Guide2026-05-03

How to Set Par Levels for Restaurant Inventory (Avoid Overstock & Stockouts)

Par level inventory is the minimum stock you should always have on hand before reordering. For Indian restaurants, getting this right means fresh paneer in your fridge, enough basmati rice for weekend rushes, and no money wasted on expired spices sitting in storage.

Simple Par Level Formula

Par Level = (Average Daily Usage × Lead Time) + Safety Stock. If you use 5kg paneer daily and your supplier takes 2 days to deliver, keep at least 10kg + 3kg buffer = 13kg minimum. When stock hits 13kg, place your order.

Quick Setup Steps

  • Track usage for 2-3 weeks to find your daily average per item
  • Note supplier lead times (most Mumbai suppliers deliver next day, smaller cities may take 2-3 days)
  • Add 20-30% safety stock for high-demand items like rotis and dal
  • Review monthlywedding season and festivals change everything

Start with your top 20 ingredients by cost. Perishables like coriander, tomatoes, and dairy need tighter par levels than dry goods. Your 15,000 monthly ghee expense matters more than your 500 jeera stock.

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