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What most companies are doing (and why it's wrong)

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Most restaurant chains today still manage inventory manually or with basic POS-generated reports.

They order reactively based on past consumption averages or manager "best guesses," without predictive modeling.

This leads to two constant problems:

• Overstocking — leading to spoilage, waste, and tied-up capital
• Stockouts — leading to missed sales, angry customers, and reputation damage

Manual processes cannot adapt dynamically to real-world volatility like weather shifts, holiday traffic, major events, or supply chain disruptions.

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What it means for their business

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In the worst case:

• Food and beverage wastage rates rise to 5–8% of total revenue (which for a $10M chain = $500k–$800k lost per year)
• Critical menu items go out of stock during peak periods — causing customer dissatisfaction and negative reviews