and increase their profits.

If you are a restaurant owner or manager, it is important to understand the basics of PAR levels. By using a PAR level system, you can help to reduce food waste, improve customer satisfaction, and increase your profits.

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Easy to learn, hard to master. That’s why the warehouse management function from Upmenu.com is a great way to keep track of inventory and ensure that food is fresh and of high quality. This function can be especially helpful for restaurants and restaurant chains that have multiple locations. By keeping track of inventory at each location, you can ensure that each restaurant has the necessary ingredients on hand to make the dishes on the menu.

Inventory management feature in UpMenu system

Why PAR Levels are Important in a Restaurant

PAR levels are important in a restaurant because they help to ensure that there is enough of each item on hand to meet customer demand, while also helping to control costs. 

PAR stands for “product availability ratio.” This is the percentage of time that an item is available for sale, relative to the time it is not available. For example, if an item has a PAR level of 80%, that means it is available for sale 80% of the time. 

PAR levels help to ensure that restaurants have enough of each item on hand to meet customer demand. They also help to control costs by ensuring that restaurants do not order too much of an item, which can lead to waste. 

While PAR levels are important, it is also important to remember that they are only one tool that can be used to manage inventory. They should be used in conjunction with other tools, such as sales forecasts and ordering patterns, to ensure that restaurants have the right amount of each item on hand.

How to Determine PAR Levels for a Restaurant

PAR levels, or “stock levels”, are the minimum amount of a given product that a business should keep on hand at any given time. Determining the correct PAR level for each item in a restaurant is crucial to maintaining an efficient and profitable operation. 

There are a few factors to consider when determining PAR levels for a restaurant: 

– The frequency of customer orders: items that are ordered more frequently will need to be stocked at higher levels to avoid running out. 

– The lead time: the time it takes to receive an ordered item from the supplier. This should be taken into account when setting PAR levels, as items with longer lead times will need to be ordered more in advance. 

– The shelf life: perishable items will have a shorter shelf life and will need to be ordered more frequently. 

– The seasonality of demand: items that are in high demand during certain times of the year (e.g. holiday-themed items) will need to be stocked at higher levels during those periods. 

Once these factors have been considered, the next step is to set the PAR level for each item. This can be done by calculating the average number of customer orders per day and multiplying it by the number of days it takes to receive a new shipment from the supplier. For example, if an item is ordered an average of 10 times per day and it takes 3 days to receive a new shipment, the PAR level would be 30 (10 x 3). 

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Once the PAR levels have been set, it is important to monitor them closely and make adjustments as needed. This will help to ensure that the restaurant has the right amount of inventory on hand at all times, without over-ordering or running out of items.

How to Maintain PAR Levels in a Restaurant

There are a few steps you can take to maintain accurate PAR levels in your restaurant: 

1. Know your products. PAR levels will vary depending on the type of product. For example, high-turnover items will have a higher PAR level than low-turnover items. 

2. Know your customer demand. Pay attention to patterns in customer ordering to help you determine how much of each product you should keep on hand. 

3. Use a PAR chart. A PAR chart is a tool that lists all of the items in your restaurant with their corresponding PAR levels. This chart can help you keep track of what needs to be restocked and when. 

4. Perform regular inventory checks. Checking your inventory on a regular basis will help you to identify items that need to be restocked. 

5. Stay organized. Maintaining accurate PAR levels can be difficult, but it’s important to stay organized and keep on top of it. 

By following these steps, you can help to ensure that your restaurant is always stocked with the necessary supplies. Maintaining accurate PAR levels is crucial for providing excellent customer service and keeping your business running smoothly.

The Benefits of Using PAR Levels in a Restaurant

By keeping track of what needs to be restocked, a restaurant can avoid over-ordering and run out of supplies. PAR levels can also help a restaurant to budget for inventory and track spending. There are many benefits to using PAR levels in a restaurant. 

First, it can help to avoid over-ordering and running out of supplies. Second, it can help to budget for inventory and track spending. Third, it can help to keep track of the items that need to be restocked. Fourth, it can help to improve communication between the kitchen and front of house. Finally, it can help to streamline the ordering process. 

PAR levels can help a restaurant to run more smoothly and efficiently. By keeping track of what needs to be restocked, a restaurant can avoid over-ordering and running out of supplies. This can help to improve communication between the kitchen and front of house, and can also help to streamline the ordering process. In addition, by budgeting for inventory and tracking spending, a restaurant can improve its bottom line.

The Challenges of Maintaining PAR Levels in a Restaurant

There are several challenges that can make maintaining PAR levels difficult. First, restaurants are constantly dealing with inventory, and it can be difficult to keep track of what needs to be restocked. Second, there is always the potential for human error. For example, a server might accidentally spill a drink, or a cook might forget to add an ingredient to a dish.

 Finally, outside factors can also impact PAR levels. For example, if there is a power outage, the restaurant will not be able to sell any food that needs to be cooked.

Despite these challenges, it is important for restaurants to maintain high PAR levels. This ensures that the restaurant is able to meet customer demand and avoid lost sales.

Best Practices for Managing PAR Levels in a Restaurant

Having too much inventory can tie up valuable resources, while having too little can lead to lost sales. Therefore, below you will find a few best practises for managing PAR levels: 

1. Know your products. Understand which items are your bestsellers and which items are slower movers. This will help you determine how much inventory to keep on hand. 

2. Streamline your operations. Having a streamlined operation will help you move inventory quickly and efficiently. 

3. Stay organized. Maintaining a well-organized inventory will help you keep track of PAR levels and make necessary adjustments. 

4. Communicate with your team. Make sure everyone on your team is on the same page when it comes to PAR levels. Communication will help ensure that everyone is aware of changes and can make necessary adjustments. 

5. Be flexible. Be prepared to make changes to your PAR levels as needed. The restaurant industry is constantly changing, so it’s important to be flexible and make adjustments as needed. 

Following these best practices will help you effectively manage PAR levels in your restaurant. Maintaining accurate inventory levels is crucial to keeping your restaurant running smoothly and avoiding lost sales.

Monika Kamińska

Monika Kamińska - marketing and communication enthusiast, psychologist by education. For almost 20 years he has been working in areas related to marketing activities, customer path and decision making. Experience has taught her that the most important thing is efficiency. She boldly sets goals and implements them by choosing online and offline tools. Her passion is the analysis of customer behavior and content marketing.

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