What is the average inventory-turnover of restaurants industry, is it high?

Question

By how many times (ratio)?

What industry have the highest ratio (how many times)? What's the lowest (ratio)?


10 pts. for good or detailed answer.

Answer 1

What is a satisfactory inventory-to-food-cost ratio? Some cost-control experts suggest that an appropriate ratio for food-service operations in general should be anywhere between one and five turns per month. In practice, the best measure for an individual operation depends on its industry segment, menu design, sales levels, and marketing strategies, among other factors.

In the on-site arena, the leading managed-services companies have established benchmarks for inventory turnover by segment. For example, an executive at ARAMARK told me that his operators in the business and industry (B&I) segment strive for approximately two turns per month. He explained that that is a reasonable goal, given that many operations carry more than 1,500 different inventory items to accommodate their diverse menu offerings.

Read the full (long) article "Inventory-turnover analysis: its importance for on-site food service" at the link.