Why Overordering Might Be Killing Your Margins (And How to Fix It)

Running a restaurant means walking a constant tightrope between keeping ingredients in stock and keeping costs under control. But if you’re consistently overordering — even a little — you could be quietly draining thousands of dollars from your bottom line each month.

Let’s break down why overordering happens, how it impacts your restaurant profit margins, and what you can do to stop food waste before it starts.

The Hidden Cost of Overordering

It’s easy to assume that having “too much” product on hand is better than running out. After all, no one wants to 86 a popular menu item on a busy Saturday night.

But when inventory piles up faster than you can sell it, your cost of goods sold (COGS) starts creeping up — and your profits shrink.

Common side effects of overordering include:

• Food spoilage and waste – especially with perishable items like produce, dairy, and protein.
• Tied-up cash flow – inventory sitting in your walk-in is money that can’t be used elsewhere.
• Storage inefficiency – overstocked shelves make it harder to track what’s actually being used.

The average restaurant throws away 4–10% of purchased food before it ever reaches a customer’s plate. That’s pure margin loss — and completely preventable.

Why It Happens: The Top 3 Triggers of Overordering

• Guesswork instead of data. Without accurate sales and usage tracking, orders are based on gut feel rather than demand trends.
• Poor inventory visibility. When teams can’t easily see what’s already in stock, they reorder “just in case.”
• Inconsistent communication between shifts. Handwritten notes or outdated spreadsheets make it easy for duplicate orders or missed counts to slip through.

Over time, these small missteps add up to serious waste — not just in food, but in time, labor, and profit.

How to Fix It: Smarter Ordering + Better Systems

The solution isn’t just ordering less — it’s ordering smarter. That starts with improving visibility and using real-time data to guide purchasing decisions.

Here’s how to get started:

• Track usage by ingredient, not just by invoice. Knowing what’s being used (and wasted) helps you spot patterns and adjust par levels accordingly.
• Use restaurant inventory management software CheddrSuite simplifies ordering by giving you a live view of stock levels and historical data — all in one place.
• Integrate with your supplier (link to: /sysco). If you’re a Sysco customer, CheddrSuite’s direct Sysco EDI integration lets you see real-time pricing — no duplicate entry or guesswork required.
• Set smart par levels. Base your par levels on actual sales trends, not assumptions. Seasonal menu shifts and events can be factored in automatically.
• Train your team. Even the best system fails if the people using it aren’t consistent. Make inventory checks part of your opening and closing routines.

The Payoff: Higher Margins, Lower Stress

Restaurants that tighten up ordering and inventory control often see 2–5% improvements in profit margins within weeks. That might not sound like much — but in this industry, that’s the difference between breaking even and thriving.

By cutting waste and controlling costs, you free up cash to reinvest in what really matters: your people, your guests, and your growth.

Stop the Waste Before It Starts

Overordering is easy to overlook — but even small corrections can make a big difference.

If you’re ready to cut food waste, control costs, and protect your restaurant profit margins, CheddrSuite can help.

👉 Book a demo to see how our all-in-one restaurant management software helps you track inventory, streamline ordering, and stay profitable week after week.