Cost & Food Cost guide

How to Track Waste in Restaurants

Waste is one of those operational items that hits both cost and stock accuracy directly.

When waste is not recorded, a gap opens up between the stock in the system and the stock on the shelf.

6 min readUpdated: August 2026
Contents

What counts as waste?

Broadly, waste covers the stock movements lost without turning into a sale or into normal production.

What causes waste?

Waste can come from:

  • spoilage,
  • passing the use-by date,
  • loss during preparation,
  • incorrect production,
  • a portioning mistake,
  • damage to the product.

Any of these.

Why should waste be recorded separately?

If waste disappears inside normal consumption, stock goes down without anyone being able to see why.

Recorded as a movement of its own, it can be analysed by:

  • product,
  • quantity,
  • branch,
  • date,
  • point in the operation.

Any of these.

What is preparation waste?

For some ingredients, the quantity purchased and the quantity actually usable are not the same.

Assessing the loss that occurs during cleaning or preparation correctly can change the recipe and the cost calculation.

How does waste affect stock?

A waste record reduces the stock quantity without creating a sales movement.

So the system has to show waste separately from sales consumption.

How is the cost of waste calculated?

The quantity written off is tied to its cost value, and the cost impact assessed from there.

Why compare waste between branches?

Where branches working to the same products and the same operational standard show clear differences in waste, areas worth looking at include:

  • the preparation process,
  • portioning,
  • storage conditions,
  • training.

Areas like these.

What should be done when waste runs high?

Seeing the waste ratio on its own is not enough.

Waste should be broken down by:

  • product,
  • branch,
  • date,
  • process

and traced back to its source.

In summary

The point of managing waste is not simply to record the loss.

It is to make where and why the loss happened visible, so the operation can be improved.

With Kerzz

Waste tracking with Kerzz

In Kerzz, waste and other stock movements can be followed as separate transaction types, so the reason behind a change in stock stays traceable.

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