Inventory touches every part of a restaurant, yet it’s often one of the least understood. It influences what makes it onto the menu, how smoothly service runs, how much cash is tied up in ingredients, and whether a busy week actually turns into a profitable one. Still, many operators don’t feel confident managing inventory day to day.
To understand what’s really happening behind the scenes, Square surveyed 927 restaurant and retail businesses. The goal was simple: uncover how restaurants are tracking inventory today, where the biggest gaps exist, and what changes as businesses grow.
What the data shows is revealing. Most restaurants start tracking inventory early, but many rely on manual systems that weren’t designed for modern service. As menus expand and operations grow more complex, those systems begin to show strain. Small inventory misses slowly affect cash flow and ultimately, profit margins. This ebook breaks down what the research uncovered and what it means for restaurant operators right now.
Here’s what you’ll learn inside:
- Why inventory decisions are financial decisions and how small stock missteps quietly impact cash flow and profitability in restaurants
- The most common inventory challenges restaurants face today, and why they become harder to manage as menus, locations, and sales channels grow
- The key moments when existing inventory systems start to break down, and why restaurants upgrade
- How successful restaurant operators use inventory data to guide decisions, including what to prep, reorder, or remove from the menu
- What connected inventory looks like in practice, with real examples of restaurants using Square to stay stocked, reduce waste, and operate with confidence
- How inventory, sales, and cash flow work together, and why having them in one system leads to more predictable, resilient operations.
If you’re expanding your restaurant or simply looking for a clearer way to stay stocked, this guide will help you understand what’s possible and what to do next.
